Author: FX

USD/JPY trims early losses on Friday, with the pair rebounding toward nine-month highs as the US Dollar (USD) stabilizes. At the time of writing, USD/JPY is trading around 154.60, recovering from an intraday low near 153.62 and remains on track for modest weekly gains.In the United States, market sentiment improved after the federal government reopened, although the underlying tone remains cautious. Investors continue to grapple with uncertainty over the release of delayed economic data following the record-long shutdown.US Labor Secretary Chavez-Deremer said on Friday that the Bureau of Labor Statistics was unable to fully gather the October Consumer Price Index…

Gold (XAUUSD) trades on the back foot on Friday as bulls struggle to hold early gains amid mixed market sentiment. At the time of writing, XAU/USD is trading around $4,100, down nearly 1.5%, after sliding to $4,032 earlier in the dayRelief over the end of the US government shutdown has eased some of Gold’s safe-haven appeal. At the same time, a run of cautious remarks from Federal Reserve (Fed) officials has prompted traders to dial back expectations of a December rate cut. The fading prospect of near-term easing is helping the US Dollar (USD) recover after recent weakness, adding pressure…

AUD/USD trades higher on Friday around 0.6550 at the time of writing, up 0.30% on the day, supported by renewed demand for the Australian Dollar (AUD) following solid economic releases from Australia and China, while uncertainty persists around the US Dollar (USD).The Australian Dollar is benefiting from a stronger-than-expected labor market. The latest figures from the Australian Bureau of Statistics (ABS) showed the Unemployment Rate falling to 4.3% in October from 4.5% previously, along with a net Employment gain of 42.2K, including 55.3K new full-time jobs.These numbers, which significantly exceeded expectations, reinforce the view that the Reserve Bank of Australia…

NZD/USD trades higher around 0.5680 on Friday, up 0.60% on the day at the time of writing. The pair benefits from a softer US Dollar (USD) as investors remain cautious ahead of the resumption of key US macroeconomic releases, which were delayed due to the recent government shutdown. The US Dollar Index (DXY) stays near its two-week low, reflecting ongoing downward pressure on the Greenback.On the monetary policy front, markets have recently scaled back expectations for a dovish shift by the Federal Reserve (Fed), as several officials reiterated the need to bring above-target inflation back under control.However, uncertainty surrounding upcoming…

USD/CHF stages a modest rebound on Friday after slipping to its lowest level since October 17 earlier in the European session. The pair found support as traders reacted to headlines that the United States (US) and Switzerland have reached a new trade deal, helping stabilize sentiment.At the time of writing, USD/CHF is trading around 0.7931, snapping a seven-day losing streak as a slightly firmer US Dollar (USD) helps limit the downside. The US Dollar Index (DXY), which measures the Greenback’s value against a basket of six major currencies, is staging a modest rebound from two-week lows, trading around 99.37, up…

Pound Sterling slumps against US Dollar as Greenback turns positiveThe Pound Sterling (GBP) trades 0.4% lower to near 1.3130 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair faces selling pressure as the Pound Sterling remains on the back foot, and the US Dollar has recovered strongly. Read More…GBP/USD slips near 1.3150 as UK government drops plans to raise tax ratesGBP/USD retraces its recent gains from the previous session, trading around 1.3150 during the Asian hours on Friday. The pair depreciates as the Pound Sterling (GBP) declines amid rising concerns over fiscal discipline and political stability…

Federal Reserve (Fed) Bank of Kansas City President Jeffrey Schmid spoke about the economic outlook and monetary policy at the Joint Energy Conference hosted by the Federal Reserve Banks of Dallas and Kansas City, in Denver on Friday. He said that monetary policy should lean against demand growth and that there is no room for complacency on inflation expectations.Key takeawaysFurther rate cuts won’t patch job market cracks, could do damage to inflation.My rationale for October dissent continues to guide me as I head toward December.Inflation is too hot, labor market is cooling but largely in balance.Fed policy is modestly restrictive,…

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S&P 500 trend change it was, as per yesterday‘s title and short calls bringing great profits to all clients, swing and intraday. The veracity of the push lower clearly says market wasn‘t ready for that turn, yet at the same time, there was no panic, and the selling was orderly. VIX – was this a spike to speak of, is this what one sees at important bottoms?There were enough clues before the slide (you remember me talking the dollar), some presented in yesterday‘s free article, many more in its premium section, stock tickers given, sectors pinpointed.With selling this strong, there…

Another batch of Chinese economic data just dropped, and traders are scrambling to figure out what it means for Beijing’s next moves. Why does this matter now? Because China’s economy is at a crossroads. October’s data showed retail sales beating expectations at 2.9% growth, but industrial production disappointed at 4.9%, well below the 5.5% forecast. Meanwhile, the really alarming number was buried in the details: fixed asset investment fell 1.7%, nearly double the expected 0.8% decline. Read on to understand what these numbers actually mean, why the government might (or might not) unleash more stimulus, and what it all could…