Morgan Stanley are forecasting EUR/USD to 1.03, warn of an overshoot to parity
US major indices mixed with Dow higher, S&P and Nasdaq lower
US crude oil futures settle at $114.20
Westpac sees three more 50 bps hikes from the RBNZ
European equity close: Mixed bag as a new week gets underway
BOE's Saunders: I bleieve we should move more quickly to a neutral stance
BOE Bailey: Over 80% of UK inflation overshoot is due to energy/tradable goods
Fed's Williams: We need to get real rates back to zero
Canadian house prices tick down as sales volumes plunge
Canada March manufacturing sales +2.5% vs +1.7% expected
US May Empire Fed -11.6 vs +17 expected
Forexlive European FX news wrap 16 May - With @PriapusIQ
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The USD moved lower versus all the major currencies with the exception of the CHF.
The USD is weaker declines vs all except the CHF
Fundamentally, the regional manufacturing indices got off to a slow start with the Empire Manufacturing index falling by -11.6 vs 17 expected. Ouch, but it can be a volatile series.
Fed speak had NY Fed Williams saying that we need to get real rates back to zero. He seemed to imply the real rate is the expected inflation rate next year which he expects to be much lower than the near 8% level today. He does agree that 50 basis point hikes over the new couple of meetings makes sense (2x 50 bps = 2.0% target).
Other comments:
Mon pol can reduce demand and bring it back into line with supply
We need more housing supply to meet demand
We have an economy that is out of balance
The sectors that are most out-of-balance are those which are rate-sensitive
Hike. Hike. Hike and fix supply by lowering demand. If you can't beat it, destroy it.
Rates moved lower, helping the dollars move lower. Traders are finding it easier to buy bonds if stocks weaken and growth seems to be slowing. Of interest going forward will be the retail sales report tomorrow. The expectations are for a 1.0% increase after rising 0.5% last month. The core retail sales is expected to rise 0.4% vs 1.1% last month. Be aware.
US rates moved lower
IN other markets:Spot gold move higher with the falling dollar. The price of gold rose will dollars and $0.62 or 0.70% $1823.30Spot silver rose $0.52 or 2.49% at $21.60WTI crude oil is trading up $3.35 or 3.02% at $113.75The price bitcoin is trading just above $30,000 at 5 PM ET. The price is at $30,001A concern as far as inflation goes is that food commodities moved higher:Wheat rose the daily limit of 700 to $1247.46Corn rose 28 to 809India over the weekend put a hold on exports of wheat as drought conditions threaten their food supply. Meanwhile, at the gas pumps the national average for a gallon of gas is $4.48, which is 40 cents more than a month ago, and $1.43 more than a year ago. Money is being sucked out of consumers bank accounts without buying anything different than what they bought a year ago. Him