Author: FX

© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 3, 2023. REUTERS/Brendan McDermid By Noel Randewich and Sruthi Shankar (Reuters) – The ended lower on Friday, weighed down by Microsoft and other market heavyweights as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes. The Nasdaq also ended the week lower, although the index and the S&P 500 remained near 14-month highs after economic data this week pointed to cooling inflation, eclipsing concerns about further rate…

Share: USD/JPY surges to a YTD high of 141.91, though failure to surpass 142.00 could trigger a sell-off. The rising wedge pattern sparks uncertainty as USD/JPY nears key resistance. Japanese FX intervention may influence future USD/JPY direction. USD/JPY soared more than 1% on Friday due to safe-haven flows and a jump in US Treasury bond yields. On its way north, the USD/JPY reached a new year-to-date (YTD) high of 141.91 after bouncing off daily lows of 139.85. At the time of writing, the USD/JPY is exchanging hands at 141.85. USD/JPY Price Analysis: Technical outlook USD/JPY finished the week…

Share: NZD/USD traded neutral at the 0.6230 area on Friday but set a 1.70% weekly gain. Hawkish Fed speakers and upbeat UoM data gave the USD momentum. Rising US bond yields limited the Greenback’s traction. The NZD/USD traded stable at the 0.6210 – 0.6245 range at the end of the week, holding to a 170 pip weekly gain. In that sense, hawkish Federal Reserve (Fed) speakers lifted the US bond yields while upbeat consumer confidence data from the University of Michigan gave the Greenback an additional boost. On the NZD’s side, now relevant economic data was released, and…

A view technically for the EURUSD into the week starting June 19 The EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency,…

It was a slow start to the trading week before market players started placing their bets ahead of the major catalysts, particularly the U.S. CPI report and three central bank decisions. Top-tier U.S. events turned out to be a bit of a surprise, including U.S. CPI falling short of estimates while the FOMC stayed very hawkish despite hitting the pause button with their rate hikes. Although the Greenback managed to rake in some gains when policymakers dropped tightening hints, the U.S. currency is trailing behind most of its peers, along with the lower-yielding yen. USD Pairs Overlay of USD vs.…

The strongest to the weakest of the major currenciesThe day and week is ending with the GBP as the strongest and the JPY as the weakest. The JPY sharp fall was triggered by the Bank of Japan rate decision. The Bank of Japan (BOJ) decided to keep its short-term interest rate target at -0.1% and its 10-year Japanese Government Bond (JGB) yield target around 0%, with a band up and down 0.5% each. This decision, part of the BOJ’s yield curve control (YCC) strategy, was made unanimously. In the statement, the BOJ observed that Japan’s economy is improving, and it…

Share: EUR/USD bulls eye higher highs but a correction could be on the cards.  Bears eye a correction to test trendline support. The euro surged into the 1.0970 mark vs. the US Dollar on Friday, reaching its strongest level since May, following the European Central Bank’s decision to raise interest rates for the eighth consecutive time earlier in the week. There was also a signal that future rate hikes were on the table, leaving scope for higher highs in the pair: EUR/USD weekly chart The market has run into the weekly neckline of the M-formation. This leaves prospects…

Share: USD/CHF rebounds, trading at 0.8941, showing consolidation around the 0.8900 level. The pair needs to surpass 0.8949 (61.8% Fibonacci Retracement) to reach the 0.9000 mark. A drop below 0.8900 could expose the year-to-date low at 0.8819. USD/CHF rebounds at around weekly lows, though it remains below the 0.9000 figure, due to a risk-off impulse that bolstered the US Dollar (USD), which is set to finish the week with losses of 1.18%, per the US Dollar Index (DXY). The USD/CHF is trading at 0.8941 after hitting a daily low of 0.8901. USD/CHF Price Analysis:  Technical outlook The USD/CHF…

Share: AUD/USD bears are in the market and eye the 38.2% Fibo. Daily trendline supports are a focus on the downside.  The Australian dollar has been running on its last gas into the close on Friday with the price at its highest in four months, after surging 1.3% overnight.  It is set for a 2.2% weekly gain, the best since mid-November 2022, and way off its 2023 low of $0.6459 two weeks ago. Technically the price is now reaching a daily order block: AUD/USD daily charts At this juncture, there could be a sell-off and to target the depths of the…

Although the major indices are closing lower on the day, each enjoyed solid gains this week. The S&P index is higher for the 5th consecutive week. The NASDAQ index is up for the 8th consecutive week. The Dow Industrial average is up for the 3rd consecutive week. The small-cap Russell index lagged, but still closed with a gain for the weekFor the day,Dow Industrial Average fell -107.05 points or -0.31% at 34300.75S&P index fell -16.17 points or -0.37% at 4409.68NASDAQ index felt -93.96 points or -0.68% at 13689.56Looking at the small-cap Russell 2000 index, it fell -13.81 points or -0.73%…