Author: FX

AI imageFederal Reserve Chairman Jerome Powell delivered the razzle dazzle on Wednesday with a 50 basis point cut to start the rate-lowering cycle. Economists didn’t expect the move but markets had sniffed it out with Fed funds futures pricing in a 55% chance of a larger cut.The immediate reaction was a ‘risk on’ one that include broader US dollar selling, bond buying at the front end, a jump in gold prices and higher stocks.Equity markets are now up eight days in a row as they sensed that Powell could cut by a larger margin. In the aftermath of the cut,…

The Pound Sterling posted modest gains during the North American session, hitting a three-week high of 1.3254, but failed to gain traction as traders braced for the Federal Reserve’s monetary policy decision. Therefore, GBP/USD traders dragged the exchange rate toward 1.3205, still above its opening price by 0.30%. Read More… The Pound Sterling (GBP) gains against its major peers in Wednesday’s North American session as the United Kingdom (UK) inflation data for August came in hotter than expected. The Office for National Statistics (ONS) reported that the core Consumer Price Index (CPI) – which excludes volatile items such as food, energy, oil, and…

One of the more important themes we have discussed before is the need for traders (especially the newbies) to focus on the process rather than the profits. The idea is that a good, disciplined trader could always turn the odds in his favor if he has honed his skills enough to deal with whatever scenario is thrown his way. But becoming a better trader is not as easy as reading the School of Pipsology and then taking as many trades as you can with the hope that experience will teach you the way to profitability. In fact, many traders can’t even move…

Headlines:Markets:NZD leads, USD lags on the dayEuropean equities lower; S&P 500 futures up 0.1%US 10-year yields up 2.8 bps to 3.677%Gold up 0.4% to $2,578.75WTI crude down 0.9% to $69.22Bitcoin down 0.7% to $59,913It’s all about the countdown to the Fed and we’re seeing some mixed moves in markets ahead of the main event later.The dollar is weaker across the board and that despite Treasury yields holding up on the session. USD/JPY remains pinned down since Asia trading, keeping around 141.60-80 levels mostly during the session.UK inflation data was the main highlight and that helped to prop up sterling a…

USD/CHF falls to near 0.8430 as traders’ big bets on Fed large rate cuts weigh on the US Dollar. The Fed is poised to deliver its first interest rate cut decision in more than four years. Investors expect the SNB to cut interest rates further in its policy meeting later this month. The USD/CHF pair posts a fresh weekly low near 0.8430 in Wednesday’s European session. The Swiss Franc asset weakens as the US Dollar (USD) falls back after a short-lived pullback move. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near…

By Nell Mackenzie LONDON (Reuters) – While many investors hope falling interest rates will usher in a soft economic landing, others forecast a calm before the storm. Here are hypothetical trading ideas shared by three hedge funds on what is next for the U.S. and global economies at the start of a U.S. easing cycle. They said regulations prevented them from revealing their actual trading positions or making recommendations. 1/ CONFIDO CAPITAL * Amplified income strategies * Launched in 2024 * Key trade: Short risk assets, buy protection on high yield credit Brad Boyd, founder of Confido Capital, said the…

After their “finely balanced” interest rate cut last month, will the Bank of England (BOE) follow through with a more convincing easing decision this time? Or will they choose to be “very mindful, very demure” with another narrow vote? Here’s what to expect for the BOE decision and how GBP pairs could react. 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

The Aussie has been able to keep its head up so far this week, but will the upcoming Australian jobs release change all that? Here’s what I’m watching on the hourly chart of EUR/AUD. 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

But the key focus in markets today is of course the FOMC meeting decision. Will it be a 25 bps or 50 bps rate cut? That is the question.As things stand, traders are still pricing in ~65% odds of a 50 bps rate cut for today. And therein lies the balance of risks ahead of the Fed policy decision.The US retail sales yesterday helped to see the dollar recover back some ground alongside yields. However, it may end up being just a tentative response on the week. Will the Fed stay true to their communication since Jackson Hole and go…

Will Australia’s August labor market data help traders jump on AUD/NZD’s uptrend this week? We spotted a potential setup on the 1-hour time frame! Source link