Author: FX
Vitalij Sova Bitcoin (BTC-USD) on Friday was on track for marginal weekly gains of about 0.2%, with the world’s largest cryptocurrency by market capitalization stabilizing somewhat after a steep fall last week. With no specific positive news to drive sentiment, the token’s weekly advance appeared to be mostly a correction after its more than 9% decline last week. Another catalyst that could have supported bitcoin’s (BTC-USD) weekly gain was a new investment strategy by stablecoin issuer Tether, which said that it would use up to 15% of its net realized operating profits to buy the cryptocurrency. Jitters around the banking…
The S&P 500 (SP500) on Friday advanced 1.65% for the week to close at 4,191.98 points, posting gains in three out of five sessions. Its accompanying SPDR S&P 500 Trust ETF (NYSEARCA:SPY) rose 1.71% for the week. The benchmark index’s gains stopped a run of two straight weeks of losses. Sentiment during the week was supported by a combination of factors, chief among them being the debt ceiling talks. Optimism over a breakthrough in the standoff between House Democrats and Republicans helped markets end solidly higher on Wednesday, with both sides signaling that default would definitely be avoided. Congressional leaders…
© Reuters. FILE PHOTO: The U.S. flag flies over the Cannon House Office Building on Capitol Hill in Washington, U.S. December 19, 2022. REUTERS/Jonathan Ernst By Moira Warburton, Richard Cowan and Andrea Shalal WASHINGTON (Reuters) -A second meeting on Friday between White House and Republican congressional negotiators on raising the federal government’s $31.4 trillion debt ceiling broke up with no progress cited by either side and no additional meeting set. “We had a very, very candid discussion talking about where we are, talking about where things need to be,” Republican Representative Garret Graves told reporters following a brief meeting in…
The negotiations to raise the U.S. debt ceiling were put on hold. Dems pointed the finger at the GOP. The GOP pointed the finger at the Dems. Pres. Biden comes back from the G7 over the weekend, and I am sure both sides, know what is at stake. Nevertheless, the development alarmed market participants as they headed into the weekend. Initially, yields moved off high levels as focus was on expected lower growth. The dollar moved lower. Gold rebounded. Stocks slid. However, moves were somewhat limited. Meanwhile (and at the same time), Fed’s Powell was participating in a panel discussion…
Share: USD/MXN eyes its first weekly gain since April 28, currently trading at 17.7767, as risk-off sentiment prompts outflows from the emerging market Peso. US Treasury Secretary Janet Yellen’s comments and Fed Chair Jerome Powell’s remarks on inflation triggered a shift towards safe-haven assets like the US Dollar. Banxico’s halt on its rate hike cycle and weaker-than-expected Mexican Retail Sales data contribute to the weakening of the Mexican Peso. USD/MXN rises above the 20-day Exponential Moving Average (EMA) as the pair eyes its first weekly gain since April 28, up more than 1%, ahead into the weekend. The…
Share: WTI bulls move in for the kill from support. The $72s are on the bulls radar. WTI is trying to correct but remains down on the day as the black gold consolidates into the weekend at around $71.85. From a point of view from analysts at TD Securities, ´´the positioning set-up in energy markets remains extremely supportive of the medium-term outlook, given that money manager participation in crude markets is at least at a decade low.´´ The analysts argued that there are substantial capital inflows moving into the sector as fundamentals begin to tighten in the second half of this…
The U.S. dollar may have caught most of the traders’ attention with U.S. debt talk developments and Fed speak this week, but wasn’t the best trending FX asset this week! The New Zealand dollar was likely the best opportunity as it trended higher across the board as traders priced in hawkish RBNZ meeting expectations. The Japanese yen was a great opportunity as well as it was uniformly dragged lower against its major counterparts on improving risk sentiment vibes, dismissing net positive numbers from Japan this week. USD Pairs Overlay of USD vs. Major Currencies Chart by TV Debt ceiling concerns…
Global risk assets saw lots of green while gold and bond prices steadily fell as the week went on. This likely signaled easing global recession fears and U.S. debt crisis fears, at least through Friday trade. Aside from those themes, the biggest story may have been rising odds of more Fed tightening as a numerous amount of Fed officials spoke this week and signaled an openness to raise interest rates again in June. Notable News & Economic Updates: ? Broad Market Risk-on Arguments House Speaker Kevin McCarthy shows optimism on Thursday that a deal to raise the debt ceiling may…
The major US stock indices are ending the day lower. The excuse will be the debt ceiling talks stalling (for now), but if there was a lot of worry, the stock market would be down much more. Technically, however, the S&P index could not close above the 4200 natural level (it is closing at 4191.99), nor could the price of the S&P close above its 100-week moving average at 4201.1. Close but no cigar. That could be problematic from a technical perspective. It will take a move above the 100-week moving average next week to give the buyers more ammunition…
Share: Analysts at Rabobank see the EUR/USD pair moving to the downside over the next months. They have a six-month forecast for EUR/USD at 1.06. Key quotes: “Despite its safe haven characteristics, the USD failed to gain traction last month on the US regional banking woes. This was a result of the market perceiving this to be a specific US event with little contagion risk to Europe or elsewhere. That said, on the back of sticky inflation pressures it is our view that Fed rates will be higher for longer than the market currently expects.” “We also see…