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Federal Reserve Hits Pause on Interest Rate Hikes, Signals Two More Increases by Year’s End
On Wednesday, the Federal Reserve (Fed) paused its streak of interest rate hikes at ten, deciding to take stock of the cumulative impacts of the increases. The Fed’s policy-making arm, the Federal Open Market Committee (FOMC), though, forecasted a pair of quarter-percentage point boosts on the horizon before 2023 concludes. Although this decision created some…
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EurUsd Weekly Outlook for June 12, 2023 – Attention Shifts to Interest Rates Decisions
The United States, as is often the case, managed to dodge the default bullet at the last minute. The spotlight now swings to the Federal Reserve (Fed) and the European Central Bank (ECB), whose impending monetary policy decisions are set to shape the trajectory of the stock and bond markets over the summer. These markets…
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Japan’s Economy Surpasses Growth Expectations
Japan’s economy experienced stronger growth in the first quarter of the year than previously estimated, according to government data released on Thursday. The annualized growth rate reached 2.7%, surpassing the earlier projection of 1.6% made last month. The Japanese yen saw a modest 0.14% strengthening against the U.S. dollar following the announcement, while the Nikkei…
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EurUsd Weekly Outlook for June 05 2023 – Navigating the EurUsd in the Face of Monetary Shifts
Post Debt Ceiling: The Spotlight Shifts to the Federal Reserve Following an agreement, President Biden prevents default by raising the debt ceiling, pushing the issue to January 2025. This defers any risks associated with the 2024 presidential campaign, which markets have largely absorbed with nonchalance. However, the possibility of the first interest rate cut in…
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Senate Passes Bipartisan Bill to Raise Debt Ceiling and Avert U.S. Default
The Senate passed a bill on Thursday evening, which had previously been approved by the House, to raise the debt ceiling and establish a cap on government spending for a two-year period. The legislation is now on its way to President Joe Biden, and he is expected to sign it on Friday. In his statement…
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EurUsd Weekly Outlook for May 29, 2023 – With bated breath
The global financial landscape is anxiously monitoring the complex situation surrounding the American debt ceiling. Should there be no increase in this debt limit, the United States would risk default, which could precipitate considerable market volatility and a surge towards safe-haven assets. It’s likely that an agreement will eventually be reached, but potentially not until…
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Stock Market Weekly Summary
The stock market ended the week mixed on Friday, with the S&P 500 closing up 0.27%, the Nasdaq-100 closing up 3.05%, the Dow Jones Industrial Average closing down 0.68%, and the Russell 2000 Index closing down 0.50%. The mixed performance of the major indices suggests that investors are still uncertain about the direction of the…
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German Economy Slides into Recession Amidst Reduced Consumer Spending
The German economy slid into a technical recession in the first quarter of this year, triggered by a significant decrease in consumer spending. Data from Germany’s Statistics Office, released on Thursday, indicated a 0.3% contraction in GDP (gross domestic product) for the year’s opening quarter, a downturn from the initially reported zero growth. This development…
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UBS Anticipates $17 Billion Impact from Hasty Credit Suisse Acquisition
UBS, the Swiss banking giant, anticipates a financial setback of approximately $17 billion stemming from its expedited acquisition of Credit Suisse, as indicated in recent SEC filings. The bank’s calculations suggest a $13 billion impact due to alterations in the fair value of the newly merged entity’s assets and liabilities. Additionally, the bank is bracing…
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13F Reveals: Tech Giants Lead the Pack in Aggregate Market Value
Investors, analysts, and Wall Street enthusiasts have been eagerly anticipating the latest round of 13F filings, and as of today, the wait is finally over. These quarterly reports for March 31, 2023, submitted by institutional investment managers with over $100 million in qualifying assets, provide a treasure trove of insights into the latest moves of…
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April CPI Rises 4.9%, Below Expectations
Inflation in April rose by 4.9% compared to the same period last year, falling short of the anticipated 5% increase, according to a recent Labor Department report. This occurred despite the Federal Reserve’s ongoing efforts to curb inflation with a series of interest rate hikes. The consumer price index, which gauges the cost of various…
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ECB Raises Interest Rates to Tackle High Inflation Pressures
The European Central Bank (ECB) has announced a 25 basis point increase in three key interest rates to tackle high inflation pressures. Despite headline inflation declining over recent months, underlying price pressures remain strong, prompting the decision to raise interest rates. The ECB’s Governing Council has pledged to continue using a data-dependent approach to determine…
