Market Outlook

“GBPUSD fell to its lowest level since March 2020 following fears of recession risk.” Great British Pound plummets against the US dollar, printing losses of more than 13% for the year due to shift in fundamentals. Bears continue to steer the pair as recession risk in the UK accelerates. Based on past data, UK GDP is expected to take a hit in the mid-term, hindering Bank of England to

“Risk taking is persistent in the market as traders shifts their focus towards US dollar.” Japanese Yen weakened as traders initiate selloff following Jackson Hole symposium last weekend. During the event, Federal Reserve Chair Jerome Powell reiterates that interest rates will not be decreased any time soon due to persistently high inflation. His signal suggests further hawkishness ahead

“Greenback edged lower on Friday as investors prepares for more market signals during Jackson Hole symposium.” Greenback slipped slightly during Asian trading session while investors wait for Federal Reserve Chair Jerome Powell’s speech during Jackson Hole symposium. Currently, investors have mixed feeling with regards to next interest rate hike, which would either be 50 or 70 basis

“Oil price cemented its course for a rebound following hawkish signal in the market.” Oil prices extended its recovery on Thursday as recent signal suggests possibility of supply tightness in the market. According to reports, Organization of the Petroleum Exporting Countries and its allies may cut their production to prop up the commodity’s price. Moreover, recent data from US shows

“Stocks ended lower; Dow may extend its tumble.” US equities tumbled on Tuesday, snapping out of previous bull-run with Dow Jones Industrial Average knocked lower by 0.47% to 32,909.59. Investors continue to trim their holdings in equities as they anticipate more hawkish tilts from the Federal Reserve at the upcoming Jackson Hole symposium. Quick recap of US30 For the time being,

“Euro tumbled sharply as recession fear rises due to pipeline cut.” Euro breaches parity against the US dollar, hitting its lowest level since December 2002. According to reports, Russian energy giant Gazprom announced that they will drastically reduce gas supplies to EU due to maintenance. They expect Nord Steam 1 pipeline will cut daily production to 20%, half of the current level of

“S&P500 snapped out of its recovery, traders adopt wait-and-see approach.” Bears market continues to exert pressure on equities as Federal Reserve continues to deliver hawkish views. Last week, two Federal Reserve officials commented that interest rates is expected to increase by 75-basis points due to persistent high inflation in the US. Likewise, as Fed and other central bankers is

“Dollar-bull revitalized after Fed officials deliver hawkish rhetoric.” Federal Reserve officials rattled the market, prompting US dollar to hit one-month high on yesterday. According to report, St Louis Fed President James Bullard commented that he supports for another 75-basis point rate hike in September, citing concerns over high inflation in the US. On a similar notion, San Francisco

“Federal Reserve July policy meeting minutes restructure market’s view towards the greenback.” US dollar climbed to three-weeks high as latest meeting minutes reaffirms the market with possibly the longest streak of high inflation. In the minutes, Federal Reserve highlighted last month’s inflation data shows “little evidence” of easing. While the minutes signaled eventual slowdown

“Traders remain fixated on recent negative events and data which may spark global recession.” Global oil price fell to multi-months low as recession worries bloom. Yesterday, People’s Bank of China cut interest rates unexpectedly as the world’s largest economy reported bleak results from industrial output and retail sales. The move also came as the country continues to impose