US Inflation Slows; Equity Markets Rally on Earnings News
US Inflation Slows; Equity Markets Rally on Earnings News The slowing down of US inflation has been a welcome development in the financial markets. Along with positive earnings news, this has contributed to a robust rally in equity markets. The EUR/JPY pair, however, has seen only a slight recovery from its intraday low, hovering around […]
Pause in US Dollar Sell-off Anticipated Prior to Confidence Data Release
Pause in US Dollar Sell-off Anticipated Prior to Confidence Data Release The US Dollar, which has been on a downward trajectory against other currencies, is anticipated to experience a temporary pause in its sell-off as the market eagerly awaits the release of key confidence data. The greenback hit a 15-month low before it began to […]
USD/CAD Sees Modest Gains Near 1.3230-35, Awaits FOMC Minutes
USD/CAD Sees Modest Gains Near 1.3230-35, Awaits FOMC Minutes The USD/CAD pair has been a focal point for investors during Wednesday’s Asian session. This currency pair saw an uptick in buying, allowing it to recover from its weekly low of approximately 1.3200 achieved on Tuesday. At present, spot prices are hovering around the 1.3230-1.3235 range, […]
US Yields Climb as Fed’s Powell Reinforces Commitment to Addressing Inflation
US Yields Climb as Fed’s Powell Reinforces Commitment to Addressing Inflation Following Federal Reserve Chair Jerome Powell’s speech, which reinforced the central bank’s dedication to addressing inflation and achieving the 2% target, US Treasury yields experienced a rise. The yield curve inversion between two-year and 10-year Treasury notes intensified, implying that investors expect further rate […]
Dollar firm ahead of Powell testimony, sterling up on hot inflation
Dollar firm ahead of Powell testimony, sterling up on hot inflation The dollar was firmer on Wednesday leading into Federal Reserve Chair Jerome Powell’s appearance before Congress where he is expected to strike a hawkish tone, while sterling firmed slightly after hotter-than-expected British inflation data. The annual pace of British consumer price gains was steady […]
US May CPI Inflation The Main Dish Today
US May CPI Inflation The Main Dish Today US stock markets retained positive momentum yesterday with the three main indices rising by 0.55% (Dow) to 1.5% (Nasdaq). The S&P 500 rose by almost 1%, closing above the August 2022 top. Tech bell weather Nasdaq cleared that same technical hurdle earlier this month. Stock markets embrace […]
USD/CAD at Risk on Hawkish BoC but Fed May Be a Spoiler
USD/CAD at Risk on Hawkish BoC but Fed May Be a Spoiler The Canadian dollar has appreciated sharply against the U.S. dollar since late May. The chart below shows how USD/CAD has fallen more than 2.0% over the past two weeks, with the pair now trading near C$1.3350 and steadily approaching its 2023 lows. Bank […]
Surprise BoC Hike Fuels Hawks Around the World
Surprise BoC Hike Fuels Hawks Around the World The surprise 25bp hike from the Bank of Canada (BoC) yesterday sent shockwaves across the financial markets. BoC decision to resume its rate hikes after a two-meeting pause and the surprise 25bp from the Reserve Bank of Australia (RBA) a day earlier fueled the central bank hawks […]
Dow Jones Versus the Nasdaq 100 Amid Rising Government Bond Yields
Dow Jones Versus the Nasdaq 100 Amid Rising Government Bond Yields The blue-chip-oriented Dow Jones gained cautiously on Wednesday while the tech-heavy Nasdaq 100 sank 1.75% in the worst single-day drop since April 25th. In fact, the Nasdaq/Dow ratio plunged 2.02%, marking the worst 24-hour period since October 27th, which was over 7 months ago. […]
GBP/USD struggles to surpass 1.2450, upside seems favored despite hawkish Fed bets improve
GBP/USD struggles to surpass 1.2450, upside seems favored despite hawkish Fed bets improve The GBP/USD pair has witnessed delicate barricades after climbing to near 1.2450 in the early European session. The Cable is expected to remain on tenterhooks as the USD Dollar Index (DXY) has attempted a recovery after dropping to near 103.81. More downside […]
Fed’s 2 Biggest Hawks Yesterday Coloured Trading
Fed’s 2 Biggest Hawks Yesterday Coloured Trading The Fed’s two biggest hawks yesterday coloured trading which until then turned out to be non-directional. Kashkari from the Minneapolis Fed said it’s a close call between a pause and a hike in June, adding that the former wouldn’t mean tightening is over per se. St. Louis Fed […]
The Gold Standard In Forex Trading
The Gold Standard In Forex Trading What is the Forex market? Before moving on to the gold standard, let’s review the concept of Forex trading. Forex trading means trading in currency pairs. That is, it is an exchange of one currency for another. Traders make money when market prices fluctuate. After all, the trader gets […]
Temporary First Republic-Related Stress to Fade Further
Temporary First Republic-Related Stress to Fade Further Shares of First Republic remain on a slide, but the spillover to other markets was much less than Tuesday. The new sell-off in the stock came after CNBC reported that the U.S. government is currently unwilling to intervene on behalf of the bank. Advisors to the bank are […]
How To Identify Trading Trends in Forex Market
How To Identify Trading Trends in Forex Market The forex market is the most traded global financial market. In this, participants can exchange a country’s currency for another currency. You can trade actively in this market for 24 hours a day for seven days a week across multiple time zones. Investors trade for a currency […]
EUR/USD, GBP/USD Hold Near Resistance Ahead of Euro
EUR/USD, GBP/USD Hold Near Resistance Ahead of Euro Both the EUR/USD and GBP/USD pair are holding near key points of resistance with inflation data set to be released from each economy tomorrow morning. While European inflation has fallen as the ECB has lifted rates with tomorrow expected to show at 6.9% for headline CPI, UK […]
Best 5 Most Traded Currency Pairs in 2023
Best 5 Most Traded Currency Pairs in 2023 Forex is the largest financial market in the world, with $6.6 trillion traded each trading day. The Forex market is open 24-hours a day, five days a week. There is plenty of opportunity for trading Forex. There is a lot to learn when you start trading Forex, […]
Constructive Developments for the Consumer
Constructive Developments for the Consumer Developments in Australia and the US this week were supportive of our views for the RBA and the FOMC. The Westpac- MI Consumer Confidence Survey provided a positive update on confidence. The RBA’s decision to leave the policy rate unchanged in April proved to be an important support, with the […]
Solid US Jobs Growth Supports May Hike from Fed
Solid US Jobs Growth Supports May Hike from Fed Today we take a look at Nordic inflation with March figures CPI from Denmark and Norway. In Denmark, we expect a 0.6 percentage point decline to 7.0%, driven by base effects in energy prices. In Norway, we expect core inflation to rise by 0.2 percentage points […]