European stocks fell on Thursday, affected by the decline in technology stocks, which are sensitive to interest rate movements, on expectations that large central banks will continue to raise interest rates, but the gains of the Swiss healthcare group Novartis contributed to limiting losses. And by 0715 GMT, the European …
Read More »Market Drivers – US Session – 07/06/2023
On Wednesday, the Bank of Canada surprised markets by raising its key rate by 25 basis points to 4.75%, citing persistent excess demand and increasing concerns that inflation could “get stuck” materially above the target. This decision follows the Reserve Bank of Australia’s hike on Tuesday, which also exceeded economic …
Read More »RBA Hope of No Recession Doubted On Crashing Yield Curve
Australia’s bond market is showing serious concern the central bank will push the country into a recession. The Australian key yield curve shrank to 13 basis points on Wednesday after data showed the economy slowed more than expected last quarter, while accelerating labor costs underlined the nation’s inflation challenge.The key …
Read More »Gold slides on surging US T-yields, global economic woes
Gold prices decline, hindered by rising US bond yields and the greenback’s resilience; XAU/USD is down 0.50%. Gloomy global economic outlook impacts sentiment, with disappointing export data from China and broadened US trade deficit.The US dollar gains momentum as the US Dollar Index (DXY) pares earlier losses, adding pressure on …
Read More »EUR/USD jumps on hawkish ECB remarks, US trade deficit reading
The EUR/USD pair buoyed by hawkish ECB commentary bounces off 200-day EMA as Fed June rate hike expectations fade. The US trade deficit widens significantly to $-74.6B, driven by a decline in exports and a rise in imports. Rate hikes by BoC and RBA influence US Treasury bond yields, signaling …
Read More »BoC Preview: Forecasts from four major banks
The Bank of Canada (BoC) is scheduled to publish its Interest Rate Decision on Wednesday, June 7 at 14:00 GMT, and as the day approaches, here are the forecasts of four major banks’ economists and academics on the impending announcement. The Bank of Canada is likely to hold interest rates …
Read More »Turkish lira plunged 7%, amid the largest selling since the 2021 crisis
The Turkish lira plunged 7 percent on Wednesday to a new record high amid the biggest sell-off in the currency since its historic collapse in 2021, as the new Turkish government appeared to ease stabilization measures after hinting at a shift to more traditional policies. The lira has been under …
Read More »Dollar fluctuates with the receding expectations of an interest rate hike
The dollar saw a volatile performance on Wednesday as expectations of a Federal Reserve rate hike this month receded, however moves remained range-bound as traders focused on whether an end to monetary tightening was in sight around the world. The Australian dollar recorded the highest level in three weeks, extending …
Read More »Market Drivers – US Session – 06/06/2023
The dollar posted mixed results on Tuesday in a cautious market ahead of a crucial week. The USD Dollar Index rose 0.15% but was unable to break the 104.40 area again. US Treasury yields held relatively steady. There are no Federal Reserve speakers ahead of next week’s FOMC meeting. Fed …
Read More »AUD/USD rallies post RBA policy meeting
The AUD/USD pair rallied to the highest since mid-May following the RBA’s policy meeting that unexpectedly raised interest rates. The cash rate was at an 11-year high of 4.1% earlier on the day. At the time of writing, the pair is trading at 0.6672. This development leaves the technical outlook …
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