Author: FX
The USD is the ending the day as the strongest of the major currencies, while the NZD is the weakest. The strongest of the weakest of the major currenciesThe move higher in the greenback can be attributed to:Higher inflation expectations from the University of Michigan Consumer surveyConcerns about the debt ceiling leading to a flight to safety flow into the greenbackTechnical breaks in some of the major currency pairs.In May 2023, the University of Michigan Index of Consumer Sentiment dropped by 9.1% MoM to 57.7 (from 63.5 last month), representing a 1.2% YoY decrease from May 2022. The Current Economic…
Share: AUD/USD bears are in the money but bulls are lurking from daily support. A move back to challenge channel resistance could be on the cards for the initial balance at the start of the week. AUD/USD could be on the verge of moving back inside of the sell-off range. The M-formation is a reversion pattern and a deceleration of the sell-off would be expected as the market moves in on support. The following illustrates this on the daily charts and also looks at the prospects on the hourly chart for the open next week. AUD/USD daily charts Zooming in,…
The major US stock indices Indices Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Stock market indices represents an index that measures a particular stock market or a…
Share: USD/CAD bulls tear through prior resistance with eyes on the 1.3580s. Bears are lurking, waiting to pounce on a correction. USD/CAD is on the front side of the bullish trend and momentum is strong. At the time of writing, USD/CAD is trading higher by some 0.48% and rallied from a low of 1.3477, scoring a high of 1.3565 on the day. The pair is in the hands of the bulls put there are prospects of a correction for next week. USD/CAD daily chart USD/CAD H4 chart USD/CAD is now making the case for a run to test the…
Dollar traders were on edge for the early part of the week as markets braced for the U.S. CPI release which later on underscored expectations for a Fed pause. Pound pairs got an extra dose of volatility during the BOE decision, thanks to the central bank’s shift to a less hawkish stance. Along with a return in risk-off flows, this allowed the U.S. dollar to regain advantage from its safe-haven appeal towards the end of the week. USD Pairs Overlay of USD vs. Majors Currencies Chart by TV Even though the FOMC refrained from committing to a pause in last…
Bitcoin falls below necklineThe price of bitcoin has moved to a new low for the day, week, and month and traded at the lowest level since March 17. Looking at the 4-hour chart, the price this week also fell below a neckline of a head and shoulder formation. On the downside, the 38.2% retracement of the move up from the November 22 low would target $25,071. Ahead of that would be swing highs going back to February around the $25,270 level. Move below the 38.2% and the door opens for more selling momentum. Moving back above the $27,000 level would…
Share: Analysts at Rabobank see the GBP/USD heading lower in the coming month amid USD strength. They consider the pair may drop to 1.22. Key quotes: “With the USD on the front foot yesterday, sellers stepped in, technical indicators soured, and cable registered its worst day in 2 months. It is our view that GBP’s gains since early March suggest that a lot of better news regarding UK fundamentals is already baked into the price.” “Last week’s release of stronger than expected US April labour market data underpinned the stickiness of wages and inflation risks on the other…
Below are the major releases for next week, organized by day, including expectations and previous release values:Monday, May 158:30am: USD – Empire State Manufacturing IndexExpectation: -1.9Previous: 10.8Tuesday, May 162:00am: GBP – Claimant Count ChangeExpectation: 31.2KPrevious: 28.2K8:30am: CAD – CPI m/m8:30am: CAD – Median CPI y/y8:30am: CAD – Trimmed CPI y/y8:30am: USD – Core Retail Sales m/mExpectation: 0.3%Previous: -0.8%8:30am: USD – Retail Sales m/mExpectation: 0.7%Previous: -1.0%9:30pm: AUD – Wage Price Index q/qExpectation: 0.9%Previous: 0.8%Wednesday, May 175:50am: GBP – BOE Gov Bailey Speaks9:30pm: AUD – Employment ChangeExpectation: 25.0KPrevious: 53.0K9:30pm: AUD – Unemployment RateExpectation: 3.5%Previous: 3.5%Thursday, May 188:30am: USD – Unemployment ClaimsExpectation: 260KPrevious:…
Share: Here is what you need to know for next week: After the Dollar’s rally on Friday, Monday may not be the usual “quiet Monday”. Tuesday is the busiest day of the week for economic data, with Chinese activity, the Reserve Bank of Australia minutes, inflation in Canada and US Retail Sales. Later in the week, Australia will release labor market data and the Bank of Mexico will decide on interest rates. The US Dollar finished the week stronger, trading at its weekly highs. Next week, the US calendar is light, with Retail Sales being the highlight on…
WTI crude all features are settling the day and the week at $70.04. The price is down -$0.83 or -1.17%. The low price reached $69.93. The high price reached $71.78.For the trading week crude oil prices are down $1.28 or -1.79%. That is the 4th down week in a row. From the swing high during the week of April 10 to the settlement today, the price is down around -16.25% (the high price during the week of April 10 reached $83.53).For the trading year, the price is down around -12.87% (the end-of-the-year level was at $80.26).Looking at the hourly chart,…