Author: FX

imaginima/iStock via Getty Images Algonquin Power & Utilities (NYSE:AQN) -6.6% in Friday’s trading, extending yesterday’s 3.6% slide in its U.S. shares after slashing its dividend by 40% and issuing below-consensus earnings guidance for 2023. Desjardins analyst Brent Stadler downgraded shares to Sell from Hold with a $7 price target, cut from $10, saying he “struggle(s) to make a compelling case to own the name based on fundamentals.” “Guidance for 2023 was well below expectations, headwinds are anticipated through 2025 with very little earnings growth (unless it is successful with KP rate cases) and we believe the current valuation is fair,”…

What a start to the year for European stock markets.Closing changes on the day:Stoxx 600 +0.5%German Dax +0.2%France’s CAC +0.7%UK’s FTSE 100 +0.7%Spain’s Ibex +0.6%Italy’s FTSE MIB +0.2%On the week:Stoxx 600 +1.9%German Dax +3.4%France’s CAC +2.4%UK’s FTSE 100 +1.9%Spain’s Ibex +2.1%Italy’s FTSE MIB +2.4%The year-to-date gains are now above 8% in Europe, which is surely better annual performance than 99% of European hedge funds over the past decade. I see this move as a roundtrip from the worries about natural gas supply that started in Aug/Sept. Does it deserve another lift beyond that?ADVERTISEMENT – CONTINUE READING BELOW Source link

US Consumer Sentiment improved, while inflation expectations edged lower. UK’s GDP for the fourth quarter contracted and flashed a gloomy economic outlook. GBP/USD traders are eyeing UK CPI, Retail Sales, and US Retail Sales data. The Pound Sterling (GBP) slid slightly vs. the US Dollar (USD) Friday, following the release of the University of Michigan (UoM) Consumer Sentiment for January in the US, which exceeded estimates, while the poll showed that inflation expectations for one-year were downward revised. At the time of writing, the GBP/USD is trading at 1.2204 after hitting a daily low of 1.2150. GBP/USD range-bound awaiting next…

EUR/USD about to post the highest weekly close since May 2022. US Dollar back under pressure, heads for sharp weekly losses. US Consumer Confidence rises more than expected in January. The EUR/USD trimmed daily losses during Friday’s American session, rising back above 1.0800. The euro was holding onto significant weekly gains, headed toward the biggest close since May 2022. US Dollar recovers but remains under pressure The US Dollar rebounded modestly on Friday after a sharp decline the day before, following US inflation data. The numbers showed the Consumer Price Index slowed down further in December, increasing expectations that the Federal…

I’m shocked at the lack of commentary around next week’s Bank of Japan meeting and how that’s reverberating through markets.The Bank of Japan decision is Wednesday (late Tuesday US time) and the FX market is screaming that risks around it are rising.There have been persistent reports of the BOJ boosting its inflation forecasts at the meeting and yesterday Yomiuri reported that the BOJ will review the side effects of its easing at the meeting. Since then, USD/JPY is down nearly 400 pips and has fallen to the lowest since May.USDJPY dailyI also believe that the risk of Japanese investors getting…

5/5 © Reuters. Toyota Motor Corporation President Akio Toyoda and Toyota’s GAZOO Racing Company President Koji Sato attend an event for Toyota GAZOO Racing and LEXUS at Tokyo Auto Salon 2023 at Makuhari Messe in Chiba, east of Tokyo, Japan January 13, 2023. REUTERS/Kim 2/5 CHIBA, Japan (Reuters) – In an eye-catching bid to show that cars can be clean while appealing to old-school petrolheads, Toyota Motor (NYSE:) on Friday showcased zero-emission versions of its 1980s sports range, which still boasts a strong global fan base. At an industry event for customised cars in Chiba, east of Tokyo, the Japanese…

Gold has climbed above $1,900 for the first time in seven months ahead of the weekend. But the technical outlook suggests XAU/USD eyes correction before extending rally, FXStreet’s Eren Sengezer reports. $1,880 aligns as initial support “XAU/USD’s near-term technical outlook points to overbought conditions with the pair trading slightly above the ascending regression channel coming from early November and the daily Relative Strength Index (RSI) holding above 70. Hence, Gold could stage a technical correction before extending its uptrend.” “On the downside, $1,880 aligns as initial support ahead of $1,860. In case the latter support fails, XAU/USD could continue to…

Economists at TD Securities think the Yen will trade with an asymmetric bias that is tilted to the upside. EUR/JPY: Downside towards 130 in the coming months is likely “With the Fed ceding leadership on policy to the ECB and the BoJ, JPY trading bias remains asymmetric and with considerable room for gains.” “We expect USD/JPY to register a 120-125 handle this quarter. We think rallies to 133/134 in will make for an attractive short.” “We are biased to appreciable strategic EUR/JPY downside towards 130 in the coming months.”   Source link

Gold price continued to extend its weekly gains, above the $1,900 mark. Trader’s speculations that the US Federal Reserve would slow rate hikes pace boosted Gold prices. Gold Price Analysis: Daily close above $1,920 could pave the way toward $2,000. Gold price hit a new 9-month high at $1,913.18 on Friday, amidst investors’ speculations that the US Federal Reserve (Fed) could shift to a less aggressive stance following the release of softer inflation data. Therefore, XAU/USD is trading at $1,912, gains 0.82%, headed for a fourth consecutive week of gains. XAU/USD got bolstered by speculations of a less hawkish Fed,…

US Dollar (DXY) Price and Chart AnalysisMichigan consumer confidence 64.6 vs. expectations of 60.5.Year ahead inflation expectations fall for the fourth straight month. Recommended by Nick Cawley Introduction to Forex News Trading The latest Michigan Consumer Sentiment report showed consumer sentiment remaining low, from a historical basis, but beating market expectations by a margin. Year-ahead inflation expectations fell to 4% from 4.4% while the five-year reading nudged a touch higher to 3% from 2.9% in December. The one-year reading is the lowest since April 2021. According to the University of Michigan, ‘Uncertainty over both inflation expectations measures remains high, and…