Author: FX

Trading is much like a game of basketball. Two teams are playing. One side are the bulls and the other side are the bears. Both sides struggle to push their team for that win. Basketball is a game that is wherein momentum plays a very big role. In fact, many professional players would agree that it is a game of runs. One big play can change the chemistry of a team. Players could be making mistakes here and there, but one big shot or a dunk can bring the fans on their feet and the team back in the game.…

USDIndex settled at 101.50, Wall Street rallied on the back of tech amid ongoing hopes for a downshift in Fed rate hikes amid a potential moderation in inflation this week. Fears of a recession and the potential for the worst quarter of earnings in seven years were put aside for now. Microsoft announces today but news it is investing $10 bln in OpenAI, the maker of ChatGPT provided strong support for investors. The USD Index failed to extend above 102, while it returned to 101.50, as Treasuries cheapened amid the gains in risk appetite and…

Prior 102; revised to 103Manufacturing confidence 103Prior 102Services confidence 105Prior 104It’s a mixed bag as industry confidence rises slightly in January while services sector morale declined. On the balance of things, this resulted in a slight drop in the composite (headline) reading. Source link

If you haven’t gotten enough of central banker-speak then you’re gonna love that BOC is publishing its latest monetary policy decision tomorrow at 3:00 pm GMT. Any central bank decision is a BFD for forex traders but BOC’s event just might bring more CAD volatility than the usual. See, after a dovish shift from “interest rate will need to rise further” in October to “Governing Council will be considering whether the policy interest rate needs to rise further” in December, markets are expecting the BOC to raise its interest rates by a smaller 25 basis points to 4.50%. And if…

Open interest in natural gas futures markets shrank by around 2.1K contracts on Monday after two daily builds in a row, according to preliminary readi Source link

DOJ poised to file antitrust lawsuit against search giant for the second time Source link

© Reuters. FILE PHOTO: General view in Riyadh, Saudi Arabia, June 21 2020. REUTERS/Ahmed Yosri By Anant Chandak BENGALURU (Reuters) – Economies in the six-member Gulf Cooperation Council (GCC) will grow this year at half the rate of 2022 as oil revenues take a hit from an expected mild global slowdown, according to the median view from a Reuters poll of economists. Crude oil prices, a major driver for Gulf economies, are down more than a third from last year’s highs and were expected to remain under pressure this year over fears of a recession in major economies sapping demand.…

The yen has been in selloff mode recently, but can it turn things around soon? Both USD/JPY and EUR/JPY are closing in on pretty strong resistance levels! USD/JPY 4-hour Forex Chart by TradingView Is the trend still our friend on USD/JPY? Price has formed lower highs and lower lows inside a falling channel that’s been holding since December last year. Another test of the channel top seems to be underway, and the Fib tool reveals that this lines up with the 61.8% retracement level. To top it off, this area of interest coincides with the 200 SMA dynamic resistance, too!…

A note from Goldman Sachs on commodities has a very bullish outlook. Analysts at the bank say commodities will show “superior total returns” through this year, citing economic “macro and micro dynamics re-aligning again”, low inventories. On Oil:Over a 12-month period, the bank forecast returns of 46.9% from energy, 29.6% from industrial metals and 5.7% from precious metals“Oil markets are not pricing the expected uplift in demand combined with the downturn in Russian production”“China’s reopening is a game-changer”“Commodities like crude oil, refined petroleum products, LNG, and soybeans are particularly set to benefit from China’s demand tailwind”over the next 12 months…

A recovery in investors’ risk appetite has led to a correction in USD/JPY. The volatility is contracting amid an Ascending Triangle formation. The 21-EMA is continuously providing support to the US Dollar. The USD/JPY pair has corrected gradually to near 130.15 after printing a fresh three-day high at 130.89 on Monday. The asset has corrected due to a recovery in investors’ risk-taking capacity. The risk-appetite theme has gained traction as the S&P500 futures have recovered losses recorded in early Asia. The major has remained volatile amid chatters over Bank of Japan (BOJ) Governor Haruhiko Kuroda’s successor. The US Dollar Index…