After a surprise decline in retail sales renewed rate-cut bets, interest futures rose on Thursday. On the other hand, the report sent Treasury yields lower. The decrease in retail sales indicated a slowing economy, reducing some of the impact of the upbeat inflation report on Tuesday. Meanwhile, investors also assessed labor market data. US retail Read More…
Oil prices fell on Wednesday due to a surge in crude inventories. When fuel stocks in the US increase, it is a sign that demand has dropped. WTI futures (Source: Bloomberg, EIA) Moreover, a drop in refining in the US led to a bigger-than-expected build in inventories. US refining slowed significantly during the cold weather. Read More…
Gold prices plunged on Tuesday as the dollar and Treasury yields rose after an upbeat inflation report. After a long wait, investors finally saw the state of inflation in the US. According to the report, inflation remains persistent and higher than expected. Consequently, there was a decline in Fed rate cut bets. The outlook for Read More…
US equities ended Monday mixed as investors prepared for the release of the all-important US consumer inflation report. The Nasdaq and the S&P 500 ended the day slightly lower. Meanwhile, the Dow rose slightly. Monday was a relatively quiet day for equities as investors mostly stayed on the sidelines awaiting the inflation report. However, the Read More…
Currency futures rose on Friday as the dollar fell after data showed inflation rose less than reported in December. However, this revision failed to change the outlook for rate cuts in the US. Additionally, it became clear that inflation rose more than previously reported in October and November. Meanwhile, the dollar closed the week with Read More…
Interest futures collapsed on Thursday while Treasury yields rose as data from the US and policymakers continued to point at delayed Fed rate cuts. Labor market data from the US showed strength in the sector despite high interest rates. This gives the Fed room to keep interest rates high and lower inflation. At the same Read More…
Oil prices rose on Wednesday due to rising tensions in the Middle East that could lead to tighter supply. At the same time, a surprise drop in gasoline stocks indicated an increase in demand. Aggregate open interest in crude (Source: ICE, CME) Investors are buying more oil futures, expecting tighter supply and higher prices. Israel Read More…
Gold prices rose on Tuesday, pausing a decline that started on Friday after the US jobs report. The recovery came as the dollar and Treasury yields pulled back from recent highs. However, this decline might be short-lived if fundamentals continue pointing to delayed rate cuts in the US. Fed rate cut expectations (Source: Bloomberg) Notably, Read More…
US equities closed Monday in the red as Powell maintained his hawkish stance, dampening rate cut expectations. In a speech on Sunday, the Fed chair said that inflation in the US needs to show a consistent downtrend for rate cuts to start. According to the central bank, inflation remains high. Therefore, the economy still needs Read More…
Friday was a down day for currency futures as the dollar rallied to a seven-week high after upbeat employment data. Investors were surprised after the US non-farm payroll figures were much higher than expected. As a result, there is an even lower chance that the Fed will start cutting rates in March. US jobs (Source: Read More…
