Author: FX
Dollar domination was the main theme early in the week, as bulls carried on with their post-NFP charge. However, commodity currencies like AUD and CAD took center stage after their central banks announced surprise interest rate hikes. In addition, the Loonie managed to benefit from the OPEC+ announcement of voluntary output cuts. USD Pairs Overlay of USD vs. Major Currencies Chart by TV Yet another upside NFP result for May boosted the Greenback against its rivals at the beginning of the week as dollar traders revived hopes for a June Fed hike instead of a “Fed pause.” These gains were quickly…
Share: Data released on Friday showed employment fell by 17,000 in May in Canada, against expectations of a 23,200 increase. Analysts at CIBC affirm that some cracks appeared within the Canadian labour market in May, but these “may not yet be wide enough to convince the Bank of Canada that inflation is about to meaningfully cool off.” Key quotes: “The weaker-than-expected headline figure may have been exaggerated by youth employment, which can be volatile at this time of year. As such, we still forecast one more 25bp hike from the Bank of Canada by the September meeting. However,…
Share: USD/MXN falls to seven-year lows, down by 0.63%. Mexico’s deflationary process sees May’s CPI falling more than expected, predicted to keep Banxico from raising rates. Upbeat market sentiment and expectations for a Fed rate pause ahead of next week’s FOMC meeting weigh the USD. Futures market pricing has a 33% chance of a Fed hike next week 90% chance in the July meeting. USD/MXN falls to new seven-year lows as the Mexican Peso (MXN) continues to appreciate sharply against the US Dollar (USD), even though the Mexican central bank is expected to keep rates higher for longer.…
Share: USD/CAD bulls eye a break of the 1.3370 resistance. Bears need a break of 1.3300 and the solid demand area. USD/CAD has been firmer on the day, adding to its weekly gain. However, on Wednesday, the BoC hiked its benchmark rate by 25 basis points to a 22-year high of 4.75%, on increasing concerns that inflation could get stuck significantly above its 2% target. This leaves the technical outlook in contrast with the fundamentals considering the prospects of a phase of accumulation as per the following analysis: USD/CAD daily charts The bulls are moving in although the price…
Share: XAU/USD faces mild losses at the $1,960 area but is poised for a weekly gain. Fed rate-hike pause expectations and fragile market sentiment to act as tailwinds for Gold price. Investors eye on FOMC meeting and forward guidance. The XAU/USD is currently experiencing mild losses around the $1,960 area but it remains poised for a weekly gain. However, the expectations for the pause on rate hikes by the Federal Reserve act as a tailwind for Gold, while rising US bond yields limit its upside potential. Focus on next week’s US inflation and FOMC meeting Expectations that Federal…
The price of the WTI crude oil futures is settling at $70.17. That’s down -$1.12 or -1.54%. The low price today reached $70.10. The high price was at $71.77.For the week, the price fell $1.57. The price last week settled that $71.74.Crude oil Read this Term prices recorded a second consecutive week of declines, impacted by the strength of the US dollar and sparse news. Prices initially rose due to Saudi Arabia’s commitment to production adjustments but were later pressured by increases in US fuel stocks and disappointing Chinese export data. The surprise contraction in the Canadian labor market, coupled…
The NZDUSD NZD/USD Understanding NZD/USD: A Comprehensive GuideThe NZD/USD is a commonly offered currency pair representing the New Zealand dollar or Kiwi and US dollar. The pair is popular for exposure into a commodity currency, i.e. the NZD, which helps capture risk appetite for forex traders. Like its Antipodean counterpart, the Australian Dollar, the NZD/USD is seen as a carry trade, due in part to interest rate differentials which favor the NZD. The NZD is the world’s seventh most liquid pair at the time of Understanding NZD/USD: A Comprehensive GuideThe NZD/USD is a commonly offered currency pair representing the New…
Revived Fed rate hike bets stemming from an upbeat May NFP lifted U.S. bond yields and risk appetite early on, before sentiment shifted this way and that throughout the choppy week. Ready to hear what happened this week? Better check these market-moving headlines first! Notable News & Economic Updates: ? Broad Market Risk-on Arguments Saudi Arabia announced a voluntary addition of 1 million-barrel-per-day production cut after weekend OPEC+ meeting, while other voluntary cuts expiring in 2023 will be extended until the end of 2024 China’s Caixin services PMI improved from 56.4 to 57.1 in May (vs. 55.2 expected) and suggested…
Trump arrested (AI image)It will be interesting to see how this indictment goes. Trump has a good chance of being the next US President but this also had a good chance of landing him in jail. Notably, none of the 37 counts has mandatory minimums, though maximums reach 20 years.It seems to me like there are classified documents that are ho-hum and then there are documents like the ones described below. 3. The classified documents TRUMP stored in his boxes included information regarding defense and weapons capabilities of both the United States and foreign countries; United States nuclear programs; potential…
Morgan Stanley, a leading global financial services firm, has recently expressed its outlook on the US dollar (USD) and Japanese yen (JPY) in its latest report.Morgan Stanley analysts believe that the US dollar has the potential to continue to gradually strengthen this year. They point out that even if the global economy manages to circumvent a full-scale recession, the asymmetry in central banks’ reactions coupled with uninspiring economic growth rates indicates that investors are likely to maintain a defensive stance in the markets. Furthermore, the positive carry that the USD offers makes it an attractive option for investors.The report also…