Inflation is still problematic, supporting real rates
Whilst headline CPI shows signs of moderating, there may still be sticky elements that need watching.
The economy of a nation is the engine that drives prosperity and creates wealth for that country and its citizens. A nation's utilization of its available resources and manpower has a great influence upon its overall economic prowess. Factors such as governmental structure, access to valuable commodities, size and sophistication of the labor force, and relations with trade partners are all key components of achieving economic stability. Governmental politics play a crucial role in the resolution of many issues facing a nation. The potential impact upon international markets of U.S. President-elect Trump's economic policies, tensions between Russia and NATO, and…
Whilst headline CPI shows signs of moderating, there may still be sticky elements that need watching.
The U.S. Federal Reserve's balance sheet consists of the Fed's portfolio of U.S. Treasury and government-guaranteed mortgage-backed securities (MBS). Along with controlling short-term interest rates, the balance sheet is one of the Fed's main instruments for conducting monetary policy in order to execute its mandate of maintaining moderate interest rates and full employment. Since the global financial crisis in 2008, and then again during the COVID-19 pandemic-induced economic lockdown in…
The headline Consumer Price Index moderated to +8.5% y/y in July, from 9.1% in the prior month, while the core index proved more sticky, staying at +5.9% y/y
The NFP release was a big upside surprise. Unemployment dropped to 3.5%, and the economy created 528K jobs during July (vs 250K estimate). Expectations are now for another 75bps hike in September, with all eyes on today's CPI release. Last week saw both the RBA and BoE raise rates by 50bps, with the BoE's starling communication of 13% inflation by year-end and the onset of a recession. Friday sees UK…
According to the Oxford dictionary, a market is an area and occasion where people buy and sell goods. Markets come in a vast array of types, specifically financial and physical. In this article, we'll break down what a spot market is, what it does and how it differs from derivatives markets. What Is A Spot Market? A spot market is a space where securities, financial instruments, or commodities are exchanged…
According to the International Monetary Fund (IMF), a price is the amount of money that a buyer gives to a seller in exchange for a good or service. Prices come in all shapes and sizes, depending largely on the asset class in question. Commodities, shares, crypto and currency are all subject to pricing. For instance, currencies are priced relative to one another in terms of an exchange rate. Assets such…
Major central banks have implemented aggressive rate-hike cycles in order to combat surging inflation, but fears of recession make their job difficult and their forward guidance unclear
The world of finance is composed of assets, markets and participants. It's the dialogue between each facet that facilitates the process of price discovery. However, without base levels of liquidity and participation, efficient asset pricing grinds to a halt. Read on to learn more about illiquid assets and what they mean to active traders and investors. What Is An Illiquid Asset? An illiquid asset is a good or service that…
The BoE delivered its biggest hike in twenty-seven years today, but moderated its guidance, while projecting recession and higher inflation ahead
Fed officials start preparing market for further rate hikes.
The RBA delivered its fourth straight rate hike, but changed its rhetoric in a way that could be a precursor of more moderate moves ahead, sending AUD/USD lower
Exchange: ${getInstrumentData.exchange}
${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.