U.S S&P closed near the 2023 highs and the USD index moved sideways, down 0.16% on the day. SEC gave an approval for BITCOIN ETF. Overnight, NY FED President John Williams in his "Rule of Three" Speech, while discussing the outlook for 2024 mentioned that he sees GDP growth for 2024 to slow to 1.00% - 1.25% (Fed Proj. 1.40%), U/R to rise to around 4% (Fed Proj 4.10%) and PCE inflation to decline to slow towards 2.25% (Fed Proj 2.40%). On the stance of monetary policy, he maintained that policy is restrictive and will need to be restrictive to achieve 2% inflation goals on sustained basis and the Fed will look at the totality of incoming data, evolving outlook and balance of risks to inform the future path. On the subject of balance sheet run off, Fed has reduced the securities holding by about $1.3 trn and the decline in securities holding has mostly been absorbed by a drop in ON RRP and aggregate reserve balances are little changed since 2022. "Looking ahead to t...
The specific focus of the Blog is on Global and Domestic interest rates and currencies market. I look at fundamentals to define my bias and corroborate that with a study of price action to put on high conviction trades. The views and opinions are those of author and author alone. ~ Author: Vaishali Bagchi