Author: FX
Share: The Bank of England surprised markets with a 50 bps rate hike on Thursday, and economists at ING think a reserve currency like the Pound may be kept afloat by a sharply inverted domestic yield curve. A sharply inverted yield curve can come in handy 150 bps of tightening was already priced in before the meeting, and investors are now looking at a 6.0%+ peak rate after the hike. The attempt by the BoE to get ahead of the curve with more aggressive tightening is being accompanied by rising speculation that this will trigger monetary easing starting…
Article written by IG Senior Market Analyst Axel RudolphFTSE 100, DAX 40, S&P 500 – Analysis, Prices, and ChartsFTSE 100 back in negative territory year-to-dateThe FTSE 100 is on track for its fifth consecutive day of losses. It has been slipping since last Friday’s five-week high and is expected to open lower as Asian indices decline because hawkish central banks weigh on sentiment.Thursday’s low at 7,457 is within reach, a fall through which will put the May low at 7,433 back on the map.Only a bullish reversal and rise above Wednesday’s low at 7,518 could put the 200-day simple moving…
Regional growth concerns got traders selling the euro today! Can the common currency recover enough to regain its bullish momentum? Before moving on, ICYMI, yesterday’s watchlist checked out GBP/CHF for a break-and-retest opportunity ahead of BOE’s policy decision. Be sure to check out if it’s still a good play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: U.S. initial weekly jobless claims for the week ending June 17: 264K vs. 271K previous week U.S. Existing Home Sales for May: +0.2% m/m to 4.3M unites(-0.5% m/m forecast; -3.2% m/m…
EUR/USD ANALYSISPMI data did not help the euro claw back overnight losses against the US dollar.ECB and Fed speakers scheduled throughout the day.EUR/USD at testing key support. Recommended by Warren Venketas Get Your Free EUR Forecast EURO FUNDAMENTAL BACKDROPGerman and eurozone PMI’s significantly missed estimates (see economic calendar below) with the manufacturing sectors moving further into contractionary territory. French PMI’s released earlier showed a similar trend, heightening an economic slowdown within the region. Services data although weaker, has managed to buoy the overall EZ economy somewhat.EUR/USD ECONOMIC CALENDAR (GMT +02:00)Source: DailyFX economic calendar Trade Smarter – Sign up for the…
fredrocko/iStock Unreleased via Getty Images Ford Motor (NYSE:F) is planning more layoffs in the coming weeks to further reduce costs and streamline operations amid a major push towards electric vehicles, the Wall Street Journal reported citing people familiar with the matter. The layoffs will mostly affect U.S. salaried workers in Ford’s (F) gas-engine business, as well as its EV and software divisions. “Part of the ongoing management of our business includes aligning our global staffing to meet future business plans, as well as staying cost competitive as our industry evolves,” a Ford (F) spokesperson told WSJ, adding that the automaker…
The dollar is sitting higher so far today, as it builds on the advance from yesterday. That came alongside higher Treasury yields, as markets take a bit of a breather from the earlier moves this week. But as we approach the final day of trading on the week, we are seeing a familiar risk rotation theme again.Equities are lower with S&P 500 futures now down 0.5% while Treasury yields are also down, with 10-year yields lower by 1.8 bps to 3.781% currently. The dollar is staying underpinned though, with USD/JPY holding above 143.00 on the day:USD/JPY daily chartThe pair continues…
Missed the neckline breakout on AUD/CHF? If you’re still bullish on this one, make sure you check out this ongoing retest! As you can see from the 4-hour chart below, the pair is back down to the former neckline of its double bottom reversal pattern. AUD/CHF 4-hour Forex Chart by TV AUD/CHF is closing in on the area of interest spanned by the 50% to 61.8% Fibonacci retracement levels, right above the .6000 major psychological mark. But what are technical indicators saying? Moving averages are looking in favor of a continuation of the rally, as the 100 SMA is above…
Gold, XAU/USD – Price Action:XAU/USD has fallen below key support.Hawkish central bank rhetoric and improving risk sentiment weigh on gold.To what extent XAU/USD could fall? Recommended by Manish Jaradi How to Trade Gold Gold’s fall below key support on Thursday confirms that the multi-week upward pressure has faded as hawkish central bank rhetoric and improving broader risk sentiment diminish the safe-haven appeal of the yellow metal.After holding for weeks above the support, XAU/USD has fallen below 1930, including the end-May low, the 89-day moving average, and the lower edge of the Ichimoku cloud – a risk highlighted in Thursday’s update.…
Share: EUR/USD drifts lower for the second successive day and is weighed down by a stronger USD. The Fed’s hawkish outlook and the risk-off impulse, continue to underpin the safe-haven buck. Bets for additional ECB rate hikes could limit losses ahead of the flash Eurozone/US PMI prints. The EUR/USD pair extends the overnight retracement slide from a six-week peak – levels just above the 1.1000 psychological mark – and drifts lower for the second successive day on Friday. Spot prices drop to a two-day low during the Asian session and currently trade around the 1.0940-1.0935 region, down nearly…
Market RecapFed Chair Jerome Powell reiterated his hawkish tone in his testimony to the Senate Banking Committee overnight, but Wall Street seems to be taking it in stride this time (DJIA -0.01%; S&P 500 +0.37%; Nasdaq +0.95%), with the S&P 500 and Nasdaq overturning their three-day losing streak.Overnight economic data saw little surprise in US initial jobless claims, but the Conference Board Leading Economic Index may warrant some attention with its 14th straight month of decline. The steeper pace of decline over the six-month period between November 2022-May 2023 reflected that tighter policies are working its way through economic conditions,…