Euro remained firm following ECB’s decision to cut interest rates, a widely anticipated move. During the subsequent press conference, President Christine Lagarde emphasized a shift to “more evolutionary approach” to policy, now that monetary conditions have become “meaningfully less restrictive.” She also acknowledged the high levels of uncertainty, noting that “risks are all over.” Lagarde […]
A 25 basis point cut to the ECB deposit facility rate is widely anticipated, marking the seventh cut in the current cycle. The ECB continues to cut rates amid slow Eurozone growth, while the Federal Reserve pauses, creating a notable divergence in monetary policy. What next for EUR/USD? Most Read: Dow Jones (DJIA) Holds Support:
2025.03.06 2025.03.06 Germany’s Fiscal U-Turn Boosts DAX 40. Forecast as of 06.03.2025 Dmitri Demidenkohttps://www.litefinance.org/blog/authors/dmitri-demidenko/ Germany’s DAX 40 has outperformed other global stock indices, marking the onset of a transformation from the “sick man of Europe” to a locomotive of the European economy. Let’s discuss this topic and make a trading plan. The article covers the following subjects:
German construction activity eased back in February, with incoming new work continuing to stay rather subdued overall. It suggests that any major recovery in the sector is still a non-starter but we’ll see how the sentiment will change amid the latest political developments. For now, all three sub-sectors i.e. housing, commercial, and civil engineering are
The USD/CAD forecast shows some relief for the Canadian dollar. Trump excluded automakers in Canada from the 25% tariff for a month. Market participants worried about the impact of Trump’s tariffs on the US economy. The USD/CAD forecast shows some relief for the Canadian dollar as market participants expect a tariff relief on Canada. At
Switzerland’s unemployment rate decreased for the first time in ten months in February, though slightly, the State Secretariat for Economic Affairs, or SECO, said on Thursday. The unadjusted unemployment rate dropped to 2.9 percent in February from 3.0 percent in January. In the corresponding month last year, the jobless rate was 2.4 percent. The number
Risk sentiment is mildly positive in Asian session today, as investors digest the latest developments in US trade policy and Chinese economic measures. Markets welcomed the news that the US has granted a one-month exemption for imports from Mexico and Canada for auto makers. The decision came after US President Donald Trump met with executives
UR/JPY gains momentum to near 161.15 in Thursday’s early European session. The concerns over tariff risks on Japan might contribute to the JPY. The ECB is anticipated to cut interest rates at the March meeting on Thursday. The EUR/JPY cross extends the rally to around 161.15 during the early European session. The Japanese Yen (JPY)
Dealers expect an increase in deal contingent foreign exchange hedging activity in 2025, in conjunction with heightened takeover deals from corporates and private equity firms in the latter part of the year. “We’ve certainly seen an uptick in deal contingent hedging,” says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS.
I posted the headlines earlier that Mexico’s state-owned oil company, Pemex, is actively seeking new crude oil buyers in Asia and Europe, including China, India, South Korea, and Japan, after Trump imposed a 25% tariff on Mexican crude imports. Previously, the United States accounted for 57% of Pemex’s oil exports, but with the new tariffs
Australia’s trade surplus increased to 5,620M MoM in January versus 5,500M expected and 4,924M (revised from 5,085M) in the previous reading, according to the latest foreign trade data published by the Australian Bureau of Statistics on Thursday. Further details reveal that Australia’s Exports rose by 1.3% MoM in January from 1.2% (revised from 1.1%) seen a month earlier. Meanwhile, Imports declined by
The New York Federal Reserve branch’s Roberto Perli is manager of the Fed’s System Open Market Account SOMA its portfolio of bonds, cash and other assets, which currently stand at $6.8 trillion In effect, Perli manages the implementation of monetary policy. Comments: Fed balance sheet drawdown has been smooth. Flags challenge of managing balance sheet
The downtrend in the US Dollar gathered extra steam on Wednesday, fuelled by concerns over the US economy and some renewed hopes that the Trump administration could delay some planned tariffs. Here is what you need to know on Thursday, March 6: The US Dollar Index (DXY) broke below the 105.00 support, reaching news four-month
US stock markets (Dow Jones, S&P 500) are experiencing volatility due to Trump administration tariffs. A one-month tariff exemption for US automakers has temporarily eased market pressure, but the long-term sustainability of this is uncertain. US economic data is mixed, with a services PMI showing growth but rising input costs. Technically, the Dow Jones is
Trump and Trudeau are scheduled to speak later today but a report said that Canada isn’t in the mood to compromise on allowing any level of US tariffs. A source cited by Bloomberg says Canada is not open to lifting tariffs until the US takes them down. The official said Trudeau’s government is cool to
Investor sentiment in Europe is exceptionally upbeat today, with German stocks leading the rally as DAX surges over 3%, breaking above the 23k mark. Euro also rallies across the board with solid momentum, with help from rise in Germany’s benchmark yield, the overall positive sentiment, as well as a struggling Dollar. The boost to European
