Author: FX
It appears as though the clock ran out on First Republic Bank.Reuters, citing sources, reports that the US Federal Deposit Insurance Corporation is preparing to place the struggling bank under receivership “imminently”.It’s no surprise as reports on Friday suggested that time was running out and that no private sector-led rescue was coming. Various reports said there were banks who were prepared to buy and run FRC within the FDIC resolution mechanism.Shares of the company fell 43% on Friday and have tumbled precipitously this week to $3.51 from $16 at the start of week. This week’s breakdown was precipitated by a…
Share: WTI is set to post back-to-back weekly losses, despite gaining more than 2% on Friday. US crude oil output shortages were outweighed by gasoline demand; therefore, WTI rose. Western Texas Intermediate (WTI), the US crude oil benchmark, posted gains of more than 2% after US companies related to the energy sector exceeded earnings estimates. Furthermore, a government report flashed increased demand for fuel while crude oil output decelerated. At the time of writing, WTI is trading at $76.61. Even though WTI is registering daily gains, it would finish the week with losses of 1.67%, extending its fall…
Traders were in a fickle mood throughout the week, as sentiment was influenced by earnings data, debt ceiling concerns, banking sector jitters, and Fed tightening expectations. Equity indices and commodities managed to pull up around the middle of the week thanks mostly to a positive earnings turnout from tech companies, as well as legislation that would allow Congress to raise the debt ceiling. Notable News & Economic Updates: ? Broad Market Risk-on Arguments Chinese President Xi reportedly talked to Ukraine’s Zelenskiy in a “long and meaningful” phone call discussing importance for parties to seek peace Alphabet Q1 results surpassed both…
Share: USD/JPY skyrocketed after BoJ’s dovish decision and high US core PCE data. USD/JPY Price Analysis: Rallied more than 200 pips, set for a pullback, before challenging YTD high, The USD/JPY rose sharply after the first monetary policy decision by the Bank of Japan (BoJ) new Governor Kazuo Ueda struck a dovish tone, a greenlight for US Dollar (USD) buyers, against the Japanese Yen. (JPY). Therefore, the USD/JPY extended its gains of more than 1.73%, trading at 136.27. USD/JPY Price Action After the US inflation data release, the USD/JPY skyrocketed, past the last week’s high of 135.13, and…
Share: USD/MXN to finish the week almost flat, with gains of 0.70%. Data from the United States justified a 25 bps hike by the Fed at the May meeting, though it did not boost the US Dollar. USD/MXN Price Analysis: Downward pressured below 18.00; otherwise, expect a rally to the 20-DMA at 18.10000. The Mexican Peso (MXN) appreciates during the last trading day of the week, as shown by the USD/MXN tumbling 0.25%, amidst a risk-on impulse due to US stocks posting solid earnings. US data flashed signs that inflation is too high, a green light for another…
Markets:Gold up $1 to $1989WTI crude oil up $1.95 to $76.71US 10-year yields down 9 bps to 3.43%S&P 500 up 0.9%GBP leads, JPY lagsThe big story of the day was the Bank of Japan leaving policy unchanged and the yen taking a beating. It tumbled right across the board but arguably the biggest move in a technical sense was in EUR/JPY as the pair broke above the 2014 high and the 150.00 level, both for the first time since 2008.Other yen crosses also made big moves and that could signal a fresh round of divergence. The BOJ staying easy also…
It was a busy week for FX traders out there, and over here, we had three out of five of our featured FX strategies do pretty well! Check out this quick review to see how the price action and catalysts played out! Forex Setup of the Week: AUD/USD – April 24, 2023 AUD/USD 1-Hour Forex Chart On Monday, AUD/USD was our forex setup of the week with top-tier inflation reports on the calendar from Australia and the U.S. that could spark big volatility for the currency pair. AUD/USD dropped sharply ahead of the highly anticipated AU CPI event, over 1…
SPX weeklyHere’s how the week played out.It started with worries about First Republic Bank and that ultimately led to a death spiral of the company as it reported much larger deposit outflows than anticipated. Shares hit $16 on Monday and are finishing the week around $3.50 with an FDIC takeover looming.So what changed even as sentiment worsened? Mainly, the pain at FRC didn’t spread to other regional banks and that’s a case I made early in the week. The problem was that dip buyers didn’t want to wade in until mega-cap tech earnings were released. Even after strong Microsoft earnings,…
Copper Mountain Mining GAAP EPS of -C$0.06, revenue of C$100.5M Source link
Share: The Central Bank of Colombia (BanRep) raised its key interest rate by 25bps to 13.25%. Analysts at TD Securities think this was the last hike in the cycle and they warn that after the recent Cabinet reshuffle form the President, the central bank has now additional reasons to be cautious in coming months. Key quotes: “We think BanRep has hit terminal rate at 13.25%. As we expected, the central bank deployed another 25bp rate hike in a decision by majority. The wording of the forward guidance did not provide a hint on the central bank hitting terminal…