Author: Daniel Chang

UBS predicts that while recent market conditions have supported the US dollar, its room for further gains may be limited as upcoming economic data and central bank decisions unfold. The bank’s insights followed a brief recovery in the US Dollar Index (DXY) after an unsuccessful attempt to fall below the 100 threshold. According to UBS analysts, the US dollar’s recent dip has stabilized due to several factors, including heightened geopolitical tensions in the Middle East, uncertainty around the upcoming US presidential election, and weaker economic signals from Europe. These elements have temporarily supported the dollar, though UBS suggests that its…

As investors gear up for a new week, key economic data, central bank actions, and corporate earnings are set to shape the direction of markets. Here’s what to keep an eye on: 1. U.S. Inflation Data (CPI) All eyes will be on Thursday’s Consumer Price Index (CPI) data for September, following last Friday’s robust jobs report. The latest inflation figures are anticipated to show continued easing of price pressures, which could influence the Federal Reserve’s future policy decisions. A slower-than-expected rise in prices would likely reinforce expectations for the Fed to maintain a measured pace in its rate-cutting cycle. Friday’s…

Citigroup has reinforced its negative outlook on the EUR/USD pair, pointing to recent underwhelming economic data from Europe. Earlier this week, reports revealed a significant contraction in eurozone business activity. The HCOB’s initial eurozone Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, dropped to 48.9 in September, down from August’s 51.0. This marks the first time the index has fallen below the 50 threshold, which indicates economic contraction, since February. The slowdown seems widespread, with Germany—the eurozone’s largest economy—facing a deepening decline. Meanwhile, France, the bloc’s second-largest economy, slipped back into contraction following the temporary boost from August’s Olympics.…

SHANGHAI (Reuters) – On Wednesday, the People’s Bank of China (PBOC) reduced the interest rate on its medium-term loans to banks, aligning with broader policy measures aimed at stabilizing the country’s struggling economy. The PBOC announced a rate cut on 300 billion yuan ($42.66 billion) of one-year Medium-Term Lending Facility (MLF) loans, lowering the rate from 2.30% to 2.00% for selected financial institutions. In Wednesday’s operation, bid rates ranged between 1.90% and 2.30%, with the total outstanding balance of MLF loans now reaching 6.878 trillion yuan, according to the central bank’s online report. A total of 591 billion yuan worth…

In New York, the U.S. dollar strengthened on Wednesday, bouncing back from a 14-month low against the euro amid fluctuating market conditions. Despite this recovery, investors are maintaining expectations that the Federal Reserve will implement another substantial interest rate cut in November, as concerns about weakening U.S. labor market optimism persist. Meanwhile, China’s yuan weakened as skepticism grew over the effectiveness of the country’s latest round of economic stimulus measures. Initial market enthusiasm over the stimulus has since faded, with many seeing the earlier rally as exaggerated. On Tuesday, the U.S. dollar saw a sharp decline following data showing the…

U.S. stock index futures edged higher during Wednesday evening trading, supported by gains in the technology sector, particularly following a strong earnings report from memory chip giant Micron Technology. However, overall market gains remained modest, as Wall Street wrapped up the day with a negative session. Investors are now looking ahead to Federal Reserve Chair Jerome Powell’s upcoming speech, which could provide further insight into the Fed’s next moves. Despite the recent dip, U.S. stock benchmarks are still hovering near record highs, following a surge driven by last week’s significant interest rate cut from the Federal Reserve. As of 19:21…

HANOI (Reuters) – SpaceX, led by Elon Musk, is set to invest $1.5 billion in Vietnam in the near future, according to a statement from the Vietnamese government on Thursday. This investment could potentially resolve ongoing negotiations over the launch of the Starlink satellite internet service in the country. Discussions regarding the introduction of Starlink and other SpaceX communications services were stalled at the end of 2023, according to sources familiar with the situation, though talks have since resumed. “The Vietnamese government is evaluating SpaceX’s investment proposal,” President To Lam said in a government report released on Thursday. He encouraged…

NEW YORK (Reuters) – The U.S. dollar experienced a drop in volatile trading on Thursday, losing momentum after an earlier boost from strong U.S. economic reports, while the Swiss franc gained ground following a 25-basis-point rate cut by the Swiss central bank. The dollar initially trimmed its losses as fresh data revealed U.S. jobless claims fell by 4,000, reaching a four-month low of 218,000, a figure lower than the predicted 225,000 by economists surveyed by Reuters. Additional reports showed stronger-than-expected corporate profit growth in the second quarter, with GDP expanding at a steady 3% rate. Furthermore, new orders for key…

Wells Fargo analysts suggest that the recent rate cut by the Federal Reserve marks the start of a series of reductions that could unlock more significant market potential throughout 2025. In a recent client report, the bank highlighted that the main takeaway should not be the magnitude of the cut but the overall direction of monetary policy. Last week’s 50 basis point (bps) cut took many investors by surprise, despite the fed funds futures market indicating a 58% chance of such a move. “What has been crucial to note over the last two months is not just the size of…

Oil prices edged upward on Monday due to rising concerns about potential supply disruptions from the Middle East following Israel’s escalation of attacks on forces supported by Iran. As of early Monday, Brent crude futures for November delivery rose by 16 cents, or 0.22%, reaching $72.14 a barrel. The November contract is set to expire, while the more actively traded December contract saw a modest gain of 10 cents, or 0.14%, to settle at $71.64 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures advanced by 8 cents, or 0.12%, landing at $68.26 a barrel. Despite a challenging week…