Tag Archives: interest rate hikes

Short-dated Treasury yields soared on Friday while the dollar rose as investors bet on US interest rate hike next week and grew alarmed at signs of a global economic slowdown.The two-year U.S. Treasury yield, a bellwether for interest rate expectations, topped 3.9%. Coupled with a decline in the benchmark 10-year …

The GBP/USD pair is expected to finish the current week with more than 1.50% losses, ahead of BoE’s and Fed decisions. The pair is trading at 1.14 at the time of writing versus Thursday’s closing price at 1.1395.The University of Michigan Consumer Sentiment improved versus the last month’s reading, while …

European Central Bank’s policymaker Francois Villeroy de Galhau said on Wednesday that he estimates the euro area neutral rate at below or close to 2% and added that they could reach it by the end of the year.“Monetary normalization is fully warranted in the euro area, too early to say …

Monthly U.S consumer prices unexpectedly rose in August as declining fuel prices were significantly erased by extra rent and food costs, giving sufficient grounds for the US central bank pursue its hawkish stance and accordingly to decide another interest rate increase next Wednesday.The consumer price index gained 0.1% last month …

The US dollar slides as investors balance positions ahead of key US inflation data. The dollar fell to a more than one-week low on Friday as investors consolidated gains after a sharp rise against most currencies, ahead of US inflation report that could determine the size of the Fed’s next …

Kansas City Fed President Esther George said on Friday that “A steady path of rate hikes, predictable adjustments based on data could improve market functioning, facilitate balance sheet runoff”.The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.6% on the day at 109.00.Additional …

Statistics Canada reported on Friday that the Unemployment Rate in Canada rose to 5.4% in August from 4.9% in July. This reading came in worse than the market expectation of 5%. Further details of the publication revealed that the Net Change in Employment was -39.7K, compared to the market expectation …

Federal Reserve Bank of Chicago President Charles Evans said, on Thursday, that policymakers could deliver a third straight jumbo increase in interest ratesat the next FOMC meeting on September 20-21, but he is opened minded between a 50 or 75 basis point hike. The US dollar index and shorter-dated US …

The European Central Bank raised interest rates by 75 basis points on Thursday as expected. According to analysts, the ECB is to hike 50bps in October, and 25bps at each of the three meetings from December to March, reaching a terminal of 2.00% at that meeting.Today’s decision suggests that the …

Key takeaways from policy statement “This major step frontloads transition from prevailing highly accommodative level of policy rates towards levels that will ensure timely return of inflation to ECB’s 2% medium-term target.” “Based on current assessment, over next several meetings, ECB expects to raise interest rates further to dampen demand …