BoJ’s Uchida: Future rate path depends on economic, price developments at the time
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Bank of Japan (BoJ) Deputy Governor Shinichi Uchida stated that the future rate path of the BoJ depends on economic and price developments at the time. The focus will be on the pace of increase in inflation expectations and the degree of price dynamism, including wages. The BoJ will determine whether conditions have fallen into place to shift policy and then consider the most appropriate means and sequence to do so. Uchida emphasized that terminating Yield Curve Control (YCC) does not mean the BoJ will suddenly stop bond buying. The decision to expand or scale back the balance sheet will depend on economic developments at the time. Uchida also mentioned that rising prices leading to higher wage growth and the outcome of this year's annual wage negotiation will be crucial factors in judging whether a positive economic cycle will kick off. The likelihood of sustained achievement of the 2% inflation target is gradually heightening. Uchida did not comment on market perceptions of the future rate path. The fate of the BoJ's overshooting commitment will be decided once sustained achievement of the 2% inflation target comes into sight. The government and the BoJ share a common understanding in guiding policy, and wage growth is essential for sustainable 2% inflation. At the time of writing, USD/JPY is trading at 148.64, up 0.30% on the day.
#BankOfJapan #InterestRates #EconomicDevelopments #PriceDynamics #Inflation #WageGrowth
USD/INR weakens ahead of RBI rate decision
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The Indian Rupee (INR) is trading stronger against the US Dollar (USD) and US bond yields are lower. The Reserve Bank of India (RBI) is expected to keep the key interest rates unchanged at 6.5% for the sixth consecutive time. Traders are awaiting the RBI interest rate decision along with the US weekly Initial Jobless Claims and a speech by Fed's Barkin. The RBI governor will announce the bi-monthly monetary policy, which is anticipated to maintain a status quo on the key interest rate. The RBI Monetary Policy Committee (MPC) is expected to keep the repo rate steady at 6.5% as inflation approaches the upper tolerance level of 6%. The RBI raised its economic growth forecast to 7% from 6.5% due to positive signs in the Indian economy. The RBI interest rate decision will be followed by attention on Indian inflation data and Industrial Production. The Indian Rupee is sensitive to external factors such as the price of crude oil, the value of the US Dollar, and foreign investment. The decisions of the RBI and macroeconomic factors such as inflation, interest rates, economic growth rate, and the balance of trade also influence the value of the Indian Rupee. The USD/INR pair has traded within a descending trend channel of 82.70-83.20 and maintains a bearish outlook in the short term. The US Dollar price today shows a mixed performance against major currencies. The Indian Rupee is influenced by factors such as the price of crude oil, the value of the US Dollar, foreign investment, and the decisions of the Reserve Bank of India. Inflation impacts the Indian Rupee, with higher inflation generally being negative for the currency. The author and FXStreet do not provide personalized recommendations and the information provided is for informational purposes only.
#Usd/inr #Rbi #InterestRates #Inflation #EconomicGrowth #CrudeOil #UsDollar
https://www.fxstreet.com/news/usd-inr-weakens-ahead-of-rbi-rate-decision-202402080358
Australian Dollar remains calm after subdued Chinese CPI, US Dollar remains stable
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The Australian Dollar (AUD) recovers its recent losses on Thursday, buoyed by a risk-on sentiment in the market. The US Dollar (USD) faces challenges despite the US Federal Reserve (Fed) emphasizing its commitment to keeping interest rates elevated until inflation sustainably returns to the 2% target. The Australian currency is strengthened as RBA’s Bullock did not rule anything in or out regarding future policy actions. Chinese CPI (YoY) declined by 0.8% against the anticipated decline of 0.5% and the previous decline of 0.3%. The Australian Dollar is bolstered by hawkish remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock following the interest rate decision on Tuesday. The RBA opted to keep its Official Cash Rate (OCR) unchanged at 4.35%. Chinese Consumer Price Index (CPI) grew by 0.3% MoM in January, falling short of the expected 0.4%. However, it has been improved from the previous reading of 0.1%. The annual CPI declined by 0.8%, exceeding the anticipated decline of 0.5% and the previous decline of 0.3%. The US Dollar Index (DXY) continues its downward trend for the third consecutive session, pressured by a correction in US Treasury yields. Federal Reserve Chair dismissed the possibility of a rate cut in March. Australian Dollar price today: The Australian Dollar trades around 0.6530 on Thursday, slightly below the immediate resistance level at 0.6550. A breakthrough above this level could potentially catalyze further upward movement for the AUD/USD pair, with potential targets including the 23.6% retracement level at 0.6563 and the 21-day Exponential Moving Average (EMA) at 0.6579. On the downside, key support is anticipated at the psychological level of 0.6500. Additional support levels include the weekly low at 0.6468, followed by a major support level at 0.6450.
