RBA Sticks with Tapering in September, Shrugging Off Short-term Impacts of Lockdown
Surprisingly, the RBA remained optimistic about the economic outlook despite the lockdown in various states over the past weeks. At today’s meeting, the members decided to go ahead with QE tapering from September and upgraded economic forecasts. The central bank...
RBA Board Surprises by Maintaining Current Policy Settings
The RBA Board decided to maintain current policy settings despite forecasting a contraction in the September quarter. The rationale is that the experience points to the economy bouncing back quickly and that presumably a policy change may have undermined confidence...
Aussie Rebounds as RBA Sticks to Tapering Plan, Yen Firm on Falling Yields
Australia Dollar rebounds notably after RBA surprised markets by sticking to its tapering plan. Kiwi appears to be a touch stronger, but Aussie is not far away. Yen is also firm on falling treasury yields. On the other hand, Canadian...
Market Morning Briefing: Pound Has Bounced A Bit From 1.3873
STOCKS Equities look mixed within their broad sideways range. As mentioned yesterday, a fresh trigger looks likely to be needed to see an upside breakout of the range that we have been expecting. Else a fall within the range is...
Bearish trend signals stocks are vulnerable to a 10% to 15% correction
The market appears to be doing something that happens ahead of corrections. When the S&P 500, Nasdaq and the CBOE Volatility Index rise together, BTIG’s Julian Emanuel warns it’s often a precursor to a 10% to 15% pullback. “Whenever we’ve...
Fed Governor Waller sees reduction in bond purchases possibly starting in October
The Federal Reserve could begin slowing down its bond purchases as early as October under a scenario central bank Governor Christopher Waller set out to CNBC in a Monday interview. Should the August and September jobs report show growth in...
RBA Could Put off Tapering Decision and Expose Aussie to More Declines
Four weeks ago, the Reserve Bank of Australia (RBA) claimed that the economy is in a good shape, and it would proceed with its bond tapering schedule as soon as September, despite the Covid uncertainty. On Tuesday, however, the Bank...
AUDUSD Consolidates Below 0.74 But Buyers Intensify
AUDUSD is currently pushing above the 50-period simple moving averages (SMAs) and the flattening Ichimoku lines at 0.7364. The falling 200- and 100-period SMAs are endorsing a negative price trajectory, while the slight uptick in the 50-period SMA is reflecting...
Sterling Weakens in Mixed Trading, Euro Recovers
Sterling is notably lower today in otherwise mixed markets. Euro is also firm, with help from recovery against the Pound. Aussie is the stronger one, mainly because it’s paring last week’s losses. Upside is so far limited ahead of tomorrow’s...
Euro Still Holds a Strong Position
The major currency pair is stable at the beginning of August, growing slightly. EURUSD is rising to 1.1870. The dollar is still coping with the negative influence of the comments by the Fed’s head Jerome Powell. Last week, he stated...
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