U.S. dollar rebounds after a hot U.S. NFP employment data

Posted on by Vrasidas Neofytou

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The investment sentiment has soured since last Friday, with investors having a more defencing approach and taking some profits out of the latest four-month rally.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

The investment sentiment has soured since last Friday, with investors having a more defencing approach and taking some profits out of the latest four-month rally.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

A risk-off mood dominates financial markets on the first trading day of the week, with the U.S. dollar rebounding across the board, while the risk-sensitive currencies are retreating from the recent multi-month highs after a hot US jobs report on Friday last week could provide more room for the Federal Reserve to continue tightening interest rates to combat inflation.

The investment sentiment has soured since last Friday, with investors having a more defencing approach and taking some profits out of the latest four-month rally.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

A risk-off mood dominates financial markets on the first trading day of the week, with the U.S. dollar rebounding across the board, while the risk-sensitive currencies are retreating from the recent multi-month highs after a hot US jobs report on Friday last week could provide more room for the Federal Reserve to continue tightening interest rates to combat inflation.

The investment sentiment has soured since last Friday, with investors having a more defencing approach and taking some profits out of the latest four-month rally.

The DXY-U.S. dollar which tracks the value of the greenback against six major peers has rebounded above the 103 mark this morning for the first time since mid-January 2023, getting support from a strong U.S. non-farm payroll report, and higher bond yields.

DXY-U.S. dollar index, 2-hour chart

On Friday, the U.S. Labour Department announced that NFP-nonfarm payrolls surged by 517,000 jobs in January vs the 185,000 market expectation. Combined with the rebound in the service industry in the same month, it triggered anxiety among investors regarding the outlook on the Fed’s monetary policy.

The unexpected spike in the labour data has shown that U.S. employment remains strong and resilient despite the slowdown in economic activity, the record-high inflation, and the growing fear of a recession.

The better-than-expected macroeconomics and employment data give the Federal Reserve more headroom to stay hawkish for longer and hike the rate by another two times this year, which could weigh heavily on the dollar price trajectory and sentiment on other risky assets.

The recovering dollar is causing significant losses across the board, with the Euro falling back from recent highs of $1.10 toward $1.0750, the Pound Sterling retreating from $1.24 to $1.20, the Japanese Yen falling from ¥128 to above ¥132, while the risk-sensitive Australian dollar is trading below $0.69 level after touching a six-month high of $0.7150 last week.

Bank of England’s 50 bps rate hike threatens an economic downturn in the UK

Posted on by Vrasidas Neofytou

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Despite the new rate hike, the Pound Sterling fell to as low as the $1.2180 level on Friday morning, nearly 2% down from a weekly high of $1.24, before stabilizing to nearly $1.2260.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Despite the new rate hike, the Pound Sterling fell to as low as the $1.2180 level on Friday morning, nearly 2% down from a weekly high of $1.24, before stabilizing to nearly $1.2260.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

The Bank of England raised- as widely expected- its key interest rate by another 50 basis points to 4% on Thursday, the highest it’s been since the 2008 financial crisis, to fight the inflation which is still running above the 10% level (10.5% CPI in December).

Despite the new rate hike, the Pound Sterling fell to as low as the $1.2180 level on Friday morning, nearly 2% down from a weekly high of $1.24, before stabilizing to nearly $1.2260.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

The Bank of England raised- as widely expected- its key interest rate by another 50 basis points to 4% on Thursday, the highest it’s been since the 2008 financial crisis, to fight the inflation which is still running above the 10% level (10.5% CPI in December).

Despite the new rate hike, the Pound Sterling fell to as low as the $1.2180 level on Friday morning, nearly 2% down from a weekly high of $1.24, before stabilizing to nearly $1.2260.

Meanwhile, the yield on the 10-year Gilt (UK government bond) dropped to nearly 3%, its lowest since November 2022 (it topped at nearly 4.60% in mid-October), following some more-dovish messages-than-the market had expected from BoE.

During the regular press conference after the rating announcement, Governor Andrew Bailey had hinted that the Bank of England may have finished raising interest rates after the 50 basis points hike on Thursday, which had increased the possibility of an end to its policy tightening.

According to the BoE’s calculations, the current market expectations of a peak in rates around 4.5% in mid-2023 would push inflation below its 2% target in the medium term. That suggests it doesn’t see the need to raise the Bank rate much more, if at all, although it was careful to add those uncertainties around this outlook are high and that “the risks to inflation are skewed significantly to the upside”, said the Governor.

