Author: FX
Share: Bullish-engulfing candlestick pattern on the daily chart suggests buyers are in control. The first major resistance at 1.3600, followed by several key levels up to 1.3804. Downside risks include a drop below 1.3489, potentially targeting the 200-DMA at 1.3462 and the 50-DMA at 1.3345. The Canadian Dollar (CAD) losses ground against the US Dollar (USD) sponsored on weaker than expected Canadian economic growth in the second quarter, alongside a mixed US jobs report and improvements in business activity. Hence, the USD/CAD is trading at 1.3595 after hitting a daily low of 1.3489, above its opening price by…
Share: NZD/USD peaked at a daily high of 0.6015 and then plummeted to 0.5940. US NFPs from August showed a mixed picture, while the Manufacturing PMIs from the same month came in better than expected. The USD holds its ground despite investors betting on lower odds of a last hike by the Fed this cycle. At the end of the week, the USD measured by the DXY index tallies daily gains after volatility seen in the markets after the release of August Nonfarm Payrolls and ISM PMI manufacturing figures. Still, the NZD/USD pair will record a weekly 0.70% increase. No relevant…
Our FX strategists had a solid week with two out of two solid strategies moved in their favor, while the other two were quickly invalidated by fundamental data. Read on to see more of how they did in what was a very busy week, especially for the U.S. dollar! AUD/USD 2-Hour Forex Chart by TV On Monday, we were leaning bullish on AUD/USD after action in China to support their economy and better-than-expected retail sales data from Australia. From the U.S. dollar side, last Friday’s price action suggested that traders saw Fed Chair Powell’s Jackson Hole speech as “not as…
Shifting rate hike and recession odds moved the major currencies around this week, mainly sparked by U.S. reports that pointed to a less hawkish Fed. Meanwhile, talks of higher interest rates in the Eurozone while the region is still printing weak growth markers weighed on European currencies like EUR, GBP, and CHF. Missed the major forex headlines? Here’s what you need to know from last week’s FX action: USD Pairs Overlay of USD vs. Major Currencies Chart by TV The first batch of weak U.S. economic reports on Tuesday supported the idea that the Fed plans to “proceed carefully” with its next…
Markets:Gold flat at $1940US 10-year yields up 8.8 bps to 4.18%WTI crude oil up $2.25 to $85.88S&P 500 up 0.1%USD leads, CAD lagsThe initial market reaction to the non-farm payrolls report was about what you would expect — USD selling, bonds bid — but then it got complicated. The initial moves reversed and bonds sold off, leading to a strong bid in the US dollar. The moves grew increasingly aggressive with USD/JPY slumping to 144.45 then soaring to 146.16 — nearly 180 pips.The dollar roared elsewhere as well with EUR/USD tumbling to levels just above the August lows. That wiped…
After a slow start, the major financial asset classes jumped into anti-Dollar mode thanks to a heavy U.S. calendar showing signs of economic growth cracking. This lifted prospects of the Fed nearing the end of its tightening cycle, which took down the Greenback most of the week while boosting gold and U.S. equities in the process. So, how did the other global assets behave this week? I can explain, but lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on Arguments Australia’s retail sales rebounded by 0.5% m/m in July (vs. 0.3% expected, -0.8%…
SPX weekly chartClosing changes:S&P 500 +0.2%DJIA +0.3%Nasdaq Comp flatRussell 2000 +1.0%Toronto TSX Comp +1.2%Weekly:S&P 500 +2.5%DJIA +1.4%Nasdaq Comp +3.2%Russell 2000 +3.6%Toronto TSX Comp +3.5%There were some larger divergences with energy leading the way today behind a 2.0% rise in the XLE ETF. Banks were also strong to help pace the gain in the Russell 2000.The weekly chart sets up a showdown with the July high but we’ll have to wait until Tuesday as North American markets are closed for a holiday. Source link
Share: The Pound Sterling (GBP) slumped late in the New York session versus the Greenback (USD) as US Treasury bond yields rose and bolstered the USD, which is set to print its seven consecutive week printing gains. The GBP/USD hit a daily high of 1.2712 before reversing its course and diving toward the current exchange rate, trading at around 1.2590s. Read More… The Pound Sterling (GBP) weakens as market sentiment turns bearish and investors see a higher interest rate peak from the Bank of England (BoE). The GBP/USD discovered selling interest as BoE policymakers, including Deputy Governor Ben Broadbent and Chief Economist Huw Pill,…
The September dot plot is always the most-interesting one of the year because it’s the closest thing to forward guidance that the FOMC offers. Officials are required to place a year-end dot but there are only two meetings left so it basically says what they expect to happen in the next two meetings. Now that’s far from set-in-stone but with Sept hike odds down to 7% after the non-farm payrolls report, it will offer some intrigue at the Sept 20 decision.Here’s what the fixed income team at BMO is looking for (note that the current rate is 5.25-5.50%):In terms of…
EURCAD dailyGoldman Sachs maintains its recommendation for a short position in EUR/CAD with a target of 1.42 and a stop at 1.50. The rationale behind this trade is largely based on the resilience of the U.S. economy and the potential for upside in the Bank of Canada’s monetary policy.Key Points:Strategic Focus: Goldman Sachs is focused on tactical, relative value opportunities that are likely to be resilient against further volatility in the U.S. dollar.Pair Selection: EUR/CAD is the preferred G10 currency pair for this strategy.Resilient U.S. Economy: The U.S. economy continues to show resilience despite various market uncertainties. This strengthens the…