Author: FX
Share: The EUR/USD fell below the 200-day SMA of 1.0800 towards the 1.0795 area to close the week. The Euro tallied a fourth consecutive weekly loss against the USD. The cautious stance by Christine Lagarde at the Jackson Hole Symposium weakens the Euro. In Friday’s session, the EUR/USD bears broke through the 200-day Simple Moving Average (SMA) of 1.0800, setting a 0.72% weekly loss, its fourth in a row. In addition,the 20 and 100-day SMAs performed a bearish cross, suggesting that further downside may be on the horizon for the pair. At Jackson Hole, Christine Lagarde, president of the…
Fed’s Powell’s Jackson Hole speech finally came and unlike last year when the speech was short and sweet and to the point, there was little bit of something for everyone :Regarding monetary policy and rate decisions:Prepared to raise rates further if deemed necessary.The next move will be based on data.The Federal Reserve will proceed ‘carefully’ when deciding to hike rates again or maintain them. There’s uncertainty in the economy, necessitating ‘agile’ monetary policy-making.On economic observations:Inflation remains higher than desired.Two months of positive data are just the beginning; more is needed to gain confidence in the inflation trajectory.The current policy is…
This week kicked off with an underwhelming PBOC announcement, before the spotlight turned to mostly downbeat PMI readings and the Jackson Hole Symposium. A bit of risk-taking and anti-dollar sentiment lifted the commodity currencies midweek, but the U.S. currency managed to stage quite the turnaround later on. 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 Safe-haven flows supported the dollar early in the week, following a smaller than expected PBOC prime loan rate cut. However, the U.S. currency was barely able to…
Share: GBP/JPY rose near 184.15, but further downside may be on the horizon as bullish momentum wanes. Japan reported soft inflation figures from July. Eyes on Ueda’s and BoE’s official speeches on Saturday. At the end of the week, the GBP/JPY slightly advanced, tallying a 0.50% weekly loss. Inflation figures from July from Japan weakened the Yen while the GBP trades relatively soft against its rivals. There won’t be any highlights for the rest of the session, and the focus is on Ueda’s and BoE’s official speeches on Saturday. On the Japanese front, August’s Tokyo Consumer Price Index…
Share: European Central Bank (ECB) President Christine Lagarde stated on Friday that critical inflation expectations remain anchored at 2%. She emphasized the importance of these expectations and expressed confidence that inflation numbers would look different by the end of the current year. During an interview with Bloomberg TV, Lagarde mentioned that they would closely monitor wage developments. When asked about changing the inflation target, she argued that it would be misleading and counterproductive to anchoring inflation expectations. Regarding the economy, Lagarde stated that German growth is not broken and is demonstrating resilience. Market reaction EUR/USD remains in consolidation…
Share: EUR/JPY consolidates within the 157.00/158.50 range, with an upward bias influenced by ECB President Christine Lagarde’s hawkish tone on inflation. Technical indicators suggest a new trading range could form if the pair falls below 157.00, with key levels at August 3 low of 155.53 and August 23 low of 156.87. A breach above the Tenkan-Sen line at 158.18 could open the door for bulls, targeting the year-to-date high of 159.49, while a break below 158.00 may trigger a slide towards 157.00. As the New York session closes, the Euro (EUR) recovers some ground against the Japanese Yen…
Monday is the UK bank holiday and the following Monday is Labor Day in the US and Canada.Here’s to long weekends! This article was written by Adam Button at www.forexlive.com. Source link
Closing changes:S&P 500 +0.6%DJIA +0.7%Nasdaq Comp +.09% Russell 2000 +0.4%Toronto TSX Comp +0.5%On the week:S&P 500 +0.8DJIA -0.4%Nasdaq Comp +2.3%Russell 2000 -0.4%Toronto TSX Comp -0.1%The chart of the Russell 2000 is concerning. It looks topped out and the economy is weakening. There was a doji this week on an otherwise-decent week for risk trades. Maybe it can stabilize if yields come back down but four weeks in a row of declines isn’t promising.Russell 2000 weekly Source link
> ECB’s Kazaks: I’m in no rush to say that we are done on rates Comments from the member of the ECB’s Governing Council Adam Button Friday, 25/08/2023 | 20:04 GMT-0 25/08/2023 | 20:04 GMT-0 In no rush to say that we are done on rates, a rate pause wouldn’t mean stoppingWe will see the data then decideStopping too early is bigger problem than cuttingShould return to 2% target sooner than end-2025 ADVERTISEMENT – CONTINUE READING BELOW Tags ADVERTISEMENT – CONTINUE READING BELOW Most Popular ADVERTISEMENT – CONTINUE READING BELOW ADVERTISEMENT – CONTINUE READING BELOW Source link
Disinflation has to be ‘timely’ and ‘sustainable’German growth not broken and demonstrating resilienceProximity to war in Ukraine part of the reason for differing economic paths for US and EuropeChanging inflation target would be ‘deceptive’ and counter to anchoring expectationsThat’s a dovish headline from Lagarde, though hardly a signal about a Sept pause. Source link