Risk for a recession in the UK in 2023:

The surging rates could add further pressure on the already-beaten-down U.K economy, which is struggling with record-high energy and food prices, with the inflation rate -10.5%- running much higher than in the U.S. and Eurozone, amid a tighter-than-expected labor market coupled with wages pressure.

That’s why the IMF- International Monetary Fund expects the U.K. to be the only G7 economy to fall into recession in 2023, with the annual GDP to contract some 0.6%, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

Nasdaq Composite jumps 2% after Fed’s 25 bps rate hike decision

Posted on by Vrasidas Neofytou

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

The world’s largest central bank raised its benchmark rate by 25 bps to a range of 4.5% to 4.75% from 4.25% to 4.5% previously in its battle against the four-decades record high inflation.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

The world’s largest central bank raised its benchmark rate by 25 bps to a range of 4.5% to 4.75% from 4.25% to 4.5% previously in its battle against the four-decades record high inflation.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Tech-heavy Nasdaq Composite added 2% to close at 11,816 on Wednesday, its highest level since mid-September 2022, followed by 1% gains in S&P 500, while the Dow Jones index rose only 0.02% after sliding more than 500 points at the day’s lows, following a rate hike by the Federal Reserve.

The world’s largest central bank raised its benchmark rate by 25 bps to a range of 4.5% to 4.75% from 4.25% to 4.5% previously in its battle against the four-decades record high inflation.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Tech-heavy Nasdaq Composite added 2% to close at 11,816 on Wednesday, its highest level since mid-September 2022, followed by 1% gains in S&P 500, while the Dow Jones index rose only 0.02% after sliding more than 500 points at the day’s lows, following a rate hike by the Federal Reserve.

The world’s largest central bank raised its benchmark rate by 25 bps to a range of 4.5% to 4.75% from 4.25% to 4.5% previously in its battle against the four-decades record high inflation.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Tech-heavy Nasdaq Composite added 2% to close at 11,816 on Wednesday, its highest level since mid-September 2022, followed by 1% gains in S&P 500, while the Dow Jones index rose only 0.02% after sliding more than 500 points at the day’s lows, following a rate hike by the Federal Reserve.

The world’s largest central bank raised its benchmark rate by 25 bps to a range of 4.5% to 4.75% from 4.25% to 4.5% previously in its battle against the four-decades record high inflation.

This is the second policy meeting in a row that the Fed is lowering its pace of rate hikes after the 50-bps increase at December’s meeting, based on recent macroeconomic data that have indicated that inflation is easing.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

Market reaction on Fed’s rate decision:

All three U.S. major indices posted an intraday U-turn, erasing earlier significant losses of nearly 1% to end the regular session with gains after Powell started speaking to reporters during the press conference after the policy decision.

The appetite for risk assets increased after Federal Reserve Chair Jerome Powell said the central bank had made progress in its battle against inflation, bolstering investor optimism that inflation is cooling enough for the central bank to take notice.

Nasdaq Composite, Daily chart

Nasdaq Composite notches the best start to the year since 2001, gaining more than 13% so far this year, as the investors feel the confidence that Fed’s interest rates are nearing their ultimate level, boosting interest rate sensitive, growth-led, and heavily shorted technology stocks.

Both S&P 500 and the industrial Dow Jones also had a strong start to the year, witnessing their first gain for January since 2019 as investors returned to markets, which were hit hard in 2022 by a hawkish Federal Reserve and recession fears.

Expectations of slower rate hikes ahead have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a fresh nine-month low of 100.80 last night, while the yields on the 10-year Treasury fell as low as 3.40%, further pressuring the dollar against major peers.

The improved risk sentiment, the weaker dollar, and bond yields gave the opportunity to other major growth-sensitive currencies to rally against the greenback, with Euro breaking above the $1.10 key psychological level, the Pound Sterling rising to $1.24, and the commodities-led Australian dollar to soar nearly $0.7150.

