GrowthAces

GrowthAces

The Fed ends its two-day November meeting on Wednesday and will issue a statement that is widely expected to open the door to a hike next month. The unambiguous message from the September FOMC meeting was that the huge majority of Committee members were looking for at least one rate hike before the end of the year. Not only did the statement highlight that the...

GrowthAces

ECB President Mario Draghi said the ECB is aware of the growing costs to the financial sector of its ultra-loose monetary policy and would rather not have to keep negative interest rates for too long. Draghi defended the ECB's policy of aggressive bond buying and ultra-low rates from accusations that it has led to growing inequality and a shift of financial income...

GrowthAces

The Bank of Canada held its overnight rate at 0.5%, as widely expected. The bank cut its growth forecast and said it actively discussed adding more monetary stimulus to speed up the nation's economic recovery, surprising financial markets by shifting tone dramatically after its initial rate decision. Citing a looming slowdown in Canada's long housing boom and a...

GrowthAces

Australian employment unexpectedly fell 9.8k in September as firms shed a huge 53k full-time jobs. Thursday's data from the Australian Bureau of Statistics showed the unemployment rate stayed at a three-year trough of 5.6%, but only because more people stopped looking for work. Indeed, the participation rate dropped to its lowest since May 2014 at 65.5%. The fall...

GrowthAces

The EUR stood near a three-month low ahead of a European Central Bank decision (rate announcement: 11:45 GMT, press conference: 12:30 GMT). Today’s Q&A session will be closely scrutinized in the wake of recent tapering speculation. Top ECB officials denied the Governing Council discussed a possible tapering of asset purchases. Therefore, we cannot expect ECB...

GrowthAces

The CAD continues to appreciate against the USD on higher oil prices. Oil prices rose by around 1% on Wednesday, lifted by a report of a drop in U.S. crude inventories and declining production in China, while an upbeat OPEC statement on its planned output cut also supported the market. U.S. crude stockpiles fell 3.8 million barrels in the week to Oct. 14, to 467.1...

GrowthAces

Job creation in Britain slowed in the three months to August. The number of people in work rose by 106k between June and August, down from gains of more than 170k in each of three previous readings. The unemployment rate held at a nearly 11-year low of 4.9%, in line with market expectations. The Office for National Statistics said workers' total earnings including...

GrowthAces

U.S. overall consumer price inflation was as expected in September, with headline CPI up 0.3%, but the ex-food and energy measure had a modest 0.1% uptick instead of the 0.2% gain expected. That brought yoy growth in the headline to 1.5% from 1.1%, its highest in just under two years, but the core rate retreated to 2.2% from 2.3%, still implying that the core PCE...

GrowthAces

New Zealand's CPI rose a higher-than-expected 0.2% in the third quarter. Annual inflation was also 0.2%. The market had forecast the CPI to be unchanged for the quarter, with an annual rise of 0.1%. That compared to 0.4% in the prior quarter. Housing-related prices were the main upward contributor to the annual rate, up 3.2% on the year. This was offset by...

GrowthAces

The Australian dollar jumped on Tuesday on rising appetite for the high-yielding currencies and as the greenback edged away from a seven-month peak after recent gains. Reserve Bank of Australia Governor Philip Lowe noted core inflation of 1.5% was well below the target band of 2% to 3% and looked set to remain low for some time. “Achieving the quickest return of...

GrowthAces

British consumer price inflation rose to 1.0% yoy from 0.6% yoy in August, the highest level since November 2014 and the biggest jump from one month to the next since June 2014. The market had expected a reading of 0.9%. Core consumer price inflation, which strips out changes in the price of energy, food, alcohol and tobacco, rose to 1.5% from 1.3%, slightly above...

GrowthAces

British Prime Minister Theresa May has offered to give lawmakers some scrutiny of the process to leave the European Union on condition they did not "undermine" her negotiations with 27 other members of the bloc. May has said she will trigger the formal EU divorce by the end of March but that she will not provide a running commentary on the process. She also said...

GrowthAces

Minneapolis Federal Reserve President Neel Kashkari said the Fed should continue to focus on further progress in the U.S. labor market until inflation pressures emerge. He added that given inflation has been below the Fed's two-percent target rate for more than four years, there appeared no urgency to raise interest rates. Kashkari is not a voting member on the...

GrowthAces

New Zealand's central bank reiterated on Tuesday that further policy easing will be needed to ensure that the inflation rate increases and settles near the middle of its target range. The central bank is mandated with keeping annual inflation at between 1 and 3%. The annual rate was 0.4%in the second quarter. In a speech, Assistant Governor John McDermott said...

GrowthAces

Chicago Federal Reserve Bank President Charles Evans said he "could be fine" with the Fed raising rates in December, but he wanted to see how the economy and inflation progressed before deciding. Indeed, he cautioned that it might be better to wait for inflation to rise closer to the Fed's 2% target before moving. Evans has repeatedly expressed concern on the U.S....

GrowthAces

GOLD: Long Squeeze On Holiday Market Gold rose on Wednesday, recovering after hitting its lowest in more than three months in the previous session. The drop on Tuesday was bullion's biggest one-day percentage fall since September 2013 and brought spot gold to its lowest level since Britain voted to leave the European Union in June The market is clearly very long...

GrowthAces

Richmond Federal Reserve President Jeffrey Lacker on Tuesday said there was a strong case for raising interest rates, arguing that borrowing costs might need to rise significantly to keep inflation under control. The Fed last raised its benchmark federal funds rate in December and Lacker, who is not a voting member of the Fed's rate-setting committee this year but...

GrowthAces

The US ISM Manufacturing PMI rebounded to 51.5 from August's 49.4, which was a seven-month low. The median market forecast had only expected a rise to 50.3, but it still indicates only very sluggish activity growth. This release means that the third-quarter headline average is just 51.2, below second-quarter 51.8, but at least better than first-quarter 49.8. The...