The election has significant implications for Fed policy in 2025, with a Trump victory potentially ensuring a lower tax environment that boosts sentiment and spending in the near-term. However, promised tariffs, immigration controls, and higher borrowing costs will become headwinds through his presidential term. Conversely, a Harris victory implies continuity, …
Read More »DXY: Uncertain Path Amid Economic Crosscurrents
The US Dollar, once an unfaltering symbol of global financial stability, has recently exhibited a volatile performance. While it initially surged on the back of aggressive interest rate hikes by the Federal Reserve, it has since retreated as market expectations for future tightening have moderated. The confluence of economic factors, …
Read More »Fed’s Tightening Grip: A Deeper Look at the Shrinking RRP
The Federal Reserve’s ongoing efforts to tighten monetary policy have led to a significant decline in the amount of money parked at its overnight reverse repurchase agreement (RRP) facility. This development has sparked renewed debate about the potential for a liquidity crunch in the US financial system.As of Friday, the …
Read More »Fed Expected To Address Recent Labour Data With Caution
The Federal Reserve is poised to once again navigate a complex economic landscape as it prepares for its upcoming policy meeting. While the central bank is widely expected to implement a modest interest rate cut, the underlying economic conditions present a nuanced picture. The recent employment report, though initially underwhelming, …
Read More »US Job Growth Slows Sharply in October Amid Hurricanes and Strikes
The U.S. labor market experienced a significant slowdown in October, with nonfarm payrolls adding just 12,000 jobs, far below the expected 106,000. This steep drop comes after September’s revised 223,000 job increase, as the Labor Department indicated that severe hurricanes in the Southeast and strikes in manufacturing weighed heavily on …
Read More »Microsoft Forecasts AI Spending Surge Amid Slower Azure Growth
Microsoft has announced expectations for increased spending on artificial intelligence (AI) in the current quarter but cautioned that growth in its Azure cloud business may slow down due to capacity constraints at its data centers. Shares of the Redmond, Washington-based company fell 3.6% in after-market trading, reversing earlier gains despite …
Read More »A Shifting Currency Landscape: Eurozone Strengthens, Dollar Weakens
The foreign exchange market has been witnessing intriguing dynamics, primarily driven by the divergent economic trajectories of the Eurozone and the United States. The Euro has surged against the US Dollar, reflecting a confluence of factors that have propelled the Eurozone economy and dampened the appeal of the dollar.The recent …
Read More »October Private Payrolls Beat Expectations Amid Hurricane and Strike Concerns
In October, U.S. private payroll growth exceeded forecasts, adding 233,000 jobs, as reported by the ADP National Employment Report. This growth followed an upwardly revised increase of 159,000 in September, well above the 114,000 jobs economists had anticipated. The ADP report, created with Stanford’s Digital Economy Lab, precedes Friday’s comprehensive …
Read More »Could Strong Jobs Report Stall Fed Rate Cuts?
The upcoming October jobs report is poised to significantly influence the trajectory of the U.S. economy and financial markets. A robust employment figure could potentially delay the Federal Reserve’s plans to ease monetary policy through interest rate cuts. Such a development would ripple through various sectors, with small-cap stocks, particularly …
Read More »Dollar Strength and Fed’s Approach to Rate Cuts
The U.S. dollar remained strong on Tuesday, holding near a 2-1/2-month high due to expectations that the Federal Reserve will adopt a cautious approach to cutting interest rates. This strength, buoyed by rising U.S. Treasury yields, has put pressure on the yen, euro, and British pound. The dollar’s rally is …
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