The US dollar surged on Tuesday following comments by Fed Chair Jerome Powell, who indicated it would be appropriate to consider wrapping up the bank’s QE taper sooner. Speaking before the Committee on Banking, Housing, and Urban Affairs of the US Senate alongside US Treasury Secretary Janet Yellen, Powell added …
Read More »USD Continues Corrective Movement
The US dollar’s current slight retreat comes as a result of a corrective movement in the bearish direction after several sessions of surging trend.The US Dollar Index (DXY) heads into the Thanksgiving holiday on track for a third consecutive strong weekly gain. The US economy’s Q4 is shaping up as …
Read More »Fed To Kick Off Faster Taper Starting January
The US Federal Reserve will likely double the pace of tapering its monthly bond purchases from January to $30 billion, and wind down its pandemic-era bond buying scheme by mid-March, Goldman Sachs strategists said in a daily note on Thursday.The increased openness to accelerating the taper pace likely reflects both …
Read More »FOMC Minutes: Fed should be prepared to accelerate QE taper, rate hikes
The minutes of the 3 November FOMC meeting, released on Wednesday, said that various participants noted that the Fed should be prepared to adjust the pace of the QE taper and raise rates sooner than currently anticipated should inflation continue to run hot. Additional takeaways: “Some participants suggested that reducing …
Read More »Bostic: Fed Should Consider How Fast To Taper
Atlanta Fed’s Raphael Bostic said on Monday night interview on Bloomberg TV that faster taper would give the US more optionality, but “we still have a COVID economy, he added.Given the mixed comments and Wall Street’s latest mild reaction, as S&P 500 Futures printed 0.14% intraday gains following the comments …
Read More »Looming Lockdowns Threaten Taper, Sink Eurozone Bonds
The looming return of lockdowns to contain Europe’s latest wave of Covid-19 cases poses risk on economic recovery and postponement of the timetable for the ECB’s wind down of emergency stimulus. Euro zone bond yields dropped on Friday and Germany’s entire yield curve fell into negative territory for the first …
Read More »Market Drivers – US Session – 17-11-2021
US shares, treasury yields and the US dollar reversed direction and closed lower, Wednesday. The three assets were negatively several by several factors in the markets, most notably the decision by Amazon.com to stop accepting payments with Visa cards in the UK as of 2022 in addition to negative data …
Read More »Fed’s Williams: Treasury Market Need Support for Next Big Shock
The New York Federal Reserve took unprecedented action to stabilize the Treasury market after it was disrupted at the start of the pandemic.Offering a stark reminder that markets need to be strengthened to get prepared for the next big shock, New York Fed Bank President John Williams said on Wednesday.In …
Read More »Historic Inflation Ignites Growing Calls to Speed Taper
A growing consensus of market watchers, investors and traders says that the Federal Reserve Bank has to speed up its taper procedures, namely the reduction of asset purchases in light of the fastest inflation in 31 years.The calls, ranging from former New York Fed President Bill Dudley to St. Louis …
Read More »Gold stuck in a difficult day between $1,750-$1,800
The gold market is stuck in a hard day, with prices trading in a narrow range between $1,750-$1,800 an ounce.There is no driver strong enough to push gold below $1,750 an ounce or above $1,800 an ounce, there’s certainly an apprehension to sell gold after Jerome Powell’s statements to the …
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