China’s Yuan Defense May Undermine Global Bond Demand
China’s Yuan Defense May Undermine Global Bond Demand China’s efforts to defend the yuan have unintended consequences, casting a shadow on the global bond market as investors grapple with higher overseas funding costs. These developments have created a scenario where investors may divert their attention away from Chinese bonds in favor of more attractive options […]
Challenges and Concerns Arise from Weak Machinery Orders in Japan
Challenges and Concerns Arise from Weak Machinery Orders in Japan Japan is currently grappling with a pressing policy challenge and growing concerns about its economic outlook, primarily stemming from a more significant than anticipated decline in core machinery orders. These orders, which serve as a critical leading indicator of Japanese business spending, have slumped by […]
USD/JPY remains below 145.00 as BoJ provides limitless fixed-rate JGBs
USD/JPY remains below 145.00 as BoJ provides limitless fixed-rate JGBs The USD/JPY pair is currently trading below the significant level of 145.00, retreating from its year-to-date high during the Asian trading session. At present, the major pair hovers around 144.90, experiencing a marginal decline of 0.05% throughout the day. On Friday, an important development came […]
UK Q2 GDP Preview: BoE Denies Recession Forecast Despite Expected No Growth
UK Q2 GDP Preview: BoE Denies Recession Forecast Despite Expected No Growth The anticipation surrounding the United Kingdom’s economic trajectory heightens as the Office of National Statistics (ONS) gears up to unveil the first estimate of the UK’s Gross Domestic Product (GDP) for the second quarter on August 11. A palpable sense of curiosity persists, […]
WTI Oil Holds Steady Above $76.60 as FOMC Meeting Approaches
WTI Oil Holds Steady Above $76.60 as FOMC Meeting Approaches Western Texas Intermediate (WTI), the benchmark for US crude oil, is maintaining its position above the $76.60 level on Friday, displaying consolidation after achieving its fourth consecutive weekly gain. This upward momentum comes amidst indications of a tightening oil market. Adding to market dynamics, tensions […]
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 […]