Due to the fact that revenues from oil and gas exports are heavily based on global benchmark prices traded in dollars, analysts predict that sales of foreign currencies will cause the Russian ruble to increase, further decreasing Russia’s ruble income. Russia’s efforts to plug its budget deficit by selling foreign currency reserves could create a …
The dollar fell to a seven-month low versus major peers on Monday. Meantime, the yen soared to a more than seven-month high as traders increased their bets that the Bank of Japan might make additional adjustments to its yield control policy at its meeting this week. After reaching a high of $0.7019 earlier in the …
Oil prices increased on Friday, with the week’s gain anticipated to be over 6%, as a result of strong indications of rising demand in the world’s largest oil consumer, China, and anticipations of more gradual interest rate increases in the United States. Brent crude futures rose 5 cents to $84.08 per barrel, up from $83.50 …
The US dollar fell in early European trade Friday, extending the previous session’s decline, as lower US inflation allowed the Federal Reserve to slow the pace of interest rate hikes. The US Dollar Index (DXY) fell 0.10% to 101.965 after falling to its lowest level since June earlier in the session. This week, the index …
The hopes of emerging markets’ bulls are riding on the odds of an economic recovery in China and a Federal Reserve pivot this year. They claim that the stage is now set for a long-awaited, broad rally in the asset class. But let’s not dwell on conclusions just yet. As currencies rose to their highest …
On Thursday, oil increased by more than 1%, helped by hopes that China’s demand outlook and upcoming U.S. inflation data will indicate a slower rise in interest rates. After lifting strict COVID-19 strict curbs, top oil importer China is reopening its economy, boosting confidence that fuel demand will increase in 2023. Brent crude had risen …
On Thursday, the yen increased as traders anticipated that the Bank of Japan would review the effects of its monetary easing. Ahead of U.S. inflation data, the dollar remained close to a seven-month low against the euro. At its policy meeting next week, the BOJ will discuss the effects of its monetary easing and may …
The World Bank has recently released its latest report, Global Economic Prospects. The report has slashed its global growth forecasts from projections made in mid-2022 due to worsening economic conditions. In total, the global economic growth outlook for the global economy has shrunk to 1.7% for 2023. That proposes a significant decrease from its earlier …
As market participants were pushed in various directions by an unexpected rise in US crude oil and fuel inventories, uncertainty regarding the state of the world economy, and China’s economy opening up, oil prices remained largely stable on Wednesday. Brent crude futures were up 43 cents, or 0.5%, to $80.53 per barrel while dipping in …
Investors assessed hawkish comments from Federal Reserve officials. In addition, they awaited remarks from Chairman Jerome Powell for clues on the path of interest rates. This resulted in a drop in Wall Street equity futures and European stock markets. The S&P 500 and Nasdaq 100 both saw at least a 0.5% decrease in contracts. After …
The U.S. dollar held steady on Wednesday as traders awaited this week’s consumer price data to see if it would confirm that inflation is slowing. The euro fell against the dollar after a policymaker for the European Central Bank (ECB) declared that the cycle of interest rate hikes was coming to an end. Moreover, ECB …
Tuesday’s oil prices remained stable as traders anticipated the Federal Reserve’s rate hike plans and assessed their potential effects on the economy and fuel demand. March Brent futures were up 7 cents, or 0.09%, to $79.72 per barrel. WTI crude in the United States increased by 15 cents, or 0.20%, to $74.78. The Fed policy …
The early 1980s hyperinflation set the stage for the Fed’s current actions. The Federal Reserve raises interest rates and tightens the money supply to cool an overheated economy. This causes the economy to contract and ultimately leads to a burst of inflation at the expense of recession. The storm will hit at the end of …
How Will the 2023 Recession Differ from The 2008 Recession? Read More »
The U.S. dollar on Monday came close to reaching its lowest level in seven months against other currencies. At the same time, China’s decision to reopen its borders boosted riskier currencies. The Australian and New Zealand dollar, typically considered more liquid proxies for the Chinese currency, sharply increased in value. At the same time, China’s …
With the start of a corporate earnings season this week, the stock market will face its next big test. Analysts’ concerns over inflation and the economy’s health are expected to dominate the policy debate. According to FactSet, analysts anticipate S&P 500 firms to report their first year-over-year quarterly earnings decline since the Covid-19 pandemic in …
Why Are Wall Street Analysts as Pessimistic as Ever? Read More »
