EUR/USD Dips Lower, German PMI Improves

Welcome to the first trading day of the New Year. Trading remains thin, as most markets are closed.  In the European session, EUR/USD is trading at 1.0679, down 0.23%. I expect a quiet day for the euro. German Manufacturing PMI improves There are no US events on the schedule. German Manufacturing PMI improved to 47.1 […]

Crypto Bulls Try to Encourage Buyers

Bitcoin has added 1.4% in the last 24 hours, reaching the 16.7K level. It is a new attempt to test the 50-day moving average on a general lull and an effort by the bulls to paint a more optimistic technical picture with less strength while liquidity remains depressed. This tactic is already successful, as the […]

Japanese Yen's Rally Continues

The Japanese yen is in positive territory on the first trading day of the new year. US and Japan markets are both closed today, and the yen will likely continue to remain calm in holiday-thinned trading. Currently, USD/JPY is trading at 130.65, down 0.34%. Markets keep an eye on BoJ There are no tier-1 events […]

German Inflation in Focus

Market movers today Today, focus will be on December inflation data from Germany. Due to fiscal measures, German and euro area inflation will be in for a rollercoaster ride in the coming months, adding to the difficulties for markets and the ECB to accurately assess the true inflation pressures. German headline CPI faces some significant […]

Tougher than 2022?

I know, all we hope is to leave the horrible 2022 behind, and lick our wounds this year, but the New Year started with the IMF Chief Georgieva warning that the global economy faces ‘a tough year, tougher than the year we leave behind’. Great. The IMF expects a third of the world economy to […]

German December Inflation and Unemployment: Good News for the ECB Expected

Through at least the early part of this year, the ECB is expected to go against the trend of most other major central banks. The BOE and Fed are expected to continue to slow the pace of rate hikes as inflation comes down, the economy comes under increased pressure, or (which is a likely scenario) […]

Room for Correction in EMU/German Yields to Go Still Somewhat Further

Markets With Japanese, UK and US markets still closed, EMU markets took a constructive start to the new year. Last week, the post-ECB bond sell-off propelled German yields to close 2022 at cycle peak levels across all maturities. The 10-y testing/briefly surpassing the psychological barrier of 2.50% apparently was a good enough reason for investors […]

No More Festive Cheer

A mixed start to trading on Tuesday as traders return following the festive break to some rather gloomy forecasts for the coming year. The IMF is among those warning of a tough year, more so than the one we’ve just left, as the simultaneous slowing down of the US, EU, and China takes its toll. […]

Could FOMC Minutes Shift Fed Tone?

The Fed has raised rates 7 times in a row, and the consensus among analysts is that it will do so again at the end of the month. At the moment, the majority of economics expect a 25bps hike, which would continue the “leveling off” trend from the Fed. But, after the last meeting, Fed […]

Japanese Yen Breaks Below 130

The Japanese yen has posted winning sessions for three straight days and is in positive territory on Tuesday. Japanese markets are closed today for a holiday, so any strong movement from the yen is unlikely today. It’s a very light day on the economic calendar. There are no Japanese events, while the US releases Final Manufacturing […]