Author: FX

The main driver of US dollar strength over the past number of years was ‘US exceptionalism’. That’s meant stronger growth and higher US interest rates.The stronger growth narrative is still in place — even if it requires a deficit at 7% of GDP — but Fed Chairman Jerome Powell has deconstructed the second part of narrative. His comments suggest the Fed won’t tolerate a rise above 4.4% and that the FOMC plans to cut rates even with strong growth.That’s prompted a re-think in the market and some broad softening of the US dollar (at least until today).DXY weekly Source link

Goldman Sachs plans to layoff 3-4% of its workforce or between 1300 and 1800 people, according to the WSJ.This shouldn’t come as a surprise as the company trims 2-7% of its workforce annually on performance factors. The layoffs have started and will continue through the autumn.The cutthroat culture finally appears to be making shareholders money after trading virtually flat from 2018 to early this year. This article was written by Adam Button at www.forexlive.com. Source link

WTI weeklyWTI crude posted an ugly finish to the week, falling $2.33 to $73.57 on Friday. Oil rallied strongly to start the week and was still holding in positive territory early today but slumped when Reuters, citing sources, reported that OPEC still plans to start gradually bringing on production in October.That led to a heavy round of selling that will mean the lowest weekly close since August 2 and the second-worst since February.One thing that oil traders might want to put on their radar is the hurricane map. It’s been a quiet hurricane season so far but we’re heading into…

We’ve been in a raging four-year bull market in most things since the pandemic but one month missed the memo: September.Here I highlight the S&P 500 over the past four Septembers, all negative months. Of the 52 months since April 2020, just 17 of them have been negative, or 32.7%. However, of the negative months, 23% of them have been Septembers.It’s not a new phenomenon either, as September is the worst month over the long history of the Dow Jones Industrial Average.It’s not always the case in the S&P 500 as there was a sparkling 8.8% rally in 2010 and…

Mexican Peso strengthens against US Dollar as core PCE inflation falls below expectations, boosting prospects for Fed rate cuts. Ongoing political uncertainties in Mexico dampen Peso’s demand. Banxico cuts GDP forecasts for 2024 and 2025, indicating slower growth and potential rate cuts. The Mexican Peso recovered some ground on Friday against the Greenback after the Federal Reserve’s (Fed) preferred inflation gauge, the core Personal Consumption Price Expenditures Price Index (PCE), was a tenth lower than expected, suggesting that the disinflation process has evolved. This gives the Fed the green light to begin cutting rates, which is a headwind for the…

Oil is having a rough one today, down 3% after a report said OPEC was planning to proceed with the October production rise.Oil rigs unchanged at 48.Gas rigs -2 This article was written by Adam Button at www.forexlive.com. Source link

Intel stock has been lifted as much as 9% on Friday following a Bloomberg article. Semiconductor firm is in talks with Wall Street banks to devise new strategy. Company could once again spin off its foundry business after recent resurrection. INTC stock is now trading at highest level since its earnings collapse on August 2.   Intel (INTC), the troubled legacy semiconductor giant, jumped 9% on Friday after the company leaked internal discussions over spinning off its foundry business and refocusing on chip design. INTC shares moved as high as $22.12, the highest the stock has traded since it came…

EUR/GBP stopped the bleeding on Friday and rose slightly above 0.8400. Technical indicators remain aligned with the prevailing bearish trend. Daily RSI remains near oversold terrain  In Friday’s session, the EUR/GBP rose to 0.8420. However, upward movements seem to only be corrective and sellers take a breather after multiple sessions of losses. The Relative Strength Index (RSI) is currently at 37 seeing a flat slope. The Moving Average Convergence Divergence (MACD) prints red bars, reinforcing the selling pressure. Overall, technical indicators lack upside conviction. The pair could make an attempt to test the support at 0.8450, and if that gives…

The Pound Sterling (GBP) extends its two-day losing spree and posts a fresh intraday low below 1.3150 against the US Dollar (USD) in Friday’s North American session. The GBP/USD pair fails to gain ground as the US Dollar rises sharply after the release of the United States (US) Personal Consumption Expenditure Price Index (PCE) data for July, which came in slower than expected. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps above 101.50. Read More… The GBP/USD extends its losing streak to three days yet has bounced off daily/weekly lows of 1.3129 and exchanges hands at 1.3149, down a modest 0.14%.…

The latest U.S. economic data shows inflation remaining stable in July 2024, while consumer spending increased, according to figures released today by the Bureau of Economic Analysis (BEA). The Core Personal Consumption Expenditures (PCE) price index, a key inflation measure closely watched by the Federal Reserve, rose 0.2% m/m in July, matching the increase seen in June. On a year-over-year basis, the core PCE price index was up 2.6% y/y, unchanged from the previous month’s read. Headline PCE, which includes volatile food and energy prices, also increased by 0.2% for the month and remained steady at 2.5% y/y, indicating persistent…