Author: FX

Share: The index leaves behind the initial pessimism and moves to 101.70. Advanced US GDP surprised to the downside in Q1. Weekly Claims rose more than expected last week. The greenback regained sudden upside traction and advanced to fresh daily highs near 101.80 when measured by the USD Index (DXY) on Thursday. USD Index stronger on data, yields The choppy trade around the index – and the rest of the global assets – remains well and sound on Thursday. Indeed, the US Dollar manages to gather fresh steam after the US docket showed the flash GDP Growth Rate…

The US GDP report revealed personal income growth of a slightly stronger than expected 5.1% for total income and 12.5% for disposable income in Q1, after respective Q4 rates of 7.5% and 8.9%.  Implied Fed funds futures rose in the wake of the data that showed an acceleration in core PCE inflation to a still too hot 4.9%. That goes against the FOMC’s criteria for a pause — evidence of a sustained trend toward the 2% target. A quarter point rate hike is built into the market as reflected by the May contract at 5.049% while June is…

Eventhought the markets are pricing in the end of Fed rate hikes after next month’s 25 bp hike, the latest data have not given the FOMC the opportunity to pause, and that is adding to the threat of a slowing/contracting economy. There are also concerns over the strength of China’s recovery. Rate hikes from the FOMC, ECB, and BoE in May are universally expected. The major uncertainty now is whether these will be the last of the moves.  This week’s however US durables report and Consumer Confidence were  more weaker than expected and earning reports added to fears of a downturn…

Textron reports mixed Q1 earnings; initiates FY23 outlook Source link

Price Action Setups: AUD/JPY, USD/JPY, EUR/JPYThe yen could receive a bid if high impact growth data heightens uncertainty amid the re-emergence of US banking fears.AUD/JPY – a sentiment gauge – has dropped this week looking for the next catalystUSD/JPY uptrend fatigues and EUR/JPY bullish continuation unfolds once moreThe 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 See what our analysts forecast for the yen in Q2 Potential Yen Bid Ahead of US GDP and Re-emergence of Banking JittersThus far this week,…

The USD steadied lower at close to 101. Risk appetite improved, amid positive signs in earnings reports. Wall Street finished mixed but near the lows of the day, while US100 managed a modest gain asbetter than expected results from META and robust results from European banks helped to counterbalance lingering jitters at some US banks. Asia stocks all moved higher overnight. GER40 & UK100 are in the red though, as hawkish central bank comments suggest further rate hikes next month. Yields have moved higher overnight. The curve steepened to -49 bps from -55 bps Tuesday…

Eurostoxx -0.1%Germany DAX -0.2%France CAC 40 flatUK FTSE +0.1%Spain IBEX -0.4%There is a contrast in the equities space at the moment, with tech shares looking buoyed since yesterday. There was a late retreat in Wall Street though, which is weighing slightly on the mood today. However, that is balanced out by a more positive mood seen in US futures. S&P 500 futures are up 0.5%, Nasdaq futures up 1.0%, and Dow futures up 0.2% at the moment. Source link

USD/CHF has been respecting a descending trend line as early as mid-March. Then, two weeks ago, enough bulls showed up to defend the .8860 level and now the pair is sporting a descending triangle on the 1-hour time frame. Will USD/CHF finally break outside its consolidation? USD/CHF 1-Hour Forex Chart by TradingView That will likely depend on how traders will react to today’s U.S. GDP report. The markets currently expect Uncle Sam’s growth to come in at 2.0% in Q1 2023, a bit slower than the 2.6% uptick in Q4. However, Atlanta Federal Reserve’s GDPNow, which is a running estimate…

Share: The index trades within a narrow range around 101.30. Further weakness is expected to meet support at the 101.00 region. Flash Q1 GDP figures, weekly Claims take centre stage later. The greenback, when tracked by the USD Index (DXY), alternates gains with losses around the 101.30 on Thursday. USD Index looks at data, risk appetite The weekly decline in the index seems to have met some initial contention around the 101.00 neighbourhood amidst persistent bias towards the risk complex and a tepid bounce in US yields across the curve. In the meantime, the Dollar attempts to stabilize…

Hoping to profit from risk-off flows lately? Banking sector jitters are back at it again, and it doesn’t help that traders are also feeling wary about a potential U.S. recession. If this kind of market mood persists, we might just see more declines for risk assets like equities. In that case, the S&P500 index could have more room to head south, possibly sustaining the bearish momentum until its triangle support. S&P 500 Index (SPX500) 4-hour Chart by TradingView As you can see from the 4-hour chart above, the stock index has been forming higher lows since late last year and…