Author: FX
EUR/USD wrapped up the trading week nearly where it started. Market balance has broadly recovered as wait to Fed cuts resumes. Coming up next week: EU GDP & US CPI inflation. EUR/USD finished off a sedate trading week close to where it began, trading within a tight range of slightly more than 1%. Fiber tried to spark a fresh bid back above the 1.1000 handle on Monday, but price spent the rest of the week easing back into familiar technical levels. Forecasting the Coming Week: US CPI and Fed’s easing should rule the sentiment Market focus remains squarely on the…
Risk sentiment was one of the main driving forces for price action for the most part of the week, although there were still instances when some asset classes and major currencies veered away from the pack. For one, central bank events and top-tier economic updates highlighted divergences in interest rate expectations, spurring gains for currencies with more hawkish policy biases. Geopolitical tensions also popped back in the headlines, propping crude oil higher on global supply concerns. How did your closely watched assets react to these events? Let’s break them down. This Article Is For Premium Members Only Become…
Gold advances for the second day on Friday, buoyed by expectations of Fed easing in September. US economic data shows deceleration but not enough to stoke recession fears. Ongoing Middle East tensions between Israel, Lebanon and Iran keep Gold demand firm. Gold prices advanced modestly for the second straight day as market participants remain convinced the Federal Reserve (Fed) could begin to ease policy at the upcoming September meeting. This and heightened tensions between Israel, Lebanon and Iran keep bullion bid ahead of the weekend. The XAU/USD trades at $2,432, up by 0.22%. The latest tranche of economic data from…
AUD/USD slightly retreats, settling near 0.6575 on Friday. RBA reiterates its hawkish stance, contributing to a buoyant AUD. Investors digest Chinese inflation reported during the European session. The AUD/USD pair witnessed a minor setback at 0.6575 during Friday’s session, a modest descent of 0.30%. That being said, the Reserve Bank of Australia’s (RBA) unwavering hawkish discourse and stronger Chinese inflation figures might limit the downside for the Aussie. Given the complex Australian economic prospect and the RBA’s hawkish inclination due to elevated inflation, markets persistently price just a 25 bps easing in 2024. Daily digest market movers: RBA’s resolute hawkish…
It seems like ages ago, but on Monday, it seemed like markets were on the precipice. The Japan’s Nikkei 225 index on Monday fell -12.4% and analysts were figuring out where the circuit breakers would be. There were chatter on how the Fed needed to have an emergency meeting and cut rates by 75 basis points. The market priced in with 100% certainty 50 basis point cuts in September and November. Yields fell sharply. However services ISM data didn’t come in as week, and the markets settled. By the end of the week, the flow of funds in the Forex…
NZD/JPY moves sideways after a three-day winning streak, and mixed technical signals emerge. The RSI remains near the oversold area despite rising, and the MACD prints decreasing red bars. Shrinking volume suggests that the selling pressure is waning, indicating a potential reversal. The NZD/JPY currency pair remained in a consolidation pattern on Friday, hovering around the 88.000 level. While the pair has experienced a three-day winning streak, technical indicators present contrasting signals, and the pair is set to side-ways trade. From a technical standpoint, the Relative Strength Index (RSI) indicator is currently at 30, indicating that the pair is still…
GBP/USD chalked in a fourth consecutive down week. Despite early losses, Cable clawed back some ground late in the week. Coming up next week: UK and US CPI inflation updates. GBP/USD wrapped up a fourth straight week in the red, closing lower around four-tenths of one percent despite a late-week recovery from lows below the 1.2700 handle. A thin showing on the economic calendar from the UK side gave GBP traders a breather after the Bank of England (BoE) sparked a broad-market pummeling of the Pound Sterling. Market flows have since rebalanced, and investors have now pivoted towards next week’s…
Stabilization in risk sentiment lends support to the USD despite lack of fresh fundamentals. Fed officials paint an optimistic picture of the US labor markets despite slow job growth. Market adjusts easing expectations; first rate cut expected in September with slightly lower odds. The US Dollar (USD), measured by the US Dollar Index (DXY), showed sideways movement above the 103.00 level in Friday’s session. This comes amid stabilized risk sentiment and flat trading in US stock index futures following Thursday’s rally, with the 10-year US yield remaining around 4% early in the day. Despite adjustments in market expectations for future…
Dow Jones is set to end the week close to where it started. The major equity index recovered after Monday’s thousand-point plunge, but nothing more. Markets now pivot to focus on next week’s inflation data. The Dow Jones Industrial Average (DJIA) traded mostly flat on Friday, testing the waters near the week’s opening bids after a run of volatility sparked by broad-market concerns that the Federal Reserve (Fed) might have missed the train on rate cuts. A turn towards the softer side in US data prints late last week sparked a risk-off plunge across the global markets, coupled with an…
With less than an hour left to go in trading, the broader stock indices are trying to fight its way to a positive close for the trading week. Both the S&P and NASDAQ indices are currently on pace for a negative close. If it remains that way, it would represent the fourth consecutive down week for each of those indices.At current levels, the S&P at 5345.02 is marginally lower by -0.04% – nearly unchanged on the week. The close last week was 5346.55.The NASDAQ index is negative by -0.18 at 16747.09. The close last week was 16776.16.It will be close,…