Kansas City Fed President Esther George, who voted against the 75 basis points rate hike in June, said on Monday that the pace of rate increases needs to be carefully balanced against the state of the US economy.George’s comments do not have an immediate impact on the US dollar’s valuation. …
Read More »Market Drivers – US Session – Thursday, July 7
US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, bounced off the lowest levels since September 2021 by the end of Thursday’s North American session. The inflation gauge recently flashed the 2.33% mark, reversing from the previous day’s multi-month low of …
Read More »Fed Officials Speak On Inflation, Soft Landing,
Fed’s Bullard: We’ve got a good chance at a soft landingCEO of the Federal Reserve Bank of St. Louis. James Bullard has said that rather than stagflation, a better bet is growth will slow to trend and that inflation will come under control rapidly.Key comments by BullardThe labor market could …
Read More »ECB’s Stournaras: Not observing excessive wage demand in Europe
European Central Bank Governing Council member Yannis Stournaras noted on Thursday that the monetary policymakers are not observing excessive wage demand in Europe.In the meantime, ECB policymaker and Governor of the Central Bank of Cyprus Constantinos Herodotou said that they are not targeting exchange rates while adding that they do …
Read More »Less-than-expected rise in German industrial production in May
German industrial production rose less-than-expected in May, official data showed on Thursday, as supply chain problems stemming from the war in Ukraine and COVID-19-related shutdowns in China made it difficult to process orders. The Federal Statistics Office said industrial output rose 0.2 percent month-on-month, after an upwardly revised 1.3 percent …
Read More »FOMC Minutes Explained
Following data showing consumer prices running at an 8.6% 12-month rate and inflation expectations rising, the rate-setting Federal Open Market Committee chose the most tightening path.Fed Officials indicated a series of increases that would take the funds rate to 3.4% this year, above the longer-run neutral rate of 2.5%. Futures …
Read More »German Factory Orders unexpectedly rise 0.1% MoM in May
The German Factory Orders rebounded in May, suggesting that the manufacturing sector downturn in Europe’s economic powerhouse is flattening. Contracts for goods ‘Made in Germany’ jumped by 0.1% on the month vs. -0.6% expected and -2.7% last, the latest data published by the Federal Statistics Office showed on Wednesday. On …
Read More »Treasury yield curve inverts as recession fears accelerate
US Treasury yields tumbled on Tuesday on what is widely seen as a recession alert and a key part of the yield curve inverted for the first time in three weeks as concerns about economic growth injured risk appetite, bringing about increased demand for the safe haven US debt.Fears of …
Read More »EUR/USD collapses to twenty-year-lows
The EUR/USD pair collapsed to fresh twenty-year-lows, below the 1.0350 previous low printed on May 13, accelerating towards the 1.0250s region courtesy of a stronger US dollar. The pair loses almost 1.60% during the day.The US Dollar Index advances to twenty-year-highs, above the 106.500 mark, up almost 1.30%, on renewed …
Read More »Turkey’s inflationary pressures would continue due to domestic, global factors
The Consumer Price Index Turkey rose in June by 4.98%, and the annual rate approached 8%; slightly lower than market consensus (5.7%) and expectations that suggest (5.5%), which resulted in an annual figure of 78.6%. The downside surprise was due to lower food prices, particularly processed food conflicting with the …
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