Today's Highlights
-
US rate cut a distinct possibility
-
Eurozone inflation picking up
Current Market Overview
US rate cut a distinct possibility
Two central bankers were in the news yesterday. The US Federal Reserve released its meeting minutes showing a clear propensity to lower their base rate amongst the members of the Open Market Committee. The US Dollar weakened a little on the news but is still down at $1.2540 against the Pound and $1.1270 against the Euro. We will have speeches from a number of FOMC members later today which ought to reinforce the message from the meeting.
The Bank of England publishes its financial stability report this morning. That sounds kind of euphemistic in the current environment where everything is anything but stable. It’ll make interesting reading though.
Eurozone inflation picking up
This morning brought a rise in French and German inflation. Fundamentally that is a positive for the Eurozone but it isn’t a local phenomenon. We are seeing rising inflation at the producer and consumer level in areas around the globe, so it is unlikely to prompt a rate hike from the European Central Bank any time soon. There will be comment from some members of the ECB through the day to keep us ‘informed’.
This afternoon will bring US inflation and initial jobless claims as well as the 2nd day of the Federal reserve Chairman’s testimony to the Joint Economic Committee, in Washington DC. He will say the same as he said yesterday.
Later this evening we will hear from yet another central banker; the Assistant governor of the Reserve Bank of Australia and then the purchasing manager’s index from New Zealand. That should keep the late traders busy.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.