Eurozone Business Surveys: Is the Recession Here?

The latest PMI business surveys from the euro area will hit the markets early on Wednesday, starting with the French numbers at 08:00 GMT. They are expected to confirm the economy is headed straight into recession, making the ECB’s rate decision next month even harder. As for the euro, despite the recent bounce, it’s still […]

Filling the Void

As was to be expected, it’s been a choppy week so far in financial markets with Europe a very mixed bag on Tuesday while US futures are marginally higher after making marginal losses on Monday. On the one hand, we could be seeing investors warily waiting for the FOMC minutes and taking in all of […]

Sunset Market Commentary

Markets The OECD published its biannual economic outlook today. The recap paints a grim outlook: “The global economy is facing significant challenges. Growth has lost momentum, high inflation has broadened out across countries and products, and is proving persistent. Risks are skewed to the downside. Energy supply shortages could push prices higher. Interest rates increases, […]

EU Proposes Gas Price Cap

Market movers today The most important data releases today will be the November Flash PMIs from the euro area, UK and US. We expect the figures to provide further evidence of GDP contraction in the euro area already during Q4, while we still see the US economy continuing its modest growth. From the US, October […]

No Recession, But Slow and Low Growth

The OECD said the global economy will avoid a recession this year, and next year, and that unemployment rates won’t skyrocket. That was the good news. But growth will be low and slow, and inflation will remain high, keeping central bank policies tight. That was the bad news The S&P500 gained 1.36% yesterday, while Nasdaq […]

EUR/USD Extends Yesterday's Advance, Count Down to the November PMIs

Markets Risk-on held the upper hand during an initially choppy trading session yesterday. Stocks finished 0.5-1.4% higher in Europe and the US despite the grim economic picture painted by the OECD. Core bonds gained ground with US Treasuries outperforming Bunds. The likes of Fed’s Mester and George continued to strike a hawkish tone but US […]

Awaiting the Fed Minutes

Equity markets appear to be treading water on Wednesday as we await the latest batch of FOMC minutes later in the day. Asia played a bit of catchup overnight after Europe and the US posted decent gains on Tuesday that built throughout the session. But futures on both sides of the pond are barely changed […]

Traders Await FOMC Minutes to Learn About Fed's Outlook on Monetary Policy

On Tuesday, the Swiss franc was the best-performing currency among the 20 global currencies we track, while the Brazilian real showed the weakest results. The Mexican peso was the leader among emerging markets, while the U.S. dollar underperformed among majors. In focus today U.S. Dollar Index The U.S. Dollar Index (DXY) fell by 0.64% as […]

NZD/USD Rises after RBNZ's Jumbo Hike

The New Zealand dollar has extended its rally on Wednesday. In the European session, NZD/USD is trading at 0.6181, up 0.47%. RBNZ delivers record hike The Reserve Bank of New Zealand pushed the rate pedal to the floor today, with a supersize rate hike of 75 basis points, a record high. This raised the cash […]

RBNZ Accelerates Rate Hike, Encouraging NZD Rise

The Reserve Bank of New Zealand raised the rate by 75 points to 4.25% after five consecutive 50-point hikes. Analysts polled had anticipated such a result based on the signals sent by the central bank. RBNZ also began to reduce the balance sheet through managed sales, while before, it had stopped reinvesting coupons and matured […]