US Dollar rose 0.5% and recession predict are shrink
The US dollar reached a five-month high on Tuesday, extending its 4-5% gain since mid-July. Despite sluggish Chinese and European growth, investors are bullish on the dollar due to rising US yields and falling equity prices. Goldman Sachs Group reduced its US recession prediction from 20% to 15%. The US economy is surviving significant monetary…
Banks are increasing liquidity from securities investment
Mid-sized banks are concerned about potential US regulators tightening capital and liquidity requirements for banks with $100 billion or more. The Fed’s tightening since March 2022 has flooded banks’ longer-term securities, causing investor concern over bank balance sheets. Banks have reduced securities investments or sold them at a loss to increase liquidity. Bank of America…
Banks are rushing cash after SVB disaster
JPMorgan and Bank of America are reducing risk and strengthening their balance sheets due to Fed shrinkage, falling deposits, and increased short-term rates. They rushed cash after the SVB disaster, increasing cash assets to $3.49 trillion in two weeks. As banks face pressure on deposit costs and hold higher liquidity, loan growth is expected to…
US lenders got insurance to face slowing economy
US lenders are hoarding capital to cope with a slowing economy, deposit outflows, and stricter liquidity rules, potentially impacting mid-sized banks. This risk-averse approach is a response to the sector recovering from recent bank failures, which may limit lending. As of August 23, US banks had $3.26 trillion in cash, up 5.4% from 2022.
Gold recovered strongly after FED maintain interest rates on hold
Mixed U.S. labor data suggests the Federal Reserve will maintain interest rates on hold, lifting gold prices slightly. This dragged on currency and Treasury yields, while gold appreciated due to lower opportunity costs. Copper rose due to China stimulus measures and corporate activity rebound. Metal market trading is expected to be constrained due to a…
Oil steadied on the highest level this month
Oil prices reached their highest level since November due to OPEC+ production limits tightening the market. Brent remains above $88, while West Texas Intermediate futures remain above $85 a barrel. Russia predicts OPEC+ will announce crude export cuts soon, and Saudi Arabia and Moscow may extend voluntary limitations until October. Oil prices rose this quarter…
45% annual interest has been offered on lira deposits
The central bank is shifting to traditional policies after lira crashes and rising inflation. It plans to lower KKM volume to improve monetary transfer. KKM account volume is a record $127.6 billion, 26% of total deposits. Lenders are offering up to 45% annual interest to clients who convert KKM cash to lira accounts. However, depositors…
The Scheme has made Lira slide 50% on its value
Turkish depositors have switched funds back to dollars when withdrawing from state depreciation-protected accounts, as Ankara winds down the scheme in a policy U-turn. The U-turn has boosted interest rates and set an objective of decreasing the $130 billion in lira held at KKM accounts since President Erdogan’s re-election. The lira has lost 50% of…