Author: FX
The market spotlight was mostly on the U.S. inflation updates this week as interest rate expectations continue to strongly affect overall risk sentiment. Confirmation that U.S. inflation rates continue to slow from high inflation levels, plus downbeat Chinese data spurring stimulus hopes, lifted risk assets towards the latter part of the week. Not sure what I’m talking about? I can explain, but lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on Arguments China announced a loan relief plan for developers aimed at ensuring the delivery of homes that are under construction U.S. Treasury…
Share: EUR/GBP consolidates within a tilted downward bias, with key support at 0.8504. The pair’s bullish turn hinges on a 0.8600 breach, testing 50-day EMA. RSI is nearing bullish zone; RoC indicates a potential uptrend. EUR/GBP reverses Thursday’s losses and is set to print weekly gains of 0.40% after Pound Sterling (GBP) bulls emerged yesterday, trimming some of its Wednesday losses. Nevertheless, selling pressure waned, and the EUR/GBP sits above a technical support level. At the time of writing, the EUR/GBP exchanges hands at 0.8573, up 0.32%. EUR/GBP Price Analysis: Technical outlook The EUR/GBP daily chart portrays the…
The broader S&P and NASDAQ index snapped 4-day winning streaks, while the Dow industrial average extended its streak to 5 days. UnitedHealth soared by 7.27% today and was responsible for over 200 points of the Dow’s gains today. The Dow closed up $113.89 points.A snapshot of the market showsDow industrial average rose 113.89 points or 0.33% at 34509.04S&P index fell -4.64 points or -0.10% at 4505.41NASDAQ index fell -24.88 points or -0.18% at 14113.69The small-cap Russell 2000 fell -19.80 points or -1.01% at 1931.08The winning sectors today were led by:Healthcare, +1.5%Consumer staples +0.35%Consumer discretionary, +0.27%The lagging sectors today included:Energy -2.75%Financials…
Share: GBP/USD is tiring in the bid and bears are moving in for the kill. The week ahead holds a bearish bias, but there ios work to do. GBP/USD ramped up a sixth consecutive day of gains after data showed the UK economy swung in the red by less than expected. the following shows the bias from the top-down analysis: GBP/USD moving in on the lower time frames A correction is underway for the week ahead. GBPUSD H1 chart Bears are monitoring for a break of trendline support. 1.3000 is eyed! Source link
Share: GBP/JPY cleared most of its weekly losses trading near 181.80 tractioned by rising British yields. Investors continue to look for clues regarding a potential BoJ YCC policy tweak. BoE’s tightening expectations have fallen, and markets now see rates peaking at 6.25%. On Friday, the Sterling traded with gains agains the JPY, but it is still poised to close a weekly decline. However, the GBP/JPY downside potential may be limited while investors are looking for clues on whether the Bank of Japan (BoJ) will tweak its monetary policy in July. As for now, markets have already largely discounted…
BOC’s Macklem comments in a Globe and Mail articleInflation is going to be around 3% going forwardSurprised by ongoing strength in demand in the economy, and persistence of underlying inflationary pressuresLabor markets have eased a bit but remained a very tightOur forecast has inflation hovering around 3% for next year and then gradually moving back to 2% targetNeed to see a better balance in the labor market and we need to see wage growth moderateDespite the more hawkish tilt, the USDCAD is trading to a new session high. The price moved above its 100-hour moving average at 1.31937. Its 200-hour…
Share: Bank of Canada (BoC) Governor Tiff Macklem expects inflation to be around 3% for next year and then gradually move back to the 2% target. In an interview with The Globe and Mail, he mentioned that the labor market has eased a bit but still remains very tight. He explained they need to see a better balance in the labor market and a moderation in wage growth. He is surprised by the ongoing strength in demand in the economy. Regarding inflation, Macklem mentioned that he is amazed by the persistence of underlying inflationary pressures. “It’s not working…
TheThe price of WTI crude futures is settling at $75.42. That’s it down $-1.47 or -1.91%. Although down nearly 2% today, the price this week is still up 2.09% helped by a more positive technical view.Crude oil stalled at the 200 day MA this weekLooking at the daily chart, the price moved above its 100-day moving average on Tuesday’s trade at $73.68 (blue line in the chart above). The price extended higher on that day and continued the rally on Wednesday and Thursday where the price started to test its higher 200-day moving average. That level comes in at $77.32…
After a rocky start, our price strategy discussions did arguably well, upping the odds for great trading outcomes during a busy forex calendar! How were you able to navigate this week’s top tier events? AUD/CAD: Monday – July 10, 2023 AUD/CAD 2-Hour Forex Chart by TV On Monday, we saw a big dip in the Australian dollar during the Asia session, likely a reaction to the slower-than-expected inflation updates from China. The argument there is that slowing inflation may be a signal of slowing economic conditions in China, one of the biggest trade partners with Australia. We also saw that…
The USDCHF broke sharply to the downside this week following the dollar’s move lower on the back of lower CPI and PPI. The prices of imports also came in lower with the YoY now down -6.1%. That sent yields lower and it pressured the USDCHF as well.Technically, the price fell below January 2021 at 0.87568. It would ultimately take a move above that level to hurt the sellers looking for more downside momentum on the major break. Ahead of that the 2014 lows near 0.86959 may be a closer target that if broken would give a short-term tilt in the…