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 […]
Today’s FOMC Will be a Key Focus for China and Hong Kong Stocks
Today’s FOMC Will be a Key Focus for China and Hong Kong Stocks China proxies; Hang Seng Index, Hang Seng TECH, and Hang Seng China Enterprises have outperformed S&P 500 & MSCI All Country Asia ex Japan since 31 May. This outperformance has been reinforced by more impending monetary policy easing measures from China’s central […]
XAU/USD defends 100-day SMA ahead of the crucial FOMC decision
XAU/USD defends 100-day SMA ahead of the crucial FOMC decision Gold price once again attracts some buyers near the 100-day Simple Moving Average (SMA) on Wednesday and recovers a part of the previous day’s slide to the weekly low. The XAU/USD sticks to its modest intraday gains heading into the European session and currently trades […]
Best Useful Forex Trading App That Help You Earn Money
Best Useful Forex Trading App That Help You Earn Money If you are involved in forex trading, then there are going to be a lot of different balls that you need to juggle. Some people will rely more on technical analysis, while others are always watching the news and focusing more on fundamental analysis. Then […]
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 […]
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. […]
EUR/USD flat-lines around mid-1.0700s, traders await US CPI and FOMC decision this week
EUR/USD flat-lines around mid-1.0700s, traders await US CPI and FOMC decision this week The EUR/USD pair recovers a few pips from the Asian session low and for now, seems to have stalled its retracement slide from over a two-week high touched on Friday. Spot prices currently trade just below mid-1.0700s, nearly unchanged for the day, […]
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 […]
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 and Taiwan Set to Sign the First Deal Under a New Trade Talks Framework
US and Taiwan Set to Sign the First Deal Under a New Trade Talks Framework Core bonds enjoyed another solid bid yesterday, further unwinding ‘hawkish sentiment’ that reigned since mid-May. Chinese inspired risk-off and softer than expected national CPI data from Germany (HICP 6.3% Y/Y from 7.6%) and France (6.0% from 6.9M%) supported the move. […]
What is a Forex Spread?
What is a Forex Spread? A Forex spread is the difference between the bid price and the ask price of a currency pair. Each Forex company offers different spreads on each of its currency pairs. For example if the EUR/USD pair has a spread of 1.5 pips that mean the trader will be able to […]
What if Russia Didn’t Follow OPEC’s Output Cuts?
What if Russia Didn’t Follow OPEC’s Output Cuts? The US 2-year yield fell sharply, while the S&P500 ended flat after hitting a fresh high since last summer on optimism that the US will finally agree to raise the debt ceiling. The House will vote today to decide whether the debt limit bill gets approved at […]
One Step Closer to Debt Ceiling Deal – And a Fed Hike
One Step Closer to Debt Ceiling Deal – And a Fed Hike The holiday shortened trading week starts tense but on an optimistic note as US President Joe Biden and House Speaker Kevin McCarthy finally reached an agreement to raise the debt ceiling. The deal must get approval in a congressional vote on Wednesday. US […]
What is a Forex Strategy?
What is a Forex Strategy? Forex traders start off by making trades based on minimal knowledge, and a close watch of the market without planning ahead. It is possible to trade this way and sometimes even make profits. But if trading is to be taken seriously it takes a lot more than just that. Anybody […]