Forex Market

Federal Reserve Bank of San Francisco President Mary Daly said on Friday that the latest Omicron wave will extend the time period that inflation will remain high. Federal Reserve Bank of New York President John Williams said on Friday that he expects the Omicron wave to temporarily prolong and intensify …

Industrial Production in the US dropped unexpectedly 0.1% in December. Analysts at Wells Fargo explain the decline took place despite indications that wait times are shortening and other signs of initial improvement with the supply chain problem.Key Quotes: “Total industrial production edged slightly lower in December with a 0.1% decline …

The market has stabilized, with the US dollar consolidating losses on Thursday. Risk appetite retreated, preventing the dollar index from falling further. Intraday gains of the American currency helped correct oversold conditions reached one day following Wednesday’s selloff.The Federal Reserve’s hawkish language was much assessed and digested in ahead of …

Gold futures edged lower on Thursday, with prices on track to post their first loss in five sessions, after a rise in the US producer price index reading for December came in below market expectations.It could be argued that the bullish case for gold is its reputation as an inflation …

Federal Reserve’s Christopher Waller said three hikes in 2022 are still a good baseline but he said if inflation stays high there could be four or even five hikes.Additional QuotesCould also allow the balance sheet to run off earlier.Doesn’t favour 50bps Fed hike in March.Could start shrinking Fed balance sheet …

Crude oil prices edged lower on Thursday as investors took profits after two days of gains amid fears of aggressive US interest rate hikes.Losses were cushioned by expectations of a strong economic recovery that will boost demand in a tightly supplied market. US West Texas Intermediate crude futures settled down …

The coming oil surplus could be much smaller than expected and could exert much less downward pressure on oil prices this year.Demand remains strong as signaled in the six-month futures spread in Brent which has more than doubled since hitting a low point in December.At the start of 2022, Omicron’s …

The EUR/USD pair buying hit overdrive on Wednesday, but the pace of gains has been more measured on Thursday. The pair is now consolidating in the 1.1450 area as traders assess whether the recent dollar long-squeeze is over.While the pair continues to trade with modest gains of about 0.1% on …

Outgoing Fed Vice Chair Richard Clarida, who will resign from his position on Friday, two weeks before the end of his term, said on Thursday that commencing policy normalization in 2022 would be entirely consistent with the Fed’s new flexible average inflation targeting framework. The US economy is well above …

Chicago Federal Reserve President Charles Evans said on Thursday that three rate hikes in 2022 would be a good “opening bid”, though it could be four if inflation doesn’t improve fast enough.Evans added that he is reluctant to declare that the US has reached full employment, but that inflation is …