Author: FX

FOMC responses continue. This from Rick Rieder, a BlackRock Managing Director. Rieder is BlackRock’s Chief Investment Officer of Global Fixed Income, Head of the Fundamental Fixed Income business, and Head of the Global Allocation Investment Team.In brief:Today’s policy statement from the FOMC, and Chair Powell’s press conference, were signals to economic observers and to market participants that the job of inflation-fighting isn’t accomplished yet, but the trend is moving in the right direction.Consequently, the Federal Reserve can now move policy rates at a more normal pace … 25 bps clip.The Fed will now embark upon a process of slow and…

NZD/USD is showing signs of exhaustion in the upside momentum, however, the upside bias is intact. The USD Index has refreshed its nine-month low at 100.51 amid a cheerful market mood. Higher job openings and lower employment numbers (Jan) in the US economy indicate that labor demand is exceeding supply. The NZD/USD pair is facing fragile hurdles in overstepping the seven-month high at 0.6529 in the Tokyo session. The upside bias in the Kiwi asset is intact as the Federal Reserve (Fed) has slowed down the pace of policy tightening further after sensing the fact that the disinflationary process has…

The US Dollar slide has continued after the New York close post the Fed hiking rates and Powell putting a dovish tilt in the mindset of the market. How low will USD go?US Dollar, DXY Index, USD, Fed, FOMC, Powell, Disinflation – Talking PointsThe US Dollar has been vanquished by the markets slant on Fed stanceFed Chair Powell’s comments have been interpreted as dovish by marketsThe markets appear to be questioning the Fed rhetoric. Will that sink USD? Recommended by Daniel McCarthy Get Your Free USD Forecast The US Dollar is under the pump today even though the Federal Open…

Qualcomm, D1 Qualcomm is scheduled to release its latest quarterly earnings report on Thursday, February 02, 2023 after the market close.  Zacks Consensus Estimate for revenue was pegged at $9,700 million, representing a 9.3% decrease from the year-ago quarter’s reported figure. Adjusted earnings per share were pegged at $2.35, indicating a contraction from the $3.23 posted in the prior-year quarter. Zacks ranks Qualcomm #4 (Sell). Investors expect the company to declare that they have not only topped their forecasts, but also that they anticipate growth for the next quarter. On the last report the company EPS was $3.13 inline with…

Funtay/iStock via Getty Images The U.S. has started to detain imports of aluminum products suspected of being made through forced labor, particularly from China’s Xinjiang region, shipper A.P. Moller-Maersk (OTCPK:AMKBY) said Tuesday, according to Bloomberg. U.S. Customs has begun issuing “detention notices” for such products, the shipper said in an advisory, adding the action probably would target aluminum used in automotive parts. “Companies importing aluminum products, or commodities with aluminum components, should be proactive in ensuring compliance” with the Uyghur Forced Labor Prevention Act, Maersk (OTCPK:AMKBY) said, referring to legislation signed into law by President Biden in late 2021. The…

© Reuters. Ukrainian servicemen look on from a military vehicle at their positions near a front line, amid Russia’s attack on Ukraine, in Donetsk region, Ukraine February 1, 2023. REUTERS/Oleksandr Ratushniak By Tom Balmforth KYIV (Reuters) -President Volodymyr Zelenskiy and a senior defence official issued dire accounts of Russian forces shelling and advancing in Ukraine’s eastern province of Donetsk, the main focal point of the 11-month-long war. Fierce fighting was unabated in eastern Ukraine, where Russian troops are trying to gain ground near the strategic logistics hub of Lyman, Deputy Defence Minister Hanna Malyar said on Wednesday evening. Bakhmut town…

The Hong Kong Monetary Authority is Hong Kong’s central bank.Raises its base rate to 5%, up 25bp. The HKD is pegged to the USD, the HKMA follows FOMC rate moves as a matter of course. The HKD trades in a band linked to the US dollar prescribed by the HKMA. You can see the limits of the band in the chart below. Source link

GBP/JPY prolonged its agony and dropped for the third time in the week below 160.00. GBP/JPY Price Analysis: Break below 159.50 exacerbated a fall towards 158.90, the week’s low. The British Pound (GBP) failed to gain ground vs. the Japanese Yen (JPY) on Wednesday after the US Federal Reserve (Fed) hiked rates by 0.25%, a signal perceived by market participants as dovish. A reflection of that is Wall Street’s finishing with solid gains. At the time of writing, the GBP/JPY exchanges hand at 159.39 as the Asian session begins. GBP/JPY Price Analysis: Technical outlook Technically speaking, the GBP/JPY remains downward…

USDINDEX, Daily USDIndex, Daily The US dollar index fell to a 9-month low amid dovish comments from Fed Chair Powell that sent bond yields tumbling and sparked a rally in stocks, dampening demand for the dollar. The index lost -0.89% in yesterday’s trading. The US 10-year Treasury yield fell to 3.39% on Wednesday, approaching a low not seen since April last year, as investors digested the latest FOMC statement and the Fed Chair’s comments. However, the FOMC language appeared more dovish, as officials now see inflation easing somewhat. https://tradingeconomics.com/united-states/government-bond-yield The FOMC, as expected, raised the Fed’s funds target range by…

FOMC Rate Decision, Nasdaq 100, VIX, US Dollar and EURUSD Talking Points:The Market Perspective: USDJPY Bullish Above 132.00The FOMC rate decision ended as expected with a 25bp hike to a range of 4.50-4.75 percent, but the reiterated warnings of further hikes ahead didn’t sway the marketsA Dollar tumble seems caught up in rate cut speculation and the drop in the VIX, but uneven fundamentals raise questions on the trend and an ECB decision makes EURUSD a high risk Recommended by John Kicklighter Get Your Free Top Trading Opportunities Forecast Speculative traders in the broader markets seem to be satisfied in…