Fed’s Beige Book shows modest economic growth as prices rise

The Federal Reserve (Fed) released its Beige Book on Wednesday, in which the US central bank stated that economic activity increased modestly since early July, while overall employment rose slightly. Regarding inflation, prices rose in eight districts. Input pressures were elevated in manufacturing and construction across multiple districts due to price increases in energy, raw […]

Downside risks build against US Dollar as oil rises – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD has slipped to the upper 1.15s, with sentiment turning bearish despite supportive yield spreads. They link the renewed deterioration to rising Oil prices and concerns over Euro area terms of trade. Spot is now drifting below their narrow fair value estimate of 1.1619, and technical focus […]

Hawkish Fed expectations underpin strength – OCBC

OCBC’s Sim Moh Siong and Christopher Wong highlight that higher Oil prices and renewed US-Iran tensions have pushed global bond yields higher and strengthened the US Dollar, with markets fully pricing a 25bp Federal Reserve (Fed) rate hike by October. Fed Governor Barr’s comments that further rate increases may be warranted reinforce this hawkish backdrop, […]