Market Outlook

Federal Reserve Chair Jerome Powell will commence his semi-annual testimony to Congress on Tuesday, a critical event that could influence market expectations for a September interest-rate cut. Market participants are pricing in the likelihood of two rate cuts this year, with a 70% chance of the first cut in September, according to swaps data. Powell is under […]

Global equities are reaching new peaks as traders shift their focus to Friday’s pivotal US jobs report. China’s central bank has announced its intention to curb the ongoing market rally by selling government bonds, with “hundreds of billions” of yuan in securities ready to be deployed through agreements with lenders. A benchmark for global stocks surged to

A spate of soft economic data has bolstered the case for Federal Reserve interest-rate cuts, leading to a third consecutive session of declines for the dollar. Reports on Wednesday revealed the American services sector contracted at its fastest pace in four years, while the labor market continued to show signs of softening. These developments have

Optimism about US interest-rate cuts surged after Federal Reserve Chair Jerome Powell stated that inflation is on a downward trajectory. Investors are now closely monitoring US initial jobless claims and ADP employment data due on Wednesday for further insights into the policy outlook. Powell acknowledged the central bank has made “quite a bit of progress” in reducing

Traders are positioning ahead of critical data releases on Eurozone CPI and US job openings to anticipate central bank rate decisions. In Europe, European Central Bank President Christine Lagarde indicated that there is insufficient evidence to suggest that inflationary threats have subsided, reinforcing expectations that the ECB might pause interest rate cuts this month. The euro remained relatively stable

Recent data suggests the US economy is cooling, though without inflicting lasting damage on consumers. US consumer sentiment fell by less than initially estimated, driven by expectations that inflationary pressures will moderate. Notably, the Federal Reserve’s preferred inflation gauge registered its smallest advance in six months, indicating a potential easing of price increases. Treasury 10-year notes remained

As investors keenly await the release of the Federal Reserve’s preferred inflation gauge on Friday, the Personal Consumption Expenditures (PCE) report is poised to be a significant market mover. Analysts anticipate that a stronger core PCE could further bolster the US Dollar. Recent lackluster US economic data has reinforced speculation that the Fed may cut interest

Renewed selling pressure on the US Dollar is providing a reprieve for Gold prices, halting its recent downtrend. This trend is further bolstered by a broader risk-off sentiment in the market ahead of key events, including Friday’s US PCE inflation data and Sunday’s French election, which could limit the downside for Gold. Investors are now

On Monday, Chicago Fed President Austan Goolsbee remarked that the Fed’s current monetary policy is restrictive but noted that further easing could be possible if inflation continues to slow. Meanwhile, San Francisco Fed President Mary Daly commented that recent inflation data are encouraging but cautioned against assuming the path to sustainable price stability is clear. These

Traders are preparing for a week filled with political risks and critical inflation data that could influence global interest rate expectations. Key data releases from Australia, Tokyo, and the United States, including the Federal Reserve’s preferred inflation measure, will be closely scrutinized for clues on future monetary policy directions. The Japanese yen traded below 160 per