China’s manufacturing sector has faced yet another setback as activity contracted for the third consecutive month in December. The official purchasing managers’ index (PMI), which measures the health of the sector, fell to 49.0, indicating a contraction and undershooting the median forecast of 49.5. This unexpected decline raises concerns about China’s economic recovery and strengthens
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In recent months, China has taken a different approach to stabilize the yuan compared to its actions in 2015. Back then, the People’s Bank of China (PBOC) resorted to official intervention and burned $1 trillion in reserves to support the currency. However, this time around, as China’s economy faced challenges and capital outflows intensified, the
The year 2023 was marked by mixed performance for the US Dollar Index (DXY), which experienced periods of rangebound trading. While it enjoyed some bullishness early in the year, crossing to the weakside of the 200-day moving average later caused a shift towards bearishness as the year came to an end. In this article, we
As we look ahead to the year 2024, traders in the foreign exchange market are bracing themselves for a more dovish stance from the Federal Reserve (Fed). This shift in sentiment has been fueled by the central bank’s recent rhetoric, with a particular focus on potential rate cuts in the first half of the year.
The U.S. stock market ended 2023 on a high note, with the S&P 500 posting an annual gain of just over 24%. This substantial increase has market strategists optimistic about the potential for further gains in the coming year. The strong performance of 2023 has historically had a positive impact on subsequent years, driven by
Colombia’s minimum wage is set to increase by 12% in 2024, according to Labor Minister Gloria Ines Ramirez. This will bring the monthly minimum wage to 1.3 million pesos ($340). The wage increase of 140,000 pesos ($36.63) per month comes at a time when the country is grappling with high inflation and a struggling economy.
The US Dollar (USD) is on a subdued tone as the last trading day of 2023 comes to a close. The US Dollar Index (DXY) is positioned at 101.30, shedding daily gains as dovish bets on the Federal Reserve (Fed) weigh heavily on the Greenback. Soft Chicago PMI figures for December also added pressure to
The USD/JPY pair is facing challenges in gaining momentum as the trading year of 2023 comes to a close. With thin market activity leading up to the New Year’s long weekend, the US Dollar (USD) has weakened by 0.3% against the Japanese Yen (JPY) on the last Friday of the year. Moreover, the USD/JPY pair
The EUR/GBP currency pair has experienced losses, currently positioned at 0.8660 with a decline of 0.30%. Daily chart indicators reveal signs of bearish momentum, with the Relative Strength Index (RSI) displaying a negative bias and the Moving Average Convergence Divergence (MACD) indicating waning positive momentum. However, despite this temporary bearish outlook, the broader term still
After a historic selloff, investors are cautiously optimistic about the prospects for the U.S. fixed income market in 2024. The fourth-quarter rally saved bonds from a third consecutive annual loss, providing some relief after the worst-ever decline the previous year. Expectations of rate cuts by the Federal Reserve have fueled hopes of lower yields and
The Federal Reserve’s dovish December pivot has raised questions about the future of the weakening dollar. While the case for the dollar’s decline into 2024 seems plausible, the strength of the U.S. economy could limit its downfall. Following the Fed’s rate hikes in 2022, the U.S. currency reached a two-decade high. However, it has been
As we step into the new year, the trading world gears up for an exciting lineup of economic reports and events that will set the tone for monetary policy expectations. With key data releases from the US, Eurozone, and Canada, as well as insights from the Federal Reserve (Fed) and the European Central Bank (ECB),