The Weekly Bottom Line: Yields Realign to Higher-for-Longer

The Fed has been beating the drum to the “higher for longer” interest rate tune for a while. Following last week’s FOMC projections, investors are recalibrating their expectations more in line with this view. Long-term treasury yields pushed higher in the week, with the 10-Year yield rising temporarily to a new 15-year high on Thursday, before easing to 4.53% at time of writing – still almost 10 basis points above

Forex and Cryptocurrencies Forecast

EUR/USD: Correction is Not a Trend Reversal Yet The dynamics of the EUR/USD pair in the past week were atypical. In a standard scenario, combating inflation against the backdrop of a strong economy and a healthy labour market leads to an increase in the central bank’s interest rate. This, in turn, attracts investors and strengthens […]

Asian Growth Signs, US Avoids Shutdown

US: On Saturday, Congress approved a plan to keep the federal government open until mid-November, avoiding a shutdown for now just hours before the midnight deadline, see New York Times.

US Futures Gain as US Stays Open, Gold Feels Heavy

The US government didn’t shut down yesterday, as US policymakers agreed on a short-term funding deal that will keep the lights on until November 17th. But the new deal excludes any new aid package for Ukraine – which is a key demand from Democrats. Therefore, the political headache in the US is not over, but the politicians bought themselves a couple of weeks to try to find a better solution.

XAG/USD Analysis: Silver Price Quickly Drops by Approximately 7.5%

On Friday, silver was trading at USD 23.5 per ounce, but on Monday morning it dropped below USD 21.7 – a difference of 7.5%.

AUD/USD Falls Ahead of RBA Meeting

The Melbourne Institute’s Inflation Gauge was flat in September after 12 straight months of increases. This follows a 0.2% m/m in August and missed the consensus estimate of 0.4% m/m. This reading follows last week’s CPI release, which showed that consumer inflation rose to 5.2% y/y in August, up from 4.9% m/m a month earlier. The spike in inflation is unlikely to concern the Reserve Bank of Australia, as the rise was related to higher energy and housing costs.

Sunset Market Commentary

New month/quarter, but no profound change in market trends. On the contrary. After a brief rebound of bonds on Thursday and on Friday, previous trends apparently still have some way to go, especially if this week’s US data confirm ongoing resilience in activity and/or key labour market.

Manufacturing Reprieve: 11-Month High Still Pretty Low for ISM

Manufacturing activity contracted at the slowest pace in nearly a year according to the September ISM. Recent data signal some relief in the sector, while higher oil prices point to potential upside risk ahead.

DAX – PMIs Paint a Bleak Picture for Manufacturing But China Offers Hope

The DE30 turned lower again today after staging a mild recovery in recent sessions and the move could reinforce bearish views on the index.

Brent Crude – Volatile Start for Oil Ahead of OPEC+ Meeting

The recent decline in BCOUSD came following a rally and new high that failed to be backed up by stronger momentum and now it appears to have potentially moved into a corrective phase.