Dollar Slips Again On Fed Speculation, Stocks Pause For Breath
Dollar extends slide as investors look to Powell testimony and NFP report for Fed clues
Stocks stumble at start of week, but vaccine progress keeps risk appetite alive
Pound still holding out for Brexit breakthrough as time running out
Oil slips as OPEC+ unlikely to agree on long...
Week Ahead – Data Overload May Spoil Vaccine Euphoria; NFP to Lead the Pack
It’s NFP week and as investors battle the vaccine optimism against the short-term gloom, the latest jobs report from the United States may determine which way sentiment sways next. Canada will also publish jobs numbers along with its Q3 GDP print. The Reserve Bank of Australia, meanwhile, will kick...
Cliff Notes: A Holiday Season Unlike Any Other
Key insights from the week that was.
This week saw the release of Australian partial data related to next week’s Q3 GDP report. Meanwhile, in the US and Europe, the focus remained on COVID-19’s spread and how it can be suppressed.
The construction work done survey was the first of two...
Markets Quiet As US Turkey Cull Begins
Wall Street mixed ahead of Thanksgiving
The New York session was a mixed one as markets digested the pre-Thanksgiving holiday data dump, and investors lightened bullish positioning over what will be a long weekend for many. Equities finished mixed, currencies and precious metals ranged, although oil prices spiked after the...
Dollar and Yen Stay Weak in Quiet Pre-Holiday Trading
Markets are generally rather quiet in Asian session today, with Thanksgiving holiday in the US in sight. Risk markets are taking a breather after the earlier rally, so do the selloffs in Dollar, Yen and Swiss Franc. Nevertheless the trio remain the weakest ones for the week. On the...
Fed discussed updating guidance on asset purchases
Minutes of November FOMC minutes noted that the asset purchases will continue "over coming months". At the same time, "most participants judged that the Committee should update this guidance at some point and implement qualitative outcome-based guidance that links the horizon over which the Committee anticipates it would be...
(FED) Minutes of the Federal Open Market Committee November 4-5, 2020
A joint meeting of the Federal Open Market Committee and the Board of Governors was held by videoconference on Wednesday, November 4, 2020, at 9:00 a.m. and continued on Thursday, November 5, 2020, at 9:00 a.m.1
PRESENT:
Jerome H. Powell, Chair
John C. Williams, Vice Chair
Michelle W. Bowman
Lael Brainard
Richard H. Clarida
Patrick Harker
Robert...
Crude Oil Powers Higher, Markets Euphoric
US stocks close at new records, oil roars higher, gold melts down
Markets in an ecstatic mood, without any major new drivers
Avalanche of US data and Fed minutes in the spotlight today
Vaccine enthusiasm continues to steer the ship
The party in global markets continues. Investors have thrown caution...
Full Risk-On Market With Upside Breakout in DOW and Oil
Markets are in full risk-on mode for now, with DOW closing above 30k handle for the first time overnight. Asian stocks are also generally higher, with strong rally in Nikkei and HSI. WTI oil prices powered through a key near term resistance level while Gold is set to break...
Fed Williams: Bond purchases serving their purposes really well right now
New York Fed President John Williams said yesterday that the asset purchases are "serving their purposes really well right now". The purchases are providing support for smooth market conditions, as well as holding down longer-term yields. The program could be adjusted if needed, but he gave no indication for...
Dollar Comeback Falters, Gold Gets Burned
US PMIs show economy firing up, dollar bounces but falls back
Stocks power higher, yet the Fed remains a wild card
Kiwi cheers potential changes to RBNZ mandate
Gold burned by stronger greenback
Strong PMIs send ripples across markets
A perfect storm of encouraging news has engulfed global markets early...
Fed Minutes and Slowing Consumption May Pave Way For December Easing
Personal income and spending numbers will be the highlight of the data flurry out of the United States on Wednesday (15:00 GMT), before investors turn their attention to the minutes of the Federal Reserve’s November policy meeting at 19:00 GMT. Rising virus restrictions across the US have dented the...
NZD Surges on RBNZ Expectations, Dollar Rebound Short-Lived
Commodity currencies surge broadly today on the back of strong risk appetite, especially in Japan. New Zealand Dollar is additionally boosted after the government asked RBNZ to considering surging house prices in monetary policy moves. Dollar tried to rebound overnight, with the help from downside breakout in Gold. The...
Fed Evans: No Rate hike probably even in 2024
Chicago Fed President Charles Evans said there is still "quite a long way to go" for the US economy to recovery from the pandemic crisis. He didn't expect inflation to reach 2% targe4t until late 2022 or even 20223. Hence, "we are not expecting the funds rate to be...
Data Comes To Life, Yellen Returns
It's been far too long since an economic data point moved the market but a surprise jump in the Markit US PMIs on Monday sparked some activity. GBP was the top performer on the day while the yen lagged. Metals were dealt a severe blow as yields rallied, prompting...
