Author: FX
Share: Silver price edges up 0.07% on Friday, buoyed by a dip in US Treasury bond yields and a mixed market sentiment. Technicals suggest XAG/USD’s struggle near the weekly highs of $23.00, with the 200-day DMA acting as a key barrier. Immediate resistance lies at the downslope trendline, with potential targets at $22.80 and pivotal $23.00 per ounce. Silver price recovers some bright towards the end of the week, climbing 0.07% on Friday, underpinned by US Treasury bond yields falling, while the Greenback trims its weekly gains. Mixed sentiment surrounding the financial markets was another reason for the…
Our strategists had an extraordinary week with arguably four out of four strategy discussions catching solid moves in FX and gold! Our anticipation of global risk-off vibes played out well, so read further to see how fundamentals drove price and what lessons can be learned for your own trading! NZD/USD 1-Hour Forex Chart by TV We kicked off the new week with a look at NZD/USD ahead of the highly anticipated interest rate decision from the Reserve Bank of New Zealand. Before the event, the pair was already in a downtrend, fundamentally supported by weakening economic updates from New Zealand…
The price of Bitcoin this week, finally cracked below its 100-day moving average (blue line in the chart below) for the 1st time since June 21. The price lows over the last few weeks have found support buyers leaning early against that 100-day moving average level, pushing the price back higher. However, in trading yesterday the 100-average day moving average was broken at $28,538 (blue line in the chart below). The momentum continued with the price moving to – and through – the 200-day moving average at $27,291. That was the 1st break and close below the 200-day moving average…
Stronger-than-expected U.S. and U.K. data releases supported hawkish biases for the Fed and BOE, boosting both the U.S. dollar and British pound to the top of this week’s rankings. Meanwhile, China’s growth concerns kept a lid on the demand for commodity-related currencies like AUD and NZD, as well as fueling risk aversion behavior this week. 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 U.S. dollar chopped around net green in first half of the week as optimism for a “soft landing”…
Amidst fluctuating global currencies, MUFG delves into the potential for verbal intervention from Japanese officials, especially as the Jackson Hole Symposium approaches, which may carry significant implications from Chairman Powell’s stance.Key Observations:USD/JPY Surge: There’s been a noteworthy increase in the USD/JPY rate since the Bank of Japan’s (BoJ) policy meeting in July. This uptick is reminiscent of the scenario leading to intervention in the September-October period last year.Intervention Alert Scale: By analyzing previous Japanese language comments linked to past interventions, MUFG’s Tokyo team developed an “Alert Scale.” Based on this 1-8 scale, the current situation is assessed at about level…
Share: The EUR/USD is about to its lowest weekly close since June, below 1.0900. Analysts at Rabobank see risks of the pair moving toward 1.06 on a six-month view. Key quotes: While the USD has recently found support from the ‘higher for longer’ rate theme, it has also found buyers on the back as safe-haven flows as the news from China becomes more worrying. We maintain our 3-month EUR/USD forecast of 1.08 and see risk of EUR/USD moving back to 1.06 on a 6 month view before Fed rate cuts make way for a softer outlook for the…
Crude oil sets the support and resistance going into next wkA week or so ago, the price of crude oil moved above a key swing ceiling between $82.43 and $83.44 (see yellow area and read numbered circles on the chart above). The price moved above that ceiling on Wednesday of last week, closing at $84.40. The next day (on Thursday) a new high was made going back to November 2022 at $84.89, but momentum could not be sustained, and the price moved back within the swing area. On Friday last week, the high price reached $83.81. The low price was…
It was a busy week for repricing monetary policy expectations, as central bank meeting minutes and top-tier data prints supported a longer period of high-interest rates for the major economies. Meanwhile, concerns over China’s growth and stability translated to limited risk-taking and even selling in the markets. Riskier assets like equities, commodities, and comdolls as well as non-yielding safe haven counterparts like CHF and JPY took a backseat to the demand for the U.S. dollar and British pound. Before I tell all the deets, lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on…
Earlier today, Teranet and National Bank released the latest edition of their house price index for Canada. It showed that prices boomed 1.8% from June to July in the fifth consecutive monthly increase.The rise is the second-largest in a single month, surpassed only by July 2006. Seasonally adjusted, prices were up 2.4% m/m with Halifax, Hamilton and Vancouver leading the way.Signs of rising home prices were a big reason the Bank of Canada cited when boosting rates in June and could lead to another hike. The implied probability for Sept 6 is a 30% chance of a hike but that…
Share: GBP/USD retreats from daily highs and losses for the second day in the week but remains set to finish the week on a higher note. Retail Sales in the United Kingdom (UK) were softer, but most data supports the Bank of England’s (BoE) case for a rate hike at its upcoming meeting. The GBP/USD is trading at 1.2740 after hitting a daily high of 1.2766. Read More…. The GBP/USD pair struggles to gain any meaningful traction on Friday and oscillates in a narrow range below a one-week high, around the 1.2785 region touched the previous day. Spot prices currently…