Author: FX

Economist at UOB Group Ho Woei Chen reviews the recent prints from PMIs in the Chinese economy. Key Takeaways “Both the official manufacturing and non-manufacturing PMIs are back in expansion (defined as a reading above 50) in Jan for the first time in four months, having rebounded from their lowest since Feb 2020 just a month ago.” “Activities have recovered swiftly after China relaxed its zero-Covid policy and reopened its borders to international travelers from 8 Jan. The sharp jump in the non-manufacturing PMI is consistent with anecdotal evidence of a strong boost in consumption spending during the Spring Festival…

Central Banks are in focus this week as investors eye the FOMC as well as ECB and BoE meetings. Dollar Midway through the week and the Dollar continues to find support above the key 101.28 level, as bears snap a three-day uptrend ahead of the much-anticipated Fed interest rate decision later today. Factors driving this loss of momentum from the bulls, can be attributed to the “pre-Fed anxiety” creeping into the market, as well as the downbeat U.S data which weighed heavily on the Dollar on Tuesday. Looking ahead, investors have already priced in a 0.25% rate hike and anything…

The year 2022 remains in the rear-view mirror. There was no shortage of buzz in the market last year: rising interest rates, an ongoing inflation shock, and, as a result, falling stock markets and a strengthening dollar. Just imagine, at the end of the year the S&P500 was headed down 18%. If we speak about the stock market, we should not be critical, as the decrease in the value of assets was mixed and there are even positive moments:● The Energy sector is a striking example; it added 52% for the year and is, in fact, the only sector in…

Peach_iStock Stocks have wrapped up January with some surprises as the benchmark S&P 500 (SP500) finished the month with a gain of 6.2%. An even bigger advance was seen at the tech-heavy Nasdaq Composite (COMP.IND), which closed the month up 11% to mark its best start to the year since January 2001. While trades favored growth-oriented sectors, the Dow Jones Industrial Average (DJI) was also in the green, ending the month with an advance of 2.8%. As goes January, so goes the year? The S&P 500’s rally means that stocks hit the so-called “January Indicator Trifecta” this year, which gives…

USD/JPY ANALYSIS & TALKING POINTSAll eyes on U.S. economic data and Fed rate decision.Will the Fed stick to its hawkish rhetoric?Technical analysis suggestive of turnaround in USD/JPY. Recommended by Warren Venketas Get Your Free JPY Forecast JAPANESE YEN FUNDAMENTAL BACKDROP Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter Recent movement on the USD/JPY currency pair highlights the cautionary approach taken by market participants as the Federal Reserve interest rate decision looms (see economic calendar below). It seems as if the “don’t fight the Fed” narrative is…

Stocks and bonds corrected higher on Tuesday as the deceleration in ECI energized short covering and boosted risk appetite. Global Stock market finished solid. Earnings were mixed, but a lot of bad news has been digested, opening the door for bargain hunting. Treasury yields declined, led by the front end as the market senses rate hikes are coming to an end. Month-end buying also contributed. Along with ECI, the calendar included further declines in home prices, a drop in consumer confidence, and a slide in the Chicago PMI. UK: UK house prices inflation slowing down, shop…

© Reuters. Members of the Incident Management Team coordinate the search for a radioactive capsule that was lost in transit by a contractor hired by Rio Tinto, at the Emergency Services Complex in Cockburn, Australia, in this undated handout photo. Department of Fi By Lewis Jackson and Melanie Burton SYDNEY (Reuters) – Australian authorities on Wednesday found a radioactive capsule smaller than a coin that was lost in the vast Outback after nearly a week-long search along a 1,400 kilometres (870 miles) stretch of highway, officials said. The Caesium-137 capsule was discovered when a vehicle travelling at 70 kms per…

Later today at 7:00 pm GMT, the Fed will publish its latest policy decisions. Word around is that Powell and his team will raise their interest rates by 25 basis points to 4.75%, which is pretty high but not as hawkish as the central bank’s previous 50 and 75 bps rate hikes. More importantly, markets believe that Gov. Powell will put on his hawkiest feathers and do his best to discourage traders into thinking that a slowdown in rate hikes means that the Fed is almost done tightening its policies. EUR/USD 1-hour Forex Chart by TradingView Before the Fed’s decision…

NZD/USD is scaling towards 0.6450 as the USD Index has retreated after a short-lived pullback. Federal Reserve is widely anticipated to announce a 25 bps interest rate hike to 4.50-4.75%. Reserve Bank of New Zealand might continue its hawkish stance despite weak Employment data. NZD/USD is testing the consolidation breakdown and is likely to display a fresh downside ahead. NZD/USD has stretched its recovery above the critical resistance of 0.6440 in the early European session. The Kiwi asset displayed a recovery move after testing Tuesday’s low around 0.6415 due to subdued performance by the US Dollar Index (DXY). The USD…

Welcome to a brand-new trading month, errbody! Jumpstart February with a look at these trend continuation setups on Netflix (NFLX) and EUR/AUD. Better keep your eyes on these pullback levels. EUR/AUD 4-hour Forex Chart by TradingView Don’t look now, but EUR/AUD already looks ready to resume its slide! The pair has been cruising lower inside a descending channel on the 4-hour time frame and is currently hitting a ceiling at the 38.2% Fib. A higher pullback could still reach the 61.8% level closer to the channel resistance near the 1.5600 handle, but Stochastic is suggesting that bears are returning. In…