Supply chain bottlenecks, the highest inflation in decades and a persisting labour shortage are weighing on businesses across the country, according to a new Federal Reserve report. In its region-by-region roundup of anecdotal information known as the Beige Book, the Fed reported that while economic activity increased at a “moderate …
Read More »Gold firming at daily support
The Gold Price fall was capped by falling US Treasury yields amidst a risk-on market mood. US Treasury yields dropped from three-year highs and undermined the US dollar. Bulls start to engage at the start of a demand area, eyes on daily M-formation.Gold Price is higher in the US session, …
Read More »Daly: Case for a 50 bps rate hike in May is now “complete”
San Francisco Fed President and FOMC member Mary Daly on Wednesday said that the case for a 50 bps rate hike in May is now “complete” and that the Fed can also make an announcement on the reduction of its balance sheet at the next meeting, reported Reuters. Daly said …
Read More »AUD/USD clings to strong gains
A combination of factors assisted AUD/USD to gain strong positive traction on Wednesday. Hawkish RBA minutes extended support to the aussie amid a sharp USD corrective pullback. Bets for aggressive Fed rate hikes should limit the USD losses and cap the upside for the pair.The AUD/USD pair maintained its bid …
Read More »Canada: Annual CPI jumps to 6.7% in March versus expected rise to 6.1%
Annual headline inflation in Canada jumped to 6.7% in March, according to the latest Consumer Price Index (CPI) figures released by Statistics Canada on Wednesday. That was well above the median economist forecast for a rise to 6.1% from 5.7% YoY in February. The larger than expected jump in the …
Read More »Nagel Expects ECB’s first rate hike to come in Q3
Bundesbank President and ECB governing council member Joachim Nagel said on Wednesday that he expects the ECB’s first rate hike to come in Q3 of this year, though he also said he is against hasty rate hikes. Nagel warned that getting inflation back to the ECB’s 2.0% target is looking …
Read More »Gold at its lowest level in two weeks, affected by US bond yields and the dollar
On Wednesday, gold prices fell to their lowest in nearly two weeks, weighed down by persistently higher US bond yields and the dollar. By 0741 GMT, spot gold fell 0.4 percent to $ 1941.40 an ounce, and US gold futures fell 0.7 percent to $ 1944.80. On Tuesday, the price …
Read More »Market Drivers – US Session – 19 April
Money flowed out of bonds again, sending the 10-year Treasury yield higher by 4 basis points to 2.9%. The bond market continues to price in aggressive rates by the Federal Reserve this year.Economic DataHousing Starts rose by 0.3% in March, taking the rolling 12-month number of starts to 1.793M, above …
Read More »Swiss National Bank Chairman: Inflation Surge Temporary
The Swiss National Bank sees the current increase in inflation as a temporary phenomenon, Chairman Thomas Jordan said on Tuesday, although the central bank would keep a close eye on the situation.Central banks including the US Federal Reserve and the Bank of England have started raising interest rates to fight …
Read More »Fed’s Bostic: Larger 75 bps hike “not on the radar”
Atlanta Fed President and FOMC member Raphael Bostic on Tuesday reiterated the important of getting rates to neutral territory “expeditiously”, though cautioned that a 75 bps rate hike is “not on the radar”.Bostic said he estimates the neutral rate to be around 2.5% and feels the US economy is strong …
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