The Federal Reserve surely hasn’t finished hiking rates and there’s no sign of a pivot towards anything more-dovish but there’s a chance we’ve already seen the bottom for risk assets. It all hinges on bond yields.The market is forward-looking and there’s no market more in tune with the Fed and inflation outlook than bonds. Lately,
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Central banks around the world are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass Covid-19 testing in Shanghai this week caused worries about potential lockdowns that could also hit oil demand. Brent posted a weekly decline of about 4.1 per cent and WTI a loss of
MUFG Research is holding two trades in its portfolio this week, adding EUR/USD shorts and maintaining a long position in USD/CAD as it tests the highs of the year. The new EUR/USD trade is from spot with a target of 0.97 and a stop at 1.04. That would be a quick move through parity, perhaps
It was a dismal week for commodities as most of them recorded multi-month lows amid growth worries and firmness in the US dollar. Gold was not left out as it fell 3.8 per cent marking its fourth weekly decline and tested the lowest level since September 2021. Gold, a safe haven, an inflation hedge, and
Sri Lankan President Rajapakse and Prime Minister Wickremesinghe were forced to flee today after enormous anti-government protests. Huge crowds stormed official government buildings and took over the President’s home. Videos showed protestors swimming in his pool. The Prime Minister’s home was set on fire. The speaker of the legislature is trying to pull together an
Oil prices slipped in early Asian trade on Friday, following a rebound in the previous session, as investors remained torn between worries over tight global supplies and fears a recession could dampen oil demand. Brent crude futures fell 39 cents, or 0.4%, to $104.26 a barrel by 0013 GMT, dropping away from a near 4%
Euro ended as the worst performer last week on increasing worries of a deeper and longer recession. Selloff in the common currency also dragged down Swiss Franc, which ended as the second worst. Sterling was originally pressured by stabilized after UK Prime Minister Boris Johnson announced to step down after another scandal. But Yen was
India Gold August futures were trading higher on Friday tracking the positive trend seen in the international spot prices as the dollar came slightly off two-decade highs. Despite the pullback, bullion is set to post its biggest weekly drop in more than a month as the elevated greenback hit demand, said a Reuters report. Gold
The US jobs report added 372K new jobs in June. That was higher than the 268K estimate. Admittedly, there was a revision of -74K over the last two months (with May revised to 384K from 390K). Nevertheless, if the current month was adjusted for that number, a net addition of 298K (372K – 74K revision)
Recession fear is currently the main theme in the markets, with Euro and Sterling hardest hit in the currency markets. Canadian Dollar is somewhat a distant third weakest, as dragged down by oil prices. Nevertheless, Aussie and Kiwi are relatively resilient. Yen and Dollar are at par in strength for now. But they could soon
A commonly-heard refrain from those lamenting inflation is that the government gave workers too much money during the pandemic and that ‘nobody wants to work anymore’. Well workers weren’t the only ones who benefited from government largess. The enormous $800 billion Paycheck Protection Program — the largest and fastest of Washington bailouts — was a
Copper retreated in London on Friday and was on track for its fifth straight weekly loss, as worries about COVID-19 curbs in China outweighed hopes for stimulus for the top metals consumer. Three-month copper on the London Metal Exchange fell 0.5% to $7,780 a tonne by 0428 GMT. On the Shanghai Futures Exchange, the most-traded
Dollar rises in early US session after stronger than expected non-farm payroll data. It’s also supported by extended rebound in 10-year yield, which reclaims 3%. Euro also follows German yield higher. On the other hand, Canadian Dollar turns softer after poor employment data. Yen is mixed after the tragic death of former Prime Minister Shinzo
NFP due at 1230 GMT on Friday, 8 July 2022 This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most column are the ‘prior’ (previous month) result. The number in the column next to that, where is a number, is the
Gold firmed on Friday as the dollar came slightly off two-decade highs, but bullion was set to post its biggest weekly drop in more than a month as the elevated greenback hit demand. FUNDAMENTALS * Spot gold firmed 0.3% to $1,744.07 per ounce by 0106 GMT. U.S. gold futures rose 0.2% to $1,742.50. * The
Overall markets are relatively quiet in Asian session today. There is little reaction to the tragic news that former Japanese Prime Minister Shinzo Abe was shot and gravely injured. Dollar and Yen remain the strongest ones for the week while Euro is the runaway loser, followed by Sterling by a distant. Focuses will now turn
The signal from the Atlanta Fed GDPNow tracker at this point is probably less important than the breathless recession-mongering/calling in financial markets. This indicator is one of many but it’s nearly front page news now. Is that a sign that fear has gone too far? After this week’s releases from the Institute for Supply Management,
Gold in the national capital on Thursday slipped by Rs 436 to Rs 50,551 per 10 grams, according to Securities. In the previous trade, the yellow metal had finished at Rs 50,987 per 10 grams. Silver, however, gained Rs 233 to Rs 56,750 per kg from Rs 56,517 in the previous trade. In the international