Author: FX
GBP/USD falls as US inflation data and retail sales reinforce a less dovish Fed outlook. Industrial Production in the US shows signs of recovery, contributing to the US Dollar’s resilience. UK labor market report influences BoE rate cut speculations, with attention on June’s monetary policy. Market anticipation builds for next week’s Fed and BoE meetings, with inflation data set to impact GBP/USD. The Pound Sterling is set to finish the week with losses, yet extended its downtrend for two straight days after piercing the 1.2800 figure. The GBP/USD exchanges hands at 1.2731, post losses of 0.16%. GBP/USD retreats below 1.2800,…
The Bank of Japan will hike rates for the first time since 2017 on Tuesday, according to Nikkei.”The Bank of Japan is expected to end its negative interest rates when its policy board meets on Monday and Tuesday, Nikkei has learned.”They report that the BOJ began coordinating both within and outside the BOJ on Friday to end the policy. Rather than just hiking to 0.00%, as assumed, the BOJ will hike to a range in the 0.00-0.10% range.The final piece of the puzzle appears to be the latest wage numbers, something we’ve been highlighting. This year’s wage hikes “are of…
The major European indices are closing with mixed results:German DAX, -0.03%France CAC, +0.04%UK FTSE 100, -0.20%Spain’s Ibex, +1.02%Italy’s FTSE MIB +0.57%For the trading week, major indices moved higher led by Spain’s Ibex.:German DAX, +0.69%. The index did reach a new all-time high at 18039.05 before rotating lowerFrance CAC, +1.7%. Like the German DAX, the index traded to a new all-time high at 8218.07UK FTSE 100. +0.88%Spain’s Ibex, +2.84%Italy’s FTSE MIB, +1.65%As London/European traders head for the exits, US stocks are trading at session lows and all three major indices are now in negative territory:Dow industrial average -280 points or -0.72%…
Canadian Dollar is mostly flat on Friday with limited momentum. Housing Starts in Canada since November ticked higher. Next week: Canadian CPI inflation, US Fed rate call. The Canadian Dollar (CAD) was mostly higher on Friday but stuck close to the day’s opening range against the US Dollar (USD) as markets shuffled in place ahead of the weekend. The University of Michigan US Consumer Sentiment Index ticked slightly lower early in the American trading session, and the highest print of Canadian Housing Starts since November sailed by without much notice from investors. Canada brings February’s Consumer Price Index (CPI) inflation…
As the trading week works toward a close, what levels are in play for the NZDUSD heading into the new trading week starting March 18.The price action this week has been more bearish with the price moving below the moving averages including the 100 and 200-bar moving averages on the 4hour chart and its 100-day moving average (currently at 0.61243). Staying below those moving averages keeps the bears more in control.The pair is currently approaching it 200 day moving average at 0.6079. That remains a level that needs to be broken and stay broken to give the sellers more control.…
Mexican Peso sees modest losses as US inflation data tempers Fed easing expectations. Industrial Production in Mexico shows resilience, reinforcing views on potential Banxico rate adjustments. Deputy Governor Omar Mejia hints at upcoming rate cuts, with a focus on maintaining restrictive monetary policy. US Industrial Production recovery and shifts in consumer sentiment barely move the USD/MXN currency pair. The Mexican Peso depreciated against the US Dollar late on Friday’s session yet is still set to finish the week on a higher note, with gains of 0.50%. Today’s main driver is traders repricing a less dovish Federal Reserve (Fed) following the…
The GBPUSD has moved back to the downside in what has been a down and up and back down again type of day. In the fall, the price has moved back below the 50% midpoint of the move up from the March 1 low to the March high. That comes in at 1.27462. The move lower has reentered a swing area between 1.2729 to 1.2735. The low just reached 1.27309. The buyers have once again slowed the fall in the lower swing area. It will take a move below to increase the bearish bias. If done, the rising 100-bar MA…
US DOLLAR FORECAST – EUR/USDEUR/USD moves without directional conviction ahead of next week’s FOMC decisionThe Fed is seen keeping interest rates steady, but there is no consensus on guidanceThis article looks at EUR/USD’s technical outlook over the coming trading sessionsMost Read: US Dollar Soars on Inflation Risks as Fed Looms; EUR/USD, GBP/USD, USD/JPY SetupsThe U.S. dollar was broadly flat against the euro on Friday (EUR/USD 0.0% at 1.0885) after a strong showing in the previous session, despite an uptick in U.S. Treasury yields, with many traders opting to stay on the sidelines and avoid large directional bets ahead of next…
EUR/USD has fallen to the 1.0800s, close to a critical level for the short-term trend. Further weakness could tip the near-term outlook in favor of bears. Empire State Manufacturing, Michigan Sentiment, US Industrial Production and commentary from ECB’s Nagel round off the week. EUR/USD is trading in the 1.0800s on the last day of the week after taking a step down from its previous range in the 1.0900s. The catalyst seems to be a mixture of better-than-expected US macro data and ECB’s chief economist Philip Lane pushing back on early rate-cut expectations. US data on Friday in the main built…
The US Dollar locks in gains for this week after hotter-than-expected US CPI and PPI figures. Traders are pushing the initial Fed rate cut towards September. The US Dollar Index trades at a crucial pivotal level that could unlock 104.00. The US Dollar (USD) trades in the green on Friday after markets got shaken on Thursday after a badge of US economic data suggested inflation pressures are far from over. A textbook panic attack took place in markets, with risk assets such as equities and Bitcoin selling off, yields jumping higher with bonds being sold and the US Dollar strengthening against…