Author: FX
Traders balanced a really heavy economic calendar, with global inflation figures and central bank rhetoric taking focus in the front half of the week, while U.S. updates sparked quick bouts of heavy volatility throughout. Central bank rhetoric was arguably at the top of topics of focus, including talk of FX intervention, as the People’s Bank of China made surprise announcements while jawboning kept yen declines in check. Later on, hawkish remarks from a handful of central bank leaders highlighted divergences between policy plans while also bringing some risk-off flows in the mix. USD Pairs Overlay of USD vs. Major Currencies Chart…
The spotlight turned to China and the U.S. for the most part of the week, as updated Chinese GDP forecasts and net better-than-expected U.S. economic updates stole the show. Hawkish central bank rhetoric during the ECB Forum on Central Banking also affected overall market sentiment, especially since the arguably upbeat outlook was underscored by mostly strong data. Missed all the market movers this week? Lemme show you the biggest headlines first: Notable News & Economic Updates: ? Broad Market Risk-on Arguments Crude oil opened slightly higher after a failed coup attempt in Moscow, as Wagner mutiny convoys returned to bases and…
Share: EUR/GBP slides as UK bond yields surpass German bond yields, strengthening the Pound. From a technical perspective, the pair exhibits a neutral to downward bias, with long-term daily EMAs standing above exchange rates. The EUR/GBP must regain the 0.8600 level and surpass the May 24 daily low resistance of 0.8648 to shift its bias. The pair’s immediate support is at 0.8500, a breach below, which could lead to a decline toward 0.8535. EUR/GBP slid during the Friday session as UK bond yields surpassed German bond yields, the strongest of the Eurozone (EU), bolstering the appetite for the…
Share: Despite daily gains, the XAU/USD is set to close a third consecutive week of losses, near the $1,920 area. Declining yields amid soft PCE figures weakened the USD favouring Gold prices. On Friday, the gold spot XAU/USD traded with nearly 0.50% gains, jumping near the $1,920 area. Soft Personal Consumer Expenditures from the US fueled a decline in US yields and, thereby, a weaker US Dollar, which boosted the yellow metal. Moreover, the Gold’s short-term trajectory will be determined by bets on the next Federal Reserve (Fed) decision, which will have an impact with crucial labour market…
US core PCE prices (excluding food and fuel costs) for the month of May rose 0.3% as expected but the YoY level was mostly lower at 4.6% versus 4.7% last month and expected. The PCE price index fell from 4.3% to 3.8%. That was the 1st decline below 4% since early 2021. Personal consumption (adjusted for inflation) was flat after 0.2% last month. Personal income increased 0.4% versus 0.3% last month. Adjusted for inflation, May’s spending was flat.Later the University of Michigan consumer sentiment exceeded the preliminary index of 63.9 with a rise 64.4. The gain was much higher than…
Share: The USD/JPY pulls back from YTD high as Japan’s Finance Minister Suzuky warns against excessive yen depreciation. The slowdown in the US Core PCE, the Fed’s preferred inflation indicator, reduces investor expectations for a double Fed rate hike. Despite Tokyo Core CPI exceeding the BoJ’s 2% target for thirteen months, the BoJ reaffirms its commitment to ultra-loose monetary policy. USD/JPY retreats from a year-to-date (YTD) high at 145.07 as Japanese authorities warned that “excessive yen weakening” could trigger action by Japanese authorities. That spooked USD/JPY buyers, which have been riding a rally that witnessed a 13% depreciation…
Share: WTI bulls move to test the bear’s commitments at dynamic resistance. $72.700 vs. 66.80s in play within the bear’s lair. Commodity demand is slacking into the close of the month with market expectations of continued hawkish central bank policy that has dented sentiment in the oil market and saw investors maintain a bearish tilt. However, WTI’s daily chart paints a different picture as the structure on the downside holds yet again. We broke daily resistance at $70 which could be significant on a break of the upper quarter of the $72 handle and daily target: WTI daily…
The price of Apple closed above $3 trillion for the 1st time. It was also the 1st company to do that. The NASDAQ index had its best start to the year in 40 years. The major indices all closed higher for the week and the month.The final numbers are showing:Dow industrial average rose 285.16 points or 0.84% at 34407.59S&P index was 53.92 points or 1.23% at 4450.37NASDAQ index rose 196.60 points or 1.45% at 13787.93The Russell 2000 small-cap stocks rose 7.14 points or 0.3% at 1888.73.For the week:Dow industrial average rose 2.02%S&P index rose 2.35%NASDAQ index rose 2.19%For the month…
There is no give up in the stock rally. The Dow Industrial Average now up 1% on the day. The S&P is up 1.38%. Both are making a new session highs. The NASDAQ index is off its eyes but only marginally. It leads the way with a gain of 1.6%. This article was written by Greg Michalowski at www.forexlive.com. Source link
USDJPY tests 100 hour MA. Short term barometer.The USDJPY moved lower today, coming off the boil a bit (see videos here and here).The drift lower started against a channel trend line against swing highs from this week (green numbered circles). The lows have inched below the lower channel trend line but stalled ahead of the rising 100-hour MA (blue line) currently at 144.19. The low for the day has reached 144.194. What next?We are heading into the close and it looks like the price will remain above the 100-hour moving average. That will leave next week open to either probe…