Following the influx of the latest round of economic data, the Fed has shifted its economic projections, which have involved a reduction in interest rate cuts for 2024 from three to two or a delay in the start of the rate-cutting agenda in June.

Due to mixed signals, investors have apparently become unsure of the Fed’s outlook, Mathieu Savary, Chief European Strategist at BCA Research observed. “The market is completely indecisive on the number of Fed rate cuts,” Savary explained, calling it “a complete coin toss” between two and three rate cuts.

The post Dollar Rises for Fifth Straight Session appeared first on theprimarymarket.com.

In response to this news, stocks on the New York Stock Exchange stopped in their tracks, thereby pausing a recent rally. Futures on the S&P 500 fell by 0.2%, as did those on the Dow Jones Industrial Average, while contracts listed on the Nasdaq 100 edged 0.1% lower. In Europe, equities on the Stoxx Europe 600 remained stagnant.

The US dollar also posted little movement, although the Bloomberg Dollar Spot Index rose 0.2% to its highest level since December 11. The euro fell 0.2% to $1.0771 while the Japanese yen remained little changed at 148.39 per dollar.

The post Stocks, Dollar Stagnant Following Fed Chair Comments On Rate Cuts appeared first on theprimarymarket.com.

Still, Federal Reserve Chair Jerome Powell has quashed market hopes for a near-term interest rate cut, with Charles Schwab senior investment strategist Kevin Gordon noting that the market has misread the Fed’s near-term policy trajectory.

The dollar index, which measures the greenback against six other major currencies, rose 0.83% to a seven-week high following the release of the blowout jobs report. The euro slipped 0.74% against the dollar to $1.0792 while the yen fell 1.24% to 148.29 per dollar.

Stocks on the benchmark S&P 500 climbed 1.07% following the jobs announcement, while the tech-heavy Nasdaq Composite jumped 1.74%. Both indexes were previously on a positive trajectory following positive earnings reports from Amazon.com and Meta Platforms.

The post Dollar & U.S. Stocks Strengthen Following Blockbuster Jobs Report appeared first on theprimarymarket.com.

The dollar index slipped 0.1%, reversing from its rally last week, while the euro rose 0.1% against the greenback to $1.0978. The British pound gained 0.2% against the dollar, standing at $1.2764. While the Japanese yen has slumped following weak Japanese wage data, the currency held steady against the dollar, which fell 0.25% to 145.39 yen.

According to future markets, investors are expecting a total of 140 basis points in rate cuts this year, pricing a two-thirds chance that they will begin in March. Still, some experts believe that markets may be getting ahead of themselves. “In our view, investors are still too optimistically positioned for Fed rate cuts,” Rabobank senior FX strategist Jane Foley commented in a note to investors.

The post Dollar Retreats as Investors Anticipate Rate Cuts appeared first on theprimarymarket.com.

Following bets that the Bank of Japan could move to tighten its monetary policy, the yen strengthened, rising 0.1% against the dollar to 142.25. The euro advanced 0.3% against the greenback to $1.1024, nearing the five-month peak of $1.1040 hit last week, while the pound sterling held steady at $1.2706.

Data released last Friday showed that U.S. prices fell in November from the previous month—the first time this has happened in over three and a half years. Annual inflation fell below 3%, approaching the Federal Reserve’s 2% target. “The Fed has made considerable progress on inflation, as core started the year closer to an annual rate of 5%, though the job is not yet done in ensuring inflation is on a sustained trajectory toward its 2% target,” Wells Fargo analysts observed in a note to investors.

The post Dollar Stumbles Amid Signs of Cooling Inflation appeared first on theprimarymarket.com.

Measuring the greenback against a basket of major currencies, the dollar index remained steady at 102.40, with the index remaining 1% down for the year. The euro remained stable at $1.0941 while the sterling suffered its biggest loss against the dollar in two months after investors considered that the Bank of England may only introduce interest rate cuts by May next year. The dollar-to-pound exchange rate was at 86.78 pence.

The yen rose about 0.2% against the dollar to 143.24 per dollar, however, the Japanese currency is down by more than 8% against the greenback this year as the Bank of Japan continues to keep short-term rates negative.

The post Dollar Steadies Ahead of U.S. Inflation Data appeared first on theprimarymarket.com.

Markets have become increasingly confident that the Fed will lower its interest rates at its March meeting next year. “The Fed, having failed to push back on the aggressive dovish repricing we’ve seen over the last six weeks or so, has given license for financial conditions to loosen further,” Michael Brown, a market analyst at Trader Xin London observed.

