Turkish Central Bank’s Policy Shift and Its Impact on Rates, Inflation, and Currency Trends
By Samir El Khoury Following a transition in Turkey’s monetary policy from unconventional to conventional, the Turkish Central Bank, under the leadership of Governor Hafiza Ghaya Arkan appointed in June 2023, implemented a substantial 31.50% interest rate hike, reaching a total interest rate of 40%. A few days ago, Arkan stated that the monetary tightening […]
Red Sea Unrest Pushes Oil Prices Higher Despite Ample Supply
By Camilo Botia Oil prices surged nearly 2% on Monday as anxiety over maritime disruptions in the Red Sea outweighed concerns about slowing global demand. The rally came after Iran-backed Yemeni militants attacked a Norwegian-owned vessel, prompting companies such as BP (British Petroleum) to halt all transit through the crucial waterway. Fears of escalating violence […]
Fed’s Dovish Signals Propel Gold to 10-Day Highs
By Camilo Botia Gold prices surged to a 10-day high on Thursday, fuelled by hints from the Federal Reserve (Fed) of a dovish pivot and potential rate cuts next year. This move sent waves across the commodities market, with metals posing the biggest gains. The catalyst for the rally was the Fed’s post-FOMC meeting statement, […]
Fed’s Decision Sparks Gains and Dollar Decline in Market Reaction
By Samir El Khoury, ACICMP® How did the financial markets react to the Fed’s decision yesterday? During its recent meeting, the Federal Open Market Committee opted to maintain interest rates at 5.25% and 5.50%, in line with analysts’ expectations. However, the spotlight turned to the Dot plot forecasts, projecting a substantial 75-basis-point interest rate cut […]
Yen Slides as Doubts Remain on Ending Japan’s Negative Interest Rates
By Camilo Botia The Japanese yen weakened against the dollar for a second consecutive day on Monday as doubts emerged regarding the Bank of Japan’s (BOJ) plan to phase out its negative interest rate policy. This comes despite a brief surge in the yen last week following new BOJ Governor Kazuo Ueda’s comments suggesting a […]
CPI Downturn Sparks Deflation Worries for the Eurozone
By Samir Al Khoury CPI fell year-on-year in November in the Eurozone, registering 2.4%, which is lower than both expectations (2.7%) and the previous reading (2.9%). The core CPI, excluding food and energy, also declined on an annual basis, recording 3.6%, below expectations (3.9%) and the prior reading (4.2%). The manufacturing and services purchasing managers’ […]
Bitcoin Surges Beyond $42,000 in 20 Months
By Camilo Botia Bitcoin (BTC) soared on Monday, briefly surpassing $42,000 to reach its highest level in 20 months. This surge was fueled by a potent mix of factors, including: Anticipation of a U.S. Spot Bitcoin ETF: Investors eagerly anticipate the approval of a regulated bitcoin fund by the SEC, potentially as early as January. […]
Weekly Market Analysis
By Samir Al Khoury The most important events of the past week United States of America The building permits index rose, recording 1.498M, exceeding expectations (1.487M) and the previous reading (1.471M). The new home sales index declined, recording 679K, lower than expectations (721K) and the previous reading (719K). The Consumer Confidence Index recorded 102.0, higher […]
Stock Market Rallies in November: Optimism Prevails Amidst Earnings Beats and Inflation Cooldown
By Camilo Botia The stock market witnessed a remarkable surge in November, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite achieving their best monthly performances since July 2022. This upward trajectory was propelled by a combination of factors, including growing confidence that the Federal Reserve would soon halt its interest rate hikes […]
VIX Fear Index Hits Lowest Level Since 2020 Amid Positive Economic Indicators
By Samir Al Khoury The VIX Fear and Volatility Index, which expresses investors’ expectations regarding the price movement in the stock market within a month, decreased by 12.45 points last Friday. This marks its lowest level since January 22, 2020, indicating stability and investor satisfaction in the American stock markets. Today, the VIX is hovering […]