Weekly Economic and Financial Commentary: Uneven and Uncertain Global Economic Recovery
U.S. Review
House Party
Soaring confidence among homebuilders, a pace of residential construction activity that topped expectations and existing homes selling at the fastest pace in 14 years were the highlights of a week in which housing data dominated the economic news.
The consumer rebound has been another strong part...
Week Ahead – Vaccine Euphoria vs Lockdown Reality
There is not much on the agenda next week, but that doesn’t mean things will be quiet as the battle between longer-term vaccine hopes and the present lockdown reality continues to rage. The highlight on the economic calendar will be the latest PMIs, especially from the Eurozone, which will...
Stimulus Fears After Mnuchin Cuts Off Fed Emergency Lifeline
Treasury Secretary asks Fed to return unused emergency funds, US futures slip
But some relief as Senate Republicans agree to restart talks on new virus relief bill
Fresh setback for Brexit talks after Barnier has to self-isolate as time running out
Fed and White House clash over emergency programs
The...
Mnuchin Ends Many Of Fed’s Emergency Credit Facilities
Market movers today
Pfizer may apply for an Emergency Use Authorisation for its vaccine candidate today. The approval process is expected to take less than a month. European Commission President Ursula von der Leyen said that the European Medicines Agency may approve the vaccine from Pfizer and Moderna 'as...
Fed Mester: Lack of fiscal package is very concerning
Cleveland Federal Reserve Bank President Loretta Mester said she's seeing a slowdown from US economic data, after the stronger than expected rebound in Q3. She also emphasized that support is needed for both small businesses and households as coronavirus infections are on the rise.
"The fact that we don't have...
With a Vaccine on the Horizon, What’s Next for Gold?
A combination of cheap money policies and runaway government spending propelled gold prices to new record highs earlier this year, but the metal has been trapped in a range for three months now, and the burning question is whether bullion’s best days are behind it now that a vaccine...
AstraZeneca’s (AZN Stock) Late Stage Phase 3 Trial Data Are ‘Days To Weeks’ Away
Market movers today
On an otherwise quiet day on the data front, COVID-19 headlines and vaccine news will continue to drive the mood in markets. Also look out for the ongoing Brexit negotiations.
A range of Fed speakers and final October inflation figures out of the UK and euro...
Markets Turned into Consolidations, Gold Weakness Might Help Dollar
The financial markets generally turned into consolidation for now as vaccine boost faded. Commodity currencies are mildly softer in Asian session, together with Dollar. On the other hand, Swiss Franc and Yen are the firmer ones, together with Sterling. For the week, Dollar is the weakest one for now,...
Fed Barkin: A rough several months still but daylight on the horizon
Richmond Fed President Thomas Barkin also said the economy would face a "rough several months". The "recent escalation in cases" of coronavirus infections "makes me believe we still have a long way to go".
He a knowledged that the progress on vaccines are promising. However, "as best I can tell,...
Fed Powell: Next few months may be very challenging as virus spreads fast
Fed Chair Jerome Powell warned yesterday of the "significant" downside risk in the economy, "especially in the near term" due to resurgence of coronavirus infections. "The concern is that people will lose confidence in efforts to control the pandemic and they will pull back from activities that they think...
Fed Bostic: Vaccine will definitely lead to a pretty robust recovery
Atlanta Fed President Raphael Bostic told CNBC, "we have short-term and immediate-term concerns with the spike in the virus and what that is going to do in terms of businesses and the things that they are able to produce, in terms of consumers in terms of their willingness to...
US Retail Sales in Sight as Fed Prepares for Action
America’s latest retail sales data will hit the markets at 13:30 GMT Tuesday, and investors will look for clues on whether the Fed will pull the easing trigger again in December. With US infections spiraling out of control lately, Congress locked in a stalemate over more fiscal relief, and...
Yen Extending Recovery as Treasury Yields Dip
Yen appears to be trying to reverse the losses posted earlier this week, as helped by pull back in treasury yields. US 10-year yield is trading at around 0.88 a the time of writing, well below this week's high at 0.975. German 10-year yield is also back pressing -0.55...
Fed Williams: Growth to slow somewhat in Q4 and early next year
New York Fed President John Williams warned that "the very large rise in COVID cases recently clearly puts a question market on the ability of the economy to weather this period." Thus, he'd "expect the growth in the fourth quarter, and maybe into early next year to slow somewhat."
Williams...
Global Yields Decline Driven By Higher Infection Numbers And Comments From Fed, BoE And ECB
Market movers today
DKK. A first estimate of Q3 growth in Denmark with the GDP indicator.
Speeches. A few Fed speeches today but we do not expect much news. ECB's Weidman speaks at Bundesbank.
Rating. Fitch has France and Austria up for review. The Netherlands is up for review...