Author: FX
U.S. debt-limit drama was the big sentiment driver this week, but we also saw fresh central bank comments and top tier economic updates that actually shook up interest rate outlooks and the usual intermarket price action tendencies. Ready to hear what happened this week? Better check the market-moving headlines first! Notable News & Economic Updates: ? Broad Market Risk-on Arguments Australia’s monthly CPI accelerated from 6.3% y/y in March to 6.8% y/y in April (vs. 6.4% expected) JOLTS U.S. Job Openings in April: 10.1M vs. 9.75M in March; “the number and rate of layoffs and discharges decreased to 1.6M” ADP…
2/2 © Reuters. FILE PHOTO: Police release tear gas into a crowd of pro-Trump protesters during clashes at a rally to contest the certification of the 2020 U.S. presidential election results by the U.S. Congress, at the U.S. Capitol Building in Washington, U.S, January 6 2/2 By Jacqueline Thomsen and Andrew Goudsward WASHINGTON (Reuters) – Oath Keepers militant group members David Moerschel and Joseph Hackett were sentenced on Friday to prison for seditious conspiracy and other crimes arising from the Jan. 6, 2021, attack on the U.S. Capitol by then-President Donald Trump’s supporters. Hackett, a Florida chiropractor and low-level Oath…
Share: Gold price dips despite week’s strong showing; US job growth exceeds expectations. Rising US Treasury bond yields and a robust USD exert downward pressure on gold. US debt-ceiling resolution eases bond yields, potential respite for gold. Gold price slumps after hitting a daily high of $1977.87, as the release of a solid US jobs data report underpinned US Treasury bond yields, a headwind for the yellow metal. That, alongside a strong US Dollar (USD), keeps XAU/USD downward pressured but still set to end the week with decent gains. At the time of writing, the XAU/USD is trading…
It was a strong week from our FX strategists as three out of five price scenarios arguably played out in our favor, including an expected strong bearish move on AUD/USD. Check out our quick recaps and let us know how you did this week in the comment section below! Forex Setup of the Week: EUR/USD’s Trend Pullback Ahead Of CPI & NFP Reports EUR/USD Daily Forex Chart by TV On Monday, we spotted a longer-term setup on EUR/USD as it retested a major trendline on the daily chart, ahead of potential catalysts from both the Eurozone and the U.S. We were…
USDJPY 1 hour chartThe yen is broadly softer today but the US dollar is taking particular advantage in the wake of the strong non-farm payrolls report.USD/JPY stalled out yesterday just ahead of 140.00 but broke through today as the pair benefits from rising long-term Treasury yields. One of the drivers of higher yields is a warning from Fitch that it will continue to evaluate the US’s AAA rating for a downgrade in Q3. That development certainly wouldn’t be good news for the dollar but for the moment it’s yields in the drivers’ seat.There are some flows into the US on…
Share: Oil price recovers for the second day after the debt-ceiling bill gets voted through by the US Senate. The possibility of OPEC+ announcing more production cuts at its June 4 meeting further supports Oil. The breakeven price for the Saudis is $80 a barrel despite Russia downplaying the need for cuts. Nonfarm payrolls beats estimates but the initial boost to the US Dollar reverses on higher-than expected unemployment and a wage disinflation. Oil price rallies for the second day on Friday as global markets breathe a sigh of relief after the US Senate votes through the debt-ceiling extension bill,…
Share: US adds 339K jobs, beating estimates; EUR/USD slips by 0.43%. Federal Reserve’s hawkish outlook hints at a possible July FFR increase. Positive economic indicators from Europe, including Italy’s Industrial Production and Spain’s Unemployment Change. EUR/USD slumps from weekly highs reached as a knee-jerk reaction to a solid US jobs report, driving the pair towards 1.0779 before sliding toward daily lows. The labor market in the United States (US) stayed strong but saw slight signs of weakness. At the time of writing, the EUR/USD is trading at 1.0715, printing losses of 0.43%. EUR/USD pair exhibits a weak response…
Share: Headline employment growth in the US rose by 339k in May. The US Unemployment rate rose to 3.7%. Wage inflation slightly decreased. The USD/JPY gained more than 60 pips on Friday, spiking to the 139.70 zone following the labor market data from the US which suggested that the Federal Reserve (Fed) may reconsider a further hike. As a reaction, the US Dollar gained traction on the back of rising US bond yields while Japanese yields continue to decline. Yield divergence post NFP favors the Greenback The US Bureau of Labor Statistics released that employment in the…
GBP/USD Prices, Charts, and AnalysisLittle domestic economic data or events next to guide Sterling.GBP/USD clients have turned net short. Recommended by Nick Cawley How to Trade GBP/USD The British Pound has had a strong week, making multi-week gains against a range of other currencies. The British Pound is up over 2 big figures against the US dollar on the week, over one big figure against the Euro, and by around one-and-a-half big figures against the Japanese Yen. The recent UK inflation report, showing price pressures easing but at a slow rate, has increased expectations that the Bank of England will…
Share: US Dollar managed to stage a modest rebound following Thursday’s selloff. US Dollar Index stays below 104.00 and looks to snap a three-week winning streak. Impressive May jobs data from US helped US Dollar limit its weekly losses. The US Dollar (USD) has managed to gather some strength against its major rivals in the early American session on Friday. The US Dollar Index, which tracks the USD’s valuation against a basket of six major currencies, clings to daily gains above 103.50 but remains on track to end the week in negative territory. The monthly data published by…