Author: FX
The week ahead will bring a fresh test for major currency pairs as investors digest the first Federal Reserve (Fed) policy decision under Chair Kevin Warsh and look ahead to the United States (US) Personal Consumption Expenditures (PCE) data, global PMI releases, and central-bank commentary.The US Dollar Index (DXY) trades near the 100.70 price zone on Friday after reaching a 13-month high of 101.13 earlier in the day. The Greenback rose sharply this week following the Fed’s decision to leave interest rates unchanged in the 3.50%-3.75% range, and removing its previous reference to “additional rate adjustments” . A hotter-than-expected PCE…
Silver (XAG/USD) price tumbles for the third consecutive trading day, down over 3.32% on Friday, courtesy of broad US Dollar (USD) strength and rising US Treasury yields, which have aimed higher since Wednesday amid the Fed’s hawkish tilt.XAG/USD Price Forecast: Technical OutlookSilver price continued to trend lower after clearing the 200-day Simple Moving Average (SMA) at $69.11, which was tested three times this week, but buyers surrendered, and sellers are gaining the upper hand, pushing the white metal below $65.00.Momentum shows that bears have continued to gain traction, as indicated by the Relative Strength Index (RSI), though it’s worth noting…
Markets:Gold down $49 to $4160WTI crude oil up 94-cents to $77.54US markets closedS&P 500 futures down 0.2%JPY leads, CAD lagsThe US was on holiday on Friday and that limited market moves to wrap up the week. There was news though as Israel and Hezbollah agreed to a ceasefire. The market took at that as good news initially with oil falling more than $1 but those moves slowly unwound as the fighting in Southern Lebanon continued virtually unabated. As of the time of writing there were reports of ongoing shelling so that’s worth watching over the weekend. Other reports continue to…
I thought we might see some real currency intervention today after Japanese Finance Minister Katayama said he was prepared to take ‘decisive action’ on speculative moves in the yen.That comment caused a quick fall to 161.00 from 161.70 but the pair soon rebounded to 161.30 and it’s traded there since. If we finish around those levels, today will market the highest weekly close since 1986.It’s a dangerous game buying USD/JPY around these levels given the intervention threats but the market doesn’t seem afraid, even going into a weekend. Japan has spent about $73 billion defending the yen so far this…
This has to be the most-fragile ceasefire in history. It’s hard to believe this is ever going to hold. This article was written by Adam Button at investinglive.com. Source link
Gold (XAU/USD) price edges lower by some 1.69% on Friday, poised to end with losses for the third consecutive week.At the time of writing, XAU/USD trades at $4,147, weighed by overall US Dollar strength sparked by the Federal Reserve’s (Fed) decision to keep interest rates higher for longer.XAU/USD falls as Dollar strength, rising US yields biteA risk-on mood is weighing on non-yielding metals, as investors turn to US Treasuries, which pay a yield, and the US Dollar, which is at 13-month highs above 101.00, as depicted by the US Dollar Index (DXY).The US-Iran deal shifted traders’ sentiment, though it remains…
The party can’t last forever.Friday’s rally in stock markets — particularly in chip stocks — surprised me. The Fed was hawkish and stock market sold off during the FOMC press conference as bonds priced in a more-hawkish rate path. That all made perfect sense but then stocks immediately turned after the close and hit records on a few fronts on Thursday.The market is closed today and futures are a tad lower but it was a surprising reversal. The only visible catalyst was Trump signing the MOU with Iran but the market has rallied on that same headline dozens of times.…
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You can see the indecision on the DAX chart shown here but the overall mood was good. The bulk of the move came on Monday as the US and Iran reached a peace deal. That’s driven the price of oil lower and removed a material risk to the eurozone economy. It’s concerning there was no follow through but the market has had plenty to digest this week with the new Fed chairman and the fighting in Lebanon threatening to derail peace. If we can get a lasting ceasefire, European stock markets could get a stronger bid. If you remember back…
It was a week in two parts of the gold market.The good news came early as the Iran war ended, and seemingly for real this time. That news helped to extend a rally that started late last week and lifted gold from a low of $4022 to as high as $4382.The peak came just before the FOMC decision and it proved to be a gamechanger. The statement was hawkish and it was backed up by repeated assertions from new Chairman Kevin Warsh that they’re determined to hit the 2% inflation target. He was deliberately vague on the specifics though and…