The Pendulum Between Inflation and Growth Fears Swung from One Extreme to the Other
Markets Since the beginning of the year up until mid-June, investors turned a blind eye to growth risks, focusing solely on inflation developments and changing reaction functions of central banks (normalization/tightening). This resulted in an unseen core bond sell-off. Ever...
Retail sales little changed in July amid fall in gas prices and drop in auto sales
Retail activity was flat in July as falling fuel prices held back gas station sales and consumers turned more heavily to online shopping, the Census Bureau reported Wednesday. While advance retail sales were unchanged, total receipts excluding autos rose 0.4%....
UK Inflation Unexpectedly Reached Double Digits (First Time Since 1982) in July
Markets: A dramatic sell-off in core bonds marked today’s market action. A number of smaller events culminated an impressive move. Yesterday’s earnings by US retailers Wallmart and Home Depot set things in motion. They beat consensus, putting away most pessimistic...
Pound Yawns as UK Inflation Hits 10.1%
The British pound is almost unchanged today, trading just above the 1.21 level. UK inflation hits double-digits It hasn’t been a good week for the UK, with today’s inflation report following grim wage growth numbers. Headline inflation in July hit...
USD/JPY: Dollar Edges Higher But Still Holding Within a Triangle
The USDJPY regained traction on Tuesday and resumed the upleg from Aug 11 trough (131.73). Fresh bullish acceleration broke through important Fibo barrier at 133.83 (38.2% of 139.39/130.39) and pressuring the triangle resistance trendline (134.37). Break of these obstacles would...
The Pound Is Losing Momentum
The Pound Sterling continues to fall against the USD on Monday; the instrument is mostly trading at 1.2117. First of all, the Pound got under significant pressure from the USD, which has pretty much improved recently. Secondly, statistics published by...
Yen Extending Rally on Negative Sentiment
Negative sentiment started earlier in the day following weak economic data from China, and spread particular serious to some commodities like oil and copper. Aussie is currently leading New Zealand and Canadian Dollar down. Yen is trading generally higher, taking...
AUD/USD Pair Started a Steady Increase from $0.6920
The Aussie Dollar started a steady increase from the 0.6920 zone against the US Dollar. The AUD/USD pair was able to move above the 0.7000 resistance zone. It surged above the 0.7050 level and the 50 hourly simple moving average....
Downside Breakouts in Euro and Sterling Crosses to Overshadow Dollar Volatility
Expectations on the size of next Fed rate hike shifted again last week, with stocks cheering lower than expected consumer inflation reading in the US. Dollar ended as the worst performer but it did have a late come back following...
Sterling Falls Broadly after GDP, Dollar Paring Losses
Sterling falls broadly today while smaller than expected GDP contraction didn’t ease recession worry. Euro is also weak following decline in Germany benchmark yield, but Yen was worse. Dollar, on the other hand, is trying to reverse this week’s losses,...
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