Author: FX

USD steady course remains unaffected by geopolitical tensions despite the lack of substantial fundamentals. Fed officials maintain positive projections of the US labor markets amid looming concerns of slow job growth. The market maintains the previous week’s predictions; the first rate cut is anticipated in September with marginally lower odds. The US Dollar (USD), measured by the US Dollar Index (DXY), indicated continuous horizontal movement above the 103.00 level during Monday’s trading session. This follows relatively quiet market sentiment and unaltered US stock index futures, with the 10-year US yield sticking close to 4% in the earlier part of the…

As the NA session begins the AUD is the strongest and the JPY is the weakest. The USD is mixed with gains and losses vs the major currencies. It is a bank holiday in Japan today. It is Monday in the rest of the world, and the economic calendar is light. In the US and Canada today the Canada Building permits and the US Fed. Budget Balance will be released:8:30 AM CAD: Building Permits m/m – Forecast: 5.6%, Previous: -12.2%Tentative USD: Cleveland Fed Inflation Expectations – Forecast: 3.8%2:00 PM USD: Federal Budget Balance – Forecast: -254.3B, Previous: -66.0BOver the weekend…

One of the most popular discussions about trading is how much a trader should risk per trade. A lot of them go by the standard 1% to 2% while the more aggressive ones sometimes recommend risking as much as 5%. What you should understand is that taking risks is not a one-dimensional pursuit. Sure, there are basic rules you follow, but it’s still more profitable in the long run to factor in your personal preferences. Risk tolerance basically tells you how comfortable you are with possibly losing money in exchange for potential profits. Those who have stable income or experience…

Financial markets have taken the view that the Federal Reserve has left it too late to cut rates and that a US recession is likely, ING’s FX analysts Francesco Pesole and Chris Turner note. US exceptionalism is finally waning “We are not as bearish as some but expect the Fed to start easing restrictive conditions with a 50bp rate cut on 18 September, followed by 25bp cuts in November and December. We see the policy rate dropping to 3.50% next summer. This should be broadly bearish for the USD – though November US elections will be pivotal.” “Our near-term call…

Gold prices (XAUUSD:CUR) rose on Monday after a weekly fall, as investors refocused on geopolitical tensions in the Middle East, while oil prices held strong, extending gains for a fifth straight session. Investors also shifted their focus to upcoming U.S. inflation data this week amid expectations of a Fed rate cut in September, however the market remains divided on the extent of the rate cut on the back of positive U.S. jobs data. Gold (XAUUSD:CUR) has also been benefitting as a safe-haven metal as investors hedge against the possibility of wider conflict in the Middle East. On the data front,…

Morgan Stanley on Monday reiterated its call for a 25 basis point rate cut by the Federal Reserve in September, maintaining a stance it has held consistently despite the recent global market rout. The bank’s economists note that while market reactions to the latest Bank of Japan (BoJ) decisions and softer U.S. payrolls data have been strong, they do not signify a fundamental shift in economic conditions. Specifically, the increased market focus on central bank actions, particularly the Bank of Japan’s (BoJ) surprising tone on future rate hikes, set the stage for an increased perception of risk around U.S. economic…

GBP/JPY regained some ground it had lost earlier this month, and is fast approaching potential resistance levels. How can the U.K.’s upcoming labour market report affect GBP/JPY’s longer-term trend? We’re checking out the idea of Guppy extending its downtrend after the U.K.’s jobs report release: This Article Is For Premium Members Only Become a Premium member for full website access, plus get: Ad-free experience Daily actionable short-term strategies High-impact economic event trading guides Access to exclusive MarketMilk™ sections Plus More! Source link

A Japanese market holiday isn’t making it too exciting to start the new week. Overall market action is much calmer, though USD/JPY is creeping a little higher to 147.15 currently. Still, the pair is “only” sitting in a 50 pips range so it pales in comparison to the swings from last week.Besides that, other major currencies are not doing much with the risk mood holding steadier. S&P 500 futures are flat while Nasdaq futures are up 0.1%. In terms of the economic calendar, there won’t be much to shake things up today. As such, traders will have to look to…

The New Zealand Dollar gains traction in Monday’s Asian session.  Diminishing odds of an RBNZ rate cut and hotter Chinese inflation data underpin the Kiwi. The RBNZ monetary policy meeting will take center stage on Wednesday.  The New Zealand Dollar (NZD) gathers strength above the 0.6000 psychological level on Monday. The Kiwi gains traction as markets trimmed bets on a rate cut by the Reserve Bank of New Zealand (RBNZ) at its August meeting on Wednesday after the stronger-than-expected employment report. Furthermore, the hotter Chinese July Consumer Price Index (CPI) supports the China-proxy NZD as China is New Zealand’s largest…

I’m seeing a simple range setup on the hourly chart of EUR/GBP, as traders are likely holding out for top-tier U.K. data. Can the upcoming jobs figures spur a bounce or a break? Check out these near-term inflection points I’m watching! This Article Is For Premium Members Only Become a Premium member for full website access, plus get: Ad-free experience Daily actionable short-term strategies High-impact economic event trading guides Access to exclusive MarketMilk™ sections Plus More! Source link