Is Dollar Growth Over? Likely So

The dollar index lost 4% last week, the most significant drop since March 2020. Such powerful moves against the trend often signal a further trend reversal. However, it will probably be a slower pace of decline and not a one-way street as we see it over the previous ten days. The pressure on the dollar […]

US Markets: End of Bear Market or Another Bear Market Rally?

The recent rally in the markets may not be over, argues Morgan Stanley, which, however, adds: “let the bulls not rejoice, the Fed’s upcoming pivot on monetary policy will not be good, the worse is ahead of us.” Since June, the market has rallied on mere suspicion that the Federal Reserve will ease monetary tightening, […]

Australian Dollar Takes a Pause

The Australian dollar is in negative territory today, after posting huge gains last week. In the European session, AUD/USD is trading at 0.6690, down 0.22%. The US dollar took a nasty spill last week, and the Australian dollar made the most of it, gaining 3.6%. The US dollar was slammed after a soft inflation report, […]

The UK October Data Barrage

This week, Cable traders will have a lot to look at. Of course the big event later in the week is the long anticipated Autumn Budget that is expected to be released on Thursday.  It’s not expected to be such a controversial affair this time around, but there are still some pending issues that could […]

Sunset Market Commentary

Markets Global markets experience some kind of ‘the day (week) after’-feeling as investors tried the assess last week’s sharp repositioning post softer than expected US inflation data released on Thursday. Fed governor Waller during the weekend at least tried to put the report into perspective. The Fed maybe can consider slowing the pace of rate […]

Weekly Economic & Financial Commentary: Will the FOMC Slow the Pace of Tightening in Coming Months?

Summary United States: FOMC Still Has Cover to Focus on Inflation Employers continued to add jobs at a steady clip in October, demonstrating the labor market remains tight and the FOMC will continue to tighten policy. The size of the December rate hike depends on the incoming data. October payrolls do not move the needle […]

Forex and Cryptocurrency Forecast

EUR/USD: Slower, Longer, Higher Overall, last week passed, as predicted, without any majorsurprises. The main event was the FOMC (Federal Open Market Committee) meeting of the US Federal Reserve on Wednesday, November 2, at which it was unanimously decided to raise the key rate by 75 basis points (bp) to 4.00%. This is the highest […]

October Jobs Report Sends Mixed Signals

Market movers today This week is quiet in terms of data. Hence, focus will be on central bank speeches and on the US mid-term elections on Tuesday. Today, we get German industrial production data for September. Consensus expects a moderate recovery at 0.2% m/m compared to -0.8% in August. We also have a few ECB […]

Mixed Sentiment into US CPI and Midterms

Week starts with blurred sentiment on the back of mixed US jobs data, and soft Chinese trade figures. Chinese exports and imports unexpectedly shrank in October; this was the first synchronized drop since May 2020. The strict Covid curbs in China, combined to rising global inflation and tightening monetary conditions hit both global and domestic […]

EU Says US Breaking WTO Rules With Inflation Reduction Act

Markets On Friday, the US October payrolls was the first reality check after Fed Chair Powell’s hawkish post-FOMC press conference. The report in globo was stronger than expected with job gains at 265k (vs 193k expected) and a substantial upward revision to the September gain. Wage growth (AHE) also remained solid, gaining 0.4% M/M to […]