European stock markets appeared calm on Tuesday, following a strong rally in the previous session. Major indices such as the STOXX 50 and STOXX 600 moved flat as investors chose to wait for new direction while assessing news from various major companies. The property and utilities sectors posted positive performances, followed by banking stocks, which also gained slightly. Conversely, stocks in the chemical and food and beverage sectors weakened. L'Oréal recorded a slight decline, while UniCredit rose slightly ahead of its latest financial report. On the positive side, Assa Abloy shares...
Gold appreciated for the third consecutive day on Tuesday as the US dollar tanked amid hopes of a dovish turn by the Fed on Wednesday. The US Dollar Index has dropped to fresh two-month lows, which buoys the precious metal to fresh record highs right below $3,700. Recent US data has highlighted a sharp deterioration of the labour market while inflation remains moderate. Speculation that the n¡bank might be behind the curve with rate cuts has boosted hopes that the bank will announce a widely expected quarter-point cut on Wednesday and hint at further easing down the road. Source: Fxstreet
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX analysts report. Sterling lags euro amid soft UK labor backdrop"GBP/USD edged higher on broad US Dollar (USD) weakness. Pound Sterling (GBP) is underperforming against EUR. The UK July labor market data matched consensus." "The unemployment rate was unchanged for a third straight month at a four-year of 4.7% in July (BOE Q3 projection: 4.8%). Worrisomely, the vacancies-to-unemployment ratio...
EUR/USD remains near the upper end of its three-month trading range, with another test of 1.18 possible today. Despite a recent spike, implied volatility has retreated, underscoring calmer market conditions, Commerzbank's FX analyst Michael Pfister notes. EUR/USD seems to be struggling to break above 1.18"Last week, I discussed the possible factors that could push EUR/USD back above 1.18 in detail here. However, the fact that it feels like we have been trading within a fairly narrow range for the last three months must also be put into perspective. While it is true that EUR/USD seems to be...
Silver steadied around $42.5 per ounce on Tuesday, hovering near 14-year highs as investors positioned for an expected US Federal Reserve rate cut this week. Markets are nearly fully pricing in a 25 basis point reduction on Wednesday, with 67 bps of easing projected by year-end. Expectations have been bolstered by data showing a cooling labor market and subdued inflation. President Donald Trump also pressed Fed Chair Jerome Powell for a larger cut, citing housing market weakness. Elsewhere, central banks in Canada and China are expected to ease policy this week, while those in Japan and the...
The dollar traded near a 2.5-month low against the euro and near a 10-month low against the risk-sensitive Australian dollar on Tuesday as investors increased bets for a Fed rate cut this week and next. The U.S. dollar traded slightly below its lowest level in more than two months against the British pound, with U.S. President Donald Trump renewing his call for aggressive monetary easing. Markets are pricing in a rate cut of at least 25 basis points on Wednesday as a certainty, with a 50 basis point cut even more likely. A total of 67 basis points of cuts are expected over the remainder of...