EUR/USD 1.16592
-0.034%
Gold 4629.54
-0.476%
Oil 84.075
-0.563%
USD/JPY 159.458
0.229%
GBP/USD 1.36329
0.019%
GBP/JPY 217.394
0.258%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
August 25th - German business confidence improved significantly in August, with the business climate index rising to 88.8, well above the market expectation of 87.2. The report shows a broad improvement in both current conditions and future expectations, indicating that the German economy is strengthening its recovery momentum after several months of gradual stabilization. The current conditions index rose to 88.5, higher than the market expectation of 87.0. The expectations index surged to 89.1, significantly higher than the market expectation of 87.5, indicating that businesses are more optimistic about the economic outlook for the next six months. This stronger data comes as the German economy has recently shown signs of increased resilience, including improved manufacturing activity and a rebound in business expectations. Recent survey data shows that the industrial sector has regained growth momentum, helping to offset the continued weakness in parts of the service sector, a point also reflected in the preliminary PMI reading.Germanys August IFO Business Expectations Index was 89.1, below the expected 87.4 and the previous reading of 86.7.Germanys August IFO Business Conditions Index was 88.5, below the expected 87 and the previous reading of 86.5.Germanys IFO Business Climate Index for August was 88.8, below the expected 87.2 and the previous reading of 86.6.On August 25th, the Swedish central bank released the latest meeting minutes, indicating that if higher-than-expected inflation this summer proves sustainable, the policy rate may still be raised later this year. The bank previously decided to maintain the rate at 1.75% at its most recent meeting. Swedish central bank governor Töreden stated in the minutes, "I judge that our next policy rate adjustment needs to be a rate hike. However, the timing of the hike remains uncertain." The mixed economic outlook for Sweden presents a challenging task for the Swedish central bank. Overall inflation is low, at only 0.7% year-on-year in July. Despite some economic recovery, business pricing plans remain moderate, oil prices have retreated from their peak, and the labor market remains weak. However, some worrying factors exist. Overall inflation was boosted by temporary tax cuts in an election year, while underlying price pressures were higher than expected during the summer. Furthermore, the Middle East conflict could still spread and lead to higher domestic prices in Sweden.

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