#AustralianDollar #UsDollar #ChineseCpi #Rba #FederalReserve #InterestRates
Stock Market Today: US stocks set for a mixed opening as investors await key earnings reports
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US stock index futures trade mixed ahead of Wall Street's opening bell on Wednesday. S&P 500 futures are down 0.06%, Dow Jones futures drop 0.16%, and Nasdaq futures are unchanged. Enphase Energy INC (ENPH) was the top-performing stock in the S&P 500 on Tuesday, gaining more than 13% on a daily basis. Kroger (KR), KLA Tencor Corp. and Fiserv Inc. shares were the biggest losers Tuesday, falling more than 2%. The US Census Bureau will release Goods Trade Balance data for December on Wednesday. The Federal Reserve will publish Consumer Credit Change later in the day, and Fed Governor Michelle Bowman and Richmond Fed President Thomas Barkin will also be speaking. Alibaba Group Holdings Ltd. (BABA) reported Q3 adjusted net income of RMB 47,951 million and Q3 revenue of RMB 260,348 million on Wednesday. Uber Technologies Inc (UBER) announced Q4 net income of $1.4 billion and Q4 gross bookings of $37.6 billion. Walt Disney Company (DIS), ARM Holdings PLC (ARM), and Paypal Holdings Inc (PYPL) are among top companies scheduled to announce earnings after the closing bell on Wednesday. Federal Reserve Bank of Philadelphia President Patrick Harker said on Tuesday that the central bank made the right choice last week to maintain interest rates steady amid an outlook that likely heralds more inflation declines. The CME FedWatch Tool shows that markets are pricing in a 21.5% probability of a 25 basis points Fed rate cut in March.
#UsStocks #EarningsReports #S&p500 #DowJones #Nasdaq #EnphaseEnergy #Kroger #KlaTencorCorp. #FiservInc. #UsCensusBureau #FederalReserve #AlibabaGroupHoldings #UberTechnologies #WaltDisneyCompany #ArmHoldingsPlc #PaypalHoldings #FederalReserveBankOfPhiladelphia #InterestRates
EUR/USD remains below 100-day SMA despite hawkish ECB comments, softer USD
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EUR/USD strengthens in reaction to hawkish comments by ECB Governing Council Member Isabel Schnabel, offsetting disappointing German macroeconomic data. The pair is also supported by hopes for a de-escalation of the crisis in the Middle East. However, the USD remains resilient due to expectations that the Fed will keep rates higher for longer. Traders are awaiting the release of US Trade Balance data and speeches by influential FOMC members for short-term impetus.
#Eur/usd #Ecb #Usd #GermanMacroeconomicData #MiddleEastCrisis #Fed #UsTradeBalance
EUR/GBP declines toward 0.8530 as ECB rate-cut bets deepen
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The EUR/GBP pair falls sharply to near 0.8530 on December's downbeat German Industrial Production data. The industrial output of Germany was down at a sharp pace of 1.6% monthly, while market participants projected a decline of 0.6%. In November, the economic data was contracted by 0.2%. This has deepened the chances of early rate cuts by the European Central Bank (ECB). ECB Cos is confident about inflation declining towards the 2% target. However, ECB executive board member Isabel Schnabel warned that early rate cuts could flare up price pressures again. On the other hand, UK companies are becoming optimistic about the Bank of England's (BoE) rate-cut prospects amid easing price pressures. The Pound Sterling performs better against the Euro as the economic prospects of the United Kingdom's economy are improving again.
#Eur/gbp #Ecb #RateCuts #GermanIndustrialProduction #Inflation #BankOfEngland
https://www.fxstreet.com/news/eur-gbp-declines-toward-08530-as-ecb-rate-cut-bets-deepen-202402070841
Strong US data suggest EUR/USD could keep struggling in the near term – SocGen
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The Eurozone economy is operating below potential, unlike the US. European rates have corrected with US rates, but to a lesser extent. The Euro 5y IRS is up 7 bps since Friday compared to 30 bps for the US. The widening of the spread is driving the new low in EUR/USD. It remains to be seen if the pair can reclaim 1.0780 and repeat the price action of last December when the Fed sparked Dollar profit taking. Strong US data suggest EUR/USD could keep struggling in the near term.
