The upcoming release of the Personal Consumption Expenditures (PCE) Price Index data for May is expected to provide valuable insights into inflationary pressures and influence market expectations about the Federal Reserve’s interest rate policy. According to forecasts, the core PCE Price Index—considered the Fed’s preferred measure of inflation—will increase by …
Read More »U.S. Economy Contracts in Q1 2025; GDP Declines 0.5%
The U.S. economy contracted at an annual rate of 0.5% in the first quarter of 2025, marking a worse-than-expected decline, according to the latest data released by the U.S. Bureau of Economic Analysis (BEA) on Thursday. This figure was a revision downward from the previously reported -0.2%, signaling a more …
Read More »PCE Inflation Stays Hot: Markets Tumble as Rate Cut Hopes Fade
A wave of market unease swept through Wall Street Friday, triggered by persistent inflationary pressures and the looming shadow of potential trade tariffs. Stocks experienced a sharp decline, with major indices registering significant losses, as investors grappled with the reality of a potentially prolonged period of higher interest rates.The catalyst …
Read More »Market Drivers; US Session
Central Banks Hold Steady, US Core PCE in Focus The Bank of England and the Bank of Japan both held interest rates steady at their respective policy meetings. While the BoE’s decision had a limited impact on the Pound, the BoJ’s rate hold weighed heavily on the Yen.With a relatively …
Read More »Stock Market Rally Paused Amid Further Uncertainity
The recent market downturn, particularly evident in the tech-heavy Nasdaq, has sparked widespread concern among investors. This decline can be attributed to a confluence of factors, including persistent inflationary pressures, the Federal Reserve’s aggressive monetary policy, geopolitical tensions, and shifting investor sentiment.Inflationary Headwinds and Fed’s Tightening GripDespite the Federal Reserve’s …
Read More »Investors Await FOMC Minutes, Core PCE
The Dollar Index (DXY) briefly traded above 108 on Friday, driven primarily by euro weakness rather than dollar strength. As we head into a short week due to the US Thanksgiving holiday, market participants are focused on key data releases, including the Federal Reserve’s November FOMC minutes and the core …
Read More »European Stocks Edge Higher Amid Middle East Tensions, Awaiting Key Economic Data
European stock markets opened cautiously higher on Wednesday as investors remained wary of escalating tensions in the Middle East while turning their attention to upcoming employment data from the Eurozone. Markets Show Cautious OptimismDespite concerns over geopolitical risks, major European indices displayed modest gains: Germany’s DAX rose by 0.1%France’s CAC …
Read More »Sterling Rebounds Following Softer US PCE Data
The Pound Sterling bounces back strongly above 1.3400 against the US Dollar after soft US PCE inflation data. The Sterling surged against the US Dollar (USD) on Friday, buoyed by a surprising slowdown in US inflation. The unexpected decline in the Personal Consumption Expenditure Price Index (PCE), the Federal Reserve’s …
Read More »Despite gains, bets on Fed could limit US Dollar’s uptrend
The market is still overestimating Fed easing even while the Fed is defying dovish expectations. S&P Global preliminary September PMIs came in above forecasts, indicating that the economy is still doing well. Fed representatives will make an effort to temper their dovish remarks. Amidst growing concerns of a recession, the …
Read More »Financial Markets Weekly Recap: US Growth, PCE Ignites Price Actions
Financial markets experienced extreme volatility this summer, with notable corrections in August and an impressive resurgence. Geopolitical worries, economic statistics, corporate results, and expectations for monetary policy were some of the causes that drove volatility. Depending on the index, August’s market movement was akin to a summer action film, with …
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