EUR/USD 1.16062
-0.013%
Gold 4329.84
-0.030%
Oil 74.876
-1.227%
USD/JPY 160.273
-0.108%
GBP/USD 1.34138
-0.091%
GBP/JPY 214.992
-0.197%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 17th - LBBW analysts noted in a report that investors will be paying particular attention to Federal Reserve Chairman Kevin Warshs first press conference on Wednesday. As this is the new chairmans debut, "his communication will be the focus of market participants," the analysts said, adding, "He is expected to adopt a more restrained communication strategy." The Fed is expected to keep interest rates unchanged at 3.50% to 3.75% this month.1. UBS: There is still insufficient confidence in Warshs policy stance, and his monetary policy response remains uncertain. Whether Warsh is hawkish or dovish, both could pose market pricing risks. 2. ANZ: Warsh has demonstrated a strong willingness to reform, and his reform ideas are expected to be revealed at the press conference. More detailed information may be provided in his opening speech at the Jackson Hole symposium in August. 3. Bank of America: Warsh is expected to be dovish in his press conference. We believe he will say that the Iranian conflict does not affect underlying inflation (it only has a one-off impact on price levels), therefore the Fed should "ignore" it, especially after recent news of a solution to the conflict. 4. Capital Economics: He may be asked about his views on interest rates. The risk to the market is that Warshs remarks may be more hawkish than expected—either due to a communication mishap or simply because his current stance is not as dovish as it was when he was vying for Trumps presidential nomination. 5. Yale University: If Warsh relies too heavily on soft logic such as "AI deflation" while ignoring hard data, the Fed may repeat the mistake of "temporary inflation." 6. Nordea Bank: Warsh is expected to lean towards a more neutral or even slightly hawkish stance to enhance his credibility. Any changes in his communication will be indicative rather than immediate. 7. BNY Mellon: Warsh has consistently been critical of forward guidance and may use this press conference (or limit the number of press conferences) to indicate how communication policy will change during his tenure. 8. MFS Investment Management: Given Warshs views on technological productivity, he may make dovish remarks. However, this is unlikely, as such comments at this time would damage his hawkish image.On Wednesday, June 17, the German DAX 30 index opened down 98.71 points, or 0.40%, at 24,816.05; the UK FTSE 100 index opened down 1.78 points, or 0.02%, at 10,492.43; and the French CAC 40 index opened down 18.68 points, or 0.22%, at 8,428.59. The Stoxx 50 index opened down 5.52 points, or 0.09%, at 6251.90 on Wednesday, June 17; the Spanish IBEX 35 index opened down 0.89 points, or 0.00%, at 19162.71 on Wednesday, June 17; and the Italian FTSE MIB index opened down 21.06 points, or 0.04%, at 52411.50 on Wednesday, June 17.ECB Governing Council member Simkus: Controlling inflation expectations is very important.June 17 – Mobileye (MBLY.O) announced today plans to further expand its robotaxi business, extending from providing autonomous driving technology to operating its own autonomous ride-hailing services. The new project is planned to launch in a U.S. city in 2027, marking a significant upgrade to Mobileyes strategy.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

EUR:USD.png

 

Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


Suggestion