Author: FX

Stocks are extending gains in the opening hour of trade in Europe with the Eurostoxx now up 1.2%, the DAX up 1.5%, and CAC 40 up 1.1% on the day. We’re also seeing US futures run higher with S&P 500 futures now up 27 points, or 0.7%, currently:This is a continuation of the post-Fed optimism from yesterday as we see Powell & co. cave in to the market’s outlook on recent inflation developments. As long as the data continues to stay the course as it has been in recent months, it will vindicate the optimism in risk trades. That’s the…

GBP/USD snapped a three-day losing streak on Wednesday. Economists at ING believe that the pair could race higher toward the 1.2450/2500 region. EUR/GBP could push up to the 0.90/91 area later in the year “Benign global conditions are supportive for the risk-sensitive Sterling and suggest GBP/USD could make a run at the 1.2450/2500 area this week.” “EUR/GBP has drifted higher again. On balance, we would favour continued outperformance given the greater scope for convergence in Eurozone and Sterling rates at the shorter end of the curve.”  “EUR/GBP may end the quarter near 0.89, but push up to the 0.90/91 area…

Stocks surged, Yields dove sharply, the US Dollar slumped, on Wednesday while they are holding their gains/losses so far today as well. The FOMC delivered the 25bp rate hike as expected, reaching 4.75%, an eighth straight hike. The moderation & the lack of anything new or overly hawkish  from Powell’s comments and when he acknowledged progress in the fight against inflation opened the door for bulls and a healthy short covering rally, eventhough he stressed that the labor market remains “extremely tight” and that inflation remains “well above our longer-run goal.” Markets remain convinced that a widely expected recession is likely…

Look out, crude oil traders! The commodity price is testing a pretty strong support zone. Will the trend resume or reverse from here? WTI Crude Oil (USOIL) 4-hour Chart by TradingView Crude oil has been cruising higher in a newly-formed rising channel, with its higher lows and higher highs since mid-December. Another test of support is taking place, and it looks like a bounce is possible. After all, technical indicators are hinting at the presence of bullish vibes. For one, the 100 SMA is still above the 200 SMA to indicate that the path of least resistance is to the…

Deutsche Bank reports Q4 results; reaffirms 2025 targets Source link

© Reuters. FILE PHOTO: The headquarters of Germany’s Deutsche Bank are pictured in Frankfurt, Germany, September 21, 2020. REUTERS/Ralph Orlowski/File Photo FRANKFURT (Reuters) -Deutsche Bank’s fourth-quarter profit surged, exceeding expectations and contributing to a third consecutive year of profit that was helped by higher interest rates and buoyant trading but damped by a slump in dealmaking that has shaken the industry. Net profit attributable to shareholders was 1.803 billion euros ($1.99 billion) in the three months ending Dec. 31, figures published on Thursday showed. That compares with a profit of 145 million euros a year earlier, and it is better…

Gold, XAU/USD, Federal Reserve, Technical Analysis – Briefing:Gold prices rallied the most in almost 2 weeks after the FedMarkets continue to bet against Powell’s rate outlook visionXAU/USD now turns to non-farm payrolls data on Friday Recommended by Daniel Dubrovsky Get Your Free Gold Forecast Gold prices gained 1.14 percent on Wednesday, the most in almost 2 weeks. The yellow metal is on course for a 7th consecutive week of gains. That would be the longest winning streak since the summer of 2020. All eyes were on the Federal Reserve over the past 24 hours, which delivered a 25 basis point…

Who’s up for trading trends? If you’re working on making trends your friends, then you shouldn’t miss what EUR/JPY and AUD/CHF are throwing at us! Check out their 4-hour charts: AUD/CHF 4-hour Forex Chart by TradingView First up is a nice and simple trend retracement. AUD/CHF is consolidating just above .6450, a level that had served as resistance in January. This time around, .6450 lines up with a trend line support, the 38.2% Fibonacci retracement of late January’s upswing, and the 100 SMA support on the 4-hour time frame. A long trade at current levels would mark a good trend…

In case you missed out on the Fed’s policy decision yesterday:Risk rallied in the aftermath, even more so after Powell opened the door on potential policy changes should inflation developments continue to act more favourably down the road. There are of course some caveats with Powell still saying that the Fed doesn’t share the same view as broader markets but with every meeting, he seems to be caving in more and more. And we will take that every day of the week.The decision also saw the dollar stumble across the board with key levels being threatened as stocks are also…

Euro, EUR/USD, US Dollar, GBP/USD, ECB, BoE, AUD/USD, Crude Oil – Talking PointsEuro support continues as US Dollar IS undermined by dovish perceptionsThe Fed hiked rates but Fed Chair Powell’s comments juiced up marketsIf the ECB hike as anticipated, will EUR/USD turn around? Recommended by Daniel McCarthy Get Your Free EUR Forecast The Euro and the British Pound extended gains seen immediately after Fed Chair Jerome Powell’s press conference. EUR/USD hit a 10-month high at 1.1033 today.The US Dollar sunk across the board as the market interpreted his remarks as a dovish tilt, despite the Federal Open Market Committee (FOMC)…