Author: FX
Share: USD/MXN to finish the week almost flat, with gains of 0.70%. Data from the United States justified a 25 bps hike by the Fed at the May meeting, though it did not boost the US Dollar. USD/MXN Price Analysis: Downward pressured below 18.00; otherwise, expect a rally to the 20-DMA at 18.10000. The Mexican Peso (MXN) appreciates during the last trading day of the week, as shown by the USD/MXN tumbling 0.25%, amidst a risk-on impulse due to US stocks posting solid earnings. US data flashed signs that inflation is too high, a green light for another…
Markets:Gold up $1 to $1989WTI crude oil up $1.95 to $76.71US 10-year yields down 9 bps to 3.43%S&P 500 up 0.9%GBP leads, JPY lagsThe big story of the day was the Bank of Japan leaving policy unchanged and the yen taking a beating. It tumbled right across the board but arguably the biggest move in a technical sense was in EUR/JPY as the pair broke above the 2014 high and the 150.00 level, both for the first time since 2008.Other yen crosses also made big moves and that could signal a fresh round of divergence. The BOJ staying easy also…
It was a busy week for FX traders out there, and over here, we had three out of five of our featured FX strategies do pretty well! Check out this quick review to see how the price action and catalysts played out! Forex Setup of the Week: AUD/USD – April 24, 2023 AUD/USD 1-Hour Forex Chart On Monday, AUD/USD was our forex setup of the week with top-tier inflation reports on the calendar from Australia and the U.S. that could spark big volatility for the currency pair. AUD/USD dropped sharply ahead of the highly anticipated AU CPI event, over 1…
SPX weeklyHere’s how the week played out.It started with worries about First Republic Bank and that ultimately led to a death spiral of the company as it reported much larger deposit outflows than anticipated. Shares hit $16 on Monday and are finishing the week around $3.50 with an FDIC takeover looming.So what changed even as sentiment worsened? Mainly, the pain at FRC didn’t spread to other regional banks and that’s a case I made early in the week. The problem was that dip buyers didn’t want to wade in until mega-cap tech earnings were released. Even after strong Microsoft earnings,…
Copper Mountain Mining GAAP EPS of -C$0.06, revenue of C$100.5M Source link
Share: The Central Bank of Colombia (BanRep) raised its key interest rate by 25bps to 13.25%. Analysts at TD Securities think this was the last hike in the cycle and they warn that after the recent Cabinet reshuffle form the President, the central bank has now additional reasons to be cautious in coming months. Key quotes: “We think BanRep has hit terminal rate at 13.25%. As we expected, the central bank deployed another 25bp rate hike in a decision by majority. The wording of the forward guidance did not provide a hint on the central bank hitting terminal…
The market has been reluctant to fully price in a hike from the Federal Reserve next week with odds hovering around 85%. Some of that may reflect uncertainty about First Republic Bank but it’s also a signal that the end of rate hikes is near. Even if the Fed does hike on May 3, the market isn’t expecting anything afterwards.”The Fed needs to hike in May and go away,” writes CIBC today. “By standing pat for a couple of quarters, the FOMC will gain considerable insight into the drag from developments at regional banks. With growth slowing, inflation is unlikely…
Share: Analysts at MUFG Bank continue to see the EUR/USD pair moving to the upside over the next few days. They expect the pair to break out to the upside and move back closer to pre-Ukraine conflict levels from early last year. Key quotes: “The pair has been attempting to break above the top of this year’s trading range between 1.0500 and 1.1000 over the past week, and has spent the most time trading above the 1.1000-level this month since March of last year. We expect the pair to break to out to the upside and move back…
Share: Next week it is not only about central banks, the US official employment report is due on Friday. Analysts at Wells Fargo, see payroll rising by 195K, slightly above the consensus of 181K. Key quotes: “Slowly bending, not breaking, has so far been the story of the labor market this year. That is unlikely to change with April’s employment report. In March, nonfarm payrolls rose by 236K, the weakest print since December 2020. Signs were more encouraging in the separate household survey, where employment rose by 577K, causing the unemployment rate to tick back down to 3.5%.…
Share: Data released on Friday showed monthly GDP in Canada rose by 0.1% in February, below market consensus. Analysts at CIBC point out that a slowing economy should keep the Bank of Canada (BoC) on hold for the remainder of 2023, rather than pulling the trigger on another rate hike, before cuts arrive early next year. Key quotes: “After sprinting out of the gate to start 2023, the Canadian economy had already hit a wall by March. Monthly GDP rose by 0.1% in February, which was a tick below the consensus forecast and a noticeable deceleration from an…