SubscribeAll Posts Tagged With: "rate cut"
RALLY IN RISK PUTS PRESSURE ON THE DOLLAR TO THE DOWNSIDE
We are seeing a light revival in risk appetite putting downside pressure on the dollar. The EurUsd rose nearly 100pips to the mid range of 1.29, while the UsdJpy fell roughly 50pips to the bottoming out around 89. The GbpUsd gained 50pips pushing the pair back above1.43 ahead of the BoE meeting scheduled for this week. Equity markets are positive in the US and Europe with the Dow higher by 1.7% or 141pts. Bond yields followed suit as rates jumped higher across the UST curve, notably the 10 and 30yr saw the largest moves up 16 and 20bps respectively. Commodities…
3Feb2009 | Advanced Currency Markets | 0 comments | ContinuedAsian Governments Signal More Interest Rate Cuts Coming Soon
With inflation slowing in Asia, governments are signaling they are open to cutting interest rates to buffer their economies from the global credit dearth.
A handful of Asian countries – Australia, China, Hong Kong, India, Japan, South Korea, Taiwan and Vietnam – all cut rates since last week. And among those, South Korea, Indonesia and Thailand reported slower inflation this week, Bloomberg reported.
Story continues below…
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The combination of both lower inflation and lower rates is starting to be priced into the…
6Nov2008 | Money Morning | 1 comment | ContinuedFed’s Out of Control!
Oct. 29 (Bloomberg) — The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.
We U.S. government and Federal Reserve continue to give us signs as to where they stand, where we’re going, and how were going to get there. Cutting the Fed Funds Rate to 1%, is just one more step towards zero, or next to zero interest rates.
Big Cut, Big Deal, of Big Woop?
This was not a big surprise, and the only question coming into…
30Oct2008 | Oxbury Research | Comments Off | ContinuedDow Zooms Above 9,000 on Eve of Expected Fed Rate Cut
U.S. equities rallied yesterday (Tuesday) as the U.S. Federal Reserve convened for the first day of a two-day meeting of its monetary policy committee.
At the New York close, all three major U.S. indices had sizeable gains:
- The blue-chip Dow Jones Industrial Average Index soared 889.35 points, an increase of over 10%, to close at 9,065.12.
- The tech-laden Nasdaq Composite Index jumped 143.57 points, an increase of 9.5%, to reach 1,649.47.
- And the broader Standard & Poor’s 500 Index shot up 91.59 points, an increase of over 10%, to settle at 940.51.
“The valuations are extremely compelling right now,” Dan Veru, who helps manage about…
29Oct2008 | Money Morning | Comments Off | ContinuedDon’t Cry Over Spilled 1%
For the second time this year, on October 8th, the Fed announced an emergency rate cut.
A man named Jeffrey Staut, the chief strategist at Raymond James, stated shortly afterwards, “This better work. This is the last chance.”
In the two days following, the Dow shed more than 1,000 points. True, it gained it back the following week (undoubtedly a result of short profit-taking and bottom-hungry purchases rather than real interest), but it has since shrugged off that attempt at fixing a much larger problem and we’re back where we were on October 10th.
Seems like we’ve had a lot of “last…
24Oct2008 | Oxbury Research | Comments Off | ContinuedWaiting for the Fed’s Decision, Statement
Economists and investors wait with bated breath for the U.S. Federal Reserve to release the statement from the Federal Open Market Committee this afternoon (Wednesday) at 2:15 p.m. EDT.
While it is almost universally expected that the FOMC will vote to hold the Federal Funds rate steady at its current 2.0%, the language in the accompanying statement will be scrutinized for clues about the upcoming August and September meetings.
In a recent Bloomberg News survey, all 101 economists queried expect the Fed to pause on any further rate actions for the time being. Many believe there will be no movement in…
25Jun2008 | Money Morning | Comments Off | ContinuedFed Policymakers Look to Juggle Inflation, Stagnation
The U.S. Federal Reserve faces a tough challenge as it kicks off a two-day policymaking meeting tomorrow (Tuesday): It probably needs to start raising interest rates to prop up the U.S. dollar and offset a major escalation in inflationary pressures; but the economy needs low interest rates if it’s to maintain its anemic growth rate.
After one of the Fed’s most aggressive rate-cutting campaigns ever slashed short-term interest rates from 5.25% in mid-September to 2.0% now, experts now expect the central bank to reverse course. And this week’s two-day meeting of the policymaking Federal Open Market Committee (FOMC) represents the first…
23Jun2008 | Money Morning | Comments Off | Continued
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