Fed rates

Five Things The Markets Are Talking About: Monday January 9, 2017

Five Things The Markets Are Talking About: Monday January 9, 2017

Last Friday’s U.S. December employment increased less than expected (+156k vs. +176k), but the markets interpretation in a rebound in wages (+0.4% m/m) suggests a sustained labor market momentum that sets up the domestic economy for stronger growth and further interest rate increases from the Fed in 2017.

The Week Ahead: Italian referendum has the ECB on alert

The Week Ahead: Italian referendum has the ECB on alert

A government mandate forces Italian pollsters to stop their work two weeks preceding the Italian vote on constitutional reforms, reducing the anxiety about the No result. Italians headed to the polls on Sunday, December 4 and while the referendum is not about a potential Italexit (Italeave?) it could mark the beginning of the end for Italy’ membership in the European Union.

A Week Ahead: FX Market Events To Watch This Week

A Week Ahead: FX Market Events To Watch This Week

The main story this week in the markets was the flash crash of British pound on Friday. The currency lost 6 percent in under two minutes at the start of the Asian trading session. There are multiple theories on what sparked the move with algorithmic trading and human error among others. The GBP touched 31 year lows and although it recovered some ground it will close the week under the 1.25 price level.

GDP Beats Forecasts And Consumer Spending Is Strong

GDP Beats Forecasts And Consumer Spending Is Strong

Final GDP gained 1.4%, edging above the forecast of 1.3%. Unemployment Claims edged up to 254 thousand, beating the forecast of 260 thousand. Consumer spending has been strong, making up for sluggish business investment and weaker demand for US exports. 

Market Events To Watch This Week: September 26, 2016

Market Events To Watch This Week: September 26, 2016

The BoJ and the Fed kept rates awaiting further economic data. The USD is mixed against major currencies after a week filled with central banks statements but little action. The Bank of Japan (BOJ) and the U.S. Federal Reserve published their respective rate statements less than 24 hours between them. The status quo was maintained with very little in way of changes to monetary policy.

Five Things The Markets Are Talking About: Thursday September 22, 2016

Five Things The Markets Are Talking About: Thursday September 22, 2016

Can we shout deja vu loud enough? The Fed came with the same story, just inserted different figures and months. Chair Yellen and company left rates unchanged yesterday, but pointed to an increased likelihood of a hike in November or December – if they don’t, their credibility is shot.

Five Things The Markets Are Talking About: Monday September 19th, 2016

Five Things The Markets Are Talking About: Monday September 19th, 2016

Central banks have certainly woken up the stock and bond markets from their summer slumber, but not yet the FX markets. This week’s events should go a long way to rectify that imbalance.

Market Events To Watch This Week: September 13, 2016

Market Events To Watch This Week: September 13, 2016

Fed members supported a possible rate hike even as US data softens

The September Federal Open Market Committee (FOMC) rate hike got a couple of endorsements today from the U.S. Federal Reserve. Both FOMC voting members talked up the chances of a rate hike this year, which could come as soon as September.

Five Things The Markets Are Talking About: Monday September 12, 2016

Five Things The Markets Are Talking About: Monday September 12, 2016

This month, the market has and will be focusing on Tier 1 central banks for direction (to come BoE, SNB, BoJ and Fed). To date, despite the “lower for longer” mantra across the board, it’s been the rhetoric that’s managed to jolt the various asset classes from their slumber.

Five Things The Markets Are Talking About: Thursday September 8, 2016

Five Things The Markets Are Talking About: Thursday September 8, 2016

Today is D-day for the European Central Bank (ECB).

Market consensus does not expect euro policy makers to deliver a new round of stimulus this morning. Nevertheless, officials are expected to release a new raft of economic forecasts, which should help provide the market with further clues on how much stimulus the ECB is likely to deliver in the future.

Five Thing The Markets Are Talking About: Monday August 29, 2016

Five Thing The Markets Are Talking About: Monday August 29, 2016

The initial reaction by investors to Janet Yellen’s speech at Jackson Hole was one of elation, however, the euphoria has been short lived, as markets now adjust to a more “hawkish” FED – equities down, dollar up and treasury yields rallying.

Five Things The Markets Are Talking About: Thursday August 25, 2016

Five Things The Markets Are Talking About: Thursday August 25, 2016

Currently, the Fed is saying one thing, but the market is trading on something else. Recent official rhetoric expects a rate increase sometime this year, but the U.S yield curve is not pricing that in at the moment. 

Market Events To Watch This Week: August 1, 2016

Market Events To Watch This Week: August 1, 2016

The U.S. Federal Reserve and the Bank of Japan (BOJ) showed the two sides of central bank action this week. The Fed’s Federal Open Market Committee (FOMC) ended with no change to the U.S. benchmark interest rate.

Five Things The Markets Are Talking About: Tuesday May 24, 2016

Five Things The Markets Are Talking About: Tuesday May 24, 2016

With Fed rhetoric remaining equities biggest hurdle, coupled with ‘little’ new U.S economic data, the end of the North American earnings season, and significant event risk in the coming month has investor sentiment shifting cautiously in favor of “wait and see.”