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Week Ahead - Nearing the end of rate hikes?

Now that Wall Street has had enough time to process the dovish FOMC decision and another robust nonfarm payroll report, the focus shifts predominantly to Fed speak and economic data that should support the disinflation process. Traders will pay close attention to initial jobless claims and the University of Michigan sentiment report. Other notable economic releases include trade data, consumer credit, and the monthly budget statement.

03-02-2023 15:35 GMT by Craig Erlam

US Close - Fed irked by NFP shocker and ISM data, Oil sharply reverses, Gold crushed, Bitcoin rally stalls

After a busy and volatile week that included the end of Fed Chair Powell’s hawkish tone and mega-cap tech earnings disappointments, Wall Street should not have been surprised that today’s employment report would rattle markets. An impressive nonfarm payroll report was quickly followed by a report that showed the service sector is refusing to break. US stocks are dropping as investors realize the bearish move love with Treasury yields is over as the Fed may have to deliver a couple more rate hik

03-02-2023 14:13 GMT by Edward Moya

Tech earnings hit sentiment ahead of jobs report

Stock markets have been under a little pressure on Friday and the US is poised to open in the red also, with the Nasdaq hit particularly hard. This comes on the back of some disappointing earnings from heavyweight tech firms Apple, Amazon, and Alphabet. Each had their own reasons for disappointing the street but ultimately the one thing they all have in common is the economy and the outlook, and it's hitting both the top and bottom lines. Whether that's through fewer device purchases or lower sp

03-02-2023 07:36 GMT by Craig Erlam

Oil prices edge lower, gold under pressure

Oil settles after a volatile start to 2023 Oil prices are a little lower again at the end of the week, settling it seems somewhere around the middle of the new year range. Sweeping risk aversion in the markets and concerns around a potential deeper slowdown driven by higher rates will have that effect but once again it's worth noting that sentiment in this market is fickle.

03-02-2023 07:31 GMT by Craig Erlam

Swissie takes a pause after busy week

The Swiss franc is unchanged on Friday, trading at 0.9132. USD/CHF has posted sharp swings over the past several days and is down 0.80% this week. Swiss releases have been a mixed bag this week.

03-02-2023 06:59 GMT by Kenneth Fisher

Pound stems nasty slide

The British pound is showing little movement on Friday, after plunging 1.2% a day earlier. In the European session, GBP/USD is trading at 1.2210. Major central bank announcements have been in the spotlight this week, including the Federal Reserve and Bank of England rate decisions.

03-02-2023 05:43 GMT by Kenneth Fisher

ECB raises rates but euro falls

The euro is catching its breath on Friday after some sharp swings over the past two days. EUR/USD is trading quietly at the 1.09 line. Fed, ECB send euro on a wild ride This week's central bank rate announcements sent the euro on a roller-coaster ride.

03-02-2023 03:57 GMT by Kenneth Fisher

Stocks rally on Fed aftermath and Meta results, ECB plays catch up, oil in no man’s land, gold lower, bitcoin rallies

US stocks are rallying as the Fed has one or two more quarter-point rate rises left in this rate-hiking cycle. The post-Fed playbook was fairly straightforward as traders bought up risky assets after Fed Chair Powell’s dovish tone.

02-02-2023 15:30 GMT by Edward Moya

GBP/USD sliding after dovish BoE hike

The British pound has posted sharp losses on Thursday and continues to lose ground in the North American session. GBP/USD is trading at 1.2251, down 0.98%. BoE raises rates, but less pessimistic The major central banks remain the focus of the market's attention.

02-02-2023 12:07 GMT by Kenneth Fisher

Euro drifting ahead of ECB meeting

The euro is showing limited movement on Thursday, ahead of the ECB rate meeting. In the European session, EUR/USD is trading at 1.1000. Euro jumps on dovish Powell Investors liked what they heard from Jerome Powell at the Fed meeting, which sent the US dollar broadly lower.

