Author: FX
Share: St. Louis Federal Reserve President James Bullard said on Friday that the United States remains in a position to see disinflation in 2023. They will see if the Fed may need to react more. He sounded optimistic, by saying the he expected the Fed to be dealing more with the strong economy in the coming months and not worrying as much about financial stresses. Bullard sees an “80% chance” that financial stress will abate, and the discussion will shift back to inflation. According to him, the other outcome with a lower probability, is a recession. He cautioned…
GBPJPY, Daily UK Retail Sales much stronger than expected. Sales jumped 1.2% in February, while the January reading was revised up to 0.9% from the 0.5% reported initially. The February data is the largest increase for retail spending since October 2022. Strong sales in discount department stores and sales in food shops also rose, after shortages of fresh products a month earlier. Higher food prices are one of the main drivers fuelling overall inflation, with the cost of everyday basics such as eggs, cheese and milk rising sharply. The rate at which prices are rising remains close to its highest…
The strongest to weakest of the major currenciesThe JPY is the strongest and the EUR is the weakest as the NA session begins. The USD is also moving higher as the banking focus shifts more to Europe and more specifically Deutsche Bank. The shares of DB are trading down -13.83% in trading today. BNP Paribas is down -6.92%, Societe Generale is down -6.94%. Credit default swaps of Deutsche Bank soared as well indicative of stress on the debt of the bank. The European banking index is down -5%. Deutsche Bank credit default swapsIn the US, shares of First Republic, the…
Becoming consistently profitable in forex trading involves making pips, keeping them, and then repeating the process. Unfortunately, it’s not as simple as it sounds. Making successful trades is not just about having a fantastic setup. It requires a system that gives you an edge over the markets, solid risk management, and a good grip of your trading psychology. Testing your trading strategies can help tell you if you should make adjustments to the setups that you’re taking. If you know for a fact that your system is maintaining its edge over the markets, then you can more confidently direct your…
Gold Price Chart and AnalysisGold prices remain close to one-year highsHopes that there won’t be too many rate-hikes ahead are supporting non-yielders$2000/ounce is still a formidable hurdle Recommended by David Cottle How to Trade Gold Gold prices have cooled a little in European trading on Friday although the metal remains close to one-year highs, and the tantalizing $2000/ounce region, as this market like all others assesses this week’s monetary policy decision from the United States Federal Reserve.The US central bank raised interest rates yet again on Wednesday but notably toned down its ‘forward guidance.’ Financial markets certainly wouldn’t be surprised…
Share: The continuation of the downward bias in USD/CNH should meet tough contention around 6.8000 for the time being. Key Quotes 24-hour view: “Yesterday, USD dropped to 6.8108 in Asian trade before rebounding to trade sideways for the rest of the sessions. USD appears to have moved into a consolidation phase and it is likely to trade in a range of 6.8150 and 6.8500 today.” Next 1-3 weeks: “We have expected a weaker USD for more than a week. As USD struggled to extend its weakness, in our most recent narrative from 21 Mar (spot at 6.8800), we…
GBP/USD – Prices, Charts, and AnalysisRetail sales improved in February, flash UK PMIs next.GBP/USD traders eye the US banking sector for signs of stress. Recommended by Nick Cawley How to Trade GBP/USD Most Read: BoE Raise Rates by 25bps, Expecting Inflation to Cool, GBP Edges HigherUK retail sales beat expectations in February on both a monthly and annual basis. According to the Office for National Statistics (ONS) retail sales volumes increased by 1.2% in February following a rise of 0.9% in January (upwardly revised from 0.5%). According to the ONS, non-food store sales rose by 2.4$ over the month, while…
The various monetary policy stances and other dynamics in the financial markets are likely to keep the Greenback choppy. Stocks initially down as Yellen stated that the government was not considering blanket deposit insurance, but afterwards her remark that the government is prepared to take additional actions provided some calm holding Wall street in green at the close, with gains of 1.01% on the US100. Asia markets were mixed, while European stocks are slightly higher on open. Overnight the BoE, SNB, and Norges Bank all hiked rates as expected – The SNB delivered a 50 bp…
USD/JPY PRICES, CHARTS AND ANALYSIS: Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter USD/JPY FUNDAMENTAL BACKDROPUSD/JPY trickled lower in the Asian session to a fresh 6-week low following mixed inflation data out of Japan before finding some support at the 130.000 psychological level.The YoY inflation rate fell to 3.3% in February 2023 from January’s 41-year high of 4.3% while the MoM print indicated declines of 0.6% in February, the first fall since October 2021. The key, however, was the so-called so-called core-core CPI (excluding fresh food…
Japan -0.12%. Japan preliminary March 2023 Manufacturing PMI 48.6 (prior 47.7). Japan February CPI headline 3.3% y/y (expected 4.1%), Core 3.1% y/y (expected 3.1%). China -0.53%. Hong Kong -0.52%. Australia -0.19%. Australia preliminary March PMI: Manufacturing 48.7 (prior 50.5) Services 48.2 (50.7). India +0.02%. Overnight in the U.S., major US stock indices ended higher on Thursday after a volatile trading session. The Dow Jones rose 75.14 points to close at 32,105.25 after falling more than 500 points in the previous session. The S&P 500 advanced 11.75 points to end at 3,948.72, while the Nasdaq climbed 117.44 points to finish at…