Market Update by Solidecn.com

[Solid ECN]

US Inflation Rate Drops to 2.9% in January 2024

Solid ECN - It's likely that the US's yearly inflation rate dropped to 2.9% in January 2024, marking the smallest rate since March 2021, after a short rise to 3.4% in December. Expectedly, the cost of consumer goods might increase by 0.2% from December, which aligns with the adjusted growth seen in the last two months.

Furthermore, the yearly rate of core inflation, which excludes food and energy prices, is predicted to decrease to 3.7%, the smallest since April 2021, down from 3.9% in December. The monthly core inflation rate is expected to stay constant at 0.3%. This comes as inflation continues to decrease from its peak of 9.1% in June 2022, the highest since the early 1980s.

[Solid ECN]

Oil Prices Steady at $77 Amid Global Tensions





Solid ECN - WTI crude oil prices are stable at about $77 per barrel after rising 6.3% last week due to tensions between countries. Meetings in Beirut hinted at possible improvements in the Gaza situation, but the Houthi group in Yemen announced a new ship attack on the Red Sea, showing ongoing dangers. At the same time, Israel launched air attacks in Gaza's Rafah, rejecting a ceasefire offer from the previous week.


However, an ample supply of oil worldwide and doubts about demand, especially from China, have limited any further increase in oil prices.

[Solid ECN]

NZ Dollar Drops Amid Rate Hike Speculation




Solid ECN - The New Zealand dollar dropped to approximately $0.612, losing some of its recent gains as investors became wary before an upcoming speech by the central bank, which might impact future interest rate decisions. Adrian Orr, the Governor of the Reserve Bank of New Zealand, is set to speak on Friday. Last week, the Kiwi saw a 1.4% increase amid thoughts that interest rates might increase due to persistent inflation and a strong job market.

ANZ analysts predict the Reserve Bank of New Zealand will raise interest rates by a quarter point in February and April, bringing the policy rate to 6%. Investors also note a worldwide trend among major central banks to delay expected rate reductions, particularly in the US and Europe. According to traders, there's about a 44% probability that the RBNZ will hike rates on February 28.

[Solid ECN]

Aussie Dollar Low Amid RBA Rate Decision Speculation



Solid ECN - The Australian dollar stayed around $0.65, close to its lowest point in twelve weeks, as market players considered the recent remarks from the central bank. Michele Bullock, the Governor of the Reserve Bank of Australia, mentioned that bringing inflation down to 2.5% isn't necessary to reduce the cash rate.

Yet, she also noted that the RBA hasn't dismissed the chance of raising interest rates further, nor has it confirmed such a move. Analysts at CBA have predicted a total of 75 basis points in rate cuts for this year, with more expected in 2025. This comes as the RBA kept interest rates unchanged during its February meeting but indicated that rates might still go up if inflation stays high. The central bank pointed out that inflation dropped more than anticipated in the last quarter of the year, yet it's still unclear when inflation will fall back into the desired range of 2-3%.

[Solid ECN]

UK Pound Stays Firm Amid Rate Cut Speculation


Solid ECN - The British pound remained stable at $1.26, recovering from a seven-week low of $1.2515 on February 5th, after investors adjusted their early predictions for interest rate reductions in the UK and US. This change followed cautious comments from officials in both nations. Bank of England's Deputy Governor, Sarah Breeden, suggested that the bank is now more focused on how long to keep interest rates stable instead of lowering them. This indicates that the bank is not in a hurry to cut rates.

On the other hand, Chief Economist Huw Pill mentioned that any rate reduction might not happen soon, pointing out that deciding when to ease monetary policy is crucial and not guaranteed. Furthermore, recent economic reports from RICS and Halifax show that the UK's housing market continues to be strong. Earlier in the month, UK officials decided to keep interest rates at their highest in nearly 16 years, hinting at the possibility of a decrease later in the year.

