Market Caution Returns on Hot US CPI Data

Asian shares flashed red on Wednesday along with US futures as investors evaluated sticky American inflation data and remarks from Fed officials. European futures are pointing to a negative open this morning amid the cautious sentiment and this could find its way back to Wall Street later today. In the currency arena, dollar bulls were […]

A Small Setback

Equity markets are poised to open a little softer on Wednesday following similar moves in Asia overnight as investors weigh up the latest setback in US data. The inflation report really needed to over-deliver after the red-hot labour market figures earlier in the month and it simply didn’t do it. The trend remains positive but […]

Pound Sliding Despite Inflation Drop

UK inflation falls but remains above 10% The British pound is sharply lower on Wednesday. In the European session, GBP/USD is trading at 1.2069, down 0.88%. UK inflation continues to fall, although it clearly has a long way to go. January’s inflation dropped to 10.1%, down from 10.5% in December and below the consensus of […]

AUD/USD Sinks on Hawkish Lowe

It has been a disastrous session for AUD/USD, which has plunged 1.26% and is trading at 0.6899. Lowe says more hikes coming RBA Governor Philip Lowe faced a grilling from Australian lawmakers earlier. Higher rates and high inflation have caused a cost-of-living crisis and the RBA has been heavily criticised for the sharp rate-tightening cycle. […]

US: Retail Sales Bounce Back in January, Beating the Estimate

Retail sales rebounded from December’s weakness (unrevised at  -1.1% m/m), gaining 3.0% month-on-month in January. Today’s reading was a full percentage point higher than the consensus forecast for growth of 3.0%. Sales at motor vehicle & parts dealers accounted for most gains with a 5.9% m/m gain in January. Gasoline station receipts were flat on […]

Powell Interview Tonight is Today's Highlight

Market movers today Fed Chairman Powell will be interviewed at a live transmitted event at the Economic Club of Washington, D.C., beginning at 18.00 CET. This could give Powell an opportunity to mitigate the markets’ very dovish reaction to his press conference last week if he wants to, especially in light of the strong jobs […]

Rising Geopolitical Tensions, Fed Hawks Take a Toll on Sentiment

Rising geopolitical tensions between the US versus China and Russia, and the hawkish Federal Reserve (Fed) expectations weighed on market sentiment at the start of the week. The US yields, the US dollar and gold gained, stock indices kicked off the week under selling pressure. Fed President Jay Powell wills speak following a blowout jobs […]

Today’s Economic Calendar is Loaded with Central Bank Speeches

Markets Core bonds suffered a massive hangover on Monday. Ridiculously strong US data last Friday caused a further repricing in favour of central bank guidance, particularly in the US where money markets now discount a 5-5.25% terminal rate. The move ran its course uninterrupted by other data releases and with the backing from the likes […]

Market Mood Stabilises ahead of Powell

Asian markets stabilised somewhat on Tuesday morning following the broadly negative cues from Wall Street overnight as concerns over higher US interest rates left investors on edge. US and European futures seem to be pointing to a positive open despite the overall caution, with all attention directed towards commentary from Fed Chair Jerome Powell later […]

Aussie Jumps after RBA Hike

The Australian dollar has posted strong gains on Tuesday. In the European session, AUD/USD is trading at 0.6934, up 0.75%. RBA expected to raise rates There were no surprises from the RBA, which raised rates by 25 basis points, for a record ninth straight hike. This brings the cash rate to 3.35%, its highest level […]