The latest economic forecasts suggest a growing confidence in the U.S. economy’s ability to achieve a “soft landing,” where inflation falls without leading to a recession. However, economists caution that external factors, such as geopolitical tensions and fluctuating bond yields, could still pose risks. As we move into a new year, vigilance and a nuanced approach to both short-term data and long-term policy implications will be crucial for market participants.
The US Dollar Index (DXY) has been in a bullish trend since the beginning of 2023, as it has been supported by the hawkish stance of the Federal Reserve and safe-haven demand amidst market uncertainties. The recent pullback in late Friday’s trading session was quickly reversed during the early hours of Monday, as the market fears surrounding the First Republic bank and the hawkish Fed bets supported the DXY’s safe-haven appeal.
As the country recovered fast from the pandemic-induced recession, the US economy expanded at a 6.9% annual pace in the fourth quarter of last year, concluding the best year of growth in nearly four decades. However, experts think that recent expansion has hit stumbling blocks, which might result in more moderate growth this year. The […]
Investors trying to gauge the inflation threat will keep a close eye on Thursday’s U.S. consumer price data, amid concerns that rising inflation could prompt the Federal Reserve to begin pulling back on stimulus. Markets will also be monitoring the progress of President Joe Biden’s proposed $1.7 trillion infrastructure plan, which has already boosted the […]
Japan’s economy shrank at a slower pace than initially estimated in the first quarter of 2021, the government’s revised data showed Tuesday, confirming the first contraction in three quarters. The world’s third-largest economy after the U.S. and China shrank 3.9% on an annualized basis, which reflects what would happen if the first-quarter pace continued for […]
The UK is in an official recession, the country’s statistics authority confirmed on Wednesday. GDP fell by 20.4% in the second quarter of 2020, the biggest fall on record, according to figures from the Office for National Statistics. The fall marks the second consecutive quarter of retraction, a widely-used definition of a recession. It is […]