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Fedspeak divided on timing of rates lift-off – DB

FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed the recent speeches by Fed’s members regarding the first rate hike by the Fed.

Key Quotes

“It was the Fed Vice-Chairman Fischer who initially caused Treasury yields to rise, saying that he expects the US economy to strengthen enough for the Fed to raise rates this year and that there are signs that wage pressures are rising and leading inflation towards target”.

“The Atlanta Fed President Lockhart countered with some slightly more dovish commentary however, saying that he would ‘lean to a little later versus a little earlier’ and that he would prefer more direct evidence that inflation is on the up”.

“Meanwhile, the Cleveland Fed President Mester leant on the hawkish side, saying that she’s comfortable with liftoff relatively soon and that even after the first increase, policy will remain very accommodative for some time thereafter”.

“Finally, Boston Fed President Rosengren was the last to input, saying that he’s fairly patient and that policy makers should ensure that the economy has sufficient momentum before tightening”.

European Monetary Union Current Account s.a came in at €26.4B below forecasts (€29.4B) in February

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GBP/USD might break above 1.5000 on an upbeat UK labour market data – InvestingBetter

Alpesh Patel of Investing Better, notes that today’s UK labour data is crucial for GBP/USD direction ahead, expecting an improvement in data to lead cable higher above the key 1.5000 barrier, while a soft number would lead the pair to dive towards 1.4800 levels.
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