Germany shows signs of possible upcoming economic collapse This can be seen in a 2.4% decline in industrial production Germany’s overall economy shrank by 0.1% and unemployment is rising German GDP forecasts for 2024 and 2025 are downgraded to 0% and 0.9% respectively France shows a similar trend and a 0.5% contraction in automobile production…
Domestic markets might be in no mood to slow down, despite reaching consistent record highs in recent months, as the benchmark Nifty is poised for a multi-quarter consolidation breakout, according to ICICI Direct. A note from the brokerage predicts that this breakout will lead to a significant rally over the next 6-7 quarters. Positive global…
The financial markets have been more influenced by speculations than by concrete economic data, as anticipation builds ahead of Fed’s interest rate decision on September 18. Recent US economic indicators, including the latest CPI report and the prior week’s non-farm payrolls, pointed toward a cautious and modest 25bps rate cut. However, traders and investors chose…
Wednesday will mark a much anticipated first interest rate cut from the U.S. Federal Reserve. Gradual but persistent labour market softening and slowing inflation make it clear that current high interest rates are no longer needed. Indeed, the U.S. unemployment rate ticked lower in August but that was after having trended persistently higher over the…
USD/JPY trades with negative bias for the fourth straight day and hangs near the YTD low. The divergent Fed-BoJ policy expectations turn out to be a key factor weighing on the pair. Investors now look forward to next week’s key central bank event risks for a fresh impetus. The USD/JPY pair weakens further below mid-141.00s…
Summary August’s inflation data probably cement a 25 bps, rather than a 50 bps, reduction in the federal funds rate at next week’s FOMC meeting in our view. The 0.2% increase in headline CPI was in line with expectations, while the 0.3% increase in core CPI was slightly higher than consensus forecasts. Another month of…
Gold price edges lower as USD benefits from reduced expectations of a 50 bps Fed rate cut. The downside remains limited as traders look to US inflation numbers for a fresh impetus. The technical setup supports prospects for a breakout through a short-term trading range. Gold price (XAU/USD) struggles to capitalize on the previous day’s…
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Friday that Fed officials are finally beginning to catch up with the broader market’s view that the time has come for movement from the US central bank on policy rates, but downplayed discussion of a larger opening cut in September. Key highlights The job…
Today’s US non-farm payroll report is crucial for all market participants, as it could determine the size of Fed’s expected rate cut this month. Currently, fed fund futures are pricing in 43/57% chance of a 25/50 bps reduction. Market reaction to NFP will also likely set the trading tone for the remainder of the quarter….
EUR/USD managed to keep a hold of 1.1050 on Tuesday, but action is tilted downside. US PMI figures that flubbed forecasts stoked a fresh bid into the Greenback. US NFP labor numbers due this week will be a guiding print for Fed rate cut depth. EUR/USD tilted further into the low side on Tuesday, with…