Stronger economy means softer stocks for now

Expert market comment from senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Stronger economy means softer stocks for now
FxPro | 497 days ago

The US economy continues to surprise economists by beating retail sales forecasts for the sixth consecutive month. Reportedly, for December, the increase was 0.6%, compared to 0.3% in November and 0.4% expected. Sales excluding autos rose 0.4%, up from 0.2% a month earlier.

The currency market reacted with outright dollar buying as a hot economy reduces the chances of monetary policy easing soon. The odds of a rate cut in March fell below 60 per cent immediately after publication, although they exceeded 80 per cent late last week, according to the FedWatch Tool.

The stock market, however, is in that part of the cycle where good news is bad news for stocks because of expectations of tighter monetary policy in the future. Such a phase typically doesn't last long, but it has a high chance of remaining prevalent in the markets in the coming weeks, contributing to a correction in the year-end rally in stocks.

By the FxPro Analyst Team

Regulation: FCA (UK), SCB (The Bahamas)
read more
EUR/USD Extends Losses for Third Consecutive Day

EUR/USD Extends Losses for Third Consecutive Day

The euro/dollar pair continues to decline on Thursday, edging closer to 1.1256 as the US dollar strengthens for a third straight session. This development follows a US federal court ruling that former President Donald Trump overstepped his authority by imposing retaliatory tariffs.
RoboForex | 2h 12min ago
ATFX Market Outlook 29th May 2025

ATFX Market Outlook 29th May 2025

The Federal Reserve’s meeting minutes highlighted concerns over persistent inflation and slowing job growth, reinforcing its cautious stance on interest rates. U.S. equity indices closed lower on Wednesday as investors digested the Fed’s minutes, and semiconductor stocks slumped late in the session. The Dow Jones fell 0.58%, the S&P 500 lost 0.56%, and the Nasdaq dropped 0.51%.
ATFX | 8h 22min ago