While the Manufacturing sector still suffers, the service sector growth is strong. According to the data published on Friday, S&P Global’s flash rose to 54.1 from 52.0 in February, clearly above the 50 levels, indicating growth and challenging the analysts’ expectations for slower growth. The service sector is fine, but the Manufacturing sector can still […]
Policy makers’ decision in their last meeting was not hawkish, but it was not dovish as well to help the stock markets as well. More than anything else, it brought a feeling of disappointment for investors. Decision makers in the US Federal Reserve Open Market Committee raised the benchmark interest rate by 25 basis points […]
On Wednesday, the Bank of Canada held its monetary policy and interest rate decision meeting. After eight straight months of rate hikes totaling 425 basis points, interest rates rose to 4.5%; this pause was read as a signal of the end of contractionary policies by market participants. As the first major Central bank, BoC ended […]
According to data published Tuesday, March 7, UK Halifax House Prices Rose by 1.1% in February, 3-Year Treasury Gilt Auction raised to 4.151%, and Mortgage Rate in February increased to 7.02%. In addition, Retail Sales and Construction PMI beat Estimates. While UK headline inflation cooled and dropped to 10.1% year-on-year in January from 10.5% in […]
As was widely expected, the Reserve bank of Australia raised the rates by only 25 bps but signaled more hikes in following meetings. Bringing the rates to 3.60%, RBA raised interest rates to over a 10-year high, but it is not the end of the cycle, as they still needed to combat runaway price pressures. […]
While Ruble was the best-preformed currency in 2022, and even after December’s weakness, it started January stronger, with USDRUB testing 72 on January 13. Still, later things could have gone better for it. Lately, the United States and the UK added more Russian banks to their sanctions lists, and Europeans booted more banks from SWIFT, […]
Soon Bank of Japan will be led by someone else. The Japanese Government’s nomination of Kazuo Ueda for the post of BOJ Governo will replace Governor Kuruda in April. Now, the market focuses on how Ueda will steer monetary policy. Most economists believe that Ueda will take a dovish approach. Mr. Ueda’s economic theories, with […]
The Euro has been floating between the Central bank’s decision and economic data. European economic data dedicating a weaker Eurozone economy, while ECB’s policymakers state that the central bank has no reason to pause rate hikes after the following March meeting. With these data and outlook, Euro continues its side movement and dilemma after the […]
Strong Labor market and decreasing inflation Recently published data from the UK were mixed. Last week’s GDP was disappointing, and this week’s labor market data and inflation numbers were encouraging. GDP data released last Friday showed that the British economy is slowing down. UK GDP contracted by 0.5% in December, while the market expected only […]
Fed officials were hawks, and the USD index recovered its strength. Last week we had central banks’ meetings as well. ECB was the most hawkish bank among major central banks, with a 50 bps rate hike and signaling another 50 bps rate hike in the following meeting in March. BoE also raised the rates by […]
Economic data in favor of USD, ECB to help Euro. European started the week with mixed data. In Germany, the initial value of the unadjusted GDP annual rate in the fourth quarter was published as 0.5%, much lower than the 0.8% market’s expectations. Moreover, just in the fourth quarter, Germany’s economy decreased by -0.2%. It […]
With the Monday holiday, this week started on Tuesday in Japan and with inflation numbers. According to the Statistics Bureau of Japan, both CPI and Core CPI in Tokyo rose by 4% in December, up from 3.7% and 3.6%, respectively. While these data show inflation increasing rapidly in Japan, we have no sıgnal from the […]
The economic calendar shows that Eurozone economic activities increased in December and beat the markets’ estimates. This week’s European data started on Monday and with manufacturing PMI from Spain, Italy, French, Germany, and Eurozone. All data confirmed the slow growth compared with November numbers; even if the actual number in Germany was less than estimates […]
US futures raised on Monday and continuing that on Tuesday so far, while we are waiting for a busy week with Fed minutes on Wednesday and NFP numbers on Friday. On the other hand, investors and traders will watch the Purchasing Manager Index across the week from the most developed economies. USD index Key pivot […]
While concerns over Russian Oil and petroleum products restrictions and supply increase, and gas prices falling under $5, the Russian Ruble eased to its eight-month low against the USD, trading above 70 rubles per dollar. Concerns over the oil export revenues and the continuation of the war do not paint a bright future for the […]
While after last week’s BoJ meeting, market participants and investors started speculating about reducing the central bank’s support level, in his Monday speech, Kuroda mentioned that last week’s announcement was not a prelude to withdrawing BoJ’s massive stimulus program. BoJ is not withdrawing its massive stimulus program anytime soon! The Bank of Japan widened the […]
After intense pressure from society and labor activists, the Chinese government shifted from its zero-Covid policy. It eased pandemic restrictions—that led china to a massive spike in Covid-19 cases in the last week. Health officials have told state media that the peak would increase the infection rate, lasting for one or two months. We expect […]
After last week’s ECB meeting, which was much more hawkish than expected, with Mrs. Lagarde’s state about inflation, interest rate, and the need to raise rates, Euro got more vital, and European stocks experienced some pressure on their prices. After Thursday’s ECB meeting, we had the inflation numbers last Friday. Final Eurozone inflation enhanced concerns. […]
Ruble past 70-marker vs. the dollar for the first time since May 2022. This confirms the idea of its reverse in the year ahead. While the Russian Ruble was one of few currencies that has outperformed the US Dollar this year, due to the sanctions’ effect, lower Oil prices and a further easing of capital […]
On Wednesday, the Canadian central bank raised the rates by 50 basis points, as was widely expected. This is while the Reserve Bank of Australia already started slowing the pace of rate hikes and raised the rates by only 25 basis points in its Tuesday Monetary policy meeting and interest rate decision. While BoC continues […]
