Author: FX
The major US indices are closing sharply higher with the NASDAQ index leading the way. A Goldilocks scenario where the growth can continue with hopefully lower inflation help contribute to the buying across the board. The Dow industrial average had its best day since January 6. The S&P index has 4th best percentage gain this year. The NASDAQ index rose 2.25% and traded to the highest level since February 2 (the high price for 2023The final numbers are showing:Dow industrial average rose 546.75 points or 1.65% at 33674.39 S&P index rose 75.05 points or 1.85% at 4136.28NASDAQ index rose 269…
Share: XAU/USD plunges, shedding 1.68% as rate hikes and soaring bond yields dull gold’s allure. US Nonfarm Payrolls beat estimates with 253K new jobs, pushing Treasury bond yields higher. Gold demand dips in Q1 2023, with the central bank and Chinese consumer purchases offset by investor buying. Gold price slides sharply as the XAU/USD failed to hold to its gains nearby the year-to-date (YTD) high at $2081.46, as two major central banks increased rates, boosting bond yields. Additionally, a better-than-expected jobs report in the United States (US), triggered a jump on US T-bond yields. At the time of…
Share: The US official employment report showed better-than-expected numbers with payrolls rising by 253,000 above the 179,000 expected. Analysts at RBC Economics Research point out that the solid momentum in employment data is not expected to continue later on this year, given signs of moderating hiring demand. Key quotes: “Despite ultra-low unemployment rates, signs of weakening labour demand continue to emerge elsewhere – job openings have been trending lower since last spring. And slower quit rates are flagging less confidence in hiring conditions among workers.” “Solid momentum in U.S. employment reports not expected to continue later on this…
Share: Analysts at MUFG Bank point out the Norwegian Krone could rebound after a heavy sell-off. They have a trade idea of shorting USD/NOK at 10.620, with a target at 10.150. Key Quotes: “The NOK has become deeply undervalued and out of line with short-term fundamental drivers such as the price of oil, investor risk sentiment and yield spreads. The Norges Bank has signalled greater sensitivity to NOK weakness at this week’s policy meeting. If NOK weakness persists, it will encourage the Norges Bank to hike rates further than planned. The Norges Bank is already planning to keep…
With so many top tier catalysts this week, it was no surprise that volatility spiked beyond the average ranges and the steady stream of catalysts gave us some choppy price action. But we’re pretty happy with the week as more often than not, our strategies anticipated the proper short-term direction, and our fundamental filters kept us out of unfavorable moves. Forex Setup of the Week: Downtrend Continuation for AUD/CHF? – May 1, 2023 AUD/CHF 1-hour Forex Chart by TradingView On Monday, we spotted a textbook technical setup on AUD/CHF, looking to play the likely rise in volatility for the Aussie…
GBPUSD tests swing area high from April to June 2022.The GBPUSD has reached the high today of 1.2652. The current price is trading at 1.2642. At the high, the price got closer to its swing high going back to May 8, 2022 near 1.2665. A move above that level would have traders targeting this 61.8% retracement at 1.27605. On the downside, traders will be watching the low of the swing area near 1.25987 as close support.Buyers are making a play into resistance. You have to go through resistance to get extend higher, but it may also slow the rally or…
Less hawkish than in the past More from Fed’s Bullard:Recent drop in market interest rates probably “swamping” impact of any credit tightening from bank stress.Ultimate impact of bank stress on economy will be small.Wall Street Wall Street Wall Street is part of the Financial District in New York City and one of the most iconic streets in the world. It is synonymous with US financial markets, and home to the world’s two largest stock exchanges by market capitalization – the New York Stock Exchange and NASDAQ.The area is also home, be it presently or historically to many other key exchanges.…
Share: GBP/USD is sliding and forming a peak formation. Bears are seeking a move down to test the 1.2620s. GBP/USD is being pressured to the downside in lunchtime NY trade and is taking on a support structure that could lead the way to a move into test the 1.2020s and lower for the remainder of the day. GBP/USD H1 chart The hourly chart shows GBP/USD peaking in the 1.2650s and this gives rise to a test of the neckline of the W-formation as illustrated in the above chart. GBP/USD M15 chart On the 15 and 5-min charts, we can…
Share: USD/JPY tests 50-day EMA at 133.85; bullish-engulfing pattern hints at a potential uptrend. Downside risks loom, with the 100-day EMA at 132.83 in sight if 134.00 support breaks. The USD/JPY rises after dropping to a weekly low of 133.50, advances 0.42%, spurred by buyers stepping in at around solid technical support level. An upbeat April Nonfarm Payrolls report also lifted the US Dollar (USD) vs. the Japanese Yen (JPY) safety. At the time of writing, the USD/JPY is trading at 134.81 after dipping to a low of 133.88. USD/JPY Price Action From a daily chart perspective, the…
Share: St. Louis Federal Reserve President James Bullard supported the 25 basis point rate hike that the Fed took this week, calling it “a good next step.” He stated that there is a significant amount of inflation in the economy. In terms of the economic outlook, Bullard’s base case is not a recession, but rather slow growth and declining inflation. He also noted that the labor market remains “very tight” and will take time to cool. Source link