Wells Fargo sees slower US dollar decline through 2025
Wells Fargo updated its currency market forecast, anticipating a more gradual depreciation of the U.S. dollar over the medium term than previously expected. The bank's outlook...
Wells Fargo updated its currency market forecast, anticipating a more gradual depreciation of the U.S. dollar over the medium term than previously expected. The bank's outlook...
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According to Odaily, analysts at Société Générale suggest that the Federal Reserve might begin cutting interest rates in September, but any depreciation of the dollar is expected to be limited. The bank's forex strategists noted that the dollar's rebound in 2021-2022 has provided ample room for downward correction. However, unless the U.S. economy slows down significantly more than anticipated, U.S. interest rates are 'very unlikely' to approach pre-pandemic levels of 2020.They highlighted that the most significant fluctuations are expected in the dollar-yen exchange rate, which could drop from the current 156.197 to 140 by early 2025. The yen has been the currency most adversely affected by rising U.S. interest rates and yields. Additionally, they mentioned that at some point in 2024 or 2025, the euro-dollar exchange rate might increase from the current 1.0850 to 1.15.
The Federal Reserve will cut interest rates just twice this year, in September and December, as resilient U.S. consumer demand warrants a cautious approach despite easing inflation, according to a growing majority of economists in a Reuters poll. Declining price pressures over the past few months and recent signs of labor market weakness gave several members of the policy-setting Federal Open Market Committee (FOMC) "greater confidence" inflation will return to the U.S. central bank's 2% goal without a significant economic slowdown. While all 100 economists in the July 17-23 Reuters poll said the Fed will keep rates unchanged on July 31, more than 80% - 82 of 100 - forecast the first 25-basis-point cut would come in September, pushing the federal funds rate to the 5.00%-5.25% range.
According to Odaily, approximately a year and a half after the collapse of crypto-friendly banks in the United States, European banks are making strides to rejuvenate the 24/7 payment market for digital assets. In recent weeks, two Swiss banks, AMINA Bank AG and Sygnum Bank AG, have launched real-time payment and settlement networks. Their objective is to fill the void left by the Silvergate Exchange Network (SEN) and Signature Bank's Signet platform, both of which played crucial roles in providing liquidity to the crypto market before their collapse in March 2023.Company documents reveal that in the quarter preceding their shutdown, SEN processed $117 billion in transfers, while Signet handled $275.5 billion. The introduction of these new networks by AMINA Bank AG and Sygnum Bank AG aims to restore the seamless liquidity and continuous transaction capabilities that were lost with the closure of SEN and Signet. This move is seen as a significant step towards stabilizing and advancing the digital asset ecosystem in Europe.
Barclays addressed concerns about the future of the U.S. dollar (USD), asserting that reports about its demise are overstated despite the current political climate. The firm's...
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- The U.S. dollar traded in a stable fashion in Europe Tuesday, while the yen soared in the wake of suspected intervention by the government last week. At 05:40 ET...
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-- Most Asian currencies drifted higher on Tuesday, while the dollar retreated as the greenback’s rebound was held back by continued expectations of interest rate cuts...