#Eur/usd #ForexMarket #UsData #EurozoneEconomy
Pound Sterling revives on improved market sentiment
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The Pound Sterling (GBP) shows some bullish moves in the European session on Wednesday as the appeal for risk-perceived assets has improved significantly. The GBP/USD rebounds strongly despite increasing prospects of early rate cuts by the Bank of England (BoE). The UK’s construction and service sectors have rebounded as prospects of rate cuts by the BoE have deepened amid easing price pressures. The US Dollar (USD) has come under pressure despite the Federal Reserve (Fed) now expecting not to rush rate cuts amid a resilient labor market and retail demand. Pound Sterling has extended its upside above 1.2600 as the United Kingdom's economic prospects improve despite the Bank of England (BoE) maintaining interest rates in the restrictive trajectory. The odds of early rate cuts by the BoE escalated after a dovish guidance on interest rates by Bank of England Chief Economist Huw Pill. The Pound Sterling is the oldest currency in the world and the official currency of the United Kingdom. The Bank of England's decisions on monetary policy have a significant impact on the value of the Pound Sterling. Economic data releases and the trade balance also influence the value of the Pound. The Pound Sterling is currently trading above 1.0750 against the Euro (EUR) and defending 1.2600 against the US Dollar (USD).
#PoundSterling #BankOfEngland #UkEconomy #UsDollar
Fed Chair Powell channels Ben Bernanke, assures us everything is fine!
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During a 60 Minutes interview, Federal Reserve Chairman Jerome Powell assured that the problems in the commercial real estate market are manageable and not a risk to the broader banking system. This assurance is reminiscent of former Federal Reserve Chairman Ben Bernanke's statements in 2007 that the problems in the subprime mortgage sector were contained. However, the subsequent financial crisis proved otherwise. The article raises concerns about the potential for history to repeat itself.
#FederalReserve #CommercialRealEstate #FinancialCrisis #JeromePowell #BenBernanke
USD/INR trades flat on the weaker US Dollar, RBI rate decision eyed
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The Indian Rupee (INR) is trading flat against the US Dollar (USD) despite the weaker USD. India's services sector expanded at its fastest rate in six months, with the S&P Global India Services Purchasing Managers' Index (PMI) surging to 61.8 in January. The Reserve Bank of India (RBI) interest rate decision on Thursday will be the highlight of the week. The RBI is expected to keep the repo rate unchanged at 6.5%. The Indian economy has shown resilience amid high inflation and geopolitical conflicts in the Middle East. The OECD raised India's growth outlook for 2024-25 to 6.2%. The Indian government plans to trim the budget deficit to less than 4.5% by FY26. Technical analysis suggests that the USD/INR pair is in a descending trend channel, with support at 82.70 and resistance at 83.20. The US ISM Services PMI rose to 53.4 in January. The US Dollar price today shows a mixed performance against major currencies. The key factors driving the Indian Rupee include the price of crude oil, the value of the US Dollar, and foreign investment. The decisions of the RBI and macroeconomic factors such as inflation, interest rates, GDP, and the balance of trade also influence the value of the Rupee. Higher inflation is generally negative for the currency, but higher interest rates can be positive. The US economic outlook continues to improve.
#Usd/inr #IndianRupee #UsDollar #Rbi #InterestRateDecision
Mexican Peso climbs against US Dollar, despite high US Treasury yields
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The Mexican Peso (MXN) is climbing against the US Dollar (USD) despite high US Treasury yields. The USD/MXN is trading at 17.08, down 0.28%. Mexico's economic docket for the week includes inflation data and the upcoming rate decision by the Bank of Mexico (Banxico). Expectations lean towards Banxico holding rates at 11.25%. The US economy continues to show strength with the release of strong Services PMI and Nonfarm Payrolls data, indicating a soft landing for the Federal Reserve. Banxico meets eight times a year and its monetary policy is influenced by the decisions of the US Federal Reserve. The USD/MXN is currently neutral-biased, with resistance at 17.20 and support at 17.03. The Bank of Mexico's main tool to guide monetary policy is by setting interest rates, which can influence the value of the Mexican Peso. The rate differential with the USD is a key factor. The author of the article has no position in any stock mentioned and no business relationship with any company mentioned.
