Oct 17, 2024
What Can We Expect from the FED's Quantitative Tightening?
The financial system is so complicated that it is hard to plan for every possibility, even as the FED launches its most extensive QT program to date.
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What Can We Expect from the FED's Quantitative Tightening?
The financial system is so complicated that it is hard to plan for every possibility, even as the FED launches its most extensive QT program to date.
InvestTalk - 10-9-2023 – What Should Investors Do Amid the Rout in the Stock and Bond Market?
The recent disruption in the capital markets caused by the Fed's rate rises has resulted in a decline in both the price of government bonds and stocks.
Funds Short the Dollar After Fed’s Dovish Pivot
New Post has been published on https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot
Funds Short the Dollar After Fed’s Dovish Pivot
© Reuters. Funds Short the Dollar After Fed’s Dovish Pivot
(Bloomberg) — The Federal Reserve’s dovish shift is beginning to diminish the appeal for currency speculators.
A Citigroup Inc (NYSE:). index has dropped below zero for the first time since March 2018, indicating currency funds are holding net short positions on the U.S. currency. That signals further dollar gains may be hard to come by after the greenback’s longest winning streak in three years.
“The Fed has become much less willing to hike, and there’s even a chance for a rate cut this year,” said Toshiya Yamauchi, chief manager for foreign-exchange margin trading at Ueda Harlow Ltd. in Tokyo. “This has eroded the dollar’s yield advantage, leading to dollar shorts.”
The Bloomberg Dollar Spot Index gained 0.1 percent as of 10:09 a.m. London time, having dropped Tuesday after an eight-day rally. That winning streak followed the Fed’s Jan. 30 decision — when Chairman Jerome Powell said the case for further rate hikes has weakened — that took many investors by surprise.
Even so, economists predict the dollar will weaken against the euro, yen and pound throughout 2019, according to Bloomberg surveys. And with U.S. economic growth and inflation forecast to slow this year, overnight-index swaps have started to price in a possible Fed rate cut. Publication of CFTC positioning data for the greenback since Jan. 15 has been delayed due to the U.S. government shutdown.
“We don’t have evidence of strong inflationary pressures and we do have evidence of the growth rate slowing,” Fed Bank of Cleveland President Loretta Mester told reporters after giving a speech in Cincinnati Tuesday. “That combination of factors suggests we have this chance to look at how the economy is going to proceed. We don’t have to do anything preemptively.”
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Read More https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot
Funds Short the Dollar After Fed’s Dovish Pivot
New Post has been published on https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot
Funds Short the Dollar After Fed’s Dovish Pivot
© Reuters. Funds Short the Dollar After Fed’s Dovish Pivot
(Bloomberg) — The Federal Reserve’s dovish shift is beginning to diminish the appeal for currency speculators.
A Citigroup Inc (NYSE:). index has dropped below zero for the first time since March 2018, indicating currency funds are holding net short positions on the U.S. currency. That signals further dollar gains may be hard to come by after the greenback’s longest winning streak in three years.
“The Fed has become much less willing to hike, and there’s even a chance for a rate cut this year,” said Toshiya Yamauchi, chief manager for foreign-exchange margin trading at Ueda Harlow Ltd. in Tokyo. “This has eroded the dollar’s yield advantage, leading to dollar shorts.”
The Bloomberg Dollar Spot Index gained 0.1 percent as of 10:09 a.m. London time, having dropped Tuesday after an eight-day rally. That winning streak followed the Fed’s Jan. 30 decision — when Chairman Jerome Powell said the case for further rate hikes has weakened — that took many investors by surprise.
Even so, economists predict the dollar will weaken against the euro, yen and pound throughout 2019, according to Bloomberg surveys. And with U.S. economic growth and inflation forecast to slow this year, overnight-index swaps have started to price in a possible Fed rate cut. Publication of CFTC positioning data for the greenback since Jan. 15 has been delayed due to the U.S. government shutdown.
“We don’t have evidence of strong inflationary pressures and we do have evidence of the growth rate slowing,” Fed Bank of Cleveland President Loretta Mester told reporters after giving a speech in Cincinnati Tuesday. “That combination of factors suggests we have this chance to look at how the economy is going to proceed. We don’t have to do anything preemptively.”
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Read More https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot
Funds Short the Dollar After Fed’s Dovish Pivot
New Post has been published on https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot
Funds Short the Dollar After Fed’s Dovish Pivot
© Reuters. Funds Short the Dollar After Fed’s Dovish Pivot
(Bloomberg) — The Federal Reserve’s dovish shift is beginning to diminish the appeal for currency speculators.
A Citigroup Inc (NYSE:). index has dropped below zero for the first time since March 2018, indicating currency funds are holding net short positions on the U.S. currency. That signals further dollar gains may be hard to come by after the greenback’s longest winning streak in three years.
“The Fed has become much less willing to hike, and there’s even a chance for a rate cut this year,” said Toshiya Yamauchi, chief manager for foreign-exchange margin trading at Ueda Harlow Ltd. in Tokyo. “This has eroded the dollar’s yield advantage, leading to dollar shorts.”
The Bloomberg Dollar Spot Index gained 0.1 percent as of 10:09 a.m. London time, having dropped Tuesday after an eight-day rally. That winning streak followed the Fed’s Jan. 30 decision — when Chairman Jerome Powell said the case for further rate hikes has weakened — that took many investors by surprise.
Even so, economists predict the dollar will weaken against the euro, yen and pound throughout 2019, according to Bloomberg surveys. And with U.S. economic growth and inflation forecast to slow this year, overnight-index swaps have started to price in a possible Fed rate cut. Publication of CFTC positioning data for the greenback since Jan. 15 has been delayed due to the U.S. government shutdown.
“We don’t have evidence of strong inflationary pressures and we do have evidence of the growth rate slowing,” Fed Bank of Cleveland President Loretta Mester told reporters after giving a speech in Cincinnati Tuesday. “That combination of factors suggests we have this chance to look at how the economy is going to proceed. We don’t have to do anything preemptively.”
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Read More https://worldwide-finance.net/news/commodities-futures-news/funds-short-the-dollar-after-feds-dovish-pivot