The gold price (XAU/USD) has been facing downward pressure as the US Dollar (USD) gains strength due to reduced expectations of a 50 bps Fed rate cut. The recent mixed US monthly jobs report has prompted investors to scale back their bets on a larger interest rate cut by the Federal Reserve (Fed) in September.
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The European stock markets have been closely linked to the performance of the EUR/CHF currency pair in recent times. The correlation between France’s CAC and Germany’s DAX with EUR/CHF has been quite significant, showcasing a high positive reading of 0.82 and 0.84 respectively. This direct correlation indicates that movements in European stock indices can have
The U.S. Federal Reserve has been the subject of much debate regarding the potential for a significant rate cut in the near future. Some analysts, such as Michael Yoshikami, CEO of Destination Wealth Management, believe that a jumbo 50 basis point rate cut would not spook markets. In fact, Yoshikami suggests that a larger cut
The futures tied to Wall Street’s main indexes have shown signs of improvement on Monday after a bleak week. Investor sentiment seems to be shifting towards a more optimistic outlook on the U.S. economy, as they await a crucial inflation report later in the week. Mega-cap stocks, including Tesla, have seen gains in premarket trading,
The recent Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) data have shown mixed results, with the CPI rising at a slower pace than expected and the PPI declining more than forecasted. This has led to minimal impact on the AUD/USD pair, with buyers seemingly unaffected by the softer-than-expected inflation data from China.
Recent data on Britain’s labour market from the Recruitment and Employment Confederation and KPMG paints a concerning picture. The survey reveals a notable decrease in job placements, marking the fastest pace in five months. Additionally, the growth in starting pay for permanent staff has slowed down to a five-month low. These trends indicate a cooling
The recent trends in Non-Farm Payrolls (NFPs) have raised concerns among investors and analysts. While initially appearing strong, the anticipated buying squeeze was short-lived, leading to a shift in rate cut probabilities. Despite the mention of a 50 basis points (bp) cut possibility by Waller, the actual odds remained at a mere 30%, even after
The Egyptian economy has been facing challenges with inflation for quite some time now, and the situation seems to be worsening. Despite forecasts suggesting a decline in inflation for the sixth consecutive month in August, some analysts are wary of the impact of government-led price hikes. The government, in an effort to battle a significant
The Reuters poll suggests that inflation trends are expected to ease in the coming months, with headline YoY inflation anticipated to decrease to +2.6% from +2.9% in July. Similarly, core inflation is predicted to remain at +3.2%, indicating stability in the inflation rate excluding energy and food components. The consecutive months of softening data raise
In a recent development, France has requested an extension from the European Commission for submitting a plan to reduce its public deficit. The country is facing the possibility of seeing its budget deficit increase unexpectedly if additional savings are not identified. This situation has led to France being put into EU disciplinary proceedings and has
The US Aug payrolls saw an increase of 142k, according to the latest data. This has important implications for the USD/JPY pairing. The Michigan Consumer Sentiment Index is also expected to rise from 67.9 in August to 68.0 in September, indicating a potential boost in consumer confidence and spending. These factors may influence the demand