Author: FX

Share: The Pound Sterling faces significant pressure as the BoE appears to be reluctant to raise interest rates further. BoE Swati Dhingra said that the current interest rate policy is sufficiently restrictive. The UK services sector shrinks after six months of expansion as consumer spending weakens. The Pound Sterling (GBP) cracked significantly amid increasing risk-aversion and dovish remarks from Bank of England (BoE) Governor Andrew Bailey and policymaker Swati Dhingra about September’s monetary policy decision. The GBP/USD pair is expected to remain on tenterhooks as policy divergence between the BoE and the Federal Reserve (Fed) is likely to…

Earlier this year, Wall Street bankers and profiteering technologists attempted to rebrand all existing technology initiatives as “AI”.(This was silly, but it worked.)Now, investors are starting to realize the AI hype-train is screaming towards a wall.AI isn’t Internet 2.0; It’s Blockchain 2.0 !Google searches for AI have fallen off a cliff; the temperature is dropping as reality sets in. The only company actually benefiting from this madness is Nvidia, but its salad days won’t last forever. The stock is so spectacularly overvalued (“priced above perfection”) that it will inevitably crash. When that happens, it will take the entire S&P 500…

RAND TALKING POINTS & ANALYSIS• Hawkish US data has overshadowed optimistic SA releases.• Fed officials under the spotlight today.• Trendline support in question as trade week draws to a close. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter USD/ZAR FUNDAMENTAL BACKDROPThe South African rand has been swiftly depreciating against the USD since September and although there has been some positive South African specific economic data comprising PPI, GDP, PMI, balance of trade and business confidence, US factors have outweighed any local influences. Today’s consumer confidence (refer…

© Reuters. The World Health Organisation (WHO) logo is seen near its headquarters in Geneva, Switzerland, February 2, 2023. REUTERS/Denis Balibouse/File photo GENEVA (Reuters) – The World Health Organization said it has dismissed a biosecurity expert after an internal inquiry upheld allegations of sexual misconduct but the man’s lawyer dismissed the investigation as a smear campaign. The details of the allegations were not made public. “(The expert) has been dismissed from WHO following findings of sexual misconduct against him and corresponding disciplinary process,” WHO spokesperson Marcia Poole said in an email to Reuters overnight. She said the expert had been…

USD/CAD AnalysisSlowing Economy Weighs on Future Monetary Policy GuidanceThe surprise economic contraction experienced in Q2 reflects the tightening of financial conditions in Canada as a result of historically fast acceleration in the benchmark interest rate. Q2 revealed declining growth which, when annualized as a percentage, represents a yearly decline of 0.2%. However, the Bank of Canada (BoC) warned that rates may need to rise in the event inflation pressures reemerge. Headline inflation rose fr0m 2.8% to 3.3% in August and the rise in oil prices presents further complications to the inflationary outlook.USD/CAD remains well within the existing uptrend but signs…

EUR/USD and EUR/JPY Forecast – Prices, Charts, and AnalysisEuro Area q/q growth is nominal at best.EUR/USD eyes 1.0700 as the greenback remains better bid.The final Q2 Euro Area GDP release shows that the block of 19 countries has barely expanded over the last quarters. Data from Eurostat, the statistics office of the European Union, showed Q2 growth of just 0.1%, down from a prior forecast of 0.3%, while Q1 GDP was revised up to 0.1% from 0.0%. The last three quarterly Euro Area GDP prints are -0.1%, +0.1% and +0.1%. While the Euro Area has stayed out of a technical…

This is a familiar story as we were also in this position yesterday. For now, Treasury yields are sitting just slightly lower on the day but things could turn around once again later when we get to US trading. Keep that in mind if you’re looking for any changes to the trading bias in the day ahead.At least for the moment, the dollar is still keeping steadier with light gains against the euro and pound while holding just a touch lower against the yen. USD/JPY is seen at 147.40 levels now but the 50 pips range is relatively modest compared…

Considering advanced prints from CME Group for natural gas futures markets, open interest increased for the second session in a row on Wednesday, this Source link

POUND STERLING ANALYSIS & TALKING POINTSBoE guidance & UK housing price report weigh negatively on GBP.US in focus later today.Head & shoulders breakout opens up subsequent support zones. Recommended by Warren Venketas Get Your Free GBP Forecast GBPUSD FUNDAMENTAL BACKDROPThe British pound faced some stiff competition from the US dollar yesterday after US ISM services PMI’s outperformed, resulting in a firming greenback. This morning, cable is marginally lower considering the central bank speak at the BoE MPC Treasury Committee Hearings that suggested a more dovish stance relative to market pricing. Data dependency was emphasized by the BoE’s Governor Bailey while…

The coast is clear in terms of top-tier economic catalysts today, but can the U.S. jobless claims report spark some volatility like in the past weeks? Number crunchers are predicting a weak read this time, so the report might force the dollar to retreat from its recent rallies. If that’s the case, I’m looking at an opportunity to go long USD at these bargain levels. USD/CHF 1-hour Forex Chart by TV Uncle Sam continues to churn out upbeat economic figures, but it looks like the dollar could use a break from its climb. Can a downbeat initial jobless claims report…