The FOMC Set To Gather All The Attention
The time has come to start fully shifting the focus away from any second-tier events and be locked and loaded for the real fireworks in the form of the FOMC outcome (4.30 AEST), including both the Fed statement as well as Fedâs Chairman Powell press conference. Will the Fed continue to deliver on the ultra-dovish expectations in line with its new regime of AIT (Average Inflation Targeting) policies? Volatility in FX, while awaiting the real risk event in the US afternoon, was quite decent, especially in the likes of the Oceanic currencies, both strengthening, spurred by better Chinese data where there is finally … (full story)
GBPUSD attempting a key reversal
The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD and EUR. On the US economic data front, Empire Manufacturing jumped to 17.0 on month in September (6.9 expected), from 3.7 in August. Industrial Production advanced 0.4% on month in August (+1.0% expected), compared to a revised +3.5% in July. On Wednesday, the Mortgage Bankers Association’s Mortgage Applications data for the week ending September 11th is expected. Retail Sales Advance for August is anticipated to rise 1.0% on month, compared to +1.2% in July. Finally, the Federal Reserve is expected to keep the Federal … (full story)
Will FOMC be Good or Bad for the US Dollar?
Wednesdayâs Federal Reserve monetary policy announcement is the most important event risk on this weekâs calendar but many investors are wondering how much impact it will have on the US dollar. On Monday, the greenback traded lower against all of the major currencies on the expectation for dovishness but today, the price action is mixed. The dollar extended its slide against the Japanese Yen but strengthened versus the euro. Other currencies like sterling, the Canadian, Australian and New Zealand dollars ended the day up versus the greenback but also descended from earlier highs which means that during the New … (full story)
Morgan Stanley No Longer Sees A Fiscal Stimulus Deal Before The US Election: What That Means For Markets
As recently as two weeks ago, virtually every Wall Street strategist was convinced that a new fiscal stimulus deal was inevitable, and would come somewhere in the $1.5- $2 trillion ballpark. After all, the cost of not passing such a deal was too great for both parties. As Morgan Stanley’s Michael Wilson wrote on the first of this month, “the noise is starting to build as supplemental unemployment benefits have stopped. The recovery in certain spending may be threatened should these benefits not be restarted in a timely fashion. Itâs hard to believe that Congress fails to execute on some version of this bill, given … (full story)
âPersistentâ Tipster Gets $10 Million Award for Aiding SEC Case
The U.S. Securities and Exchange Commission will pay $10 million to a whistle-blower whose âpersistent effortsâ to expose financial misconduct helped the agency bring a successful enforcement action. The reward recognizes the tipsterâs âextensive and ongoing assistance to the investigative team over the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation,â the SEC said in a statement Monday. The person helped the SEC devise its investigative plan and craft its initial document requests, even … (full story)
China economyâs broad recovery from coronavirus continues, as retail grows for first time in 2020
Industry, retail and investment all showed marked improvements in August, as the Chinese economy continued its broad-based recovery from the ravages of the coronavirus earlier this year. Retail sales, a vital metric of consumption in the worldâs biggest market, grew by 0.5 per cent compared to the same month last year, up from minus 1.1 per cent in July and ahead of analystsâ expectations of 0.0 per cent growth. This marked the first growth in the retail sector this year, with January and Februaryâs data having been combined to account for distortions relating to the pandemic. Industrial production, which … (full story)