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A policy cannot deal with the supply shocks impacting the economy. Market participants are aware of this and will continue looking for a return commensurate with the heightened risk. In this environment of uncertainty, the price is still adjusting. Thus it seems, for the time being, they may have settled on "cash is king."
NFP came in better than expected, albeit trending down. Other data hints at cracks forming in the job market. FXCM market specialists, Nik and Russ, discuss this further. The yield curve remains inverted and is in danger of steeper inversion as the Fed continues with its aggressiveness. Wednesday sees the CPI release, with markets forecasting a higher headline number than previous. RBNZ and BoC also feature on the calendar. Shifting…
The NFP print surprised to the upside. However, there are still some worrying signs.
Today's claims data shows degradation in the jobs market.
Oil capitulates as market ponders demand destruction.
Last week saw quarterly GDP contracts and PCE show signs of moderation. Moreover, manufacturing missed its forecast. All of a sudden, the narrative focuses on recession. Nik and Russ discuss if the Fed's focus will change in Q3. The RBA looks to deliver further hikes, and Wednesday sees the release of the FOMC's minutes from its June meeting.
Oil bid as OPEC and OPEC+ set to meet over the next two days.
XAU/USD opened higher today, as the G7 economies are expected to sanction imports of Russian gold, based on the US President’s comments over the weekend
The German government entered into the second level of its emergency plan for gas yesterday, which sent GER30 lower, heading towards another losing week
US President Biden is considering a suspension of the federal gas tax and action could be announced within the day, in a backdrop of soaring prices and monetary tightening by the Fed which creates stagflation fears
The pair is soft, as headline Consumer Price Index (CPI) rose to 9.1% year-over-year in May, in the aftermath of last week’s fifth straight rate hike by the BoE in order fight it
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