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 »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 »Were Lagarde’s remarks on rate hikes easy to interpret?
This week’s data and statements seem varied and relatively difficult to interpret, making the path for rate hikes more uncertain. Most analysts tend to believe that the ECB will halt in July, but do expect the Fed in the United States to deliver two more rate hikes before Q4, with …
Read More »EUR/GBP weakens on Euro’s retreat
The EUR/GBP pair is resuming its downward trend, edging closer to its yearly low, signaling potential bearish momentum in the pair. The current trend remains undecided below the 0.8700 resistance, awaiting a clear direction pressured down by failing German Yields.Market awaits ECB President Lagarde’s speech and German inflation data on …
Read More »ECB’s Knot: We need at least two more rate hikes
ECB policymaker Klaas Knot said that the ECB needs to raise the policy rate at least two more times. Knot further argued that rates should stay put for a significant period of time following these increases.“Headline inflation peak behind us but not sure if at peak of underlying inflation”, Knot …
Read More »Market Drivers -US Session – 17/05/2023
Wall Street indices increased by more than 1%, but the US dollar declined as market mood improved. But the US dollar received support from higher yields. The odds of a rate hike in June increased due to positive US economic statistics, optimism about a debt ceiling agreement, and a decrease …
Read More »Guindos: Tightening Mostly Done, But ECB Still Has A Way To Go
The European Central Bank has completed most of its historic monetary-tightening campaign but there remains some ground to cover, according to Vice President Luis de Guindos.Without revealing where he sees the peak in interest rates, Guindos said Wednesday that future ECB decisions will hinge on data in the coming months. …
Read More »ECB looks for new top supervisor to succeed Enria
The European Central Bank said on Wednesday that it is seeking for a new top bank supervisor to replace Andrea Enria, whose tenure expires at the end of the year. Candidates for the position of chair of the ECB’s Supervisory Board, the eurozone’s most senior banking watchdog, must apply by …
Read More »Financial Markets’ Weekly Recap, May 08-12
The dollar remained close to a peak of more than a week on Friday after a slew of data released overnight indicated a slowdown in the US economy, as investors bet the Federal Reserve would halt interest rate increases. The dollar index, which measures the performance of the US currency …
Read More »EUR/USD sinks to four-week lows on stronger dollar
The EUR/USD pair drops to 1.0916 as US PPI data slows and unemployment claims rise, strengthening the US Dollar. US Treasury bond yields fall with investors pricing in three rate cuts by the Federal Reserve by December 2023.ECB speakers emphasize slowing inflation in the Eurozone, with further rate hikes left …
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