Development

Following the recent US Job Report, there are expectations of a pickup in hiring which could potentially support wage growth. This increase in wages may lead to higher trends in disposable income, ultimately fueling consumer spending and demand-driven inflation. The net effect of this could result in a higher-for-longer Fed rate path to raise borrowing
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As investors gear up for the new trading week, the European political landscape is shrouded in uncertainty. The recent European Parliament elections have resulted in a significant gain for eurosceptic-nationalists, displacing liberals and greens. Additionally, President Emmanuel Macron’s decision to dissolve the French Parliament and call for early legislative elections has added to the instability
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Recently, Bank of Japan Deputy Governor Ryozo Himino expressed worries regarding the Yen and its impact on economic activity. He stated that exchange-rate fluctuations can affect various aspects of the economy, including inflation. This raises concerns about the stability of the USD/JPY pair in the current market environment. In addition to the concerns raised by
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The euro strengthened slightly in anticipation of a rate decision by the European Central Bank (ECB), where a rate cut is widely expected. Meanwhile, the dollar weakened as expectations of a U.S. Federal Reserve easing cycle grew. Market participants are closely watching the ECB meeting for insights into the bank’s rate outlook, with potential quarter-point
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The EUR/USD pair managed to snap a two-day losing streak and rebounded near 1.0875 in Thursday’s early Asian session. This recovery came despite the US Dollar showing strength during the same period. The focus now shifts towards the European Central Bank (ECB) interest rate decision and the subsequent Press Conference led by President Christine Lagarde
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An unexpected increase in initial jobless claims has the potential to influence investor sentiments regarding a September Fed rate cut. This spike could signal weaker labor market conditions, impacting wage growth, disposable income, and consumer confidence. As a result, consumers may reduce spending, leading to a decrease in demand-driven inflationary pressures. A downturn in consumer
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