Author: FX
Share: “Markets have taken on board probabilities around a changed fiscal stance as well as the more aggressive Fed and expect inflation to come under control in quarters and years ahead,” St. Louis Federal Reserve President James Bullard said on Friday, per Reuters. Additional takeaways “Fed has considerable institutional credibility compared with its 1970s” “The current US situation may fall under the rubric of credible disinflations, which do not have large output costs.” “Soft landing is feasible in the US if the post-pandemic regime shift is executed well.” Market reaction These comments don’t seem to be having a significant impact…
Share: The EUR/USD is about to post the lowest weekly close in two months. According to analysts at MUFG Bank, the US Dollar has room to rise further versus the Euro, potentially toward the 200-day Moving Average, currently around 1.0330. Room for USD rebound to extend further “The pair has broken back below the 1.06000-level over the past week and we expect it to fall back towards support from the 200-day moving average that comes in at around 1.0330.” “The recent move lower in EUR/USD has been mainly driven by the USD leg. Stronger US activity data combined…
Markets expect inflation to come under control and quarters and years aheadSoft landing is feasible in the USInflation expectations are now near levels prevailing before the 2021 inflationFull speechYou would think Bullard would be the one pushing for 6% but he’s not. Source link
> European equity close: Worst day of the year so far Closing changes for the main European bourses on the day and week Adam Button Friday, 24/02/2023 | 16:32 GMT-0 24/02/2023 | 16:32 GMT-0 On the day:Stoxx 600 -0.9%German DAX -1.4%Francis CAC -1.4%UK’s FTSE 100 -0.3%Spain’s Ibex -0.15%Italy’s FTSE MIB -0.9%On the week:Stoxx 600 -1.3%German DAX -1.5%Francis CAC -1.5%UK’s FTSE 100 -1.6%Spain’s Ibex -1.3%Italy’s FTSE MIB -1.8% ADVERTISEMENT – CONTINUE READING BELOW Tags ADVERTISEMENT – CONTINUE READING BELOW Most Popular ADVERTISEMENT – CONTINUE READING BELOW ADVERTISEMENT – CONTINUE READING BELOW Source link
Share: Data released on Friday in the United States showed an increase in Real Personal Spending and higher inflation numbers. Analysts at Wells Fargo point out that a clean read on January income is tough. They argue that while a jump in wages is supportive of spending, it’s a challenge for the Federal Reserve if it keeps the heat on inflation. Signs of resilience beneath volatility “Real personal spending got a lift again to start the year, and in jumping 1.1% in January, growth more than offset weakness at year-end. A blow-out January retail sales report pointed to…
EURUSD moves toward lower channel trend lineThat wander, transitioned to a run after the higher-than-expected core PCE data in the US today. The pair moved to a low of 1.0535. That got to within eight pips of the lower channel trendline (at the time). The price has rebounded modestly, but the sellers remain more in control. They continue to chase the lower trendline which is running away as result of its downward slope. Currently comes in at 1.05244. Keep an eye on that level for some potential Friday profit-taking if selling intensifies. Source link
Share: US Dollar extends gains during Friday’s American session. Economic data continues to support more rate hikes from the Fed. GBP/USD tests levels under critical support area of 1.1940. The GBP/USD dropped further on Friday following the release of US economic data and bottomed at 1.1927, the lowest level in a week, and slightly above the monthly low. The pound is consolidating weekly losses amid a stronger US Dollar and higher US yields. US activity and inflation figures above consensus favoured expectations of higher for longer interest rates. As a consequence, the 2-year Treasury yield jumped to the…
The GBPUSD has the rare instance where the price, and 100/200 day MA have converged (Threes company). The first test has seen a modest bounce off the moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In…
Share: USD/JPY gathered bullish momentum and climbed above 136.00 on Friday. The data from the US showed that PCE inflation rose at a stronger pace than expected in January. USD/JPY remains on track to post its highest weekly close since early December. After having spent the European trading hours near 135.00, USD/JPY gathered bullish momentum in the early American session on Friday and reached its highest level since December 20 at 136.46. As of writing, the pair was trading at 136.30, where it was up 1.2% on a daily basis. PCE inflation data fuels USD rally Earlier in…
EUR/USD TALKING POINTS & ANALYSISEUR/USD ticks up on better growth dataThe European Central Bank’s Thursday rate rise was as expected and didn’t offer much supportUS Data will be in focus as the session goes on Recommended by David Cottle Get Your Free EUR Forecast EURO WEEKLY FORECASTThe Euro managed modest gains against the US Dollar on Friday, helped in part by news that the Eurozone economy managed some growth at last last month.The S&P Global’s Composite Purchasing Managers Index for the currency bloc climbed to a seven month high of 50.3 in January. That was above both December’s 49.3 and…