02-02-2023 07:10 GMT by Kenneth Fisher

Fed and earnings lift stocks

Equity markets are off to a strong start on Thursday, buoyed it seems by the Fed's latest decision and Meta earnings. While Powell was determined not to overplay the shift in the Fed's views on inflation and interest rates, certain comments were well received by the markets. The acceptance that the disinflation process has begun, being one obvious comment, but this was also paired with him stressing that they need substantially more evidence and to hike a couple more times before monetary policy

02-02-2023 05:12 GMT by Craig Erlam

Aussie hits 8-month high after Fed meet

After a sluggish start to the week, AUD/USD bounced back on Wednesday with gains of 1.18%. The pair has edged lower on Thursday and is trading at 0.7137 in the European session. Powell sends US dollar lower The Federal Reserve raised rates by 25 basis points at the Wednesday meeting, as expected.

02-02-2023 04:41 GMT by Kenneth Fisher

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP cools, No surprise from OPEC/US stockpiles rise, Gold higher, Crypto

US stocks went on a Fed rollercoaster ride; weakening after the statement suggested the Fed will stick to their rate hiking guns, but rallying after a dovish press conference that didn't see Powell defend their dot plots and had him say for the first time that the disinflation process has begun. If the next couple of inflation reports show pricing pressures continue to ease, the Fed may finish this tightening cycle in March.

01-02-2023 15:34 GMT by Edward Moya

Pound in holding pattern ahead of Fed, BOE

It has been a quiet week for the British pound, but that could change in a hurry, with the Fed announcing its rate decision later today, followed by the Bank of England on Thursday. Markets eye Fed decision It's a virtual guarantee that the Federal Reserve will raise rates at today's meeting by 25 basis points. This would bring the benchmark rate to 4.75%.

01-02-2023 12:43 GMT by Kenneth Fisher

Market Insights Podcast (Episode 426)

OANDA Senior Market Analyst Ed Moya reviews the latest market news with Jonny Hart. They discussed the ADP employment report, Tom Brady's retirement announcement, the OPEC+ decision, and Bitcoin's impressive January.

01-02-2023 12:19 GMT by Edward Moya

A chaotic day

It promises to be a chaotic day in financial markets and they're currently positioned cautiously in anticipation of what's to come. There's no doubt that investors have one eye on the Fed decision later in the day, as they have all week. It's not just about the rate hike itself, which will almost certainly be 25 basis points according to markets, but the signal the central bank sends about what lies ahead given the progress made in the economic data in recent months. There is growing evidence th

01-02-2023 10:43 GMT by Craig Erlam

Oil in choppy waters, gold range-bound

Oil choppy as OPEC+ leans towards sticking Oil prices are higher a little again on Wednesday, as choppy trade continues. With OPEC+ set to stick to current output targets, according to reports, focus will remain on demand and whether the global economy can achieve a more modest slowdown than feared in a very challenging environment. The Chinese Covid transition also remains key with early data suggesting it's been quite smooth so far and the recovery could be stronger than expected.

01-02-2023 10:39 GMT by Craig Erlam

Euro higher after eurozone inflation falls

It has been a quiet week for EUR/USD which continues to say close to the 1.09 line. The lack of activity could change in a hurry in the North American session, with the Fed rate announcement. Eurozone inflation slides in January Eurozone inflation is expected to be 8.5% in January, down from 9.2% in December and below the consensus of 9.0%.

01-02-2023 05:45 GMT by Kenneth Fisher

Market Insights Podcast (Episode 425)

OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discuss how the markets are trading ahead of a very busy few days.

31-01-2023 17:31 GMT by Craig Erlam

Oil and gold rise

Oil Crude prices turned positive after Exxon noted that they see oil supplies tight as some producers pull back. The oil market is awaiting a couple of major events, both the FOMC decision and the OPEC+ meeting on output. The EIA reported that cold weather made November US output dip for the first time since May.

31-01-2023 13:47 GMT by Edward Moya

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