CommSec Chief Economist Craig James takes a look at the economic events scheduled for the week ahead, including lending finance, employment, the NAB Business survey & China inflation For more Economic Insights, visit https://www.commsec.com.au/market-news/the-markets.html Show More
Janet Yellen spooked the bond market on Friday with a speech in which she talked about letting the economy run hotter even if it meant the Fed's inflation target could be exceeded. The Federal Reserve may need to run a "high-pressure economy" to reverse damage from the 2008-2009 GFC that... Show More
In this Livewire Exclusive video, Vimal Gor, Head of Fixed Interest & Income at BT Investment Management, described Yellen’s recent speech at Jackson Hole, "The Federal Reserve's monetary policy toolkit: Past, present, and future" as a ‘damp squib’, i.e.: a ‘fizzer’. He says: “There have been lots of conversation about... Show More
One of the more interesting developments was the reticence from the Fed to move toward negative rates, something their counterparts in Europe and Japan are obviously more comfortable with. Yellen didn’t mention negative rates when discussing steps future policymakers may add to their toolkits, but it was telling that she... Show More
Bloomberg: "Federal Reserve Chair Janet Yellen spelled out on Tuesday what she means by data dependence, asserting her leadership of the U.S. central bank with a clear message that interest rates will be raised at a cautious pace. In one of her most detailed policy discussions this year, Yellen gave... Show More
After five consecutive days of positive gains, the US dollar index (DX) fell and the AUDUSD appears to have found the support level at 0.75 handle. Saxo’s Sydney-based traders expect the AUDUSD to trade below the resistance level 0.76 handle given the lack of economic data this week, until Friday’s... Show More
Aussie market started slightly negative and went south very quickly before halving the losses. US markets recovering to close nearly flat and solid CBA result in a tough environment offered hope for positive day but the global worry has the investors spooked. We saw the market move below long term... Show More
The old adage was that if the market had a problem, you sold the market and bought the problem. The market could only go up if the problem was solved and you made the most money from solving the problem. Governments, however, have rather turned this on its head. Ever... Show More
"The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective. Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic... Show More
Uday Cheruvu, Portfolio Manager at PM CAPITAL, thinks that it is almost a certainty that the Fed will raise rates this week, given Janet Yellen’s comments over recent weeks. However, he doesn’t think this should be viewed as a negative. “It tells us that the Fed is confident enough about... Show More
With surveys suggesting around 75% expectation of a US Fed rate rise on the 16th of December, the widely accepted assumption is that much of the hike has already been priced in by markets. However, Saxo's Chief Economist Steen Jakobsen says there are at least two elements that haven't been... Show More
The Fed has “put the possibility of an interest rate hike in December firmly back on the table.” Which has “set the stage for what will be the most important 25-hour period that markets have experienced for a very long time. From 7.45am on Dec. 3 to 8.30am on Dec.... Show More
Anticipation is growing that the US Federal Reserve will begin raising interest rates in December this year. Should this be the case, it will mark the start of the first rate rising cycle in over a decade. Indeed speculation around when the Fed will start raising rates has become a... Show More
Overnight: "The latest jobs report showed the US economy produced a whopping 271,000 jobs in October, much better than expected. The unemployment rate fell to 5%. The numbers were enough to convince the bond market that the Fed would indeed lift interest rates at its next meeting in December. Yields... Show More
Optimistic comments concerning a December rate hike from the US Fed Janet Yellen strengthened the US dollar, against most currencies today including the Aussie Dollar. Saxo Capital Markets traders based in Australia say that even though the AUDUSD traded higher on Wednesday, it failed to stay above the key resistance... Show More
Overnight: A testimony from Fed Chair Janet Yellen has set the stage for a rate hike in December. The yield on U.S. Treasury notes spiked to 0.82% as Yellen laid out the preconditions required for a hike saying the December meeting was live. “At this point, I see the U.S.... Show More
With the VIX trading at 12.1, the US 10 year bonds at 2.26% and the SP 500 Index at near record highs, Saxo Capital Markets’ Asia Macro Strategist Kay Van-Petersen says the market is definitely NOT ready for the Fed to hike. He says these asset classes are not pricing... Show More
It's been another long week for precious metal bulls, with gold falling below USD $1150oz. A somewhat hawkish sounding Janet Yellen, combined with relative calm as regards the ongoing drama in Greece were enough to further dent the outlook for gold, with the metal now dangerously close to falling through... Show More
In her semiannual testimony to Congress, Janet Yellen repeated her view that the Fed will likely hike interest rates later this year if the U.S. economy expands as expected, and cited improvement in the labour market. Show More
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