Author: FX

© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect Federal Reserve Chair Jerome Powell indicated on Friday that the current interest rates could remain steady, with a possibility of an increase if the robust economic growth continues. His comments align with market expectations for no rate hike at the Federal Reserve meetings scheduled for October 31 and November 1. Powell acknowledged that a sustained rise in long-term Treasury yields could reduce the need for future rate hikes. The decisions will be influenced by data, evolving outlooks, and risk balance. Following his speech, two-year Treasury yields declined while 10-year yields approached…

US Dollar, DXY, Euro, British Pound, Australian Dollar – Outlook:Too soon to say if USD has topped.EUR/USD and GBP/USD appear to be in search of a bottom; AUD/USD drifts lower.What is the outlook and key levels to watch in EUR/USD, GBP/USD, and AUD/USD?Discover the power of crowd mentality. Download our free sentiment guide to decipher how shifts in AUD/USD’s positioning can act as key indicators for upcoming price movements. Recommended by Manish Jaradi Improve your trading with IG Client Sentiment Data The US dollar continues to trade strongly amid rising yields and escalating tensions in the Middle East, after US…

1300 GMT / 0900 US Eastern time: Federal Reserve Bank of Philadelphia President Patrick Harker speaks on the economic outlook before the Risk Management Association Philadelphia Chapter Meeting1615 GMT / 1215 US Eastern time: Federal Reserve Bank of Cleveland President Loretta Mester speaks on “The Outlook for the Economy and Monetary Policy” before the SOMC Fall Meeting: “Have We Dodged the Bullets?”These speeches should be the last we hear from Fed officials prior to the October 31 / November 1 meeting as the blackout kicks in the next day:The ‘blackout’ policy limits the extent to which Federal Open Market Committee…

Share: EUR/USD trades with a negative bias and is pressured by the emergence of some USD dip-buying. Bets for one more Fed rate hike in 2023 and elevated US bond yields continue to underpin the US. Geopolitical tensions further benefit the Greenback’s safe-haven status and weigh on the major. The EUR/USD pair edges lower during the Asian session on Friday and moves away from a one-week high, around the 1.0615 region touched the previous day. The pair currently trades around the 1.0575 region, down less than 0.10% for the day, and is pressured by the emergence of some…

gorodenkoff/iStock via Getty Images The U.S. has yet to reach a deal with the European Union on steel and aluminum tariffs, and will keep negotiating until a year-end deadline that would trigger a return of tariffs on billions of dollars of in trade, Bloomberg reported Thursday. A meeting between U.S. Trade Representative Katherine Tai and the EU’s top trade negotiator ended without an agreement, according to the report, which apparently will prevent President Biden and European Commission President Ursula von der Leyen from being able to announce a deal on the Global Arrangement on Sustainable Steel and Aluminum at a…

© Reuters. FILE PHOTO: U.S. Senator Laphonza Butler (D-CA) is congratulated by new colleagues from the Congressional Black Caucus after being sworn in as the newest member of the caucus in front of the statue of civil rights leader Rosa Parks in Statuary Hall, short By Sharon Bernstein SACRAMENTO, Calif. (Reuters) – Newly appointed California Senator Laphonza Butler, a Democrat, said on Thursday she will not seek a new U.S. Senate term next year. Butler, a former labor organizer and political fundraiser who was tapped earlier this month to replace the late Sen. Dianne Feinstein on Oct. 1, said instead…

Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter EUR/USD FORECAST – TECHNICAL ANALYSISEUR/USD rebounded on Thursday after a subdued performance during the previous trading session, but gains were capped by soaring U.S. Treasury rates, a hostile market environment that appears to have prevented the pair from clearing technical resistance around the 1.0600 handle.With U.S. yields on a bullish tear and geopolitical tensions in the Middle East on the rise, the euro will struggle to maintain a sustained upward course. This means that the direction of travel…

Rising expectations of further interest rate hikes, and the belief that the Fed will keep rates elevated for an extended period of time, have proven to be important supports for the Dollar’s strength in August-October. Fed Chairman Jerome Powell said on Thursday, that various uncertainties, both old and new, make it difficult for the Fed to balance the risk of too much monetary policy tightening with the risk of too little tightening and the central bank will proceed cautiously, for that reason. According to Fed Powell, over-tightening could damage the economy, while taking less action than necessary could allow above-target…

A useful take on Federal Reserve Chair Powell’s remarks Thursday. Powell spoke at the New York economic club:Powell … may have unintentionally egged on traders to keep pushing yields, according to Evercore ISI in a note (this via Dow Jones / Market Watch). Asked about the sharp rise in long-term Treasury yields … Powell said the rise didn’t appear to be fueled by expectations for higher inflation or further Fed rate hikes. “It’s really happening in term premiums, which is the compensation for holding long-term securities, and not principally a function of the market looking at near term fund rates,”That’s…

S&P 500 PRICE FORECAST:Heightened Volatility in the Afternoon Session has Dragged the S&P Lower.Is the Attack on an Air Base in Iraq a Sign of What is to Come?IG Client Sentiment Shows that Retail Traders are Long with 55% of Traders Currently Holding Long Positions. A Sign of Further Downside Potential Given the Contrarian View to Client Sentiment Adopted at DailyFX?To Learn More About Price Action, Chart Patterns and Moving Averages, Check out the DailyFX Education Section.Most Read: Oil Slides on US-Venezuela Deal and OPEC Silence on Embargo CallsElevate your trading skills and gain a competitive edge. Get your hands…