Preliminary data released on Tuesday indicated that a larger-than-expected decline in annual inflation in Germany to 10%. According to Sebastian Becker, Senior Economist at Deutsche Bank, the downward surprise is largely explained by the unexpected energy price drop. He warns that core inflation dynamics might remain strong for now.Key Quotes: …
Read More »Bailey: no monetary reason forces BoE to enact reserves shake-up
The BoE’s governor, Andrew Bailey said on Tuesday there was no monetary policy reason to reduce or restructure the way the UK central bank pays interest on its reserves held by commercial banks.“In my view, there is not a monetary reason, a monetary policy reason that is, for varying that. …
Read More »US Consumer Confidence declines in November
The Conference Board published fresh Consumer Confidence Index data on Tuesday showing a decline to 100.2 in November from (revised from 102.5) 102.2 in October.Similarly, the Present Situation Index edged lower to 137.4 versus the previous reading at 138.9. in addition, the Expectations Index fell to 75.4 from 78.1 in …
Read More »Wall Street spends $1.8 billion to spy on Traders after record fines
Wall Street spends more than ever on technology designed to keep an eye on traders after regulators extracted record fines from several banks worldwide for confronting lapses in monitoring communications. The industry will spend about $1.8 billion on surveillance technology in 2022, up by 20% from 2021, according to Coalition …
Read More »Dallas Fed Manufacturing Index’s Mixed Messages
On the surface everything revealed by Monday’s Dallas Fed Manufacturing Index reading is pointing in the direction the Federal Reserve wants to see. Employment is cooling and inflation pressures are giving signals fading, though, in reality, this is not the case with the US economy at large.In reality, order volumes …
Read More »Market Drivers – US Session 28/11/2022
The US session has been a big arena for volatility with beginning of the trading week. The US dollar has managed to edge higher up to 106.74 on Monday, slightly recovering from a three-and-a-half month low of 105.32 as investors are concerned about the pro global economic slowdown and the …
Read More »Fed’s Brainard: Successive supply shocks a challenge for central banks
“The successive shocks to global supply chains from the pandemic and the war in Ukraine could ‘herald a shift’ to an era of more volatile inflation and force central banks to guard against it with tighter monetary policy,” Fed vice chair Lael Brainard said in remarks released on Monday by …
Read More »EUR/USD extends risk-off decline towards support territories
At the time of writing, EUR/USD is down some 0.29% falling to a low of 1.0338; sliding from a higher of 1.0496. Risk currencies, such as the Euro are under considerable pressure as protests against COVID restrictions in China weighed on the overall market sentiment.The violent protests in major Chinese …
Read More »Fresh decline of gold on stronger US dollar
Gold continues to decline starting the beginning of the US trading session on Monday, affected by the rise of the US dollar after changing its direction due to the markets’ focus on the current events in China.Gold futures fell to $ 1740 per ounce, versus the previous closing at $ …
Read More »USD/CAD climbs to 1.3460 on risk aversion
The Canadian dollar extended its losses amid the market’s prevalent risk-off sentiment. Canada printed a deficit on its current account and this news could constitute a headwind for the Canadian dollar.The Canadian dollar extended its losses to two straight days, though it trimmed some of its losses after the USD/CAD …
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