Posts Tagged ‘BTC analysis’

The Fed is especially concerned about service inflation, and Chair Jerome Powell recently stated that there had been no progress in that area when housing components were excluded. The core PCE price index, which the Fed pays more attention to, will also be closely watched, and any surprises could affect the chances of a rate…

The US financial sector remains weak, prompting market speculation that the Fed may not hike rates at its upcoming meeting. Besides the Fed’s attempts to reduce financial stress, inflation remains a concern. Thus, a rate increase with high projections is inevitable. Overall, the US dollar is likely to benefit from the decision.  The Bank of…

The financial markets sought comfort at the start of the week that January’s unexpectedly good performance was not an outlier. Besides Fed Chair Powell’s two-day testimony, the Bank of Canada (BoC) and Bank of Japan (BoJ) both held meetings. Neither institution stunned the markets with unanticipated actions or statements. A minor trend toward a more…

The increase in January employment data substantially impacted how the US economy was seen. This shift in perspective has the greatest influence on bond yields on the market, but equities markets continue to anticipate only modest rate hikes.  Before, it was believed that rate cuts would occur before the end of the year; however, there…

The major sector of the global forex market has been divided into opposite categories- EURUS and DXY. The EUR side comprises various assets, including stock indices, precious metals such as Gold, Silver, Copper and other commodities.  On the other hand, DXY trades in the opposite direction but alongside the bond price. These categories can be…

This week’s economic indicators highlighted resilience, and our forecast of the Federal Reserve raising its main borrowing rate to 5.25% and maintaining it through year-end seems to be aligning with market-based rate expectations.  In the U.K., inflation decreased for the third consecutive month in January, but it still stands at 10.1% year-over-year, five times the…

During the past week, there were only a few significant economic updates beyond Federal Reserve Chairman Jerome Powell’s interview. The trade deficit in the United States rose to $67.4 billion at the end of last year, and consumer credit growth slowed down to its lowest rate since December 2021. On the other hand, expectations for…

At the conclusion of its monetary policy meeting, the Federal Open Market Committee (FOMC) decided to raise the federal funds rate by 25 basis points to a range of 4.50%-4.75%. The message conveyed was that there is still work to be done in bringing inflation back to 2% and that further tightening measures may be…

The GDP in the fourth quarter of 2022 saw an expansion of 2.9% on an annualized basis. Although the growth exceeded predictions, the underlying details were not as positive. Additionally, the decline in monthly indicators towards the end of the year suggests that the slowing trend will continue into the first quarter of 2023. In…

The Federal Reserve has done with rate hikes and investors are getting more jittery about the possible recession.  The inflation is cooling down, no doubt and the labor market is becoming the main focal point for investors. However, the payroll report is a lagging indicator, and market sentiment started to believe in no rate hikes…