Currency futures fell on Friday after US data solidified bets for a smaller 25 bps September Fed rate cut, boosting the US dollar. Data throughout last week showed that the US economy remains resilient, dismissing fears of a recession. Fed rate cut bets (Source: Bloomberg) The dollar had a bullish day on Friday after the Read More…
Interest futures recovered slightly after falling on Thursday as US data showed a resilient economy, further reducing the risk of a recession. At the same time, the likelihood of a 50 basis points Fed rate cut in September fell. A stable economy means the US central bank can gradually lower borrowing costs. US GDP (Source: Read More…
Oil prices recovered slightly on Tuesday after falling 1% in the previous session due to a disappointing inventories report. However, the potential loss of Libyan oil output and Middle East tensions kept a floor on price declines. Data on Wednesday revealed a smaller-than-expected drop in US crude stocks last week. Inventories fell by 846,000 barrels, Read More…
Gold prices ended flat on Tuesday and fell on Wednesday as the dollar rose ahead of more US inflation data. The US will release its core PCE report on Friday, giving guidance on the size of upcoming Fed rate cuts. Gold prices rallied on Friday and Monday due to rate cut optimism. Notably, Powell opened Read More…
Equities ended lower on Monday as Nvidia fell ahead of its earnings report. However, rate-cut optimism lingered after Powell’s dovish speech on Friday. Meanwhile, investors were gearing up for the core PCE report for more clues on the outlook for Fed rate cuts. As investors worried about the upcoming earnings report, Nvidia lost 2.25% of Read More…
Currency futures soared on Friday as the dollar plunged after Powell said the Fed was ready to adjust policy. Powell’s speech conveyed that the Fed was ready to start lowering borrowing costs to ensure a steady labor market. However, by Monday, most currencies eased slightly as investors took profits. After a whole week of anticipation, Read More…
Interest futures fell on Thursday as Treasury yields soared with a drop in expectations for a 50 bps Fed rate cut. However, the move reversed before Fed Chair Jerome Powell’s speech on Friday. At the same time, there is still optimism about a 25 bps September Fed rate cut. Treasury yields had a bullish day Read More…
Oil prices fell sharply on Wednesday after the US government revised the US payrolls data to show a weaker labor market. This revision overshadowed positive sentiment from a decline in crude oil inventories and dovish FOMC policy minutes. Brent Futures (Source: ICE Futures Europe) The US economy added fewer jobs than reported between April last Read More…
Gold prices pulled back on Wednesday after reaching new highs in the previous session due to Fed rate cut optimism. Investors are preparing to peruse the FOMC meeting minutes and a Fed Chair Jerome Powell speech. Gold traders are optimistic that the Fed will start lowering borrowing costs in September. Last week, retail sales data Read More…
Equities rose on Monday, adding to last week’s gains as markets priced in a Fed rate cut at the September meeting. At the same time, risk appetite improved since data last week eased fears of a looming US recession. S&P 500 weekly performance (Source: Bloomberg) Equities closed the best week of the year on Friday, Read More…
