Author: FX
Uncertainty over the future of Federal Reserve leadership is putting pressure on the U.S. dollar, according to a note from Bank of America.The bank says concerns around the Fed’s direction have “arguably impacted the USD more than other assets so far,” preventing the currency from sustaining a rally. With speculation mounting over whether Chair Jerome Powell will remain in his role under a second Trump administration, investors are beginning to price in the possibility of a less restrictive Fed.”Even if a more conventional leadership transition occurs, the market is starting to contemplate a world with a less restrictive Fed,” BofA…
Union Pacific talks advance, regulator readies for historic rail merger review Source link
The AUDUSD extended its gains earlier in the week after breaking and holding above the 100-bar moving average on the 4-hour chart (blue line currently at 0.65435). That technical development helped shift the bias more bullish and opened the door for buyers to target higher levels. Buyers raced the pair to the upside and to new highs for the week.The most recent move to the upside saw price test a topside trendline resistance, where sellers leaned and capped the rally near 0.66197. The resulting pullback found support in a familiar swing area between 0.6588 and 0.65945, helping define a key…
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Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the July policy meeting and responds to questions from the press.Join our ECB Live Coverage hereECB press conference key quotes”Survey data point to overall modest expansion.””Higher tariffs and stronger Euro are expected make it harder for firms to invest.””Strong labour market, rising real incomes, solid private sector balance sheets support consumption.””Defence and infrastructure investment should bolster growth.””Indicators of underlying inflation suggest inflation will stabilise at target.””Longer-term inflation expectations continue to stand at around 2%.””Risks to economic growth remain tilted to the…
Gold surrenders gains to risk-sensitive equities with the EU-US deal in focus.Global equities benefit from prospects of more trade deals ahead of the August 1 deadline.XAU/USD lingers below Fibonacci resistance as bulls fail to gain traction above $3,400Gold is extending losses for a second straight session on Thursday, pressured by a shift toward risk-on sentiment and a decrease in safe-haven flows.At the time of writing, XAU/USD is hovering above $3,370, retreating from recent highs near $3,440 on renewed hopes of an EU-US trade deal ahead of the August 1 tariff deadline.On the data front, weekly Initial Jobless Claims fell to…
Pound Sterling weakens as UK PMI grew modestly The Pound Sterling (GBP) declines against its major peers on Thursday as the preliminary United Kingdom (UK) S&P Purchasing Managers’ Index (PMI) report for July has shown that the overall business activity grew at a slower-than-projected pace. The Composite PMI come in at 51.0, lower than estimates of 51.9 and 52.0 in June, suggesting that the overall business activity continued to expand, but at a moderate pace. UK Composite PMI growth slowed down as the service sector activity surprisingly rose at a moderate pace. The Services PMI dropped to 51.2, while it…
A first look at S&P Global’s Composite PMI indicated that US business activity grew faster in July, with the index rising to 54.6 from the previous month’s 52.9. The number, which is over the 50 mark that divides expansion from contraction, suggests that the private sector is gathering traction.The statistics showed that different industries were performing in a mixed fashion. The Manufacturing PMI dropped from 52.9 to 49.5, which means that manufacturing activity lost momentum. The Services PMI, on the other hand, increased from 52.9 to 55.2, which might mean that demand in the services sector is picking up momentum.Following…
Prior 50.5Manufacturing PMI 49.8 vs 49.7 expectedPrior 49.5Composite PMI 51.0 vs 50.8 expectedPrior 50.6 This article was written by Justin Low at investinglive.com. Source link
USD/CAD looks to have paused its downswing after testing key support levels. Could this be the springboard for a bounce in the coming days? Here’s the 4-hour chart we’re watching! USD/CAD 4-hour Forex Chart by TradingView USD/CAD has been trending lower since last week, as rising expectations for a Fed rate cut have dragged the dollar down, despite some safe-haven demand offering limited support. At the same time, stronger-than-expected Canadian CPI reports cooled expectations for a Bank of Canada rate cut. That helped lift the Loonie, even with global trade jitters and softer oil prices in the mix. Remember that…