Stagflation is Back in Focus

Market movers today There are only few economic releases today. The only number of relative importance is the US July durable goods orders, which are expected to slow due to the financial tightening taking place on the back of the Fed tightening. The 60 second overview August PMIs point to weakening growth momentum: In the […]

The Dollar Softens, Equities Extend Losses, But Energy Stocks Gain on Firmer Oil

The US dollar bounced lower, yesterday, following the weak economic data in the US, which showed that the new home slowed, and business contracted. The flash PMI figures showed that services in the US fell into a deeper contraction, while manufacturing slowed more than the market expectations. Both indices sank to the lowest levels since […]

US Services ISM Temporary Stopped USD-Rally

Markets US PMI’s unexpectedly turned out to have the biggest intraday market impact yesterday. Traditionally, they don’t carry that much weight with main focus on monthly ISM surveys. A significant setback in the August US services ISM (44.1 from 47.3 vs 49.8 expected) temporary stopped the USD-rally while providing (minor) intraday relief for US Treasuries. […]

Crypto Market's Fragile Stability

Market picture Bitcoin has added 2% in the past 24 hours to $21,400. Ethereum added 4.6% to $1640, while top altcoins added between 0.9% (Dogecoin) and 4.4% (Polkadot). Total cryptocurrency market capitalization, according to CoinMarketCap, rose 2.2% to $1.03 trillion overnight. The Cryptocurrency Fear and Greed Index fell 3 points to 25 by Wednesday and […]

Jackson Hole Clues to Direct Market Moves

Markets have clearly been anxious in the lead up to Jackson Hole, as investors and traders await the next policy clues out of Fed Chair Powell later this week. The declines in equities and bonds of late suggest that Powell will strike a hawkish tone to fight rampant inflation, at the expense of economic growth. […]

Pound Under Pressure, US Durable Goods Looms

The British pound has reversed directions today and is in negative territory. In the European session, GBP/USD is trading at 1.1778, down 0.44%. Weak US New Home Sales sends pound higher Tuesday was an interesting day for the pound. Despite weak manufacturing data out of the UK, GBP/USD gained close to 1% before paring some […]

Today's Main Trend was the Persistence in Core Bond Weakness

Markets:Slightly better-than-expected core US durable goods orders (July) featured an otherwise pale eco calendar. Capital goods shipments non-defense excluding aircraft, a proxy for investment in GDP calculations, rose by 0.7% M/M from an upwardly revised 0.8% M/M in June. Markets didn’t react to the release. Today’s main trend was the persistence in core bond weakness. […]

This is What Happens with GBP Soon

The highest inflation in the UK doesn’t leave a chance for their currency to feel good. Hundreds of households in the country are in a very fragile condition, trying to allocate their funds between high food and even higher electricity costs. How deep can the pound fall? FBS analysts explained everything in this article. Effect […]

Fed's Favorite Inflation Gauge Eyed ahead of Jackson Hole Event

The core PCE index due for release on Friday at 12:30 GMT will be the last piece of economic information ahead of the Jackson hole symposium. Hence, although investors have already gotten some taste of inflation in July and may not get surprised in the wake of a potential slowdown, personal consumption and income figures accompanying the survey […]

NZ First Impressions: Retail Trade June Quarter 2022

Retail spending was much softer than expected in the June quarter, signalling downside risk to our forecast for Q2 GDP growth and the RBNZ’s projections. Q2 retail sales (volumes): -2.3% (Prev: -0.9%) Westpac f/c: +0.3%, Market +1.7% Q2 core retail sales (volumes): -1.6% (Prev: -0.3%) Detail Retail spending was much weaker than expected in the […]