According to data published by the Office for National Statistics on Wednesday, 17 April 2024, consumer prices increased by 3.2%, which is slightly less than the recorded 3.4% in February 2024. These records further indicated that core inflation, which does not include food, energy, or tobacco, dropped from 4.5% to 4.2%. A Reuters poll predicted…
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Despite the positive survey from over 60 global chief economists, investors and industry experts are reconsidering when the cuts will come largely because the major global economies have failed to get inflation consistently under its 2% target. Last week, markets predicted a 75% chance of US rate cuts in March of this year. This week,…
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There was no significant activity among major central banks last week, but expectations of a single cut by the Federal Reserve (‘the Fed’) at the end of this quarter remain high. According to CME FedWatch Tool, around 55% of participants expect five cuts to the funds rate between 20 March and 18 September, which would…
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Meanwhile the bank of Canada reached 4.25% last month and seems likely to call for another single hike next week. Inflation in Canada isn’t at the same crisis area as in the EU and seems to be dropping more quickly as well, so it might be that the end of this cycle of tightening is…
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LR: What were the key market trends you observed in 2022, generally and specifically among HYCM’s investors? Stavros: FX volatility has returned with a vengeance in 2022, due to many of the issues just mentioned. We’ve seen moves in some of the major pairs that have been difficult to believe as the DXY reached levels…
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The situation on the chart has followed these changing fundamentals quite closely, with the euro making gains over the last week to a high of around a month, breaking clearly above $1.01 and the 50-day moving average from Bands. There seems to be more scope for the common currency to continue upward and possibly test…
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European Shares Share markets continued to trade higher on Tuesday, registering modest gains as traders start bracing for today’s highly awaited US CPI figures. Most EU indices were in the green while Treasury markets dipped across the old continent after risk appetite found more support following reassuring inflation data from both Germany and Spain this…
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LR: Many parallels have been drawn lately between inflation in the 1970s and today. What do you make of this comparison? Stavros: I think the similarities are only skin deep, but I can see why the comparison is being made with 1970s stagflation. There was the Vietnam War, spiraling prices, fuel shortages, and then Fed…
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The main downtrend is still active with the price below all of the 50, 100 and 200 SMAs, but there is no longer any sign of oversold from either the slow stochastic or Bollinger Bands; the former at around 65 is between neutral and overbought. The next movement for EURUSD depends on the reaction to…
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McDonald’s might hold ahead of earnings Shares in McDonald’s Corp (symbol ‘MCD’) have made gains since late last month to around $253 as losses continued in some other sectors and participants are increasingly worried about the prospect of a recession. McDonald’s will report its earnings for Q2 pre-market on Tuesday 26 July. The consensus for…
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