Dollar Solidified Strong Near Term Rally, But Not in Long Term Reversal Yet
Dollar ended last week sharply higher as boosted by the surprisingly hawkish FOMC projections. Yen followed as second strongest on steep selloff in stocks, while Euro is a distant third. Commodity currencies were the worst performers, with Aussie leading the...
Weekly Economic & Financial Commentary: U.S. and E.U. End Aircraft Dispute to Form United Front Against China
Summary United States: The U.S. Economy Continues to Push Through Supply-Side Headwinds During May, retail sales pulled back 1.3%, while industrial production rose 0.8%. Housing starts improved 3.6% in May, but the NAHB/Wells Fargo Housing Market Index slipped two points...
The Weekly Bottom Line: Bank of Canada Not Spooked by Inflation
U.S. Highlights The U.S. Federal Reserve continues to upgrade its outlook. And while Chairman Powell reiterated that the recent rise in inflation was transitory, he acknowledged that there was a risk that inflation could be higher than expected. Most U.S....
Week Ahead: FOMC aftermath, BOE and PMIs
Although the FOMC statement was close to that of the last meeting, the hawkish forecasts and “dot plots” surprised markets. Some Fed members are now looking for an increase in rates by the end of 2022! Fed Chairman Powell will...
Week Ahead – Dollar Rally Accelerates on Hawkish Fed
The steepening trade is dead for now as Treasury flattening accelerates. The Fed’s super hawkish pivot is sending short-term Treasury yields and the US dollar higher. The Fed is no longer in an ultra-accommodative stance, they are now just pretty...