|Day's range||1.7330 - 1.7330|
|52-week range||1.4290 - 3.2390|
Investors took no chances upon hearing the news. Besides driving stocks lower and erasing some of Friday’s gains, hedgers drove December Treasury Notes 0.46% higher. December Comex gold futures rose 0.73% and the Japanese Yen jumped 0.24% higher. These protection moves are likely to increase if investors continue to turn sour on the deal.
On Friday, investors will receive a snapshot on consumer sentiment in October and hear from several Federal Open Market Committee members ahead of the central bank’s next rate-setting meeting.
Bond markets have stumbled in Europe on signs of an intensifying backlash to the region’s latest central bank stimulus package, pushing some German government debt yields into positive territory for the first time in a month. that European Central Bank president Mario Draghi forced through the revival of his signature bond-buying programme last month against the advice of fellow officials. Bond yields continued to push higher after ECB minutes released on Thursday showed a number of officials on the bank’s governing council argued against the decision to resume purchases in November.
At its September meeting, Federal Reserve officials began debating how far their current interest-rate cutting campaign should extend, even as they agreed to lower rates in response to growing risks to the U.S. economy.
Powell may stress independence when it comes to Trump’s pressure, but will the Fed stand its ground against a backdrop of weakening economic data, or cut rates like the market expects?
Earnings expectations for the third quarter, which unofficially kick off next week with reports from major banks like JPMorgan Chase, are looking grim. Wall Street is expecting a 3% year-over-year decline in S&P 500 earnings per share.
The early price action on Wednesday suggests investors are just waiting for other shoes to drop before officially pricing in a rate cut. The first shoe to drop could be today’s ADP Non-Farm Employment Change report at 12:15 GMT.
The U.S. Dollar is the strongest currency at this time partly because traders believe the Fed will pass on an October rate cut and of pockets of strength in the economy. However, this could change rather quickly if, for example, Wednesday’s ADP private sector jobs report and Friday’s U.S. Non-Farm Payrolls report show cracks in the labor market.
Sovereign bond yields across most major emerging Asian economies will slip in the months ahead as all central banks across the region are expected to cut interest rates further to nurse their economies back to health, a Reuters poll showed. "Countries which are heavily dependent on exports are all suffering from the trade war…I see growth concerns getting more prominent in driving policy easing," said Prakash Sakpal, Asia economist at ING. China's 10-year note yield has declined more than 10 basis points, while in Singapore, South Korea, India, Indonesia, Thailand and Malaysia yields have fallen 30-90 basis points this year so far.
U.S. stocks reversed course Friday following a Bloomberg report that the Trump administration is considering limiting investments in China, which could escalate tensions ahead of another round of trade talks next month.
The Fed cut its benchmark interest rate 25-basis points as widely expected for the second time since July, as concerns grow about a potential global economic slowdown. The PBOC cut its new one-year benchmark lending rate for the second month in a row on Friday.
President Donald Trump accused the central bank and Fed Chair Jerome Powell of having “no guts” for not meting out a more aggressive cut.
The Federal Reserve has cut its benchmark interest rate again, big news for the U.S. economy but something that will likely have a muted impact on Americans' personal finances, experts say. As a reminder, the Fed slashed its benchmark rate — which affects a host of consumer and business loans — to near zero during the recession and kept it there until 2015. Mortgage rates remain at near historic lows and, while they do not move in lockstep with the Fed, they are influenced by some of the same factors.
The Dollar/Yen could rise sharply after the Fed announcements if central bankers come across as hawkish, leading to the reduction in the chances of another Fed rate cut before the end of the year.
Gold traders will also be watching Wednesday’s Fed interest rate and monetary policy decisions. A 25-basis point rate cut is widely expected, however, traders will be more interested in how Fed policymakers feel about a December rate cut.
President Trump’s latest Twitter escapade against the Fed calls for negative interest rates to jump-start the slowing economy. But the prospect of using a monetary tool usually reserved for deeply-troubled economies has many strategists on Wall Street seriously worried. Butcher Joseph Asset Management Chief Investment Strategist Nancy Tengler believes the practice of implementing negative interest rates is “seriously dangerous.” The “$16 trillion in negative yielding debt around the globe - I don't understand how you account for it as an investor,” Tengler said in an interview on Yahoo Finance’s The Final Round.
Trump administration officials are defending their plan to Congress for ending government control of mortgage finance giants Fannie Mae and Freddie Mac. Treasury Secretary Steven Mnuchin and Housing and Urban Development Secretary Ben Carson testified Tuesday before the Senate Banking Committee on the plan for returning Fannie and Freddie to private ownership. CUPERTINO, Calif. (AP) — Apple unveiled new iPhones that are largely unchanged from previous models and accompanied by an unexpected price cut for the cheapest model, underscoring the company's efforts to counteract a sales slump of its flagship product.
Mortgage rates hit reverse once more as market jitters over the economic outlook and expectations of a FED rate cut delivered for prospective buyers.
Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Sozzi, Ramsey Smith Alex.fyi CEO and Ed Al-Hussainy - Columbia Threadneedle Investments Senior Interest Rate and Currency Analyst discuss market action.