The dollar index, which measures the greenback against a basket of other major currencies, slipped 0.07% lower to 102.55, with the euro gaining ground against the dollar, rising 0.22%. The British pound was down 0.31% against the dollar at $1.2641 while the greenback was up 0.51% against the Japanese yen at 142.935.

The post Dollar Slips Amid Bets on Fed Rate Cuts appeared first on theprimarymarket.com.

On Thursday, investors will look to digest the U.S. October personal consumption expenditures report (PCE). Given that the core PCE reading included in the report is the Federal Reserve’s preferred inflation gauge, this report is expected to provide a major hint as to the Fed’s fiscal policy path.

Currently, consumer inflation is running at a rate of 3.2% – a decline from September’s 3.7% reading. Still, consumer spending could play a role in influencing the Fed’s next rate decision. “Everything has to go great and in the Fed’s direction” in order for the bank to institute four interest rate cuts as investors hope, Lombard Odier economist Sami Chaar explained.

The post Dollar Slumps as Investors Await Inflation Data appeared first on theprimarymarket.com.

In Europe, futures on the Euro Stoxx 50 declined by 0.4% while in Asia, Hong Kong’s Hang Seng index dropped by 1.2% as did Japan’s Topix index. In contrast, China’s mainland Shanghai Composite gained 0.2%.

The US dollar showed signs of strengthening, with the Bloomberg Spot Dollar Index rising 0.2%. The British pound slipped 0.1% to $1.2326 as did the euro, to $1.0706. The Japanese yen fell 0.2% to 150.36 per dollar while the offshore yuan remained little changed.

The post Stocks Fall, Dollar Advances Amid Fed Rate Uncertainty appeared first on theprimarymarket.com.

“It’s a little bit of risk aversion, not a wholesale panic and not a huge amount of sell-off, but just a little bit of a move towards safety as markets wait to see how things develop,” Brad Bechtel, global head of FX explained, suggesting that investors are simply bracing themselves for further escalations.

Although the dollar index, which measures the greenback against a basket of six other major currencies, fell by 0.16%, the euro weakened against the resolute dollar by 0.19% to $1.0566.

Following the outbreak of conflict, the sterling rebounded from earlier losses to trade at $1.224 while the Japanese yen, which is another safe-haven currency, rose 0.57% higher to 148.47 per dollar.

The post Dollar Strengthens as Investors Seek Sake Haven as Middle East Conflict Breaks Out appeared first on theprimarymarket.com.

Following the influx of the latest round of economic data, the Fed has shifted its economic projections, which have involved a reduction in interest rate cuts for 2024 from three to two or a delay in the start of the rate-cutting agenda in June.

Due to mixed signals, investors have apparently become unsure of the Fed’s outlook, Mathieu Savary, Chief European Strategist at BCA Research observed. “The market is completely indecisive on the number of Fed rate cuts,” Savary explained, calling it “a complete coin toss” between two and three rate cuts.

The post Dollar Rises for Fifth Straight Session appeared first on theprimarymarket.com.

In response to this news, stocks on the New York Stock Exchange stopped in their tracks, thereby pausing a recent rally. Futures on the S&P 500 fell by 0.2%, as did those on the Dow Jones Industrial Average, while contracts listed on the Nasdaq 100 edged 0.1% lower. In Europe, equities on the Stoxx Europe 600 remained stagnant.

The US dollar also posted little movement, although the Bloomberg Dollar Spot Index rose 0.2% to its highest level since December 11. The euro fell 0.2% to $1.0771 while the Japanese yen remained little changed at 148.39 per dollar.

The post Stocks, Dollar Stagnant Following Fed Chair Comments On Rate Cuts appeared first on theprimarymarket.com.

Still, Federal Reserve Chair Jerome Powell has quashed market hopes for a near-term interest rate cut, with Charles Schwab senior investment strategist Kevin Gordon noting that the market has misread the Fed’s near-term policy trajectory.

The dollar index, which measures the greenback against six other major currencies, rose 0.83% to a seven-week high following the release of the blowout jobs report. The euro slipped 0.74% against the dollar to $1.0792 while the yen fell 1.24% to 148.29 per dollar.

Stocks on the benchmark S&P 500 climbed 1.07% following the jobs announcement, while the tech-heavy Nasdaq Composite jumped 1.74%. Both indexes were previously on a positive trajectory following positive earnings reports from Amazon.com and Meta Platforms.

The post Dollar & U.S. Stocks Strengthen Following Blockbuster Jobs Report appeared first on theprimarymarket.com.

The dollar index slipped 0.1%, reversing from its rally last week, while the euro rose 0.1% against the greenback to $1.0978. The British pound gained 0.2% against the dollar, standing at $1.2764. While the Japanese yen has slumped following weak Japanese wage data, the currency held steady against the dollar, which fell 0.25% to 145.39 yen.