#MexicanPeso #UsDollar #UsTreasuryYields #BankOfMexico #FederalReserve
https://www.fxstreet.com/news/mexican-peso-slides-amid-powells-hawkish-comments-202402051707
GBP/USD falls amid Powell’s comments, strong US PMIs
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The GBP/USD falls 0.74% to 1.2535 influenced by Powell's rate stance and strong US jobs data. Powell commented that it is premature to consider cutting rates, but left the door open to easing policy. US Nonfarm Payrolls showed substantial job growth, supporting the US economy and boosting the Dollar. Rising US Treasury yields and solid economic data prompt a reassessment of Fed rate cuts. The UK services sector's positive start is overshadowed by US monetary policy and economic outlook focus. The GBP/USD has fallen below the 200-day moving average and aims to extend losses further below 1.2500. US Dollar strength and positive economic data weigh on the pair.
#Gbp/usd #Powell #UsPmis #UsNonfarmPayrolls #UsDollar #UkServicesSector
https://www.fxstreet.com/news/gbp-usd-falls-amid-powells-comments-strong-us-pmis-202402051828
NFP surprises, META blows the roof off the place, US strikes back in the Red Sea
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The Nonfarm Payrolls (NFP) report for January 2024 exceeded expectations, with 353,000 new jobs created, causing unemployment to remain steady at 3.7%. Wages also surged by 0.6% month-on-month and 4.5% year-on-year, raising concerns about inflation. The strong economic data challenges the narrative of potential rate cuts by the Federal Reserve. Meanwhile, META, a company that tripled its profits, announced a $50 billion stock repurchase plan and a quarterly dividend, leading to a surge in its stock price and the broader market. The dividend announcement also opens the door for more investors to own META. The S&P 500 index continues to be influenced by a few dominant stocks, known as the "Magnificent 7," which have a significant impact on the index due to their market capitalization. The market is pricing in the expectation of rate cuts, but the data suggests a strong economy, making rate cuts less likely. Oil prices fell due to the expectation that the rate cut narrative will dampen energy demand, while gold prices declined as the US Dollar strengthened. The US futures market is showing a lower opening, and the VIX volatility index is expected to rise. This week is the last big week of earnings reports, with several major companies reporting. The market may experience some consolidation as investors reassess their appetite for risk.
#NonfarmPayrolls #Meta #UsEconomy #RateCuts #StockMarket
Pound Sterling slides further on US NFP-led risk-off sentiment
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The Pound Sterling (GBP) continues to face the wrath of dismal market sentiment in the European session on Monday. The GBP/USD pair drops sharply as resilient United States Nonfarm Payrolls (NFP) data on Friday have dented expectations of a rate cut from the Federal Reserve (Fed) at March’s monetary policy meeting. The UK’s poor economic prospects could force the BoE to lean towards loosening policy. The UK Office for National Statistics (ONS) reported in its revised Q3 Gross Domestic Product (GDP) estimates that the economy contracted by 0.1%. The Pound Sterling falls to a near seven-week low of around 1.2600 as the appeal for risk-perceived assets has weakened. The outlook for risk-sensitive assets has worsened as the upbeat United States employment data forced traders to pare Federal Reserve’s rate-cut bets. The Pound Sterling has come under severe pressure despite the Bank of England seeming more hawkish on the interest rate outlook than the Fed. Investors hope that a subdued economic performance and increasing geopolitical tensions could force BoE policymakers to cut interest rates earlier than expected. The United Kingdom's economy is on the brink of a technical recession. The economy witnessed a GDP contraction of 0.1% in the third quarter of 2023, and a subdued performance is anticipated in the final quarter. The UK’s vulnerable economic prospects may force BoE policymakers to join Swati Dhingra and lean towards easing interest rates in upcoming meetings.
#PoundSterling #Gbp/usd #FederalReserve #BankOfEngland #InterestRates #EconomicPerformance #GeopoliticalTensions
Fed Chair Powell stresses caution on rate cuts amidst positive inflation signals
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Fed Chair Powell signaled that the Fed wants additional confirmation that the economy is on a path to bring inflation back to 2% in a sustainable way. The labor market is an important variable. The US economy added 353k jobs in January, with an upward revision for the previous two months. Despite recent wage growth, it may not be in line with sustainable inflation. US yields and German yields increased. Markets now see only about a 20% chance of a March rate cut. The dollar outperformed. Fed Chair Powell suggested that it might take until summer for the Fed to start its easing cycle. The US 2y yield increased. The Turkish central bank fired its chair and replaced her with the deputy governor. The Turkish lira holds close to all-time low levels. Slovak Finance Minister Kamenicky said that the government wants to show investors that they have a clear consolidation trajectory and that its plan to reduce the budget deficit is credible. Hungary's economy minister forecasted a higher budget deficit target for this year. Gold price remains under selling pressure. The ISM Services PMI for January is the main macro driver in focus for the US. The RBA's rate decision takes to the front on Tuesday.
