Ukraine and Russia conflict and impact on monetary policy
Federal Reserve officials are wary of a Russian invasion of Ukraine, though several have said in recent days that geopolitical tensions are unlikely to stop them from withdrawing support for the US economy. The job market is booming and prices are rising fast. This week positive US employment data is expected with a drop of […]
Decisive week for the international currency market
The president of the Fed, Jerome Powell, affirmed last Wednesday the probability of a rise of half a percentage point (0.50%) if inflation continues stubbornly high. The move would raise borrowing costs from near zero, where they have been since the start of the Covid pandemic, for businesses and consumers. This would bring two main […]
ECB and FOMC this week. Stimulus plans and bond purchases are key for the euro this week.
This Thursday, 12/16, important decisions are expected from governors of the European Central Bank who could delay part of a decision on the ECB’s stimulus plans, since the perspective has changed due to a new variant of the coronavirus and the growing pressures on the prices. The ECB’s Governing Council will meet on December 16 […]
United States Closes Its Year With Less Than 5% Unemployment
The United States closes its year with unemployment of 4.2% from 6.7% in January 2021. The final production of the services sector closes this 2021 with 69.1% increasing from 57.2%. Both data gave a weekly close with a strong dollar only at the USDCAD cross. The rest of the fx crosses were kept out of […]
Fourth wave of infections in Europe. Mandatory vaccination.
German politicians are debating mandatory COVID-19 vaccines for citizens in light of rising infections and low inoculation rates. Members of Angela Merkel’s conservative bloc said Sunday that federal governments and should introduce mandatory vaccines soon, as well as other efforts to boost Germany’s low inoculation rate of just 68% have failed. “We have reached a […]
Canadian CPI projects pressure on USDCAD.
This Wednesday the Statistics Canada office will publish the Consumer Price Index data for the month of October. The data that will be published, happens after the annual inflation of September had reached 4.4%, marking a maximum in almost two decades. This fact raises expectations in the market about a possible rate hike at the […]
NFP and unemployment: High impact Friday.
The first week of November closes with two high-impact data in the employment sector. The United States and Canada will report the evolution of non-farm payrolls and the change in the unemployment rate respectively. The Fed announced this Wednesday that it will begin to cut its monthly purchases of bonds from November, with the […]
FOMC: Tapering will be defined
The week of great impact begins this Wednesday with the announcement that Fed officials will make after the FOMC meeting. This is the meeting agreed to evaluate the evolution of the economy and the direction of the decisions that will be made for the United States. The event is full of expectations, as they are […]
Tension in Rome between Boris and Macron. Interest rate week.
Leaders of the Group of 20 major economies on Sunday agreed to a final statement calling for “meaningful and effective” measures to limit global warming, but offered few concrete commitments and disappointed climate activists. We expect a market opening with a significant impact on the market. On the one hand we have the conflict between […]
High impact of the week: inflation and interest rates
The opening of Monday 25/10 awaits us with expectations given the macro information of the week. We started with Australian inflation on Monday night. The week will also end with inflation data but from the United States. The numbers are expected to remain unchanged in Australia, however gas and coal prices have reached record highs […]