Real rates are firmly positive. This may affect capital allocation
The required rate of return is in flux. This adjustment increases uncertainty in the financial markets.
Page 8 of 35
The required rate of return is in flux. This adjustment increases uncertainty in the financial markets.
The Reserve Bank of Australia (RBA) increased interest rates by 25 basis points today, delivering the first hike since November 2010, in a backdrop of surging inflation
The Fed's preferred measure of inflation, the core PCE index, registered a 5.2% increase YoY. This figure slightly moderates from the 5.3% a month ago, the highest reading since April 1983. Nevertheless, the Fed will still be concerned with controlling inflation, given that its price target is an average rate of 2%. Therefore, next week Wednesday, 5th May, the Fed is expected to hike rates by 50bps. Moreover, the central…
Gold has bounced to a critical resistance level in a downtrend.
Last Thursday, Fed Chair Powell hinted at a 50 bps hike for May. He also endorsed an acceleration in the raising of rates. Moreover, the market is preparing for these to be front-loaded over the next few meetings. The ECB is also growing more hawkish, and EU CPI came in at 7.2%. Twitter has agreed to Elon Musk's offer of $54.20 per share in a takeover, and this week will…
Gold declines, and the dollar finds a bid as market participants prepare for Fed front-loading.
There is an excess demand for oil, which is likely to support price.
The pair makes a relief rally, as markets seem at a better place today, after narrowly avoiding fresh 2022 lows on Tuesday
Our market specialists discuss inflation in this week's podcast, specifically PPI's influence on core CPI. The ECB confirms that its APP will conclude in Q3 and Elon Musk makes an unsolicited bid for Twitter. We also talk about USDJPY and its seven weeks of dramatic rise. This week has notable central bankers speaking at the spring meetings of the IMF, and it's an important week for earnings.
The PPI spike makes it difficult to call a top to core CPI.
Even though core CPI moderated, it is too early to call for a top in inflation.
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.