Tag Archives: Policy
policy
Week ahead: Tech sell-off, inflation data drives markets
A sharp sell-off in mega-tech stocks dragged down the Nasdaq and the S&P 500. However, a cooler-than-expected inflation update suggested a nearly certain 25 basis points (bp) Federal Reserve rate cut in September. Learn how despite the tech slump, the anticipation of lower interest rates has buoyed investor sentiment.
Aussie hits six-month high, kiwi drops on U.S. rate cut speculation
Key points: The Australian dollar held near six-month peaks on Friday, driven by market speculation around potential U.S. rate cuts. In contrast, the New Zealand dollar experienced significant declines due to expectations of steeper cuts domestically. Aussie gains, Kiwi struggles See: Aussie on the rise as seen on the VT Markets app. The Aussie stoodContinue Reading
Dollar strengthens on Powell’s caution; Kiwi weakens post-dovish central bank
Key points: Dollar firms on Powell’s caution See: Dollar index trading at 104.768 as seen on the VT Markets app. Powell highlighted a cooling job market, indicating that the Fed faces “two-sided risks” and cannot focus solely on inflation. This statement underpinned the dollar’s rebound, with the dollar index (DXY), which measures the U.S. currencyContinue Reading
Gold edges higher as focus turns to Fed Powell’s testimony
Gold prices experienced a slight uptick on Tuesday, reflecting cautious optimism among investors as they await critical economic updates. Spot gold rose by 0.2%, reaching $2,364.03 per ounce.
Week ahead: Rate cuts anticipated amid economic data
Traders continue to watch the Federal Reserve’s indications regarding potential rate cuts. Despite new forecasts for monetary policy that include an interest rate reduction in 2024, market expectations remain firm for the first cut in September, followed by another in November.
Japanese authorities signal potential intervention in the face of weak yen
The US dollar dipped after inflation data signaled potential Fed rate cuts. Key economic reports next week, including nonfarm payrolls, will guide market expectations.
Gold holds steady as slowing inflation bolsters expectations of Fed rate cuts
Key points Gold prices held steady on Monday after data showed U.S. inflation subsided, bolstering hopes that the Federal Reserve will start cutting interest rates this year. Picture: Gold on the rise, trading at 2325.10 as seen on the VT Markets app. Spot gold rose 0.1% to $2,327.12 per ounce, as of 0202 GMT. PricesContinue Reading
Rupee likely to find support from expected inflows as US yields rise
Key points: The Indian rupee is anticipated to open slightly higher on Thursday, driven by expected inflows from the inclusion of Indian bonds in a major emerging market index. This inclusion, effective from June 28, is likely to attract passive fund inflows, providing support to the rupee. Picture: Indian rupee trading at 83.562 on theContinue Reading
Aussie rallies on inflation surprise and rate hike speculations
Key points The Australian dollar surged higher on Wednesday after data revealed that inflation accelerated much more than expected in May. This development impacted bonds as investors priced in a greater risk of another increase in interest rates. Inflation surges to 4.0% in MayThe monthly consumer price (CPI) report showed annual inflation rose to 4.0%Continue Reading
US dollar bullish in anticipation of the PCE inflation data release
Key points: The US dollar index (Symbol: USDX) is trading in a bullish momentum after two consecutive days of gains lifted its valuation. Broadly, the US dollar was off to a strong start this week as markets ramped up momentum across the board in anticipation of the upcoming personal consumption expenditures index (PCE), which willContinue Reading
