Author: FX
Share: Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, declined to 5% on a yearly basis in February from 5.3% in January, the US Bureau of Economic Analysis reported on Friday. This reading came in lower than the market expectation of 5.3%. The annual Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, edged lower to 4.6% from 4.7% in the same period, compared to analysts’ forecast of 4.7%. On a monthly basis, Core PCE inflation and PCE inflation both rose 0.3%. Further details of the publication revealed that Personal…
Euro Zone Inflation Rises in MarchThe year-on -year headline measure of EU inflation posted a massive decline, coming in at 6.9% vs a forecast of 7.1%, but the real kicker reveals a drop from last month’s (YoY) reading of 8.5%. Despite the rapid YoY decline, March CPI actually rose 0.9% from February, vindicating ECB hawks and their views that markets have been underappreciating the degree to which interest rates can climb.However, everyone remains focused on core CPI as it is a better measure of how wide-spread inflation has proven to be. As such, the reading strips out more volatile items…
Eurozone Inflation falls more than expected to 6.9% as energy prices eased Source link
Headline inflation is coming down thanks to base effects, and officials are admitting that even if financial market jitters calm down, fears of financial dislocation are likely to have a disinflationary effect. Core inflation remains far too high though. Unless bank stress escalates, the ECB is likely to slow the pace of rate increases, but not halt the tightening cycle in May. At first glance the ECB’s economic bulletin today was pretty much as expected. The editorial repeated that inflation has been too high for too long, and this is pretty much what Lagarde said at the press conference. However, while that…
Momentum reversals are excellent trading opportunities. However, it is often difficult to anticipate market reversals as this would mean going against the current flow of the market momentum. One way traders anticipate probable market reversals is by looking for divergences. The trading strategy to be discussed below shows us a simplified method for identifying divergences using the OsMA Indicator and the Zigzag Int Indicator. Moving Average of Oscillator Indicator The Moving Average of Oscillator Indicator or Oscillator of Moving Averages (OsMA) is a momentum indicator which is derived from an underlying oscillator. As the name suggests, it calculates for the…
2/2 © Reuters. A seven-month-old baby and her mother look at early flowering Kanzakura cherry blossoms in full bloom at the Shinjuku Gyoen National Garden in Tokyo, Japan March 14, 2018. REUTERS/Issei Kato 2/2 By Tetsushi Kajimoto TOKYO (Reuters) – Japan’s government laid out a fresh plan on Friday to boost childcare over the coming three years to stem a relentless drop in the country’s birth rate, a move that may lead to another big spending package and strain its already tattered finances. Under the plan, the government will take steps such as expansion of child allowances to be given…
Final Day of the Week/Month & Quarter – USD has weakened again as stocks continue to recover, led by big tech and US GDP slipped, Kashkari reconfirmed his Hawkish credentials “the FED will not be shifting the goalposts”. EUR firmed on good German inflation. Asian markets are higher after better PMI data from China and a strong set of data from Japan, NZD outperformed in Asian markets. European & US FUTS are also higher. Overnight: China PMI’s beat (Services partic. 58.2 vs 55.0), Japan – Retail Sales (6.5% vs 5.0%), Tokyo CPI (3.2% vs 3.1%) Ind. Prod. (4.5% vs -5.3%) and…
The dollar is nearly on the brink once again as we head towards month-end and quarter-end. This comes as equities continue to shine, staying in the hunt of a third straight week of gains as the rebound from the banking turmoil continues.EUR/USD is up to 1.0900 and is now just backing away at short-term resistance at 1.0920-30 from last week’s highs with key resistance not that far away, seen at the 1.1000 mark. Meanwhile, GBP/USD is testing waters just above 1.2400 with the December and January highs around 1.2446 within reach.Those will be two key levels to watch as it…
I’m seeing opportunities to short GBP/USD at the top of its range and to catch a bearish pullback on AUD/JPY. Take a look at these resistance levels I’m watching. GBP/USD 4-hour Forex Chart by TradingView Check out Cable closing in on the very top of its range on the 4-hour time frame! The pair looks ready to test the resistance around the 1.2425 mark soon and might make a turnaround back to the bottom from there. Stochastic is already in the overbought region after all, which means that buyers are exhausted and could allow sellers to take over. Now price…
Share: GBP/USD is looking to recapture a two-month high at 1.2450 as the risk profile remains upbeat. The USD Index is defending the 102.20 support in hopes of the continuation of a policy-tightening spell by the Fed. Mixed views on BoE’s monetary outlook will keep Pound Sterling volatile. The GBP/USD pair is aiming to re-test its two-month high at 1.2448 in the Asian session. The Cable is attracting bullish bets despite expectations for a steady monetary policy by the Federal Reserve (Fed) have eased. The US Dollar Index (DXY) is defending the 102.20 support on hopes that receding…