Author: FX
Share: Analysts at Rabobank, see the USD/JPY pair at 145 on a 3-month view and then pulling back to 140 and 135 in 9 and 12 months, respectively, on the back of expectations of softer Federal Reserve policy. Key quotes: “The messages contained within the BoJ’s July policy adjustment have not been easy to decipher. The BoJ may have been attempting to give itself more flexibility around YCC. However, Governor Ueda’s comments on the exchange rate may have encouraged speculation that JPY weakness will result in more upside in 10 yr yields.” “This week’s softer than expected Japanese…
Markets:Gold flat at $1912US 10-year yields up 8.8 bps to 4.17%WTI crude oil up 35-cents to $83.17S&P 500 flatGBP leads, NZD lagsThe final changes on the day and the headlines don’t capture what was a lively August Friday. The PPI numbers hit and were slightly stronger than expected. Normally that wouldn’t cause much of a ripple but bonds spilled lower, pushing yields 5-6 bps higher and that reverberated into risk aversion and US dollar buying.Commodity currencies sank, and EUR/USD fell with all pairs moving 20-30 pips in short order. Even with the risk aversion, USD/JPY continued to climb and touched…
The market spotlight shifted to U.S. inflation data this week, as traders were keen to find out if the latest CPI figures would further support the peak rate hike cycle narrative. A couple of top-tier data points from China managed to steal the show around the middle of the week, though, and the lack of stimulus updates left investors on edge. So, what exactly happened? I can explain, but lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on Arguments Germany Final CPI for July: 6.2% (6.2% forecast; 6.4% previous); “the development of food prices…
A US judge appears to be on the brink of revoking Sam Bankman-Fried’s bail. He’s charged with one of the largest fraud’s in history as he ebezzled billions running the exchange FTX.The judge said he there was probable cause to believe that the FTX founder attempted to tamper with witnesses at least twice, according to a Reuters report.So long and thanks for all the scams. I don’t imagine he will be out of prison for a long time. Source link
Share: XAG/USD fell below $22.70 and is poised for a 3.8% weekly loss. July’s PPI from the US rose to 2.4%. Rising yields don’t allow the metal to gain traction. On Friday, the XAG/USD saw mild losses and will post its fourth consecutive weekly loss, having lost more than 7% since mid-July. At the end of the week, the US reported hot Producer Price Index (PPI) data and positive University of Michigan (UoM) Sentiment and inflation expectations, which fueled a rise in US bond yields. After the release of key inflation data throughout the week, American rates are…
Share: US crude oil benchmark, WTI, rises for the third consecutive day, trading at $83.48, up by 0.80%. Oil demand is predicted to grow by 2.25 million bpd in 2024, down from 2024’s 2.44 million bpd, according to OPEC+. Weakness in China’s economy could dent oil demand. Western Texas Intermediate (WTI), the US crude oil benchmark advances for the third day in the week, trims some of its Thursday’s losses, as it tracks an upslope support trendline since mid-July. At the time of writing, WTI is exchanging hands at $83.48, above its opening price by 0.80%. OPEC+ output…
The market has been laser-focused on inflation for the past year but as prices cool and inflation nears target, the focus will shift to economic strength and for clearer signs of a recession.One of the best economic indicators for the health of the US economy is retail sales and it will be the focus of next week’s US trading. After a bare calendar on Monday, we get retail sales on Tuesday followed by a series of housing and manufacturing indicators then on Friday the calendar is bare again.That certainly sets up some summer-type trading but the one highlight is a…
Share: EUR/GBP retreated near 0.8630 after being rejected by the 100-day SMA at 0.8670. Q2 GDP data from the UK avoided stagnation, surpassing market expectations. Higher British yields help the Pound trade stronger against most of its rivals. In Friday’s session, the GBP traded with gains agains most of its rivals as the UK reported strong Q2 economic activity figures, which faded recession fears. On the other hand, the EUR is trading mixed, while no relevant data was released during Friday’s session. Investors assess British solid economic data The UK’s second-quarter Gross Domestic Product (GDP) data revealed robust performance.…
525 oil rigs vs 525 previouslyNatural gas rigs 123 vs 128 priorOil rigs have been steadily falling this year but US fields have kept up productivity by tapping DUCs. I don’t know how much longer that can last. Gas prices have struggled but there was talk we would be under $1 by now and Henry Hub is at $2.73 as we inch closer to drawdown season. This article was written by Adam Button at www.forexlive.com. Source link
WTI crude oil daily chartOil will be an interesting spot to watch as it fights for a sixth straight week of gains. It’s currently trading at $83.69, which is up 80 cents but more importantly is above the April high of $83.53. A close above that level The driver at the moment appears to be products. Gasoline and diesel inventories are tight, in part because of Russian sanctions. US gasoline futures rose 2.4% today and at the highs would be at the highest level since last October.Here is a great chart from HFI Research showing US gasoline storage.US gasoline storageThis…