Huge Week for the Markets!
- Fundamental Analysis, Recent Posts, Technical Analysis, Trending Now
- March 16, 2024
At the centre of things this week are rate announcements from major central banks, including updates from the US Federal Reserve (the Fed), the Bank of England (BoE), the Bank of Japan (BoJ), the Swiss National Bank (SNB) and the Reserve Bank of Australia (RBA). We also welcome inflation numbers from Canada and the UK,
READ MOREThe latest data from the Office for National Statistics (ONS) revealed that the UK economy rebounded by 0.2% in January (in line with market forecasts), bolstered by robust growth in retail, wholesale and construction. This followed a month-over-month fall of 0.1% in December 2023 and two consecutive quarters of contraction in the second half of
READ MOREAccording to data from the US Bureau of Labor Statistics (BLS), the year-over-year change in US consumer prices accelerated for a second straight month in February. Elevated Inflation Nominal headline inflation rose 0.4% on a month-over-month basis for February, which fell in line with economists’ estimates and a touch higher than January’s 0.3% reading. Year-over-year
READ MOREWhere We Were Last Week Fed Chair Jerome Powell was in the limelight last week after his two-day testimony before Congress but failed to shed much light on the timing of rate cuts. The Fed chief, however, did reiterate the Fed’s intention to ‘begin dialling back policy restraint at some point this year’ and noted
READ MOREFollowing the Bank of Canada (BoC), the European Central Bank (ECB) announced it would hold all three key benchmark rates unchanged today for a fourth consecutive meeting, as widely expected. Downward Revisions in Growth and Inflation The updated macroeconomic Staff Projections observed a more optimistic picture for inflation in the form of downward revisions, and,
READ MOREToday will see the release of the Bank of Canada (BoC) rate decision at 2:45 pm GMT. BoC to Hold the Line The BoC is widely expected to keep its Overnight Rate on hold at 5.0% for a fifth consecutive meeting—a 22-year peak. As per the OIS curve, there’s only a 6% chance that we
READ MOREWhere We Were Last Week One of the highlight events last week was the Reserve Bank of New Zealand (RBNZ) which held the Official Cash Rate (OCR) on hold at 5.50% for a fifth consecutive meeting. The central bank also trimmed its OCR projections, unearthing a dovish shift which sent the NZD strongly lower. Major
READ MOREIn terms of growth, the US economy is a notable outlier, still clearly echoing resilience. This is vastly different from the UK (technical recession) and the euro area (stagnating). According to the second estimate (or preliminary estimate), the US economy increased at an annualised rate of 3.2% in Q4 2023, a level consistent with economic
READ MOREOvernight, the Reserve Bank of New Zealand (RBNZ) claimed the spotlight. The RBNZ left the Official Cash Rate (OCR) on hold at 5.50% for a fifth consecutive meeting, as widely expected by both economists at Bloomberg and markets (approximately a 25% chance of a rate hike priced in according to the OIS curve). However, as
READ MOREFollowing a thin economic docket last week, the final week of February will see a pick-up in data, particularly out of the US. All in all, it will be a busy week for the markets. US Data in the Spotlight Stateside, Tuesday’s Consumer Confidence Index (released at 3:00 pm GMT) is expected to have improved
READ MOREIt is safe to say it has been an energetic start to the year, underscoring meaningful shifts in the economic landscape and rate expectations. Last week delivered a busy slate of tier-1 risk events; this week’s economic calendar, however, offers a lighter docket. Monday is poised to be a snooze. Void of tier-1 numbers and
READ MOREIt has been quite the week for the UK. Tuesday welcomed UK wage data, which fell less than expected and illustrated sticky inflation. Headline wages (including bonuses) dipped to 5.8% (expected: 5.6%; previous: 6.7%) in the three months to December 2023, and pay that excludes bonuses also fell to 6.2% (expected: 6.0%; previous: 6.7%). Wednesday
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