Author: FX
NATO warns Russia after airspace incursion in Estonia, raising geopolitical risks that pressured the Euro.ECB Consumer Expectations Survey shows inflation forecast of 2.8% for one year, while the five-year projection rises modestly.Traders eye UK budget details and Eurozone inflation data, alongside Trump’s new tariffs targeting key European exports.The Euro (EUR) reverses its course against the British Pound (GBP) amid a scarce economic docket in Europe and the UK on Friday, although geopolitics could be the reason that pushed the shared currency lower. EUR/GBP trades at 0.8729, down 0.14% at the time of writing.Shared currency drops 0.14% as geopolitics overshadow light…
There is scope for US Dollar (USD) to test 7.1500 before a pullback can be expected; 7.1600 is unlikely to come into view. In the longer run, upward momentum continues to increase; if USD breaks above 7.1500, the next ‘level to watch is 7.1600, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. Upward momentum continues to increase24-HOUR VIEW: “USD soared to a high of 7.1400 on Wednesday. Yesterday, Thursday, when USD was at 7.1340, we stated that ‘while the sharp rise appears to be overdone, there is scope for USD to test 7.1420 before the risk of…
The price jump in Copper, temporarily rising by almost 5% in reaction to the news that the operator of the important Grasberg mine in Indonesia has declared force majeure on contracted supplies, demonstrates how fragile market sentiment is regarding the supply situation. The production at the mine had to be halted due to an accident at the beginning of the month. At least since the treatment and refining charges at Copper smelters had virtually collapsed – indicating a shortage of raw materials – concerns about a supply shortage have increased, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen…
Gold breaks out above $3,760 and advances toward the recent ATH of $3,791.Fresh US tariffs and geopolitical tensions keep safe-haven demand for Gold underpinned.The core PCE Price Index rose 0.2% MoM and headline PCE rose 0.3% MoM in August, up from 0.2% in July.Gold (XAU/USD) extends gains on Friday, pushing past the recent $3,760-$3,720 range, as the US Dollar (USD) eases after the latest Personal Consumption Expenditures (PCE) inflation report showed no fresh upside surprises.At the time of writing, XAU/USD is consolidating around $3,780, hovering just below the all-time high of $3,791 set earlier this week. The metal is on…
The offshore Chinese Yuan (CNH) was relatively stable on Monday near 7.14 against the US Dollar (USD). Investors remain cautious ahead of Tuesday’s publication at 01:30 GMT of the official Purchasing Managers Indexes (PMIs) from the National Bureau of Statistics (NBS), as well as the RatingDog PMI at 01:45 GMT, released by Caixin Insight Group and S&P Global, formerly Caixin PMI and newly renamed RatingDog PMI.These data, closely followed by the forex market, will provide an updated overview of China’s manufacturing and services dynamics at a time when the economy continues to suffer from weak domestic demand and persistent trade…
Further US Dollar (USD) strength is not ruled out, but any advance is likely part of a higher range of 149.20/150.15. In the longer run, USD could rise further to 150.15, with lesser odds of reaching 150.90, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. USD might rise further to 150.1524-HOUR VIEW: “Yesterday, we expected USD to ‘trade in a range between 148.20 and 149.15.’ However, instead of trading in a range, USD surged, reaching a high of 149.92. Further USD strength is not ruled out. However, with negative divergence forming, combined with deeply overbought conditions, suggest…
GBP/USD edges higher as Greenback eases after US PCE and UoM sentiment data The British Pound (GBP) gains traction against the US Dollar (USD) on Friday, with GBP/USD snapping a two-day losing streak. At the time of writing, the pair is hovering near 1.3393, staging a modest recovery after dropping to its weakest level in about seven weeks on Thursday. Read More… Pound Sterling remains on backfoot ahead of US PCE Inflation The Pound Sterling (GBP) trades with caution around 1.3330 against the US Dollar (USD) during the European trading session on Friday, around the seven-week low at 1.3324…
The USDCHF is easing lower after yesterday’s sharp surge to the upside. The pullback has carried the pair back under a swing area between 0.7986 and 0.7994, shifting the near-term tone.The correction now puts focus on the 61.8% retracement of the September downswing, which comes in at 0.79784. A move below this retracement level would open the door for further downside pressure and give sellers more momentum to press the correction.For now, sellers are making a play, but they still have work to do to truly regain control. Holding below the 61.8% retracement is the first step, but sustained momentum…
Some say that volatility is a forex trader’s best friend. But how do you make profits on a low-volatility trading day? Now that most of the major central banks have laid out their monetary policy biases and forex traders have pretty much priced them in, I won’t be surprised if trading volatility settles down over the next couple of weeks. So how can you make pips in this trading environment? Here are a few suggestions on how to gain profits even when there are no new catalysts for big moves. 1. Look at currency correlations for possible trade opportunities A…
Inflation expectations for the coming 12 months is seen nudging higher from 2.6% in July to 2.8% in August. After some moderation to start the summer, we’re starting to see price expectations creep a little higher again. The estimate is the highest since May with inflation expectations for five years ahead also seen marginally higher at 2.2%. The full set of readings can be found in the table below: This article was written by Justin Low at investinglive.com. Source link