Economic Updates

Economic Updates

FX Analysis – Risk-Off Hits Equities, USD and JPY outperform on haven flows, AUD, NZD slump

US Equity markets slumped on Wednesday with a surprise Fitch credit downgrade of the US and a hot ADP employment figure pushing yields higher saw the risk-off trade firmly in control. FX Markets USD rallied strongly on Wednesday, with DXY rising from lows of 102.01 to highs of 102.78 before pulling back modestly to finish the session around 1...

August 3, 2023
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The Week Ahead – RBA and BoE Rate Decisions – AUDUSD, GBPUSD

Coming off a big week in Central Bank action, risk events are set to continue this week with the Reserve Bank of Australia and Bank of England rate decisions on Tuesday and Thursday respectively, topped off with the always important non-Farm payrolls out of the US on Friday, which are set to keep traders on their toes. Australia – RBA rate dec...

July 31, 2023
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FX Analysis – EUR Underperforms on ugly PMIs, Rally in UST Yields Support USD,CAD Up on Back of Oil Rally.

FX markets traded in a holding pattern on Monday to start the week ahead of a deluge of big data to come. EU PMI’s were ugly though, all missing expectations, indicating a slowing economy but with sticky prices, raising the spectre of stagflation again and weeing the Euro underperform. FX WRAP USD was firmer on Monday, with a rise in the US...

July 25, 2023
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The Week Ahead – FOMC, ECB, BoJ Rate Decisions, Aussie CPI Headline a Big Week in Markets

Global markets are heading into a bumper week of tier one economic releases, with the eagerly awaited rate decisions from the Federal Reserve, European Central Bank and Bank of Japan on the calendar. Also in the mix are key Inflation figures from the US , Europe and Australia to keep traders on their toes. US: FOMC looks set to hike 25bp US ...

July 24, 2023
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The Rally on Wall St continues – Tech leads on soft US data, FX markets choppy – range bound

US equities pushed higher again in Monday’s session with soft US manufacturing data (lowering rate expectations from the Fed) counteracting weak Chinese figures during the Asian session. This saw the NASDAQ outperform, breaking through resistance and hitting its highest level since January 2022. FX Markets USD was flat on Monday, the US...

July 18, 2023
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The Week Ahead – The charts to watch USD, GBP, AUD

The Dow Jones closed 100 points higher Friday, having its best week since March as US and global markets were solidly risk on solid US earnings and US data showing a cooling in inflation. The week ahead is looking to continue this theme with US data likely to hint at a softening growth story with industrial activity data set to remain subdued. U...

July 17, 2023
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US Equities Eke out a Gain, Dollar Battered, Bonds Bid

Major US indices finished in the green in Monday’s session as lowered inflation expectations saw treasury yields come off the recent highs, bolstering stocks but seeing the USD take a big hit. The Russell 2000 was the clear outperformer (+1.64%) while the Nasdaq squeaked into the green after spending most of the session in negative territory, ...

July 11, 2023
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Charts to Watch in the Week Ahead – BoC rate decision, US CPI, RBNZ, UK wage and jobs data

Central banks are back in action in the coming week with the Bank of Canada and RBNZ scheduled to release their latest monetary policy and official rate decisions, also some key data from the US and the UK which will go a long way to cement market expectations of the next move from their Central Banks. Charts to watch this week: GBPUSD :  UK...

July 10, 2023
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The Week Ahead- RBA, FOMC minutes and NFP headline

The FX market enters the new week after the USD has dominated for the last fortnight, reversing it’s early June weakness on the back of a Fed that has pushed back hard against markets pricing in a rate pivot, jawboning odds of a hike at their July meeting as almost now fully priced in. This week’s US data will play a big part in whether markets...

July 3, 2023
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US Markets rally strongly after strong data and big tech rebound

US indices bounced back strongly in Tuesday's session as the yesterdays losers in big tech became the winners as strong data encouraged traders to buy the dip. MSFT, AMZN, META and TSLA all posted strong sessions after Mondays sell-off, helping the Nasdaq to outperform, finishing up over 200 points or +1.65% Risk sentiment was spurred by str...

June 28, 2023
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US Markets finish mostly down in quiet session as Big Tech drags down the Nasdaq

US Indices were mixed to start the week in Monday’s session in a low volatility session, Big Tech gave back some of their recent gains with a major pullback in Tesla (-6% on a Goldman Sachs downgrade) and Meta, Amazon and Microsoft all falling 2-3% saw the Nasdaq down over 1% to be the worst performing index. The Russell 200 was the only m...

June 27, 2023
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The Week Ahead – More Fed speak, Inflation and the Charts to Watch, AUD, USD, JPY, BTC

Despite a pull back last week, Global markets are coming into the last week of June and marking the half year point on an impressive run, with the Nasdaq remaining up more than 28% and the S&P500 +13% throughout the first half of the year. The week ahead is fairly light on tier one economic releases, but there will be some flash points that wil...

June 26, 2023
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Asia looking to open in the red on Wall St lead, Bitcoin bounces, Gold and Silver tumble

US indices drifted lower in Tuesday’s session in choppy action in what has been framed as preliminary month/quarter end selling in the absence of any US tier one economic releases. The Nasdaq was the “least worst” index (-0.16%) held up by another surge in momentum darlings Tesla (TSLA +5.34%) and Nvidia (NVDA +2.61%) which both surged on tec...

June 21, 2023
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The Week ahead – BoE and SNB set to hike, RBA minutes and Jerome’s jawboning.

More Central bank action is set to dominate the news flow this week with the FOMC and ECB decisions done, coming up we have the Bank of England and the Swiss National bank with monetary policy meetings, sprinkled with a slew of Fed speakers which should keep markets interesting. US – Dollar Index holding critical support. US markets will ge...

June 19, 2023
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Asian stocks looking to open in the green after a volatile post-FOMC session on Wall St

US markets finished mixed in a chaotic session as the long-awaited June FOMC monetary policy meeting concluded. As expected, the Fed held rates steady after 10 straight hikes, the tone of the accompanying statement was quite hawkish, signalling higher for longer in rates and the possibility of more hikes to come. More mixed signals were given by Ch...

June 15, 2023
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