Author: FX
Markets:S&P 500 flat at 4155WTI crude oil up $0.43 to $77.80US 10-year yields up 2.3 bps to 3.568%Gold down $22 to $1982EUR leads, CAD lagsThe daily changes in the largest currencies on Friday were minimal but the day wasn’t without drama. In particular, the US PMI from S&P Global led to a sharp rally in the US dollar, including 100 pips in USD/JPY and half that in EUR/USD and GBP/USD. The report was surprisingly strong including high numbers on new orders and price pressures that few people saw coming.Some skepticism set in after the numbers though and the dollar move…
Share: Data released on Friday showed retail sales in Canada dropped 0.2% in February, a better-than-expected number but excluding auto fell 0.7%, more than forecast. Analysts at CIBC consider that the sluggishness in ex-auto spending is a sign that higher interest rates are having an impact. They see the Bank of Canada on hold for the rest of the year. Key quotes: “The start of the year surge in retail spending appears to be gradually fading, with a modest 0.2% decline in February (consensus -0.7%) estimated to be followed by a sharper 1.4% drop in March.” “While the…
Share: The EUR/USD is moving with a bullish bias according to analysts at MUFG Bank. They see the pair trading in the range 1.0700 -1.1400 over the next weeks. Key quotes: “The EUR has continued to outperform other G10 currencies. The EUR is benefitting from the easing of last year’s negative terms of trade shock. The incoming economic data flow from the euro-zone is continuing to surprise to the upside although not as strongly as at the start of this year.” “Fears over a sharper growth slowdown have also been eased by the quick action taken by the…
Share: After a tranche of UK and US economic data, GBP/USD stays in sideways choppy trading, keeping the pair scrambling for direction following the last three days of uncertainty. From a technical perspective, three doji’s in a row suggests neither buyers’ nor sellers’ commitment to open fresh positions. Hence, GBP/USD is trading at 1.2439 after printing a low at 1.2367, below the 20-day Exponential Moving Average (EMA). Read More… The GBP/USD pair stalls its intraday decline near the 1.2375 region and recovers over 40 pips from a three-day low touched earlier this Friday. Spot prices, however, keep the red through the…
The markets traded in relatively narrow trading range today and for the week. Looking at the low to high trading ranges for the major indices:That’s not a lot of movement. The market is non-trending, but a slew of earnings (Microsoft, Alphabet, Amazon, Boeing, McDonald’s, Intel, GM, 3M, Southwest air, etc.) next week will likely lead to something bigger and better next week. So be aware. Be prepared.In trading today today, the major indices Indices Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they…
Need to make sure that monetary inflation doesn’t developI’m focused on staying the course on tighteningDomestically driven inflation pressure remainsThe market has priced in 70 bps more of tightening through September, including an 89% chance of 25 bps on May 11. Source link
Next week is arguably the biggest one for the earnings for the quarter. There are a number of big cap companies on the calendar, with the potential to surprise and send stock prices higher or lower Moreover with the economy sitting on the fence (soft landing? hard landing? no landing?), forecast for forward earnings will also be dissected by market traders.Below is a list of the major announcements by day:Monday, April 24WhirlpoolCoca-ColaFirst Republic BankTuesday, April 25MicrosoftAlphabet3MGMUPSMcDonald’sWednesday, April 26MetaBoeingHiltonMatteleBayNorfork SouthernThursday, April 27AmazonIntelCaterpillarMerckSouthwest AirlinesFriday, April 28ChevronExxon MobilColgate-PalmoliveSony Source link
GBPUSD trades in the most narrow range since November 2021The GBPUSD is back higher, erasing all of day’s declines and trades back at/near unchanged. The move back higher has taken the price back to the 200 hour MA at 1.2440. The high just reached 1.24418 and the current price is at 1.2435.For the trading week, the low was on Monday at 1.2352. The high was on Wednesday at 1.2473. The total range of 121 pips is the lowest range since the week of November 14, 2021 when the range was 117 pips. It is a non trending week with plenty…
Oil weeklyWTI crude oil settled on Friday up by 50 cents to $77.87. It’s a better end to a disappointing week for the oil bulls. It started with strong China retail sales data, included a US inventory drawdown and finished with an impressive US PMI from S&P Global but crude couldn’t get any traction. Technical selling hit when it fell below $79.00 and into the post-OPEC cut ‘gap’, triggering a fall to as low as $76.21 yesterday. The rule of thumb is that when a market falls into the ‘gap’, it closes it so oil bulls will be reluctant until…
Share: Markets are on pause, awaiting catalysts. It will be the week before the central bank’s weeks. Major currency pairs are moving sideways, with a mixed US Dollar, holding on to recent losses versus EUR and GBP. The pattern could continue next week, considering that the first week of May is crucial with monetary policy decisions in Australia, the US and the Euro Zone and the US official employment report. The economic calendar is light next week, being the most relevant reports Australian and German inflation, US GDP and the monetary policy meeting in Japan. End-of-month flows could…