Author: FX

Share: NZD/USD traded neutral at the 0.6230 area on Friday but set a 1.70% weekly gain. Hawkish Fed speakers and upbeat UoM data gave the USD momentum. Rising US bond yields limited the Greenback’s traction. The NZD/USD traded stable at the 0.6210 – 0.6245 range at the end of the week, holding to a 170 pip weekly gain. In that sense, hawkish Federal Reserve (Fed) speakers lifted the US bond yields while upbeat consumer confidence data from the University of Michigan gave the Greenback an additional boost. On the NZD’s side, now relevant economic data was released, and…

A view technically for the EURUSD into the week starting June 19 The EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency,…

It was a slow start to the trading week before market players started placing their bets ahead of the major catalysts, particularly the U.S. CPI report and three central bank decisions. Top-tier U.S. events turned out to be a bit of a surprise, including U.S. CPI falling short of estimates while the FOMC stayed very hawkish despite hitting the pause button with their rate hikes. Although the Greenback managed to rake in some gains when policymakers dropped tightening hints, the U.S. currency is trailing behind most of its peers, along with the lower-yielding yen. USD Pairs Overlay of USD vs.…

The strongest to the weakest of the major currenciesThe day and week is ending with the GBP as the strongest and the JPY as the weakest. The JPY sharp fall was triggered by the Bank of Japan rate decision. The Bank of Japan (BOJ) decided to keep its short-term interest rate target at -0.1% and its 10-year Japanese Government Bond (JGB) yield target around 0%, with a band up and down 0.5% each. This decision, part of the BOJ’s yield curve control (YCC) strategy, was made unanimously. In the statement, the BOJ observed that Japan’s economy is improving, and it…

Share: EUR/USD bulls eye higher highs but a correction could be on the cards.  Bears eye a correction to test trendline support. The euro surged into the 1.0970 mark vs. the US Dollar on Friday, reaching its strongest level since May, following the European Central Bank’s decision to raise interest rates for the eighth consecutive time earlier in the week. There was also a signal that future rate hikes were on the table, leaving scope for higher highs in the pair: EUR/USD weekly chart The market has run into the weekly neckline of the M-formation. This leaves prospects…

Share: USD/CHF rebounds, trading at 0.8941, showing consolidation around the 0.8900 level. The pair needs to surpass 0.8949 (61.8% Fibonacci Retracement) to reach the 0.9000 mark. A drop below 0.8900 could expose the year-to-date low at 0.8819. USD/CHF rebounds at around weekly lows, though it remains below the 0.9000 figure, due to a risk-off impulse that bolstered the US Dollar (USD), which is set to finish the week with losses of 1.18%, per the US Dollar Index (DXY). The USD/CHF is trading at 0.8941 after hitting a daily low of 0.8901. USD/CHF Price Analysis:  Technical outlook The USD/CHF…

Share: AUD/USD bears are in the market and eye the 38.2% Fibo. Daily trendline supports are a focus on the downside.  The Australian dollar has been running on its last gas into the close on Friday with the price at its highest in four months, after surging 1.3% overnight.  It is set for a 2.2% weekly gain, the best since mid-November 2022, and way off its 2023 low of $0.6459 two weeks ago. Technically the price is now reaching a daily order block: AUD/USD daily charts At this juncture, there could be a sell-off and to target the depths of the…

Although the major indices are closing lower on the day, each enjoyed solid gains this week. The S&P index is higher for the 5th consecutive week. The NASDAQ index is up for the 8th consecutive week. The Dow Industrial average is up for the 3rd consecutive week. The small-cap Russell index lagged, but still closed with a gain for the weekFor the day,Dow Industrial Average fell -107.05 points or -0.31% at 34300.75S&P index fell -16.17 points or -0.37% at 4409.68NASDAQ index felt -93.96 points or -0.68% at 13689.56Looking at the small-cap Russell 2000 index, it fell -13.81 points or -0.73%…

Share: USD/MXN drops to a seven-year low, extending losses for the fourth consecutive week. Federal Reserve’s decision to keep rates unchanged weakens the US Dollar, propelling further USD/MXN losses. Hawkish remarks from Fed policymakers hint at further tightening if inflation doesn’t slow. Comments from Banxico officials suggest a possible rate cut in November, conflicting with Governor Victoria Rodriguez Ceja’s viewpoint. The Mexican Peso (MXN) printed a new seven-year high against the US Dollar (USD), as the USD/MXN tumbled as low as 17.0360, extending its losses to four consecutive weeks. The Federal Reserve’s (Fed) decision to keep rates unchanged…

Central bank developments, particularly the FOMC statement, hogged the spotlight for most traders the majority of the week. Downbeat data from China also garnered some attention, lifting expectations for more policy stimulus, keeping risk assets like commodities and equities supported. Ready to hear what happened this week? Better check these market-moving headlines first! Notable News & Economic Updates: ? Broad Market Risk-on Arguments People’s Bank of China cut 7-day reverse repo rate from 2.0% to 1.9% and lowered onshore reference rate by 200 points Chinese industrial output slowed from 5.6% y/y in April to 3.5% y/y in May while retail sales rose by…