News Regulators 

EUR/USD caught in no man’s land to start the new week

“Looking back to Friday, the US jobs report was indubitably great but in the sense that it shows that the US economy remains more resilient” reports forexlive.com. Price action remains caught in between both key hourly moving averages – which suggests that the near-term bias is more neutral for now – and with the 100-day moving average @ 1.1066 also resting in between, it’s making for tepid trading to start the week.The dollar gained strongly after the US jobs report on Friday and that pushed the pair to test the…

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News Regulators 

This Week: GameStop earns, Fed meeting, retail sales

“Recent sales data suggest higher tariffs on many consumer products imported from China have not completely held Americans back from spending” writes The Associated Press for seattletimes.com. New data on U.S. retail sales will provide another view of how the holiday shopping season is going.Economists predict the Commerce Department will report Friday that retail sales rose 0.4% in November.A look at some of the key business events and economic indicators upcoming this week: The video-game retailer slid to a loss in the second quarter versus a year earlier. Source: seattletimes.com

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News Regulators 

As Fed reiterates rate pause, forecasts likely to be blown off course

“Fed policymakers’ forecasts for future U.S. economic growth this time around will be in sharp focus” writes Midwest Communications Inc for 95kqds.com. Last December, the Fed projected two interest rate hikes for 2019, seeing an economy only in danger of overheating.So far the interest rate cuts seem to be working.In September, policymakers’ projections for 2020 growth ranged from 1.8% to 2.1%, consistent with what the Fed sees as the economy’s potential growth rate.The Fed, however, has a spotty history with its year-ahead interest rate projections, having hit its median forecast…

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Markets News Regulators 

What Trump does before trade deadline is the ‘wild card’ that will drive markets in the week ahead

“If there’s no China deal, that could beat up stocks, send Treasury yields lower and send investors into other safe havens” writes Patti Domm for cnbc.com. He rattled markets when he said he could wait until after the election for a trade deal with China.Economic reports in the coming week include CPI inflation Wednesday, which could be an important input for the Fed. Source: cnbc.com

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News Regulators 

Fed is ‘super-glued’ to its seat until after the election, economists say after stellar jobs report

“The Fed cut rates by a quarter point at its July, September and October” writes Senior Economics Reporter for marketwatch.com. After three rate cuts in the last three months, the Fed is firmly on hold, said Carl Tannenbaum, chief economist at Northern Trust Co.The strong jobs gains in November supports the view that the Federal Reserve is on hold until after next fall’s presidential election, economists said.Investors who use fed funds futures contracts are now expecting the Fed to be on hold until September, when the central bank will cut…

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Markets News Regulators 

Blowout jobs report means Fed may sound even less likely to move on interest rates

“November’s surprisingly strong jobs report makes it less likely the Fed will move to cut interest rates, and it could sound even more hawkish when it meets next week” writes Patti Domm for cnbc.com. Swonk said the Fed is still more likely to move to cut than raise interest rates.Swonk said the jobs report showed the impact from trade, and that will be an important topic for the Fed.A so-called hawkish Fed is one that is more likely to move to tighten policy than make it looser by cutting interest…

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News Regulators 

Don’t touch that dial! Traders see Fed on hold until after 2020 election

“Friday’s strong read on the state of the job market gave traders reason to bet Fed policymakers will remain on hold until next November” writes Midwest Communications Inc for 95kqds.com. After the report, bets placed via futures contracts traded at CME Group showed traders now expect the Fed to remain on hold until its November meeting, held a day after the U.S. presidential election.Fed policymakers have repeatedly said they do not act based on politics but only in response to economic data.After their last rate cut, in October, Fed Chair…

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News Regulators 

Treasury Sec. Steven Mnuchin is working with the Federal Reserve to curtail another repo rate crisis, report says

“Treasury Secretary Steven Mnuchin is collaborating with the Federal Reserve to monitor lender reserves and curtail a rate crisis similar to September’s, The Wall Street Journal reported Thursday” writes Finanzen Net Gmbh for businessinsider.com. Federal Reserve Bank of New York officials briefed the Financial Stability Oversight Council this week on the rate spike, Mnuchin added.”We talked in our weekly meeting making sure the Fed is prepared for year-end activity so there are ample reserves,” the Treasury secretary said.The Treasury secretary said in late October that he is open to loosening…

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News Regulators Reviews 

Policy Daily Review December 6, 2019

Policy Daily Review for December 6, 2019 Trump’s trade wars were supposed to rescue US manufacturing and agriculture. But his policies have made them significantly worse. | Markets Insider Throughout his presidency, Trump sought to rescue segments of the economy he believed were abandoned by politicians at home and battered by comp…   The OPEC ministers agreed on the 500k cut proposal The OPEC ministers agreed on the 500k cut proposal. Iran Oil Minister: There is an OPEC agreement. More to come…   Reuters poll: ECB’s recent policy moves only…

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News Regulators 

Central banks must regain their credibility before the next recession

“But by making changes before they are necessary, central banks can restore their credibility” writes Larry Hatheway for marketwatch.com. Yet, in practice, central banks face tight constraints, which means that their response to the next recession may prove insufficient.But the global economic expansion cannot last forever, and when the next recession comes, central banks may not be adequately prepared to respond.In theory, central banks have extraordinary means to respond, through negative interest rates, asset purchases, “forward guidance,” and the like.The legal limitations vary according to the political and institutional environment…

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