According to future markets, investors are expecting a total of 140 basis points in rate cuts this year, pricing a two-thirds chance that they will begin in March. Still, some experts believe that markets may be getting ahead of themselves. “In our view, investors are still too optimistically positioned for Fed rate cuts,” Rabobank senior FX strategist Jane Foley commented in a note to investors.

The post Dollar Retreats as Investors Anticipate Rate Cuts appeared first on theprimarymarket.com.

Following bets that the Bank of Japan could move to tighten its monetary policy, the yen strengthened, rising 0.1% against the dollar to 142.25. The euro advanced 0.3% against the greenback to $1.1024, nearing the five-month peak of $1.1040 hit last week, while the pound sterling held steady at $1.2706.

Data released last Friday showed that U.S. prices fell in November from the previous month—the first time this has happened in over three and a half years. Annual inflation fell below 3%, approaching the Federal Reserve’s 2% target. “The Fed has made considerable progress on inflation, as core started the year closer to an annual rate of 5%, though the job is not yet done in ensuring inflation is on a sustained trajectory toward its 2% target,” Wells Fargo analysts observed in a note to investors.

The post Dollar Stumbles Amid Signs of Cooling Inflation appeared first on theprimarymarket.com.

Measuring the greenback against a basket of major currencies, the dollar index remained steady at 102.40, with the index remaining 1% down for the year. The euro remained stable at $1.0941 while the sterling suffered its biggest loss against the dollar in two months after investors considered that the Bank of England may only introduce interest rate cuts by May next year. The dollar-to-pound exchange rate was at 86.78 pence.

The yen rose about 0.2% against the dollar to 143.24 per dollar, however, the Japanese currency is down by more than 8% against the greenback this year as the Bank of Japan continues to keep short-term rates negative.

The post Dollar Steadies Ahead of U.S. Inflation Data appeared first on theprimarymarket.com.

Markets have become increasingly confident that the Fed will lower its interest rates at its March meeting next year. “The Fed, having failed to push back on the aggressive dovish repricing we’ve seen over the last six weeks or so, has given license for financial conditions to loosen further,” Michael Brown, a market analyst at Trader Xin London observed.

The dollar index, which measures the greenback against a basket of other major currencies, slipped 0.07% lower to 102.55, with the euro gaining ground against the dollar, rising 0.22%. The British pound was down 0.31% against the dollar at $1.2641 while the greenback was up 0.51% against the Japanese yen at 142.935.

The post Dollar Slips Amid Bets on Fed Rate Cuts appeared first on theprimarymarket.com.

On Thursday, investors will look to digest the U.S. October personal consumption expenditures report (PCE). Given that the core PCE reading included in the report is the Federal Reserve’s preferred inflation gauge, this report is expected to provide a major hint as to the Fed’s fiscal policy path.

Currently, consumer inflation is running at a rate of 3.2% – a decline from September’s 3.7% reading. Still, consumer spending could play a role in influencing the Fed’s next rate decision. “Everything has to go great and in the Fed’s direction” in order for the bank to institute four interest rate cuts as investors hope, Lombard Odier economist Sami Chaar explained.

The post Dollar Slumps as Investors Await Inflation Data appeared first on theprimarymarket.com.

In Europe, futures on the Euro Stoxx 50 declined by 0.4% while in Asia, Hong Kong’s Hang Seng index dropped by 1.2% as did Japan’s Topix index. In contrast, China’s mainland Shanghai Composite gained 0.2%.

The US dollar showed signs of strengthening, with the Bloomberg Spot Dollar Index rising 0.2%. The British pound slipped 0.1% to $1.2326 as did the euro, to $1.0706. The Japanese yen fell 0.2% to 150.36 per dollar while the offshore yuan remained little changed.

The post Stocks Fall, Dollar Advances Amid Fed Rate Uncertainty appeared first on theprimarymarket.com.

“It’s a little bit of risk aversion, not a wholesale panic and not a huge amount of sell-off, but just a little bit of a move towards safety as markets wait to see how things develop,” Brad Bechtel, global head of FX explained, suggesting that investors are simply bracing themselves for further escalations.

Although the dollar index, which measures the greenback against a basket of six other major currencies, fell by 0.16%, the euro weakened against the resolute dollar by 0.19% to $1.0566.

Following the outbreak of conflict, the sterling rebounded from earlier losses to trade at $1.224 while the Japanese yen, which is another safe-haven currency, rose 0.57% higher to 148.47 per dollar.

The post Dollar Strengthens as Investors Seek Sake Haven as Middle East Conflict Breaks Out appeared first on theprimarymarket.com.