GrowthAces

GrowthAces

EURUSD: Yellen: Economy Ready For Rate Hike Later In 2016 The Commerce Department said new orders for non-military U.S. capital goods other than aircraft, which is a closely watched proxy for business spending plans, increased 0.6% last month. The market had forecast these so-called core capital goods orders falling 0.2%. The government downwardly revised its...

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EUR/USD: Fed Hike In December, But Only Gradual Tightening Next Year The Federal Reserve left its target rate unchanged yesterday, but sent clear signals for an upcoming hike later this year. Those include a more hawkish statement, three dissenters in favor of an immediate hike, and the updated interest rate projections (“dots”), which show an overwhelming...

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No Change In Fed Rates, Case For December Hike Strengthened As expected, the FOMC opted to leave adminstered rates unchanged today, but raised the likelihood of hike in December. The statement said the case for removing policy accommodation had strengthened, and three participants dissented in favor of a rate hike today. FRB Kansas City's George dissented at...

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EUR/USD: Fed Will Prepare Markets For December Hike Investors will be focused on today’s FOMC meeting outcome. In one of the last speeches ahead of the black-out period, Atlanta Fed President Dennis Lockhart on Monday urged a “serious discussion” about raising interest rates at the upcoming FOMC meeting. We anticipate a serious discussion amid a split Committee....

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The Bank of England said it was still likely to cut interest rates to just above zero later this year, even though the initial Brexit hit to Britain's economy was proving less severe than it had predicted only last month. The BoE's rate-setters voted unanimously to keep Bank Rate at 0.25%, after cutting it in August for the first time since 2009 to tackle the...

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EUR/USD: Falling Likelihood Of Fed Hike Next Week The U.S. Commerce Department said retail sales declined 0.3% after edging up 0.1% in July. Sales were up 1.9% from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales slipped 0.1% last month after a similar drop in July. These so-called core retail sales correspond most...

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The ECB Governing Council meeting is scheduled for today. The new set of macroeconomic projections will reveal, for the first time, the ECB’s assessment of the Brexit impact on the Eurozone economy, although Draghi may want to be on the safe side and stress the preliminary nature of the estimates as well as higher-than-usual uncertainty surrounding the numbers....

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Nonfarm payrolls rose by 151k jobs last month after an upwardly revised 275k increase in July, with hiring in manufacturing and construction sectors declining. The unemployment rate was unchanged at 4.9% as more people flocked to the labor market. The market had forecast payrolls increasing 180k last month and the unemployment rate slipping one-tenth of a...

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ISM said its index of national factory activity fell 3.2 points to a reading of 49.4 last month. That was the first contraction since February. U.S. factory activity contracted in August for the first time in six months as new orders and production tumbled, but a low level of layoffs continued to point to a pickup in economic growth in the third quarter. A reading...

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EUR/GBP: Sterling Jumped As UK Manufacturing Rebounds The GBP/USD hit a one-month high and traded above 1.3200 today, after data showing the British manufacturing sector staged one of its sharpest rebounds on record in August. British manufacturing PMI, a closely watched gauge of factory activity, jumped to a 10-month high of 53.3 in August, recovering from the...

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Gold dropped to its lowest in over two months on Thursday, as European shares rose, while investors waited to see if U.S. jobs data could put the Federal Reserve on track to hike interest rates. Technicals show that gold and silver prices need some correction and will see some mild rebound. But, Friday's jobs data is going to be crucial. Yesterday’s ADP National...

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US financial markets were little moved by the data as investors were focusing on Janet Yellen's speech. Janet Yellen's keynote address at a global gathering of central bankers in the US mountain resort of Jackson Hole is due at 14:00 GMT. Kansas City Fed President Esther George, whose bank has hosted the conference here since 1978, said the Fed should raise US...

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EUR/USD: Fed Split Over Rate Hike The Fed minutes released yesterday showed several policymakers said a slowdown in the future pace of hiring would argue against a near-term hike even as members of the rate-setting Federal Open Market Committee were generally upbeat about the US economic outlook. They outnumbered board members who anticipated that economic...

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US consumer prices were unchanged in July but a rise in industrial output and home building suggested a pickup in economic activity that could allow the Federal Reserve to raise interest rates this year. July's unchanged reading in the CPI followed two straight monthly increases of 0.2%, while in the 12 months through July, the CPI rose 0.8% after increasing 1.0%...

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The commodity-linked Canadian dollar is strengthening today on rising oil prices. Led by top crude exporter Saudi Arabia, the Organization of the Petroleum Exporting Countries (OPEC), has re-launched a debate about oil producers potentially capping soaring output in an effort to reduce a global overhang in production and storage of crude oil and refined fuel...

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US retail sales were unexpectedly flat in July. The reading followed an upwardly revised 0.8% increase in June, the Commerce Department said. Retail sales in June were previously reported to have increased 0.6%. The market had forecast overall retail sales rising 0.4% in July. Robust consumer spending has helped to cushion the blow on the economy from an inventory...

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EUR/USD: Eyes On US Retail Sales Data San Francisco Fed President John Williams said the Federal Reserve should raise interest rates further this year, reflecting improved labor market conditions and the likelihood that inflation is heading higher. Williams is not a voter this year on the Fed's policy-setting panel, but his comments are closely watched because...

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The Canadian dollar strengthened to a three-week high against its broadly weaker US counterpart on Wednesday, although gains were pared as crude oil fell. Oil fell sharply after data from the US Energy Information Administration showed crude inventories rose 1.1 million barrels in the week ended August 5. Overall production from the OPEC, of which Saudi Arabia is...