Analytical reviews of the Forex market

18.06.2021 08:06

Weak Labor Data Would Support Markets

Information and Analytical Department of Espero

Markets are still slightly shocked after the Federal Reserve has change its position towards earlier hike of interest rates and high inflation forecast. Just a month ago the U.S. monetary regulator was not even concerned by galloping prices. And now the Chairman of the Fed Jerome Powell sees inflation might overshoot even Fed’s forecast at 3.4% this year. A bit of a twist to the overall picture was added by Fed’s decision to increase the interest rate of reverse Repo, tighten requirements on excessive bank reserves and revised trajectory of interest rates hikes on top of this.

11.06.2021 08:06

Fears of Inflation Eased for Now

Information and Analytical Department of Espero

08.06.2021 08:06

Markets Are Waiting for the U.S. Inflation

Information and Analytical Department of Espero

This trading week begun in a prudent way while investors are waiting for ECB meeting and inflation data from the United States. The most intriguing question is inflation as this Thursday fresh May estimate on the inflation in the United States would be released. Forecasts suggest annual inflation up to 4.7% vs 4.2% previously, more than twice as much as the Federal Reserve target at 2.0%. However, the Fed is still successfully maneuvering to avoid any tightening of monetary policy, claiming such inflation spikes are of temporary nature.

04.06.2021 08:06

Markets Fear Strong NonFarm Payrolls

Information and Analytical Department of Espero

This trading week begun in a prudent way while investors are waiting for ECB meeting and inflation data from the United States. The most intriguing question is inflation as this Thursday fresh May estimate on the inflation in the United States would be released. A waning week finally came to a major event of NonFarm Payrolls in the United States that will be released on Friday.

01.06.2021 08:06

Markets Starting June Mixed

Information and Analytical Department of Espero

The new trading week begun mixed as stock indexes were mostly looking down while crude prices were edging higher, and the U.S. Dollar index rolled back to 89.85 points weakening to currencies of G7 countries and strengthening to the Chinese Yuan. The chaotic dynamics of markets came probably because of the Memorial Day in the United States and a Bank Holiday in the United Kingdom that wiped out most of the liquidity from markets.

28.05.2021 08:05

U.S. Stock Market Continues to Rally Ignoring All Correction Signs

Information and Analytical Department of Espero

The last trading week of May will finish with the inflation data in the U.S. and a new 2022 draft budget that would be presented by Joe Biden’s Administration. Markets are tensed now, and may spring a mine of volatility any moment. However, investors are seen to neglect correction signals pushing prices of risky assets higher and higher, while the U.S. Dollar is sliding lower. The second estimate of U.S. first quarter GDP was released on Thursday leaving the GDP unchanged at 6.4%. GDP price index, instead, was revised to 4.3% from 4.1%. Core PCE prices index was upgraded to 2.5% from 1.

25.05.2021 08:05

The Fed Calmes Down Infaltion Fears

Information and Analytical Department of Espero

The last trading week in May started with statements of the Federal Reserve not to pay too much attention to inflation. The Fed has published a long list of reasons of temporary nature of inflation spike to calm down markets. The Fed considers the rise in prices due to the effect of low base that will soon fade along with large social benefits program that has stimulated “emergency spending”. U.S. monetary regulator fondly believe U.S. consumers would not buy a second refrigerator or a mobile phone, or even a car despite record level of savings. According to Fed’s statement, U.S.

21.05.2021 08:05

U.S Stock Market Is Close to Correction

Information and Analytical Department of Espero

Correction sentiment squeezed markets. Bitcoin has lost more than a third of its value in the last two weeks, crude prices lost 5%, U.S. stock market was close to a full-scale correction while the Dollar tried to return to the upside movement. Most interesting is that Fed’s intensions are becoming clearer. Fed’s solid position of maintaining ultra-soft monetary policy was challenged by some FOMC members that called the Fed to reconsider its current policy towards tapering extraordinary measures in the future.

18.05.2021 08:05

FOMC Minutes May Disappoint Stock Market

Information and Analytical Department of Espero

Markets are still digesting disappointing inflation data in the United States released last week while the effect of Federal Reserve’s calming statements is no longer enough to support markets. The S&P 500 broad market index fell by 0.6%, Dow Jones by 0.5%, and Nasdaq 100 performed almost traditionally worse losing 1%. The U.S. 10 year Treasuries started this week at 1.635%. Negative sentiment may prevail today too as no positive drivers for markets are in sight.

07.05.2021 08:05

NonFarm Payrolls of Paramount Importance

Information and Analytical Department of Espero

The first week of May was of chaotic nature for financial markets. Stock markets were under fragmented pressure as U.S. Tech sector was sold-off with Nasdaq losing more than 3% in four days, and investors switching to cyclical companies’ shares with new highs for the latter. Dow Jones index is peaking up 0.7% this week. Rational explanations for such capital flows are not many as somebody is referring to commodities prices hike as a major driver for shares of cyclical companies, somebody blames U.S-China increasing tensions. However, all these excuses are seen flimsy.