[Solid ECN]

Euro Stability Amid ECB Rate Cut Speculation



The euro stayed near $1.077, avoiding a recent low of $1.072 from February 5th, as market expectations for early European Central Bank (ECB) rate reductions cooled. This shift followed cautious statements from several ECB officials about easing financial policies. The likelihood of an ECB rate cut in April dipped below 50% after key figures like Philip Lane, the chief economist, and Pierre Wunsch, the head of the Belgian central bank, stressed the importance of confirming that inflation is moving towards the 2% goal before slashing interest rates.

Moreover, ECB member Robert Holzmann mentioned the possibility of not cutting rates at all this year or maybe just at the end. On another note, the US dollar gained strength from strong jobless claims data, suggesting the Federal Reserve might proceed cautiously with any policy changes.

[Solid ECN]

Easy Refund Policy: Our Customer Promise

Solid ECN - Online services aren't always perfect, and dealing with money means businesses must be upfront about refunds. At Solid ECN Securities, we respect our customers' rights, so we've created a solid refund policy. Sometimes, refunds are necessary. Customers can ask for their money back if what they got wasn't as promised, didn't work, or if they have a good reason for it.

We aimed to keep our refund rules straightforward, short, and easy to understand, offering our clients peace of mind. We stand by our services, and if something isn't as it was supposed to be, the buyer is entitled to a refund.

[Solid ECN]

Pound Steady Amid UK, US Rate Cut Speculations


Solid ECN - The British pound remained stable at $1.26, recovering from a seven-week low of $1.2515 on February 5th. This stability comes as investors recalibrated their expectations for imminent interest rate reductions in the UK and the US, prompted by careful comments from officials in both nations. Sarah Breeden, the Deputy Governor of the Bank of England, hinted at a new approach focusing more on maintaining the current interest rate levels instead of planning further hikes, suggesting the bank is not hurrying to lower rates.

Huw Pill, the chief economist, mentioned that no potential rate decrease is expected soon, highlighting that the decision to ease monetary policy will depend on timing. Recent RICS and Halifax data show the UK's housing market is strong. Earlier in the month, UK officials decided to keep interest rates at their highest in nearly 16 years, with hints that reductions might be considered later in the year.

[Solid ECN]

Euro Rises Amid Rate Cut Cautions: ECB & Fed Update



Solid ECN - The euro experienced a slight increase, going over $1.075, following a drop to a low of $1.072 on February 5th. This happened as the major central banks in Europe and the US took a careful stance on reducing interest rates. During a Financial Times interview on Wednesday, Isabel Schnabel, a member of the ECB's board, stressed the need for patience in deciding on changes to interest rates.

She pointed out the risk of inflation rising again as a concern. Additionally, ECB survey results showed that Eurozone consumers expect inflation to be at 3.2% over the next year as of December, the lowest expectation since February 2022. In the US, the anticipation for the Federal Reserve to lower interest rates soon diminished. This change in outlook was influenced by cautious remarks from Federal Reserve officials and the emergence of robust economic data.

[Solid ECN]

Canadian Dollar Falls Amid US Economic Strength


The Canadian dollar dropped beyond 1.35 against the US dollar in early February, reaching its lowest point in over four weeks. This decline was influenced by solid economic reports from the US and firm statements from the Federal Reserve, which suggested that high interest rates in the US might persist, boosting the US dollar's strength. The ISM PMI indicated that service sector activity in the US was more substantial than expected in January, with high inflation levels, aligning with Federal Reserve Chair Powell's remarks that it's too early to claim success in controlling inflation.

On the other hand, Canada's PMI data showed its private sector shrinking, highlighting the need for the Bank of Canada to adopt a more supportive monetary policy. Additionally, oil prices were low due to speculation about a possible ceasefire between Hamas and Israel, which lessened worries about oil supply issues and decreased the flow of foreign currency, weakening support for the Canadian dollar, also known as the loonie.