Dollar Exhibits Initial Indications of Bottoming
Dollar Exhibits Initial Indications of Bottoming Yesterday, several central banks, including the Bank of England, Norges Bank, Swiss National Bank, and the Central Bank of Turkey, took center stage as they grappled with higher-than-expected inflation. This inflation surge was partly due to a robust job market driving increased demand. Interestingly, even with more substantial interest […]
Trade Deficit in New Zealand Grows Despite Boost in China Exports
Trade Deficit in New Zealand Grows Despite Boost in China Exports Despite a boost in exports to China, New Zealand’s trade deficit broadened in May. The deficit increased from NZ$17.02 billion to NZ$17.12 billion, falling just short of economists’ prediction of NZ$17.24 billion. Concurrently, the monthly trade surplus shrank from NZ$236 million to NZ$46 million. […]
RBA Minutes Less Hawkish Than Expected, For Now
RBA Minutes Less Hawkish Than Expected, For Now The Board sees increased inflation risks while recognizing prospect of weakening economy. And rising unemployment rate. The Minutes from the Reserve Bank Board’s meeting in June provide a more balanced approach to the outlook for rates than we saw in the Governor’s statement following the decision to […]
Dollar in demand as modest China rate cut hits sentiment
Dollar in demand as modest China rate cut hits sentiment The U.S. dollar gained in early European trade Tuesday, with this safe haven in demand as a rate cut by China’s central bank failed to assuage investor concerns over slowing economic growth. At 01:55 ET (05:55 GMT), the Dollar Index, which tracks the greenback against […]
US Markets Closed for Juneteenth Holiday
US Markets Closed for Juneteenth Holiday The consumer confidence of the University of Michigan was he only market relevant data release on Friday, but it brought somewhat of a mixed message, especially for bond investors. Consumers’ assessment, both on current conditions (63.9 from 59.2) and on expectations (68.0 from 64.9) printed stronger than expected but […]
Euro Rallies after ECB Raises Rates and Inflation Forecasts
Euro Rallies after ECB Raises Rates and Inflation Forecasts It was mostly a good day for the global markets, except for Europe, which saw the European Central Bank (ECB) expectedly raise interest rates by 25bp, but unexpectedly raised inflation forecast, as well. European policy makers now expect core inflation to average past the 5% mark, […]
Dollar rebounds from one / month low yen under pressure after BOJ meeting
Dollar rebounds from one/month low yen under pressure after BOJ meeting The U.S. dollar edged higher in early European trade Friday, rebounding after hefty overnight losses following weak economic data, while the Japanese yen weakened as the Bank of Japan maintained its interest rates at very low levels. At 01:45 ET (05:45 GMT), the Dollar […]
FOMC Skips June, But Signals Hikes Not Done Yet
FOMC Skips June, But Signals Hikes Not Done Yet As widely expected, the FOMC decided unanimously to refrain from raising rates at today’s meeting. However, the Committee continued to say that “additional policy firming” may be appropriate. Furthermore, the median dot for 2023 shifted up by 50 bps. That is, most FOMC members believe that […]
Dollar surges after Fed signals more rate hikes ahead
Dollar surges after Fed signals more rate hikes ahead The U.S. dollar rallied in early European trade Thursday, boosted by the Federal Reserve’s hawkish projection of more tightening this year, while the euro weakened ahead of the latest European Central Bank policy meeting. At 02:05 ET (06:05 GMT), the Dollar Index, which tracks the greenback […]
A Busy Week for Central Banks
A Busy Week for Central Banks Sentiment is cautiously bullish into the next US CPI figure, due tomorrow, and the next FOMC decision due Wednesday. U.S. inflation is expected to have fallen to 4.1% in May from 4.9%, and core inflation is estimated to be lower at 5.3% from 5.5% published the previous month earlier. […]
Weak Chinese Trade Data Add to Growth Worries
Weak Chinese Trade Data Add to Growth Worries German Bunds outperformed US Treasuries during European trading hours following an unexpectedly strong decrease of inflation expectations in the ECB’s April Consumer Expectations Survey. The divergence between the two became even larger as US Treasuries started underperforming (especially at the front end the curve) during the US […]
Reserve Bank of Australia Raised Policy Rate Further by 25 bps
Reserve Bank of Australia Raised Policy Rate Further by 25 bps A disappointing US non-manufacturing ISM was yesterday’s defining moment for FI and FX trading. Up until the release, the post-payrolls momentum still pushed US rates and the dollar gently higher. Afterwards, intraday fortunes changes, the first Pavlov reaction didn’t really gain traction afterwards. Turning […]
FOMO Regime Change for US Stock Market
FOMO Regime Change for US Stock Market The laggards, Dow Jones Industrial Average & Russell 2000 have recorded stellar single-day outperformances on Friday, 2 June against the Nasdaq 100; at least a three-month high. Market breadth has improved but fundamental structure remains weak due to stagflation risk. Positive FOMO (“fear of missing out”) flows may […]
XAU/USD bears approach $1,930 support on upbeat US Dollar
XAU/USD bears approach $1,930 support on upbeat US Dollar Gold Price (XAU/USD) stays on the bear’s radar for the second consecutive day as the precious metal renews intraday low near $1,945, extending the post-NFP losses amid to early Monday amid firmer US Dollar and the Treasury bond yields. That said, the US Dollar Index (DXY) […]
EUR/USD: Planning for Friday’s NFP Volatility
EUR/USD: Planning for Friday’s NFP Volatility EUR/USD started June with a 100-pip rally after a volatile end to May. Given the selloff we saw last month, a retracement in early June was to be expected, although I did think a 1.0600 retest might come first. So what should we watch ahead of Friday’s non-farm payroll […]
US PCE Deflators and Durable Goods Orders Scheduled
US PCE Deflators and Durable Goods Orders Scheduled UK bonds crashed for a second day straight with yields adding 10.6-19.2 bps across the curve. UK money markets discount an additional 100 bps tightening by December following the big upside CPI surprise Wednesday morning. Sterling initially revisited YtD highs but unable to force a break higher, […]
Advantages to Trading using MT4 platforms
Advantages to Trading using MT4 platforms Mt4 or Metatrader 4 is one of the most popular and used Forex trading platforms. It is offered by almost every Forex company and preferred by many forex traders. The platform has established itself as a prominent one by catering to all the basic needs of traders and not […]
Gold Price Forecast: XAU/USD could rebound to $2,005 if 50 DMA support holds
Gold Price Forecast: XAU/USD could rebound to $2,005 if 50 DMA support holds Gold price is replicating the moves seen in Wednesday’s Asian trading, making headways for a minor recovery toward $2,000 early Thursday. The retreat in the United States Dollar (USD) and the US Treasury bond yields supports Gold price. US Dollar steadies as […]