#FederalReserve #InterestRates #Inflation #LaborMarket #UsEconomy #Wages #Yields #Dollar #TurkishCentralBank #BudgetDeficit #GoldPrice #IsmServicesPmi #RbaRateDecision
UK unemployment rate lower after new ONS data
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The UK unemployment rate fell to 3.9% from 4.2% in the three months to November, according to new data from the Office for National Statistics (ONS). However, the economic inactivity rate was higher than previous estimates and average hours worked were revised down. The revised survey suggests that wage pressure could remain elevated, supporting the Bank of England's caution on cutting rates. The ONS will conduct face-to-face interviews to improve the quality of UK labour market data. Vodafone beat analyst estimates for organic revenue last quarter, while Fed Chair Jay Powell reiterated the forecast of three rate cuts for 2024. Chinese stocks have slumped, raising concerns about margin calls and potential political unrest.
#Uk #UnemploymentRate #Ons #LabourMarket #WagePressure #BankOfEngland #Vodafone #FedChairJayPowell #RateCuts #ChineseStocks
https://www.fxstreet.com/analysis/uk-unemployment-rate-lower-after-new-ons-data-202402050754
AUD/USD Outlook: Bears have the upper hand near YTD low ahead of RBA on Tuesday
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The AUD/USD pair stages a modest recovery from the 0.6485 area, or its lowest level since November 17 touched this Monday and trades with a mild positive bias during the early European session. The USD struggles to capitalize on its modest intraday uptick to a nearly two-month peak and fails ahead of the 100-day Simple Moving Average (SMA), which, in turn, is seen as a key factor lending support to spot prices. Investors further scaled back their expectations regarding the timing and pace of rate cuts by the Federal Reserve (Fed) in the wake of Friday's blockbuster US jobs data. The headline NFP showed that the US economy added 353K new jobs in January as against the 180K anticipated. Moreover, the previous month's reading was also revised higher to 333K from the 216K reported. Meanwhile, other details of the report revealed that the unemployment rate held steady at 3.7% and Average Hourly Earnings rose to 4.5% on a yearly basis, both beating consensus estimates. Adding to this, Fed Chair Jerome Powell, speaking in an interview with the US TV show 60 Minutes, reiterated that the March meeting is likely too soon to have the confidence to start cutting interest rates. The markets were quick to react, with the probability of a 150-bps rate cut in 2024 dwindling to just 25% from being nearly certain previously. This, in turn, remains supportive of a further rise in the US Treasury bond yields and favours the USD bulls. Furthermore, geopolitical risks stemming from conflicts in the Middle East, along with worries about slowing economic growth in China, temper investors' appetite for riskier assets. This further benefits the safe-haven Greenback and contributes to keeping a lid on the risk-sensitive Aussie. Bulls might also refrain from placing aggressive bets around the Australian Dollar (AUD) in the wake of growing acceptance that the Reserve Bank of Australia's (RBA) tightening cycle is over and that the next move would be down. The bets were lifted by soft consumer and producer inflation data released last week, which ramped up expectations that prices will fall at an accelerated pace in the coming months. Hence, the market focus will remain glued to the RBA monetary policy meeting on Tuesday. From a technical perspective, Friday's close below the 100-day Simple Moving Average (SMA) for the first time since November was seen as a fresh trigger for bearish traders against the backdrop of last week's breakdown through a short-term range. Apart from this, oscillators on the daily chart are holding deep in the negative territory and are still away from being in the oversold zone. This, in turn, validates the near-term negative outlook for the spot prices, suggesting that any subsequent move-up might still be seen as a selling opportunity.
