Author: FX

United States (US) Treasury Secretary Scott Bessent warned that the Federal Reserve (Fed) must re-establish its crediblity and trust with the American people during an interview with the Wall Street Journal, published on Friday. This comes on the heels of a devastating Nonfarm Payrolls (NFP) report that shows the US economy added just 22K new jobs in August, a stomach-churning plummet in hiring that has been laid almost entirely at the feet of the Trump administration’s trade tariffs and potentially Constitution-violating immigration crackdowns.Key highlightsCentral bank must recommit to maintaining the confidence of the American people.To safeguard future and the stability…

Broadcom’s massive Q3 report makes it a prime target for Mag7 inclusion.It should replace Tesla as the latter has a lower valuation and profit profile.Broadcom’s move into AI chips makes it a competitor to Nvidia.August NFP shows large reduction in hiring, spurs equity flight.Broadcom (AVGO) seems to finally be getting its due. After initially selling off after a slim fiscal third-quarter beat on Thursday, the stock went on a tear, rising as much as 16% on Friday. The initial ho-hum market treatment on Thursday gave way to a red-hot rally after CEO Hock Tan announced that Broadcom had secured over…

gold dailyYou can put that gold chart in the technical analysis text book, at least so far.Gold has been in a long-term bull market, almost a parabolic one from $2000 post-pandemic. After spiking to a record $3500 in April, it took a break and consolidated for five months. Now that it’s clear the Fed is going to aggressively ease and the US is embracing fiscal irresponsibility, it’s breaking out again.The simple measured target of this move (1x the consolidation range) that gets you to $4000, which is something I highlighted at the start of the week as it began to…

It was a soggy start for European stocks this month as most indexes sagged this month. The DAX tried to recover mid-week but never made it and today’s selling put it near the lows of the week. Closing changes on the day:Stoxx 600 -0.2%German DAX -0.85%France CAC -0.4%UK FTSE 100 -0.1%Spain IBEX -0.6%Italy’s FTSE MIB -0.9Closing changes on the week:Stoxx 600 -0.2%German DAX -1.3%France CAC +0.1%UK FTSE 100 +0.2%Spain IBEX -0.7%Italy’s FTSE MIB -1.4% This article was written by Adam Button at investinglive.com. Source link

The euro has been one of the beneficiaries of a weakening US dollar following another soft non-farm payrolls report. It’s up 96 pips to 1.1745 and touched as high as 1.1759. That’s a fresh high since July 27 and looks like a breakout from the recent period of consolidation, particularly if it can close above the August highs.If it can sustain some momentum it will have challenges at 1.1789 (July high) and 1.1830 (June high) before it can find some clear air but that dip down to 1.14 is now looking something like an inverted head and shoulders that targets…

GBP/USD climbs above 1.3500 after dismal US jobs data GBP/USD gathered bullish momentum and climbed above 1.3500 in the American session on Friday. At the time of press, the pair was up 0.6% on the day at 1.3515. Read More…   Pound Sterling advances against US Dollar ahead of US NFP data The Pound Sterling (GBP) moves higher to near 1.3470 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair gains as the US Dollar slumps ahead of the United States (US) Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT. At…

Silver consolidates near $41.00, holding just below its 14-year peak with bullish structure intact.US NFP miss fuels Fed cut bets, dragging the US Dollar and Treasury yields lower.Markets price in 88% chance of a 25 bps Fed cut and 12% odds of a larger 50 bps move this month.Silver (XAG/USD) is holding firm around $41.00 on Friday after retesting multi-year highs in the wake of soft US Nonfarm Payrolls (NFP) data. The metal peaked at $41.47 on Wednesday, its strongest level since September 2011, before easing slightly on Thursday. A broadly weaker US Dollar (USD) and falling Treasury yields after…

The Euro (EUR) strengthens on Friday against the US Dollar (USD), trading at around 1.1750 (+0.85%), as investors sell off the Greenback en masse following the publication of US employment figures.Looking at other currency pairs, the Euro is more stable against the Japanese Yen (JPY) (-0.1%) and Pound Sterling (GBP) (+0.1%), as traders look ahead to the German Industrial Production figures for July, to be published on Monday.The consensus is for a rebound of +1.3% month-on-month, following the sharp contraction of -1.9% in June, according to FXStreet’s Economic Calendar.For the Euro on the Forex market, the statistic represents an important…

The stock market is struggling to decide on whether it likes rate cuts enough to ignore a weakening economy.I highlighted earlier that there are 135 bps in cuts priced in over the next year and 155 bps through 2026. That gets rates below 3% and feels like ‘peak Fed pricing’ or something close. The problem is that removes the ‘fed put’ beyond that and just leaves you with a softening economy. In addition, there are big risks around tariff inflation that are still marinating that cold result in a nightmare scenario of stagflation.So the earlier enthusiasm about a more-dovish Fed…

USD/CAD steadies near 1.3800 after rebounding from a four-day low.Canada shed 65.5K jobs in August, unemployment rose to 7.1%, boosting BoC rate cut bets.US NFP showed only 22K jobs added, with unemployment at 4.3%, dragging the US Dollar and Treasury yields lower.The Canadian Dollar (CAD) weakens on Friday after dismal labor market data, but broad US Dollar (USD) softness following a weak US Nonfarm Payrolls (NFP) report kept USD/CAD’s upside in check. The pair is holding near the 1.3800 handle, rebounding from a four-day low in the aftermath of the release.Canada’s economy shed 65.5K jobs in August, marking the steepest…