Author: FX

The major assets were all over the place this week as traders tried to balance a hefty load of news and data, and based on the outcomes, apparently putting slightly more weight into individual asset catalysts over broad market sentiment drivers. Middle East tensions and Libyan supply concerns moved crude oil prices around, while the U.S. dollar and bond yield recovered from their recent beat down on net positive U.S. data. Equity indexes behavior was erratic as traders balanced earnings reports against bond yield movements, and bitcoin was dumped hard this week. Which headlines made the biggest waves…

Gold falls below $2,500 following US PCE report, boosting likelihood of September Fed rate cut. Fed’s cautious policy easing strategy stirs uncertainty; markets favor a 25 bps cut. Traders’ bets on a 25 bps rate cut rise to 69%; odds for a 50 bps reduction fall to 31%, per CME FedWatch Tool. Gold prices tumbled over 0.90% on Friday, below the $2,500 figure for the second day in the week after a report from the US Department of Commerce revealed that inflation continues to edge lower, according to July’s core Personal Consumption Expenditures Price Index (PCE). At the time of…

EUR/USD trimmed to the downside on Friday, extending into a three day down streak. EU inflation brought no surprises, US PCE inflation kept rate bets on balance. Coming up next week: Last US NFP jobs data print before next Fed rate call. EUR/USD tilted further into the red on Friday, extending a downside move into a third straight day and dragging Fiber down to 1.1050 to round out the trading week. EU inflation figures released early Friday failed to impress anybody in particular, and US Personal Consumption Expenditure Price Index (PCE) didn’t stray far from forecasts, keeping broad-market bets on…

USD recovered after signs of sticky inflation on July’s PCE. Recovery momentum in AUD throughout August has been supported mainly by the weak USD and improved conditions of risk-related assets. RBA’s hawkish stance continues to benefit the Aussie. The AUD/USD declined by 0.70% to 0.6750 in Friday’s session as the USD strengthened in response to July’s Personal Consumption Expenditures (PCE) figures. Despite this, the Reserve Bank of Australia’s (RBA) hawkish stance may limit further declines in the AUD. Despite a complex economic outlook for Australia, the RBA has taken a rigid stance in response to persistent inflation. As a result,…

US inflation, as measured by the PCE Price Index, remained unchanged at 2.5% YoY in July. The USD is gaining due to the strength of its economy while inflation is coming down. The labor market is still the focus for September’s decision. On Friday, the US Dollar, measured by the US Dollar Index (DXY), extended gains after the release of July’s Personal Consumption Expenditures (PCE) Index, which showed inflation continuing to be kept at bay. With inflation coming down and economic activity steady, the outlook justifies rate cuts by the Federal Reserve (Fed), whose chairman has already stated that there…

NZD/USD and declined by 0.15% to 0.6250 in Friday’s session The RSI is near 70, indicating the pair is overbought and vulnerable to selling pressure. The MACD is showing decreasing green bars, suggesting weakening bullish momentum. The NZD/USD pair declined to 0.6250 in Friday’s session, retreating from recent highs. The technical indicators suggest a potential correction in the near term. The Relative Strength Index (RSI) is currently at 66, indicating that the pair is near the overbought threshold which may suggest that selling pressure could emerge soon. Furthermore, the Moving Average Convergence Divergence (MACD) is showing decreasing green bars, indicating that…

Frontline plc (NYSE:), a leading international shipping company, reported a profitable second quarter of 2024, with a net income of $187.6 million, or $0.84 per share, despite facing headwinds from geopolitical tensions and market disruptions. CEO Lars Barstad highlighted the company’s strong liquidity position, with $567 million in cash and cash equivalents, and the lack of significant debt maturities until 2027. Frontline’s fleet, consisting of eco-friendly and scrubber-fitted vessels, positions the company to benefit from potential upsides in the compliant market, especially with low inventories and a muted tanker order book.Key TakeawaysFrontline’s Q2 profit stood at $187.6 million, or $0.84…

USD/JPY maintains a downward bias, needing to break key resistances for a bullish shift. Short-term buyer momentum faces obstacles at 146.93 (Senkou Span A) and 148.46 (Kijun-Sen), with an eye on the 149.39 peak. Mixed RSI signals suggest short-term buyer dominance but an unclear broader trend. A drop below 145.39 (Tenkan-Sen) could trigger further losses, with supports at 143.44 (August 26 low) and 141.69 (August 5 low). The USD/JPY rallied past the 146.00 figure for the first time of the week, as US Treasury bond yields rose sharply following the release of the Fed’s favorite inflation report. The US 10-year…

Markets:Gold down $19 to $2501WTI crude oil down $2.47 to $73.44US 10-year yields up 4.3 bps to 3.81%S&P 500 up 0.6%USD leads, JPY lags.It was tough to tie the fundamentals to the market moves today, as is often the case at month end. Tokyo CPI was hot earlier and US PCE was a tad cool and normally that’s the recipe for a USD/JPY decline but it was just the opposite as the pair climbed 116 pips in a steady rally that started in Europe and never eased.That was part of broad bids in the US dollar that were supported somewhat…

SPX daily chartThere was no lack of drama in the final day of equity trading in what was a wild ride in August. The S&P 500 opened strongly and then gave it all back to trade in negative territory at midday. However some steady bids emerged in the afternoon before a massive wave of buying late.Much of it was likely technical into a month-end long weekend but it wraps a bow on a lively one.S&P 500 1.0%Nasdaq Comp +1.1%DJIA +0.6%Russell 2000 +0.3%Toronto TSX Comp +0.2%On the week:S&P 500 +0.25%Nasdaq Comp -0.9%Russell 2000 -0.4%Toronto TSX Comp -0.1%On the month:S&P 500 +2.3%Nasdaq…