Author: FX
Share: USD/MXN eyes its first weekly gain since April 28, currently trading at 17.7767, as risk-off sentiment prompts outflows from the emerging market Peso. US Treasury Secretary Janet Yellen’s comments and Fed Chair Jerome Powell’s remarks on inflation triggered a shift towards safe-haven assets like the US Dollar. Banxico’s halt on its rate hike cycle and weaker-than-expected Mexican Retail Sales data contribute to the weakening of the Mexican Peso. USD/MXN rises above the 20-day Exponential Moving Average (EMA) as the pair eyes its first weekly gain since April 28, up more than 1%, ahead into the weekend. The…
Share: WTI bulls move in for the kill from support. The $72s are on the bulls radar. WTI is trying to correct but remains down on the day as the black gold consolidates into the weekend at around $71.85. From a point of view from analysts at TD Securities, ´´the positioning set-up in energy markets remains extremely supportive of the medium-term outlook, given that money manager participation in crude markets is at least at a decade low.´´ The analysts argued that there are substantial capital inflows moving into the sector as fundamentals begin to tighten in the second half of this…
The U.S. dollar may have caught most of the traders’ attention with U.S. debt talk developments and Fed speak this week, but wasn’t the best trending FX asset this week! The New Zealand dollar was likely the best opportunity as it trended higher across the board as traders priced in hawkish RBNZ meeting expectations. The Japanese yen was a great opportunity as well as it was uniformly dragged lower against its major counterparts on improving risk sentiment vibes, dismissing net positive numbers from Japan this week. USD Pairs Overlay of USD vs. Major Currencies Chart by TV Debt ceiling concerns…
Global risk assets saw lots of green while gold and bond prices steadily fell as the week went on. This likely signaled easing global recession fears and U.S. debt crisis fears, at least through Friday trade. Aside from those themes, the biggest story may have been rising odds of more Fed tightening as a numerous amount of Fed officials spoke this week and signaled an openness to raise interest rates again in June. Notable News & Economic Updates: ? Broad Market Risk-on Arguments House Speaker Kevin McCarthy shows optimism on Thursday that a deal to raise the debt ceiling may…
The major US stock indices are ending the day lower. The excuse will be the debt ceiling talks stalling (for now), but if there was a lot of worry, the stock market would be down much more. Technically, however, the S&P index could not close above the 4200 natural level (it is closing at 4191.99), nor could the price of the S&P close above its 100-week moving average at 4201.1. Close but no cigar. That could be problematic from a technical perspective. It will take a move above the 100-week moving average next week to give the buyers more ammunition…
Share: Analysts at Rabobank see the EUR/USD pair moving to the downside over the next months. They have a six-month forecast for EUR/USD at 1.06. Key quotes: “Despite its safe haven characteristics, the USD failed to gain traction last month on the US regional banking woes. This was a result of the market perceiving this to be a specific US event with little contagion risk to Europe or elsewhere. That said, on the back of sticky inflation pressures it is our view that Fed rates will be higher for longer than the market currently expects.” “We also see…
Share: Here is what you need to know for next week: The US Dollar Index (DXY) rose for the second consecutive week despite improving market sentiment. The debt ceiling drama is set to continue as the deadline approaches, and although there are hopes for a deal, it has not been reached yet. The banking sector remains in the spotlight, particularly after Treasury Secretary Yellen’s comments on Friday. Next week, the market will get a glimpse of the performance of the global economy with the preliminary May PMI that will likely weigh on sentiment. Treasury yields rose sharply during…
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EURUSD back below 100 day MATechnically, the price for the EURUSD moved above its 100-day MA at 1.0807 but stalled ahead of the falling 100-hour MA (blue line currently at 1.0832). The high reached 1.0828. Buyers turned to sellers. We are heading into the weekend and then into a new trading week, but what is clear from the hourly chart at least is that the price has been able to stay below the 100-hour moving average since May 8. There have been 4 separate tests at lower successive levels, and each test has found willing sellers. The prices also looking…
Share: The GBP/USD pair shows some resilience below the 50-day Simple Moving Average (SMA) on Friday and stages a solid bounce from sub-1.2400 levels, or over a three-week low touched the previous day. The pair, however, retreats a few pips from the daily high touched during the early North American session and currently trades around the 1.2435-1.2445 region, up nearly 0.25% for the day. Read More… The GBP/USD pair shows some resilience below the 50-day Simple Moving Average (SMA) and stages a modest recovery from sub-1.2400 levels, or over a three-week low touched the previous day. Spot prices…