Tag: Reserve Bank of Australia (RBA)

Fed Rhetoric to Dictate Dollar Direction

Friday February 23: Five things the markets are talking about Ahead of the U.S open, Euro equities are struggling for direction after a positive Asian session as the market debates the outlook for central banks ‘normalizing’ their policies. Euro bonds have gained along with Treasuries, while the dollar steadies after yesterday’s drop. With no U.S […]

24 hours of reconciliation

24 hours of reconciliation It took all of 24 hours for the results of the rationality test to kick in after traders took time to the read the minutes from Wednesday. Not a heck of a lot has changed in the Feds view. The minutes were far more balanced than the equity market sell-off suggested. […]

Confusion reigns

Confusion reigns In a market starved for significant news, the FOMC minutes provided just enough talking points to keep the dollar bid as US bond yields nudged towards crucial resistance levels.However, the Feds assortment of views on wage growth suggests the FOMC remains pliable during the transition phase from Yellen to Powell. In other words, […]

Higher Yields Pushing Dollar Up

Tuesday February 20: Five-things the markets are talking about Overnight, global stock indexes have declined along with U.S futures, while the ‘big’ dollar has rallied a tad as U.S Treasury yields back up towards their four-year highs. No central bank meetings are scheduled for this week although minutes from the latest FOMC (Wed) and the […]

US Bond Auction TIPS the dollar

US Bond Auction TIPS the dollar A dismal US 30year TIPS auction is weighing on dollar demand as the sagging bid to cover ratio of 2.31 is signalling dwindling investor appetite as inflationary headwinds build. The dollar is lower because no one wants to own US bonds despite the higher yield, knowing the inflationary headwinds […]

Dollar Dives on Confidence, No Support from Fundamentals

Thursday February 15: Five things the markets are talking about U.S bond yields have backed after an unexpected rise in U.S consumer inflation to its fastest pace in a year – the core’s +1.8% y/y print yesterday was higher than expected, but still below the Fed’s +2% target – making it more likely the Fed […]

Will it be a Valentines Day Massacre for the Dollar?

Wednesday February 14: Five things the markets are talking about Are financial markets justified going from a growth story to an inflation narrative? Today’s U.S consumer price index (08:30 am) is being touted as one of the most significant economic releases in a number of years as capital markets seek to understand the recent plunges […]

USD Under Pressure as Traders eye U.S Inflation

Tuesday February 13: Five things the markets are talking about Euro equities are trading steady despite a late down swing in Asia, as investors wrestle to find direction after this month’s early collapse. The dollar has weakened against G10 currency pairs while Treasuries have edged a tad higher along with gold. Crude is heading for […]

A day of calm

A day of calm Equity markets have begun the week on a somewhat positive not picking up from Friday rebound as bargain hunters have returned on the first sign of stability. I guess if you owned a stock for fundamental reasons seven days ago and its 5 % lower this week, why not add to […]

FX and Equities Brace for a Bumpy Week

Monday February 12: Five things the markets are talking about Investors are bracing for another bumpy ride this week after market volatility has returned with a vengeance, delivering the biggest rout in global stocks in a number of years. Despite stocks getting a reprieve overnight, investor fears of interest rate hikes that started the market […]