U.S. Review
A Busy Week for Fiscal and Monetary Policy
- With three dissenters, the FOMC slightly tweaked its language describing the period of time between the end of the QE program and when the first rate hike would take place.
- November industrial production data showed an impressive pace of industrial output for the month, while October's data were revised higher. Housing starts fell a surprising 1.6 percent in November after posting a 1.7 percent increase in October.
- Consumer prices slid in November, declining 0.3 percent with energy prices pulling the headline index lower. Core prices edged higher a slight 0.1 percent for the month.
Global Review
With Ruble in Freefall, CBRF Pulls the Elevator Brake
- Under pressure from falling oil prices and feeling the pinch of economic sanctions, the Russian ruble has lost about 40 percent of its value on balance since September. When the rate of decline picked up speed this week, the Central Bank of the Russian Federation intervened by lifting its main lending rate 650 bps to 17.00 percent.
- In this week's Global Review we discuss the CBRF's response, we consider Russia's next move and how the collapse in the ruble might play out for Russia and its neighbors.
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AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.