Jan 5, 2024: The U.S. dollar surged during early European trade, marking a robust week and poised for its most substantial gain since July. Anticipation for the imminent release of the highly anticipated official jobs report fueled this surge. By 04:10 ET (09:10 GMT), the Dollar Index, monitoring the greenback against a basket of six major currencies, displayed a 0.3% uptick, positioned for a weekly increase of approximately 1.3%. This Week’s Dollar Strength The dollar’s resurgence throughout this week emerged as economic strength tempered expectations of an early rate cut by the Federal Reserve in 2024. Recent data unveiled on…
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Jan 5, 2024: European stock markets fell Friday, with investors cautious ahead of the release of key European inflation data and the widely-watched monthly U.S. jobs report. At 03:15 ET (08:15 GMT), the DAX index in Germany traded 0.6% lower, the CAC 40 in France traded down 0.7% and the FTSE 100 in the U.K. fell 0.5%. Inflation, payrolls data in focus European equities have started the new year on a negative note as investors have repriced expectations of early interest rate cuts, primarily by the U.S. Federal Reserve. The influential monthly U.S. payrolls report is due later in the…
Jan 4, 2024: Preliminary data revealed an increase in inflation across six economically significant German states in December, indicating a potentially challenging path ahead for German inflation as a whole. North Rhine-Westphalia, Germany’s most populous state, witnessed a climb in its inflation rate from 3.0% in the previous month to 3.5% in December. Similarly, in Bavaria, the inflation rate surged from 2.8% in November to 3.4% in December. Brandenburg saw an increase to 4.5% from 4.1%, Saxony rose to 4.3% from 3.9%, Baden-Wuerttemberg climbed to 3.8% from 3.4%, and Hesse escalated to 3.5% from 2.9% in the previous month. The…
Jan 4, 2024: European stock markets saw an upward trend on Thursday, bouncing back from recent declines as investors processed regional inflation figures and speculated about potential central bank actions. At 03:10 ET (08:10 GMT), Germany’s DAX index surged 0.3%, France’s CAC 40 climbed 0.3%, and the U.K.’s FTSE 100 advanced by 0.4%. The market sentiment had shifted following a pullback on Wednesday, erasing some of the gains achieved late last year that had driven the regional indices toward two-year highs. Investors had begun to reconsider their expectations for a soft landing in the U.S. and swift rate cuts by…
Jan 4, 2024: Oil prices continued their ascent on Thursday, building on significant gains from the previous session, driven by ongoing worries about disruptions in Middle Eastern supply. Heightened tensions surrounding the Israel-Gaza conflict and disturbances at a field in Libya contributed to the market’s unease. As of 0440 GMT, Brent crude climbed by 38 cents, marking a 0.5% increase to reach $78.63 a barrel, while U.S. West Texas Intermediate crude futures rose by 52 cents, a 0.7% uptick, reaching $73.22. Both benchmarks had surged around 3% on Wednesday, registering their first positive settlement in five days, with WTI experiencing…
Jan 3, 2024: Oil prices experienced a slight decline on Wednesday, following significant fluctuations earlier in the week. This drop came as investors showed caution regarding the state of the U.S. economy amidst ongoing supply disruptions in the Red Sea. The price of Brent crude decreased by 39 cents to $75.50 per barrel by 1056 GMT, while U.S. West Texas Intermediate crude futures slipped 51 cents to $69.87 per barrel. Earlier in the week, prices had surged by approximately $2 after Houthi rebels launched attacks on vessels in the Red Sea.
Jan 3, 2024: The U.S. dollar continued its ascent on Wednesday, building on the previous day’s gains, supported by heightened U.S. Treasury yields and a cautious atmosphere that subdued Wall Street sentiment. Market activity remained relatively restrained, notably with Japanese markets closed for a holiday, as investors awaited significant U.S. economic data later in the day. Key releases, including the minutes from the Federal Reserve’s December meeting, were anticipated to guide market movements. The euro declined by 0.2% against the dollar, reaching $1.092, its lowest level since December 19. It marked a significant 0.95% drop on Tuesday, marking its most…
Jan 3, 2024: Across Asia, most currencies experienced significant declines on Wednesday, while the dollar stabilized following a notable rebound, prompted by a quest for additional Federal Reserve guidance that raised doubts about anticipated early interest rate cuts. Market sentiment in Asia remained fragile, partly due to concerning economic data from China and the impact of a severe earthquake in Japan. The Chinese yuan depreciated by 0.1%, although its losses were somewhat constrained by a stronger-than-expected midpoint reference rate established by the People’s Bank of China. The yuan faced renewed downward pressure this week following disappointing December purchasing managers index…
Jan 3, 2024: Gold prices saw a decline in Asian trading on Wednesday, stepping back from recent highs as the dollar regained strength amid lingering uncertainty concerning the Federal Reserve’s timing for potential interest rate adjustments in 2024. While the yellow metal experienced a significant surge in the closing days of 2023, driven by growing optimism around the Fed initiating rate cuts possibly as early as March 2024, it remained within $100 of its December record high. However, the market sought further confirmation regarding the Fed’s intentions, resulting in a pullback in gold prices. This retracement coincided with a notable…
Jan 2, 2024: China’s yuan faced pressure against the dollar on the year’s inaugural trading day, influenced by growing expectations of monetary easing following indications of uneven factory activity in the world’s second-largest economy. Official data revealing a third consecutive month of contraction in China’s manufacturing sector for December, coupled with an unexpected softening, has bolstered assumptions of imminent policy support. Economists at Capital Economics predict ongoing policy support, citing indications from the Central Economic Work Conference in December hinting at forthcoming fiscal and monetary measures to stimulate the economy. The recent downward adjustment of deposit rates by major banks…
