Author: FX

Senior Economist Alvin Liew at UOB Group assesses the latest PMI readings in Singapore. Key Takeaways “After the slight upside surprise in Nov, Singapore’s manufacturing Purchasing Managers’ Index (PMI) resumed its expected downward trajectory as it fell slightly by 0.1 point to 49.7 in Dec (from 49.8 in Nov), the 4th consecutive month of contraction in overall activity for the manufacturing sector after having expanded for 26 straight months between Jul 2020 and Aug 2022.” “Unsurprisingly, the electronics sector PMI remained in contraction territory and declined in greater magnitude (compared to the headline PMI) as it slipped 0.3 point lower…

USD/JPY Price, Chart, and Analysis: Recommended by Zain Vawda Get Your Free JPY Forecast Most Read: US Dollar (DXY) Shrugs Off the Fed, Focus Now Turns to NFPsUSD/JPY FUNDAMENTAL BACKDROPUSD/JPY stalled in early European trade before dollar bulls returned eyeing a trendline breakout which could facilitate a larger upside move. The 133.00 handle is a key confluence area with a daily candle close likely holding the key in regard to USDJPYs next move.The Bank of Japan continued unscheduled bond buying yesterday for a fourth successive day as Governor Kuroda confirmed the Central Bank would continue with monetary easing in order…

Kevin Dietsch/Getty Images News U.S. Senate Commerce Committee chair Maria Cantwell confirmed that the panel will hold hearings on the large number of cancellations Southwest Airlines (NYSE:LUV) saw at the end of December. Cantwell said consumers need refunds and reimbursements for their expenses. Her statement came after Southwest (LUV) announced that it is awarding customers effected by cancellations 25,000 Rapid Rewards points it values at more than $300 as a goodwill gesture. “The problems at Southwest Airlines over the last several days go beyond weather. The Committee will be looking into the causes of these disruptions and its impact to…

EUR/USD News and AnalysisItalian inflation data shows encouraging signs while German exports took a hit in NovemberEUR/USD in need of a catalyst to shake off the narrow trading rangeMajor risk events ahead: EU, US inflation, ADP and NFPThe analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library Recommended by Richard Snow Find out what our analysts foresee for EUR The fundamental landscape surrounding the euro zone economy has shifted slightly when compared to the first three quarters of 2022 and that is largely due to the…

The saying is that central banks will look to stick with their prevailing argument/narrative for as long as they can get away with it, and that will apply again to the ECB as we kick start the new year. I mean, you don’t have to look too far back to be reminded of how stubborn they were in insisting that inflation was “transitory”. Ah, those were much simpler times.The softer German and French (as well as Italian) consumer price inflation reports this week does make for an argument that perhaps the ECB might not have to be too hawkish, that…

Nonfarm Payrolls (NFP) have surpassed forecasts in the previous eight months. The NFP rarely meets expectations and frequently defies reality. Job growth above pre-pandemic levels cannot last forever. Higher interest rates and inflation have had an impact on the housing market, and possibly the labour sector as well. Nonfarm Payrolls (NFP) have exceeded expectations for the past eight months; therefore, a further upward surprise cannot be ruled out. On Friday, January 6, at 13:30 GMT, the US Bureau of Labor Statistics (BLS) will issue the US jobs report for December 2022. The Federal Reserve (Fed) is now discussing whether to…

US Dollar (DXY) Price and Chart AnalysisThe Fed and the market continue to disagree on US interest rates going forward.Friday’s NFP report takes on renewed importance. Recommended by Nick Cawley Download our brand new Q1 US dollar forecast The US dollar has barely moved post-FOMC minutes despite the US central bank reiterating that they believe US interest rates will stay higher for longer. The minutes of the December meeting showed that CPI remained elevated but had softened in recent months, while labor market conditions ‘eased somewhat over October and November but remained quite tight’. The task of keeping rates higher…

Anyone up for a countertrend trade today? I’m looking at this potential bounce for the dollar in case the ADP report surprises to the upside! Before moving on, ICYMI, yesterday’s watchlist checked out EUR/USD’s range setup ahead of the FOMC minutes. Be sure to check out if it’s still a valid play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: U.S. Dec ISM manufacturing PMI dipped from 49.0 to 48.4, but jobs index higher U.S. JOLTS job openings at 10.46M in Nov vs. 10.04M forecast FOMC minutes signaled…

Scorpio Tankers announces stock purchases of 415K shares, credit facility Source link

USD/JPY touches a four-day high on Thursday, though lacks any follow-through. The emergence of some buying around the USD acts as a tailwind for the major. Reports that BoJ will raise inflation forecasts benefit the JPY and caps the upside. The USD/JPY pair reverses an intraday dip to the 131.70-131.65 area and touches a four-day peak during the first half of the European session on Thursday. Spot prices, however, struggle to capitalize on the move and remain below the 133.00 mark, warranting caution before positioning for an extension of this week’s recovery from the lowest level since June 2022. The…