Euro Area Inflation: The Biggest Surprise

Eurostat’s preliminary estimate indicated an acceleration of annual inflation in the euro region from 9.9% immediately to 10.7%. Economists, on average, expected no change, and this difference of 0.8 percentage points is one of the most prominent indicators economists predict quite accurately on average. But it’s not only this surprise that we want to point […]

RBA Policy Meeting: Is a 50bps Rate Hike Up Next?

The Reserve Bank of Australia (RBA) took the initiative to slow the pace of its rate hikes in October after five months of rapid increases. The latest inflation release, however, raised speculation that a U-turn to outsized rate moves could be possible during Tuesday’s policy meeting. A resumption of the hawkish stance could lift the […]

Will the Fed Confirm Hopes of Slower Tightening?

Although the dollar ended last week on a positive note, it’s been trading in a corrective fashion overall for more than a week now, due to growing speculation that the Fed may soon need to start reducing the pace of its rate increases. Although this is not expected to happen this week, investors are sitting […]

High Euro Area Inflation and Q3 GDP Better than Feared

Market movers today Today we get US ISM manufacturing PMI. Consensus sees a decline to index 50 after the weaker than expected Markit PMIs last week. We also get PMIs out of Sweden and Norway and in Denmark it is Election Day, see more below. The 60 second overview Double-digit inflation: Euro area HICP inflation […]

Hawkish Fed Fears Resurface

Equities fell and bond yields rose, as the hawkish Federal Reserve (Fed) fears resurfaced before Wednesday’s FOMC decision. The Fed starts its two-day meeting, and expectations are mixed. The Fed could call the end of the aggressive rate tightening and signal slower rate hikes to enter the final phase of policy tightening, before pausing. So, […]

RBA Board Sticks with 25 Basis Point Increase in Cash Rate

Despite a significant lift in the inflation outlook the RBA Board decided to maintain its low key 25 basis point policy. The Reserve Bank Board raised the cash rate by 25 basis points to 2.85% at its November meeting. This result was widely predicted by the market and analysts. Our view has been that the […]

Market Mood Improves Ahead Of Fed Decision

The next few days promise to be eventful and potentially volatile for financial markets thanks to key economic reports from major economies, corporate earnings, and crucial central bank meetings. November has already kicked off on a positive note with European markets trading firmly higher, led by mining shares and robust earnings from British Petroleum which […]

Aussie Jumps after RBA Hike

AUD/USD has put the brakes on a 3-day slide today and has posted sharp gains. In the European session, the Australian dollar is trading at 0.6449, up 0.81%. RBA delivers modest 0.25% hike As was widely expected, the Reserve Bank of Australia raised rates today by just 25 basis points to 2.85%. This move follows […]

Powell and NFP Release Will Crash USD

What will happen? On November 2, the Federal Reserve will make an update on the interest rate and publish the Rate Statement with commentary on economic conditions that influenced their decision. According to the analysts, the Fed will come up with a 75-basis-points rate hike raising the rate to 4%. Markets are already pricing in […]

ISM Manufacturing stalls in October

The October ISM manufacturing index registered 50.2, narrowly beating expectations of a 50.0 print. The index fell 0.7 percentage points from the September’s reading of 50.9. New orders rose by 2.1 percentage points to 49.2, while new export orders fell 1.3 percentage points to 46.5. The backlog of orders sub-index came in at 45.3, falling […]