Author: FX

Low-hiring, low firing environment may persist or may quickly change to a no-hiring, more-firing labor marketBusinesses are cautiously optimistic, workers are not so sure.The signal here — I think — is that the Fed could pivot quickly.The comments are from a short LinkedIn post. Here’s the full text:Is the economic outlook good or bad?If you talk to businesses, they’re cautiously optimistic. Growth is good, consumer spending remains solid, jobs are easy to fill, and productivity gains are helping control costs.Talking to workers, they’re not so sure. You can see this in the latest sentiment surveys, which show that Americans are…

FUNDAMENTAL OVERVIEWWe’ve had a rough three-day losing streak for the Nasdaq and other major stock market indices. It’s not clear what was the catalyst although it coincided with the release of Anthropic’s new AI tool called Claude Plugins. It basically demonstrated that a large portion of software could be obsolete and weighed on tech stocks.In reality, there were already cautionary signs as the market was diverging with credit spreads which have been signalling some tightening in financial conditions. In fact, the US economic surprise index recently jumped to the highest level since November 2023. That led to some hawkish repricing…

The Euro (EUR) ticks up against the US Dollar (USD) on Friday, trading near 1.1800 at the time of writing after hitting fresh two-week lows of 1.1765 earlier on the day. The sell-off in Equity markets has cast an overall risk-averse sentiment that is buoying the safe-haven Greenback, while in Europe, German Industrial Production disappointed.The US Dollar remains supported amid a global rout on Equities, with the tech sector leading losses amid growing market concerns about aggressive spending on Artificial Intelligence (AI). The risk-off mood has offset the impact of a string of downbeat US employment figures, which adds pressure…

Dollar nears two-week high as AI splurge spooks investors Source link

The MT5 ADX indicator cuts through this noise by measuring one thing: trend strength. It doesn’t care about direction—up or down doesn’t matter. What it tells you is whether the current move has conviction or if you’re better off sitting on your hands. That single piece of information can save traders from countless bad entries in weak, directionless markets. What the ADX Actually Measures The Average Directional Index doesn’t point you toward buying or selling. Instead, it quantifies how strong any trend is, regardless of direction. Developed by J. Welles Wilder in 1978, the ADX forms part of the Directional…

BOJ is not behind the curve in dealing with inflationIt is obvious that we should not raise rates too quickly in a way that derails the economic recoveryI’m not saying that food prices are rising in a way that warrants immediate policy actionNot thinking of a particular pace in raising ratesDon’t have a specific timeframe in mind on how soon the BOJ should raise rates nextIt would be wrong to have a preset idea on that decisionIf there is sufficient data that convinces us to act, then we will do so without hesitationThe previous pace of rate hikes are not…

The GBP/JPY cross attracts some buyers near the 211.60 area, or a four-day low touched during the Asian session on Friday, and climbs to the top end of the intraday range. Spot prices currently trade just below mid-212.00s, and, for now, seem to have stalled this week’s modest pullback from the 215.00 mark, or the highest level since July 2008.As investors digest the Bank of England’s (BoE) policy update on Thursday, the British Pound (GBP) benefits from the emergence of some US Dollar (USD) selling and turns out to be a key factor acting as a tailwind for the GBP/JPY…

NZD/CAD is approaching a key area of interest after breaking above its established uptrend. Is the pair starting a bearish reversal? Or are we looking at a pullback opportunity in the making? NZD/CAD Daily Forex Chart Faster with TradingView Falling gold prices and unexpectedly soft quarterly labor market data from New Zealand have weighed on the Kiwi over the past few days. The Canadian dollar, meanwhile, found support from firmer crude oil prices and a rebound in its North American counterpart, the US dollar. Can today’s Canadian jobs report keep the Canadian dollar in control? Remember that directional biases and…

The European Central Bank (ECB) kept interest rates unchanged at 2.00% on Thursday for a fifth consecutive meeting, signaling confidence in its inflation trajectory even as headline prices fell below the 2% target. President Christine Lagarde reinforced the message that monetary policy remains “in a good place,” while acknowledging a stronger euro could push inflation lower than currently projected. Key Takeaways ECB held deposit rate at 2.00%, main refinancing at 2.15%, marginal lending at 2.40% for a fifth straight meeting The decision was unanimous with no dissent on the rate hold Lagarde emphasized ECB “cannot be hostage to one data…

Taiwan teams with US firm Kratos to build attack drones to counter China Source link