Author: FX
Share: The Australian Dollar has been a solid performer in recent months and is up 11% from its October 2022 low. Economists at Wells Fargo believe this positive trend can continue and forecast AUD/USD at 0.7800 by mid-2024. Resilient Australian growth and favorable RBA monetary policy dynamics versus the Fed “Given our outlook for Australia to enjoy a reasonably steady expansion over time and avoid recession, our base case remains for some further monetary policy tightening before a pause in rate hikes.” “We believe resilient Australian growth and favorable RBA monetary policy dynamics versus the Fed are the…
Share: The Canadian Dollar was the third best performing currency in G10 in January. Economists at ING expect the USD/CAD pair to dip below 1.30 in the second quarter. Some silver linings from CAD after BoC pause “The BoC most likely hit the peak of its tightening cycle, as it brought rates to 4.5% and signalled more hikes are not on the cards for now. The dovish shift by the BoC was not a sudden move and had been largely priced in, which means that CAD can now potentially benefit from the fact that a lower peak rate…
For the 2nd consecutive month the Canada jobs report has surprised with a huge gain of 150K vs 15K estimate. That comes after a strong >100K report last month. The gains sent the USDCAD sharply to the downside and below the 200 hour MA which has stalled the fall over the last two trading days.The EURUSD is pressing the lows for the week and below a swing area.The USDJPY is reacting to the BOJ Governor rumblings but trying to hold the 200 hour MA on the downside now. Source link
Share: Gold has been virtually unable to recover from its setback. Economists at Commerzbank expect the yellow metal to struggle for the time being. Previously very optimistic investors more cautious “Gold lacks the strength to match the correction. The extent to which speculative investors are to blame for this, having previously topped up their net long positions noticeably, remains to be seen.” “The CFTC has still not published any data following the cyberattack. However, we have pointed out repeatedly that there is a lack of support from ETF investors with a more long-term investment horizon. This would probably…
Share: C3.ai stock lost 14% on Thursday. C3.ai still remains a major focus of AI investors. ChatGPT has brought renewed attention to artificial intelligence. C3.ai stock remains up more than 100% YTD. C3.ai (AI) stock is giving up more ground in Friday’s premarket, but do not blink too long. C3.ai is one of few pure plays among publically-owned artificial intelligence stocks and will be back in the spotlight shortly. The stock sold off more than 14% on Thursday as the broader market turned south, and these volatile gyrations should be expected. However, few other stock provide the enterprise focus of…
Share: The main economic data release was the release of the latest GDP data from the UK although it has had a limited impact on the Pound. Economists at MUFG Bank point out the next support levels in the GBP/USD pair. Weak end to the year for UK economy narrowly avoiding technical recession “The UK contracted more sharply than expected in December by -0.5%. As a result, the UK economy recorded flat growth for Q4 as a whole just narrowly avoiding two consecutive quarters of negative growth.” “The continued weak growth outlook will support expectations that the BoE…
Share: The US Bureau of Labor Statistics announced on Friday that it revised the monthly Consumer Price Index (CPI) for December to +0.1% from -0.1%, based on updated seasonal adjustment factors. For the same period, the Core CPI, which excludes volatile food and energy prices, got revised higher to +0.4% from +0.3%, as reported by Reuters. Market reaction The US Dollar preserves its strength following this announcement. As of writing, the US Dollar Index was trading at 103.40, where it was up 0.2% on a daily basis. Source link
Share: USD/CAD adds to its heavy intraday losses and drops back closer to the weekly low. Bullish oil prices, the upbeat Canadian jobs report boost Loonie and exert pressure. Hawkish Fed expectations, recession fears underpin the USD and should limit losses. The USD/CAD pair extends its intraday retracement slide from the vicinity of the weekly high, around the 1.3475 region and continues losing ground through the early North American session. The downward momentum picks up pace in reaction to the upbeat Canadian employment details and drags spot prices to the 1.3370 area, or the lower end of the…
Share: The data published by Statistics Canada revealed on Friday that the Unemployment Rate stayed unchanged at 5% in January. This reading came in better than the market expectation of 5.1%. Further details of the publication revealed that the Net Change in Employment rose by 150,000, surpassing analysts’ estimate of 15,000 by a wide margin. Finally, the Participation Rate edged higher to 65.7% and the annual wage inflation declined to 4.5% from 4.7% in December. Market reaction With the initial reaction, USD/CAD fell sharply and was last seen losing 0.55% on a daily basis at 1.3380. Unemployment Rate…
As forex traders, we give a lot of thought to stop loss placement. After all, it is a crucial part of risk management. Knowing where and when to exit is vital if you want to protect your capital. But notice that not enough attention is given to profit targets, which is a pity because being able to maximize profits can greatly affect one’s bottom line. Traders who have difficulty letting winners run may miss out on big moves in fear of losing potential forex profits. In the long run, such traders tend to have a hard time staying profitable because…