With another session of quiet trading activity across the FX sector, the US dollar moved marginally defensively. At their discussion panel at the ECB Forum, Fed Chair Jerome Powell and ECB President Christine Lagarde left no space for surprises in the interim. Investors are bracing themselves for a plethora of …
Read More »What do markets expect post-Powell, Lagarde’s recent statements?
Powell Cites “Actual Advancement” While Central Bankers Evaluate War Against Inflation. Christine Lagarde, the head of the European Central Bank, and Jerome H. Powell, the chair of the Federal Reserve, both sounded upbeat about recent inflation figures but emphasized the need for greater confidence before cutting interest rates. Over the …
Read More »Lagarde: Eurozone ‘Very Advanced’ on Disinflationary Path
The Eurozone is “very advanced” on the disinflationary path but there remain “question marks” hanging over the outlook for economic growth, European Central Bank President Christine Lagarde said on Tuesday.“We’re very advanced on that disinflationary path,” Lagarde told the ECB’s annual Forum on Central Banking. “We are in that slow …
Read More »Official Suggests ECB’s Policy Divergence from Fed Temporary
European Central Bank Executive Board member Isabel Schnabel downplayed the likelihood that interest rates in the euro zone will take a significantly different path from those in the US. “So far this hasn’t really played out that much,” Schnabel told a panel discussion Monday in Berlin. “The macro economy is …
Read More »Why are money market funds the preferred choice for some investors?
After 25 basis-point rate cut decisions by the ECB and BoC, the Fed left rate unchanged (within 5.25%: 5.5% range) with one possible cut before yearend. This decision bodes well for holders of assets in money market funds that provide returns exceeding dividend stocks and REITs, while their performance is …
Read More »Early French elections shake investors’ confidence in the economy
Financial markets were taken aback by French President Emmanuel Macron’s announcement to hold early elections, which has raised questions about his pro-business agenda and the country’s already precarious finances.Market reactions:Following the announcement of a sell-off of French assets on Monday, investors are requesting higher returns on French bonds than on …
Read More »Lagarde: ECB could wait several meetings between rate cuts
ECB President Christine Lagarde stated that interest rates are not on a linear downwards path and that policymakers could wait more than one meeting before cutting them again. Markets now expect little more than one rate cut over the four remaining policy meetings this year and between 3 and 4 …
Read More »Financial Markets’ Weekly Recap: Fed Policy, Market Sentiment, Jobs Data
The financial markets displayed a mixed performance this past week, as investors navigated a confluence of economic data, central bank policy updates, and ongoing geopolitical tensions. While some sectors thrived, others took a backseat, reflecting the underlying uncertainty about the future trajectory of the global economy. Equity Markets Take a …
Read More »EUR/USD trims week’s earlier gains
Surprisingly, the US NFP numbers were far higher than anticipated. It is improbable that an additional rate decrease will follow the ECB rate cut. The European Central Bank (ECB) President Christine Lagarde issued a warning that a follow-up rate drop to June’s quarter-point rate trim may not be in the …
Read More »Market Drivers; US Session, June 6
Caution prevailed among investors ahead of the US labor market report release, resulting in subdued price movements across the market on Thursday. Simultaneously, the European Central Bank (ECB) implemented a widely expected 25 basis point reduction in interest rates. Currencies:EUR/USD regained traction and approached the 1.0900 zone after the cautious …
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