Bitcoin soars over 40% in January on improved risk sentiment and Fed expectations

Posted on by Vrasidas Neofytou

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin, the largest coin by market cap, has rallied over 40% so far in 2023, bouncing from the lows of the $16,000 mark toward the five-month highs of $23,000-$24,000 at the end of January.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Bitcoin, the largest coin by market cap, has rallied over 40% so far in 2023, bouncing from the lows of the $16,000 mark toward the five-month highs of $23,000-$24,000 at the end of January.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.The first trading month of the year -January- came with a sharp rally in digital coins across the board despite general worries that a hawkish Federal Reserve will plunge the U.S. economy into recession, coupled with the surging dollar and the negative sentiment after last year’s bankrupts in the crypto ecosystem.

Bitcoin, the largest coin by market cap, has rallied over 40% so far in 2023, bouncing from the lows of the $16,000 mark toward the five-month highs of $23,000-$24,000 at the end of January.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.The first trading month of the year -January- came with a sharp rally in digital coins across the board despite general worries that a hawkish Federal Reserve will plunge the U.S. economy into recession, coupled with the surging dollar and the negative sentiment after last year’s bankrupts in the crypto ecosystem.

Bitcoin, the largest coin by market cap, has rallied over 40% so far in 2023, bouncing from the lows of the $16,000 mark toward the five-month highs of $23,000-$24,000 at the end of January.

BTC/USD pair, Daily chart

The leading cryptocurrency hasn’t given investors such an uplifting January since 2013, while it also posted its best month since a 40% rally in October 2021, when prices jumped above the $60,000 level.

Hence, the return on crypto buying has pushed the total market capitalization for cryptocurrencies to move above the $1 trillion key psychology level, according to Coinmarketcap, while the global crypto volume has risen to $5.5 trillion, which is up 61% since the beginning of the year, according to crypto indexing platform Nomics.

Bitcoin had a rough time all throughout 2022, falling from the record highs of $64,000 to multi-year lows of $15,000, helped by a large number of long liquidations and short selling that were fuelled by a variety of bankruptcies in the crypto ecosystem.

Bitcoin soars over 40% in January on Fed expectations:

The rally in risk-sensitive cryptocurrencies was driven by expectations of a Federal Reserve pivot to slower interest-rate hikes as inflation continued to cool.

The Fed is widely expected to announce a 25-basis point rate increase later today at the end of its monetary policy meeting, increasing the Fed funds rate to a 4.5%-4.75% range.

Market participants expect another 25-basis point rate in March, to 4.75%-5%, but then investors are leaning toward no more hikes.

Investors will be also focused on Fed Chair Jerome Powell’s comments for any signal about a pause in the tightening cycle, future rate hike outlook, inflation, and economy, which could weigh on the dollar and the market risk sentiment.

Brent oil falls to $83/b on Russian exports and rate hikes

Posted on by Vrasidas Neofytou

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Brent crude futures lost $1.20/b, or 1.50% to $83/b so far in the day, after falling by more than 2% on Monday, and adding from another dip by 2% last Friday when it was trading to as high as $88/b on optimism over Chinese reopening, and a softer dollar.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Brent crude futures lost $1.20/b, or 1.50% to $83/b so far in the day, after falling by more than 2% on Monday, and adding from another dip by 2% last Friday when it was trading to as high as $88/b on optimism over Chinese reopening, and a softer dollar.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Crude oil prices trade in negative territory for a third consecutive trading session in a row, with Brent and WTI prices falling as low as $83/b and $76.50/b respectively on Tuesday morning on growing worries for more supplies from Russia, and further interest rate hikes by major central banks ahead in the week.

Brent crude futures lost $1.20/b, or 1.50% to $83/b so far in the day, after falling by more than 2% on Monday, and adding from another dip by 2% last Friday when it was trading to as high as $88/b on optimism over Chinese reopening, and a softer dollar.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Crude oil prices trade in negative territory for a third consecutive trading session in a row, with Brent and WTI prices falling as low as $83/b and $76.50/b respectively on Tuesday morning on growing worries for more supplies from Russia, and further interest rate hikes by major central banks ahead in the week.

Brent crude futures lost $1.20/b, or 1.50% to $83/b so far in the day, after falling by more than 2% on Monday, and adding from another dip by 2% last Friday when it was trading to as high as $88/b on optimism over Chinese reopening, and a softer dollar.

Russia oil exports at any price:

Both Brent and WTI crude oil prices lost over 2% on Monday following reports that Russian President Putin has allowed local energy companies to sell however many barrels at whatever price they can get in the market.

Why is bearish for the oil markets? Because Putin gave the green light to the oil companies to apply any discount necessary to sell their oil to any customer in the world, without setting any floor price for exports.

