Author: FX

Share: US Dollar Index (DXY), which measures the US Dollar’s performance against a basket of six currencies, shows slight gains after reaching a fresh 15-month low of 99.578. June’s US CPI grew 3.0% YoY, underperforming the 3.1% forecast, while Core CPI fell by 0.5%. Concurrently, June’s PPI rose less than the expected 0.1% YoY. Considering these conditions, markets now expect fewer Fed rate hikes post-July FOMC, forecasting a stable Federal Funds Rate around 5.25%-5.50% in 2023. The US Dollar Index (DXY), which measures the US Dollar (USD) performance against a basket of six currencies, recovers some ground, as…

Today, the US Dollar rallied, stimulated by rising preliminary inflation expectations from the University of Michigan’s monthly consumer survey and overall stronger data. The bond yields also recorded a sharp incline.The inflation reading depicted a minor increment, moving from 3.3% to 3.4%. Given a market that has reacted positively to the favorable CPI and PPI data this week, even the slightest gains in inflation have somewhat deflated the narrative of receding inflation.Further, consumer sentiment indices also demonstrated a significant uplift:Consumer sentiment surged to 72.6 from 64.4 last monthCurrent conditions ascended to 77.5 from 69.0 in the previous monthExpectations climbed to…

It wasn’t the best of weeks for dollar bulls as the U.S. currency found itself trailing behind the forex pack after seeing downbeat inflation data from the U.S. Not only did these dampen hopes for future Fed rate hikes, but the weak CPI figures also allowed other lower-yielding currencies like the yen and franc to steal the safe-haven spotlight. Missed the major forex headlines? Here’s what you need to know about last week’s FX scene: USD Pairs Overlay of USD vs. Major Currencies Chart by TV Market jitters ahead of the highly-anticipated U.S. CPI report kept the dollar rangebound early in…

Share: EUR/USD may have run its course and bulls are laying the table. A break of key support structures could be on the cards for the week ahead. EUR/USD is stalling on the bid but underlying momentum is undeniable. At the time of writing the Single Currency is probing key resistance as the following illustrates, However, bears are planning their gameplay as the following charts will lean towards. Meanwhile, the US Dollar has bounced in a correction as markets crystallised the sentiment on the charts that the Federal Reserve is near the end of its rate hike cycle amid softening inflation.…

The market spotlight was mostly on the U.S. inflation updates this week as interest rate expectations continue to strongly affect overall risk sentiment. Confirmation that U.S. inflation rates continue to slow from high inflation levels, plus downbeat Chinese data spurring stimulus hopes, lifted risk assets towards the latter part of the week. Not sure what I’m talking about? I can explain, but lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on Arguments China announced a loan relief plan for developers aimed at ensuring the delivery of homes that are under construction U.S. Treasury…

Share: EUR/GBP consolidates within a tilted downward bias, with key support at 0.8504. The pair’s bullish turn hinges on a 0.8600 breach, testing 50-day EMA. RSI is nearing bullish zone; RoC indicates a potential uptrend. EUR/GBP reverses Thursday’s losses and is set to print weekly gains of 0.40% after Pound Sterling (GBP) bulls emerged yesterday, trimming some of its Wednesday losses. Nevertheless, selling pressure waned, and the EUR/GBP sits above a technical support level. At the time of writing, the EUR/GBP exchanges hands at 0.8573, up 0.32%. EUR/GBP Price Analysis: Technical outlook The EUR/GBP daily chart portrays the…

The broader S&P and NASDAQ index snapped 4-day winning streaks, while the Dow industrial average extended its streak to 5 days. UnitedHealth soared by 7.27% today and was responsible for over 200 points of the Dow’s gains today. The Dow closed up $113.89 points.A snapshot of the market showsDow industrial average rose 113.89 points or 0.33% at 34509.04S&P index fell -4.64 points or -0.10% at 4505.41NASDAQ index fell -24.88 points or -0.18% at 14113.69The small-cap Russell 2000 fell -19.80 points or -1.01% at 1931.08The winning sectors today were led by:Healthcare, +1.5%Consumer staples +0.35%Consumer discretionary, +0.27%The lagging sectors today included:Energy -2.75%Financials…

Share: GBP/USD is tiring in the bid and bears are moving in for the kill. The week ahead holds a bearish bias, but there ios work to do. GBP/USD  ramped up a sixth consecutive day of gains after data showed the UK economy swung in the red by less than expected. the following shows the bias from the top-down analysis: GBP/USD moving in on the lower time frames A correction is underway for the week ahead. GBPUSD H1 chart Bears are monitoring for a break of trendline support. 1.3000 is eyed! Source link

Share: GBP/JPY cleared most of its weekly losses trading near 181.80 tractioned by rising British yields. Investors continue to look for clues regarding a potential BoJ YCC policy tweak. BoE’s tightening expectations have fallen, and markets now see rates peaking at 6.25%. On Friday, the Sterling traded with gains agains the JPY, but it is still poised to close a weekly decline. However, the GBP/JPY downside potential may be limited while investors are looking for clues on whether the Bank of Japan (BoJ) will tweak its monetary policy in July. As for now, markets have already largely discounted…

BOC’s Macklem comments in a Globe and Mail articleInflation is going to be around 3% going forwardSurprised by ongoing strength in demand in the economy, and persistence of underlying inflationary pressuresLabor markets have eased a bit but remained a very tightOur forecast has inflation hovering around 3% for next year and then gradually moving back to 2% targetNeed to see a better balance in the labor market and we need to see wage growth moderateDespite the more hawkish tilt, the USDCAD is trading to a new session high. The price moved above its 100-hour moving average at 1.31937. Its 200-hour…