Author: FX
EUR/USD about to post the highest weekly close since May 2022. US Dollar back under pressure, heads for sharp weekly losses. US Consumer Confidence rises more than expected in January. The EUR/USD trimmed daily losses during Friday’s American session, rising back above 1.0800. The euro was holding onto significant weekly gains, headed toward the biggest close since May 2022. US Dollar recovers but remains under pressure The US Dollar rebounded modestly on Friday after a sharp decline the day before, following US inflation data. The numbers showed the Consumer Price Index slowed down further in December, increasing expectations that the Federal…
I’m shocked at the lack of commentary around next week’s Bank of Japan meeting and how that’s reverberating through markets.The Bank of Japan decision is Wednesday (late Tuesday US time) and the FX market is screaming that risks around it are rising.There have been persistent reports of the BOJ boosting its inflation forecasts at the meeting and yesterday Yomiuri reported that the BOJ will review the side effects of its easing at the meeting. Since then, USD/JPY is down nearly 400 pips and has fallen to the lowest since May.USDJPY dailyI also believe that the risk of Japanese investors getting…
5/5 © Reuters. Toyota Motor Corporation President Akio Toyoda and Toyota’s GAZOO Racing Company President Koji Sato attend an event for Toyota GAZOO Racing and LEXUS at Tokyo Auto Salon 2023 at Makuhari Messe in Chiba, east of Tokyo, Japan January 13, 2023. REUTERS/Kim 2/5 CHIBA, Japan (Reuters) – In an eye-catching bid to show that cars can be clean while appealing to old-school petrolheads, Toyota Motor (NYSE:) on Friday showcased zero-emission versions of its 1980s sports range, which still boasts a strong global fan base. At an industry event for customised cars in Chiba, east of Tokyo, the Japanese…
Gold has climbed above $1,900 for the first time in seven months ahead of the weekend. But the technical outlook suggests XAU/USD eyes correction before extending rally, FXStreet’s Eren Sengezer reports. $1,880 aligns as initial support “XAU/USD’s near-term technical outlook points to overbought conditions with the pair trading slightly above the ascending regression channel coming from early November and the daily Relative Strength Index (RSI) holding above 70. Hence, Gold could stage a technical correction before extending its uptrend.” “On the downside, $1,880 aligns as initial support ahead of $1,860. In case the latter support fails, XAU/USD could continue to…
Economists at TD Securities think the Yen will trade with an asymmetric bias that is tilted to the upside. EUR/JPY: Downside towards 130 in the coming months is likely “With the Fed ceding leadership on policy to the ECB and the BoJ, JPY trading bias remains asymmetric and with considerable room for gains.” “We expect USD/JPY to register a 120-125 handle this quarter. We think rallies to 133/134 in will make for an attractive short.” “We are biased to appreciable strategic EUR/JPY downside towards 130 in the coming months.” Source link
Gold price continued to extend its weekly gains, above the $1,900 mark. Trader’s speculations that the US Federal Reserve would slow rate hikes pace boosted Gold prices. Gold Price Analysis: Daily close above $1,920 could pave the way toward $2,000. Gold price hit a new 9-month high at $1,913.18 on Friday, amidst investors’ speculations that the US Federal Reserve (Fed) could shift to a less aggressive stance following the release of softer inflation data. Therefore, XAU/USD is trading at $1,912, gains 0.82%, headed for a fourth consecutive week of gains. XAU/USD got bolstered by speculations of a less hawkish Fed,…
US Dollar (DXY) Price and Chart AnalysisMichigan consumer confidence 64.6 vs. expectations of 60.5.Year ahead inflation expectations fall for the fourth straight month. Recommended by Nick Cawley Introduction to Forex News Trading The latest Michigan Consumer Sentiment report showed consumer sentiment remaining low, from a historical basis, but beating market expectations by a margin. Year-ahead inflation expectations fell to 4% from 4.4% while the five-year reading nudged a touch higher to 3% from 2.9% in December. The one-year reading is the lowest since April 2021. According to the University of Michigan, ‘Uncertainty over both inflation expectations measures remains high, and…
Despite 2022’s drawdown, analysts at Barclays believe that global equity markets have room to drop further. Cash should be the real winner of 2023 “We observe that US stocks tend to bottom out 30-35% below peak in the middle of a recession. That suggests fair value of 3200 on the S&P500 sometime in H1 23. European valuations look more reasonable, but that is offset by a considerably worse macro outlook than in the US.” “Bonds have massively underperformed equities in 2022, and our analysts now see limited downside in longer US fixed income. If forced to choose between stocks and…
Japanese yen extends gains across the board on Friday. US Dollar up for the day, sharply lower for the week. USD/JPY drops for the second day in a row. The USD/JPY is falling sharply for the second day in a row and it is trading under 128.00 at the lowest level since late May of last year. The decline takes place even amid a modest recovery of the US Dollar following Thursday’s slide after US CPI data. After a short-lived recovery, USD/JPY resumed the downside, breaking below 128.00. As of writing, it is trading at fresh lows at 127.70/75, as…
Consumer confidence in the US continued to rise in early January. US Dollar Index holds in daily range above 102.00 after the data. Consumer sentiment improved in the US in early January with the University of Michigan’s (UoM) Consumer Confidence Index rising to 64.6 from 59.7 in December. This reading came in better than the market expectation of 60.5. “Year-ahead inflation expectations receded for the fourth straight month, falling to 4.0% in January from 4.4% in December,” the UoM noted in its publication. “The current reading is the lowest since April 2021 but remains well above the 2.3-3.0% range seen…