This event could create headaches within the OPEC group since the cartel declined its overall crude production by 2 million bpd last year to support the falling prices amid the fear of an economic recession.

Interest rate hikes ahead:

Adding pressure on the recent selloff, energy investors are worrying about the coming interest rate hikes from the three largest central banks in the world, which threatens to slow further global economic growth and weaken demand for petroleum products.

Federal Reserve is widely expected to hike interest rates by 25 basis points to 4.50% on Wednesday, Feb. 01, followed by a 50 basis points increase by the European Central Bank and the Bank of England to 3% and 4% respectively on Thursday, Feb. 02, to curb the 40-year record high inflation.

Taking support from the coming Fed’s rate hike, the DXY-U.S. dollar index which tracks the greenback against six major currencies, managed to bounce off from its 7-month low of 101.50 mark hit last week, to just over 102.50, adding extra pressure on the dollar-denominated crude oil prices.

Federal Reserve, ECB, and BoE will hike rates in the week ahead

Posted on by Vrasidas Neofytou

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The rate hikes decisions will be in the spotlight this week, with investors expecting both the ECB and BoE to increase their interest rates by 50 basis points. In comparison, the Federal Reserve is widely expected to slow the pace of interest rate hikes to a 25 basis points in the face of cooling inflation in the United States.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

The rate hikes decisions will be in the spotlight this week, with investors expecting both the ECB and BoE to increase their interest rates by 50 basis points. In comparison, the Federal Reserve is widely expected to slow the pace of interest rate hikes to a 25 basis points in the face of cooling inflation in the United States.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Three of the world’s largest central banks, the Federal Reserve, European Central Bank, and Bank of England will hold policy meetings in the week ahead to fight a 40-year record high inflation.

The rate hikes decisions will be in the spotlight this week, with investors expecting both the ECB and BoE to increase their interest rates by 50 basis points. In comparison, the Federal Reserve is widely expected to slow the pace of interest rate hikes to a 25 basis points in the face of cooling inflation in the United States.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

Three of the world’s largest central banks, the Federal Reserve, European Central Bank, and Bank of England will hold policy meetings in the week ahead to fight a 40-year record high inflation.

The rate hikes decisions will be in the spotlight this week, with investors expecting both the ECB and BoE to increase their interest rates by 50 basis points. In comparison, the Federal Reserve is widely expected to slow the pace of interest rate hikes to a 25 basis points in the face of cooling inflation in the United States.

Dovish signals from the Federal Reserve?

The U.S.-based Federal Reserve will have its FOMC policy meeting on Wednesday, Feb. 01, where investors expect the world’s largest central bank to decide a 25-basis point rate increase to a range of 4.5% to 4.75%, slowing the size of the increase for a second straight meeting.

The Federal Reserve hiked its Fed’s Fund rates by 75 basis points four straight times last year before approving a 50-basis point move in December.

The eased inflation in recent months had eventually encouraged Federal Reserve into a less tightening monetary policy, at a time the U.S. labor market and economic growth also cooled in late 2022.

Expectations of slower rate hikes have also dented the U.S. dollar and Treasury yields. The DXY- U.S. dollar index which tracks the greenback against six major currencies, posted a seven-month low of 101.50-mark last week, while the yields on the 10-year Treasury fell as low as 3.30% in mid-January, further pressuring the dollar against major peers.

Any dovish signals from Fed’s statement are likely to be harmful to the greenback and positive for risky-sensitive assets such as tech and growth stocks, growth-led currencies, and cryptocurrencies.

ECB and BoE ahead of 50 bps rate hike:

Both the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday, February 02, with markets expecting a rate hike of 50 basis points to 3% and 4% respectively.

Investors will also look for any signals of how much further and how fast policymakers intend to go since inflations still stand well above the ECB’s and BoE’s 2% inflation target.

The weaker dollar together with the hawkish rhetoric from ECB and BoE have helped Euro and Pound Sterling to bounce off from their multi-year lows of $0.95 and $1.04 a dollar, hit at the end-September 2021 to the current highs of $1.09 and $1.24.

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Exclusive Change Capital Ltd is incorporated under the laws of Cyprus, with registration no. HE 337858, regulated by CySEC under license no. 330/17 and has its registered address at Theodorou Potamianou 56, 4th Floor, Kato Polemidia, 4155, Limassol, Cyprus

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