The Federal Reserve is just about done being patient. That was the view of traders in short-term interest rate futures Friday, after a government report showed U.S. employers sharply slowed hiring in May. Traders jumped on the report as a sign of a cooling labor market that would force the Fed to start cutting its policy rate in July and reduce it twice more by the end of the year. Bets for two rate cuts had been priced into the market, mostly in reaction to mounting trade tensions that are expected to slow economic growth. The U.S. central bank, which raised interest rates four times last year, signaled earlier this year it is on hold for the rest of 2019, saying it will be patient … [Read More...]

The US dollar ended the week higher after mixed data and earnings reports provided a slightly optimistic tone for the US economy.  With thin conditions persisting due to the observance of Easter, choppy price moves could be expected over the next couple of sessions.  All eyes will be on a barrage of US data with the focus on Friday’s advance reading of first quarter GDP.  Earnings season also enters high gear with results from Boeing, Caterpillar, Microsoft, Tesla, Amazon and Exxon.   The Bank of Canada is also expected to keep rates unchanged at the Wednesday meeting.  The Bank of Japan is also expected to keep policy unchanged while providing small cuts to their economic forecasts. Earnings season enters high gear – 150 companies on S&P 500 report US … [Read More...]

The US dollar is higher across the board against major pairs on Friday. The greenback got a boost from the March U.S. non-farm payrolls (NFP) report that showed the economy added 196,000 jobs and an upward revision to the February numbers. The wage component did not do as well with a lower than expected gain at 0.1 percent that validates the dovish stance of the U.S. Federal Reserve. The central bank has taken off the board all interest rate hikes that were forecasted last year. The immediate market reaction after the report triggered a rise in risk appetite with investors selling the dollar after President Trump once again pressured the Fed to lower rates. The Fed will release the minutes from its March FOMC meeting on … [Read More...]

OANDA Senior Market Analyst Alfonso Esparza previews the week’s business and market news with Jazz FM Business Breakfast presenter Jonny Hart. Tune in below and don’t forget to subscribe to the podcast on iTunes and Android. [Read More...]

The US dollar had a tough first week of 2019. The greenback is lower against most major pairs as market optimism of two rate hikes from the U.S. Federal Reserve have virtually evaporated. Mixed economic indicators and a neutral to dovish Fed Chair Powell put downward pressure on the USD. Inflation data will be released on Friday, January 11 with investors also keeping an eye on trade negotiations improving between China and the US. The Bank of Canada (BoC) will publish its rate statement on Wednesday, January 9. The central bank is expected to keep rates unchanged amid global growth uncertainty, but is still expected to hike once in the first quarter of 2019 if Canadian inflationary pressures keep up. Bank of Canada (BoC) to hold rates at 1.75% Fed … [Read More...]