Author: FX
Steel is the physical backbone of the global economy and trends in steel pricing offer some insight into strength in investment.Oftentimes those signals can become muddied by trade flows, especially when China was dumping steel into the US. Since the steel trade war though, US production is far more of a domestic industry than previously and that makes it a better economic barometer.Today, large steel US producer Steel Dynamics offered an update on Q2 operations, forecasting earnings that were modestly below estimates, leading to a 4% decline in shares. More interesting are the details in the report.The non-residential construction sector…
Share: UOB Group’s Economist Ho Woei Chen, CFA, reviews the latest set of Chinese data releases. Key Takeaways The moderation in China’s industrial production came within expectation while retail sales and fixed asset investment slowed more than expected in May. New home prices also rose at its slowest pace in four months and the youth unemployment rate hit a fresh record high in May. China’s post-Covid recovery is running out of steam with risks that the economy may weaken further without stronger fiscal and monetary policy support. As expected, the PBOC cut the benchmark 1Y medium-term lending facility…
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros Meet Alex. Alex’s trading performance has been choppy at best and he’s looking for ways to achieve consistent profitability. After scanning trading-related forums, Alex stumbled upon the term “reward-to-risk (R:R) ratio,” and learned from other traders that using a high R:R ratio would increase his chances of booking profits. He tries it on his long EUR/USD trade and aims for 50 pips using a 25-pip stop. Unfortunately, the pair only moved 30 pips…
EUR/USD News and AnalysisEUR/USD remains close to five-week highsThe ECB’s prognosis that rates will likely rise again in July has underpinned itStill, gains have been fast and the ECB isn’t the only central bank raising rates Recommended by David Cottle How to Trade EUR/USD EUR/USD remains close to five-week highs, upward revisions on inflation outlookThe Euro steadied on Friday but still looks set to end the week on a high note thanks to the European Central Bank, which raised its key lending rates once again on Thursday.The decision had been widely expected given the stubbornness of Eurozone inflation, as indeed…
Carl Court Stock index futures were up slightly Friday with bulls enjoying a strong week. S&P futures (SPX) +0.2%, Dow futures (INDU) +0.2% and Nasdaq 100 futures (NDX:IND) +0.1% were higher. Going into Friday’s trading, the S&P 500 (SP500) is up 3%, the Nasdaq Composite (COMP.IND) is up 4% and the Dow Jones (DJI) is up 1.6%. “Risk assets are exhibiting few nerves at the moment and have continued their relentless advance over the last 24 hours, with the S&P 500 rising for a 6th consecutive session on Thursday for the first time since November 2021,” Deutsche Bank’s Jim Reid…
GBP/USD News and AnalysisGBP/USD weekly chart reveals further longer-term upside potentialCable’s bullish posture likely to hold heading into CPI and BoE meeting next weekMajor risk events: UK CPI and the BoE rate decisionThe analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library Recommended by Richard Snow Learn how to set up ahead of major data releases GBP/USD Weekly Chart Reveals Further Longer-Term Upside PotentialLooking at the weekly GBP/USD chart, bulls have enjoyed three strong weeks after bouncing off of support around the 50% retracement of the…
The new forecast by Goldman Sachs sees them expecting the ECB to lift rates to 4.00%, a similar view to what many are calling as seen from earlier here. This article was written by Justin Low at www.forexlive.com. Source link
Share: Extra gains could see GBP/USD revisiting the 1.2900 region in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang. Key Quotes 24-hour view: We highlighted yesterday that “while severely overbought, the advance in GBP has room to break above 1.2700 before the risk of a pullback increases”. We added, “The next major resistance at 1.2790 is highly unlikely to come into view”. We did not expect GBP to accelerate upwards to within one pip of 1.2790 (high of 1.2789). Today, GBP is likely to break 1.2790. In view of…
Breakout alert! USD/CAD is trading juuust under a major support level! Will this mean more losses for USD/CAD? USD/CAD Daily Chart by TV As you can see, USD/CAD is already trading below the 1.3300 psychological level that has been supporting the pair since November 2022. Keep in mind that the pair had already broken below a key trend line support a couple of months back. What makes the daily chart even more interesting today is that its 100 SMA is showing a bearish SMA crossover against the longer-term 200 SMA. Are we looking at a reversal in the making? Before…
US Dollar, Japanese Yen, USD/JPY, BOJ – Talking Points:BOJ kept ultra-loose policy settings unchanged, in line with expectations.USD/JPY rose slightly in reaction to status quo on policy.What is the outlook for USD/JPY and what are the signposts to watch? Recommended by Manish Jaradi How to Trade USD/JPY The Japanese yen fell slightly against the US dollar after the Bank of Japan’s (BOJ) maintained ultra-loose policy settings, especially the closely watched yield curve control (YCC) policy, in a bid to support the nascent economic recovery and sustainably achieve its inflation goal.The BOJ was widely expected to maintain its ultra-easy monetary policy…