Category: FOMC
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EurUsd Weekly Outlook for February 5, 2024 – Fed Holds Rates Steady, Eyes on ECB for Spring Cut
The Fed holds firm on rates, promising markets that a cut will come but only when inflation has provided concrete signs of definitively converging towards 2%. In Europe, zero growth in the fourth quarter was confirmed, anticipating a rate cut in spring. EurUsd continues to press on the 1.08 supports.
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EurUsd Weekly Outlook for December 18, 2023 – Anticipating Rate Cuts and Navigating Market Shifts
The Fed breaks its hesitation, giving the markets what they expected: confirmation that interest rates will fall in 2024. The ECB seems more hesitant in a rate hike cycle that, however, appears to have concluded with the successful battle against inflation. Stock markets soar, bond yields fall, and the U.S. dollar weakens.
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EurUsd Weekly Outlook for December 4, 2023 – Positive Shifts in American GDP and Seasonal Advantages Set the Stage
Last week brought few macroeconomic updates. Employment and inflation will be the focus in the coming days, along with the highly anticipated central bank meetings. The positive revision of the American GDP for the third quarter is surprising, and meanwhile, for EurUsd, the seasonally most favorable month of the year begins.
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EurUsd Weekly Outlook for November 6, 2023 – Markets Poised for December Fed Meeting Amid Inflation Shifts
As the world continues to watch with concern the escalating geopolitical tensions at Europe’s doorstep, inflation is showing signs of moderation that foster hope for less aggressive central banks in 2024. The Fed will closely monitor growth data, while the ECB will focus on inflation that is already noticeably slowing down. In the meantime, EurUsd…
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EurUsd Weekly Outlook for August 14 2023 – Rates cannot decrease with these macro data
The American inflation rises in July as forecasted, after a year of steady decline. Producer prices are also seeing an uptick. Economic forecasts of accelerated growth prompt the FED to be cautious about easing their grip on interest rates. The EurUsd remains in a limbo phase, awaiting the Jackson Hole meeting at the end of…
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EurUsd’s Weekly Outlook of July 31, 2023 – Inflation, Rates, Gas and Euro-Dollar Movements
The Federal Reserve (Fed) and the European Central Bank (ECB) have met market expectations, each increasing the cost of borrowing by a quarter of a percentage point. There will be no interest rate cuts in 2023, and we won’t see a return to 2% inflation in 2024. As this unfolds, Europe’s economy is slowing down…
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Federal Reserve Hits Pause on Interest Rate Hikes, Signals Two More Increases by Year’s End
On Wednesday, the Federal Reserve (Fed) paused its streak of interest rate hikes at ten, deciding to take stock of the cumulative impacts of the increases. The Fed’s policy-making arm, the Federal Open Market Committee (FOMC), though, forecasted a pair of quarter-percentage point boosts on the horizon before 2023 concludes. Although this decision created some…
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Federal Reserve Enacts 0.25% Rate Hike, Hints at Possible End to Tightening Cycle
Federal Reserve Approves 10th Rate Hike in a Year, Suggests Tightening Cycle May Be Nearing Completion The Federal Reserve has unanimously approved its 10th interest rate increase in just over a year, raising the fed funds rate to a target range of 5%-5.25%. The central bank also offered a subtle indication that the current tightening…