Author: FX
Share: GBP/USD tumbles on a worse-than-expected US Nonfarm Payrolls report, with the US economy adding fewer jobs than analysts’ consensus. However, the initial reaction favored the US Dollar (USD). At the time of writing, the GBP/USD trades volatile around the 1.2450-1.2370 range, below its opening price. Read More… GBP/USD seesaws around 1.2155-60 while printing the first daily gains in three amid early Good Friday morning in London. In doing so, the Cable pair cheers hawkish hopes from the Bank of England (BoE) while also portraying the cautious mood ahead of the key US Nonfarm Payrolls (NFP). Read More… GBP/USD drops to…
Share: Here is what you need to know for next week: Markets continue to move fast. A month ago, Silicon Valley Bank (SVB) was still relatively unknown. Later, came the banking crisis, and now it looks like it’s the beginning of worries about global growth after softer economic data. The Federal Reserve (Fed) went from a potential “higher for longer interest rates” to a “hike despite the turmoil”, and now there is no clear forward guidance. The bond market shifted expectations from “higher for longer” to rate cuts by the third quarter, amid global growth concerns. After recent…
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Share: EUR/GBP barely moved the needle amidst thin liquidity conditions on a worldwide holiday. A solid US jobs report pushed recession fears away, as US equity futures showed. The EUR/GBP advances for two straight days and hits a four-day high of around 0.8790 on a subdued trading session in observance of the Good Friday holiday. The EUR/GBP is trading at 0.8782, registering minuscule gains of 0.04%. The cash market is closed due to a holiday. However, the US futures market is open, and equities have responded optimistically to the latest round of US economic data and edged higher.…
US DOLLAR FORECAST:The U.S. economy added 236,000 jobs in March, slightly below consensus estimates. Meanwhile, average hourly earnings cooled more than expected, easing to 4.2% y-o-y.The labor market report, however, may not entirely capture the fallout from the collapse of SVB and SBNYDespite the market reaction on Friday, the path of least resistance is likely to be lower for the U.S. dollar Recommended by Diego Colman Get Your Free USD Forecast Most Read: Most Read: US Dollar Q2 Technical Forecast – Sellers Take Hold of Steering Wheel for NowThe U.S. dollar edged modestly higher heading into the long weekend following…
It seems not long ago the earnings season ended, but it’s back again with the latest earnings rotation starting next Friday when JPMorgan, Wells Fargo, Citibank and PNC announce their earnings. The financials traditionally start the season and with the recent banking concerns, the market will be interested in how the top tier banks view the landscape, along with one of the top regional banks (in PNC). This week, JPMorgans Dimon was in the headlines saying that the banking crisis raised the odds of a recession, and that the crisis is not over yet. He also added: Banking system is…
Share: Data released on Friday showed the US economy added 236,000 jobs in March, the smallest gain in over two years. Analysts at Wells Fargo point out this is the type of employment report they believe the Federal Reserve wants to see: job growth slowing in an orderly fashion, labor supply expanding and wage growth that is edging closer to rates that are consistent with the central bank’s 2% inflation target. They expected another rate hike by 25 bps in May, probably the last one. Job growth slows from hot to warm “The employment report can be added…
Share: US Dollar Index spikes to 102.29 and retreats to 102.00. March US jobs report mostly in line with expectations. Holiday likely to keep price action limited, normal activity to return on Tuesday. The US Dollar Index (DXY) rose to 102.29 after the release of the US March jobs report and then pulled back toward 102.00, amid risk appetite. The numbers boosted US yields and equity futures on a tight volume session. After NFP, attention turns to CPI The US Labor Department’s announced that Nonfarm Payrolls increased by 236K in March, against the market consensus of 240K. The Unemployment Rate…
Share: USD/MXN dropped from around 18.2600 to 18.1000 but stabilized around 18.1500. A solid US Nonfarm Payrolls report weighed on the US Dollar against the Mexican currency. Average Hourly Earnings edged lower, while the jobless rate remained unchanged. The USD/MXN slumps to a two-day low after a US jobs report was below estimates but showed that the labor market is still resilient. Contrarily to most G7 FX currencies, the Mexican Peso (MXN) stood tall against the US Dollar (USD). At the time of typing, the USD/MXN trades volatile within the 18.1500-18.1000 range, below its opening price. USD/MXN drops…
Share: USD/CAD jumped in response to the US jobs data. Despite the lower-than-expected job growth in March, the US Dollar gained ground. Average Hourly Earnings edged lower, while the jobless rate remained unchanged. The USD/CAD touched four-day news highs after the US Nonfarm Payrolls, though it retreated somewhat, as the US jobs data showed that the labor market continued to slow down. At the time of writing, the USD/CAD trades volatile within the 1.3497-1.3510 range, holding to its earlier gains. US Dollar strengthens, despite a soft US NFP report On Friday, the US Bureau of Labor Statistics (BLS)…