US’ household expectations regarding their employment prospects and their year-ahead financial situation slightly deteriorated in July after two months of gradual improvement, the Federal Reserve Bank of New York noted in its latest Survey of Consumer Expectations. Key takeaways “Median inflation expectations increased at the one-year horizon from 2.7% in June to 2.9% in July.”
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Global stock markets are now worth more than 100% of the world’s gross domestic product (GDP) for the first time since 2018, a sign of overstretched valuations, according to the Buffet indicator. Stock markets are considered to be overvalued when the Buffet indicator – the ratio of stock market capitalization to GDP – rises above
Here is what you need to know on Monday, August 10: The dollar closed the week with a firmer tone, partially backed by an upbeat employment report, but also by US President Trump’s decisions. On Friday, the US administration imposed sanctions on Hong Kong’s chief leader, Carrie Lam, and ten other senior officials for their
Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week. Gold (XAU/USD) bulls remained in the charge the past week and went onto hit a strong of fresh all-time highs above the
Luo Huining, Head of China’s Liaison Office in Hong Kong, said in a statement on Saturday, “the unscrupulous intentions of the US politicians to support the anti-China chaos in Hong Kong have been revealed, and their clowning actions are really ridiculous.” Additional quotes “Intimidation and threats cannot frighten the Chinese people.” “US sanctions on him
NZD/USD is the worst-performing major on Friday down 1.27%. The price has broken a key trendline and support zone on the 4-hour chart. NZD/USD 4-hour chart There has been a key reversal on the daily NZD/USD chart and zooming in on the 4-hour you can see why. The price had been struggling for most of
The US Federal Reserve’s Main Street Lending facility is very different from facilities central banks traditionally operate in a time of crisis, Boston Federal Reserve President Eric Rosengren said on Friday. “The timing for any future changes to the program depends on the nature of the term sheet,” Rosengren added. “We have seen significant pickup recently in
Reserve Bank of Australia (RBA) Assistant Governor Ellis is once again on the wires now, via Reuters, responding to the Q&A session after her speech titled “The Economic Outlook”. Key quotes Recovery will be little stronger due to extension of job support packages. Employment will now not decline as much as forecast. Still a pretty
Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that he doesn’t believe that the Fed’s future policy will include negative interest rates. Additional takeaways “This downturn is different than others because a substantial portion of the population was not working.” “It’s still my view that the US economy will grow at a healthy rate
According to the latest Reuters poll of around 60 foreign exchange strategists, GBP/USD is likely to ease by end-2020 from current levels, in the face of Brexit uncertainty and coronavirus crisis. Key findings “The pound would dip to $1.29 in a month and to $1.28 in three months before returning to current levels in a
ADP reported an increase of only 167,000 private-sector jobs in July while the manufacturing employment remains depressed according to ISM. The broader services sector also looks depressed. A negative NFP looks more likely with gold extending its upward trend, FXStreet’s analyst Yohay Elam reports. Key quotes “The ISM Non-Manufacturing Purchasing Managers’ Index’s headline figure rose
Gold quickly retraced $20 from fresh all-time highs of $2031.20, as investors took profits off the table after the relentless rise. Despite the pullbacks, the path of least resistance is to the upside amid persistent downbeat tone seen around the US dollar. The greenback remains undermined by falling US inflation-adjusted/ real Treasury yields, which sit
Factory Orders in US rose more than expected in June. USD preserves its strength against its major rivals after the data. New orders for manufactured goods, Factory Orders, in the US rose by $25.5 billion, or 6.2%, to $437.2 billion in June, the data published by the US Census Bureau showed on Thursday. This reading followed
According to Global Times Editor in Chief Hu Xijin, China threatened retaliation if all Chinese journalists based in the US are forced to leave the country, including targeting US journalists in Hong Kong. Hu said: “Given that the US side hasn’t renewed visa of Chinese journalists, Chinese side has prepared for the worst scenario that
The economic activity in the US’ manufacturing sector expanded at a stronger pace in July than it did in June with the ISM’s Manufacturing Purchasing Managers’ Index (PMI) improving from 52.6 to 54.2. This reading came in better than the market expectation of 53.6. Further details of the publication revealed that the New Orders Index rose
Gold Price Analysis: Pulls back from record high, 1H chart shows failed breakout An ounce of gold is changing hands near $1,973 at press time. Prices reached a fresh record high of $1,988 during the early Asian session, surpassing the previous lifetime high of $1,984 reached on Friday. Notably, with the rise to fresh record
Gold rips from the impact of COVID-19 as investors seek to hedge against the struggling global financial markets. Gold is technically in the hands of the bulls with gains above 2,000 still in the sight glass despite the recent retreat. After gold hit levels above the former resistance at 1,800, the bullish case to 2,000
Has the Baker Hughes rig count found its bottom? The Baker Hughes weekly rig count data stalled again at 251. In the data shown below, you can see since 15th May the number of rigs online has been diminishing. The rate of change is now much slower and this is the first time the number