#Aud/usd #Rba #FederalReserve #UsJobsData #InterestRates #UsTreasuryBondYields #MiddleEastConflicts #ChinaEconomicGrowth #ReserveBankOfAustralia #InflationData
What a blast
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The US economy added 353,000 nonfarm jobs last month, exceeding expectations of around 185,000 new job additions. The average wage growth unexpectedly accelerated to 4.5%. The probability of a March rate cut from the Federal Reserve (Fed) has fallen to less than 20%, compared to around 80% at the start of the year. The US 2-year yield jumped more than 20bp, the 10-year yield jumped past 4%, and the US dollar index rallied to its highest levels since early December. The EURUSD slipped below the 1.08 level and hit a bearish target of 1.0710. The AUDUSD slipped below its 100-DMA and is testing the 65 cents support. The stock markets were not impacted by the jump in US yields and the retreat in Fed rate cut bets. Gold remains under selling pressure. Ripple price trades around $0.50 ahead of the next key date in the SEC vs. Ripple lawsuit. The main macro driver in focus for the US is the ISM Services PMI for January. The RBA's rate decision is also awaited. The barrel of US crude fell to $72pb level last week and is not much higher this morning despite the US retaliation for last weekend's attacks. The risk of escalation with Iran remains. The first full week of February will deliver a quieter tone compared to last week. The use of this website constitutes acceptance of our user agreement. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.
#UsEconomy #JobsData #FederalReserve #InterestRates #UsDollar #StockMarkets #Gold #Ripple #SecLawsuit #OilPrices
Week ahead: What are the markets watching this week?
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The first full week of February will deliver a quieter tone compared to last week. Monday’s ISM Services PMI for January is the main macro driver in focus for the US, while in Asia Pac, the Reserve Bank of Australia’s (RBA) rate decision takes to the front on Tuesday. Last week’s stage was set exclusively for the Fed, and the primary message was to forget March. While the FOMC left the target rate unchanged at 5.25%-5.50%, it opened the door to rate cuts but the Fed Chairman Jerome Powell almost explicitly pushed back against March’s policy meeting, in line with Futures market pricing (24% probability priced in as of writing). Meanwhile, we have also seen a rate repricing for May’s policy meeting following Friday’s NFP beat, effectively nudging things in favour of a 25bp cut out to June (44bps) rather than May (22bps). Traders also welcomed a slew of US jobs data last week, including increased Job Openings (increased to a little more than 9 million in December 2023; however, with the upward revision of the previous number to 8.93 million, there was little change), weak ADP employment growth (107,000), as well as a -0.4-percentage point drop in the ISM Manufacturing PMI employment component from 47.5 to 47.1 and weekly jobless filings jumping to 224k from a slightly upwardly revised 215k print. On top of this, Friday witnessed a monster beat on the non-farm payrolls release; the US economy added 353,000 new jobs in January, surpassing all estimates and breezing through the 216,000 jump in December. The unemployment rate remained unchanged at 3.7%, and the year-on-year earnings surged to 4.5% (M/M rose 0.6%), smashing through all estimates and the prior (4.1%). This week’s ISM Services PMI print will essentially be the highlight event for the US, gracing the airwaves at 3:00 pm GMT. The market’s median estimate is for an increase to 52.0, up from 50.6 in December 2023 (the estimate range is between 53.0 and 50.6). As for the RBA, no fireworks are expected here. The central bank, scheduled for 3:30 am GMT, is widely expected to hold its Cash Rate unchanged at 4.35% on 6 February for a second consecutive meeting (a 12-year high).
#Markets #IsmServicesPmi #ReserveBankOfAustralia #UsJobsData
https://www.fxstreet.com/analysis/week-ahead-what-are-the-markets-watching-this-week-202402042241
EUR/USD remains below 1.0900 post intraday gains, US Nonfarm Payrolls eyed
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EUR/USD extends gains as US Dollar weakens after mixed US data. Euro could face challenges as markets speculate over an ECB interest rate cut in June. US Dollar could suffer further losses if the US NFP declines as anticipated. EUR/USD gained upward support following mixed economic data from the United States (US). The subdued US Treasury yields contribute to adding pressure on the US Dollar (USD). US Treasury yields experienced downward pressure following reports from regional bank New York Community Bancorp, which indicated increased stress in its commercial real estate portfolio. The US Dollar Index (DXY) struggles to retrace its recent losses. The DXY trades around 103.00, with the 2-year and 10-year US Treasury yields hovering around 4.23% and 3.88%, respectively. US Nonfarm Payrolls (NFP) data is set to be released, including US Average Hourly Earnings and Nonfarm Payrolls (NFP). EUR/USD advances to near 1.0880 on Friday, close to the immediate resistance around the psychological level at 1.0900. The major level at 1.0850 appears as the key support. The US Dollar is struggling to find its feet, allowing the Euro to stretch higher amid an upbeat mood. All eyes now remain on the US NFP data release.
#Eur/usd #UsNonfarmPayrolls #UsDollar #Euro #EcbInterestRateCut