2023-12-05 09:19

Market Update - 05 December 2023 The index adds to Monday’s gains and revisits 103.80. US yields trade on the defensive so far on Tuesday. The US services sector will be in the limelight later in the session. The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, maintains the optimism seen at the beginning of the week and advances to 103.80 on turnaround Tuesday. (FXStreet) The Japanese Yen attracts some haven flows and reverses a part of its overnight losses against the USD. Dovish Fed expectations keep the USD bulls on the defensive and exert pressure on the USD/JPY pair. Mixed BoJ signals might hold back traders from placing directional bets ahead of the key US macro data. (FXStreet) EUR/USD extends its downside around 1.0834 ahead of the Eurozone PMI data. The pair maintains the bearish outlook below the key 100-hour EMA; RSI stands in the bearish zone below the 50.0 midline. 1.0867 acts as an immediate resistance level; 1.0806 will be the initial support level. (FXStreet) USD/CAD scales higher for the second straight day amid bearish Crude Oil prices. The risk-off mood benefits the safe-haven USD and contributes to the downfall. The US macro data could provide some impetus ahead of the BoC on Wednesday. (FXStreet) GBP/USD trades with a mild positive bias on Tuesday amid subdued USD price action. Fed rate cut bets trigger a fresh leg down in the US bond yields and undermine the USD. A softer risk tone helps limit losses for the safe-haven buck and keeps a lid on the pair. (FXStreet) AUD/USD remains under some selling pressure for the second straight day on Tuesday. The RBA offered little cues about the future rate-hike path and weighs on the Aussie. The risk-off mood benefits the safe-haven USD and contributes to the intraday decline. (FXStreet) AUD/JPY drifts lower for the second straight day and dives to a three-week low on Tuesday. The RBA decided to keep its benchmark interest rate unchanged, as was widely anticipated. The accompanying policy statement weighs on the Aussie amid a generally softer risk tone. (FXStreet) NZD/USD loses ground near 0.6162 on the firmer USD. New Zealand’s ANZ Commodity Price came in at a 1.3% drop in November from a 2.9% rise in October. US Factory Orders dropped 3.6% MoM in October versus a 2.3% rise prior. (FXStreet) The AUD/NZD has been bolted to chart territory north of 1.0700 in the near-term. The Aussie's tumble last week has seen little paring back as the pair waffles in the midrange. (FXStreet) WTI loses traction near $73.30 on concerns about Oil demand. China's Services PMI surged to 51.5 in November vs. 50.4 prior. Oil traders await the US ISM Services PMI, due later on Tuesday. (FXStreet) Prices of natural gas started the new trading week on the back foot amidst increasing open interest and volume. That said, further decline carries the potential to drag the commodity to the key 200-day SMA around the $2.620 region per MMBtu. (FXStreet) Gold price attracts some buyers on Tuesday and reverses a part of the overnight slide from the record high. The uptick lacks bullish conviction as investors are seeking more clarity about the Fed's future rate-hike path. Traders now look to the US macro data for some impetus amid falling US bond yields and the risk-off mood. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-12-04 09:29

Market Update - 04 December 2023 EUR/USD attracts some sellers under the 1.0900 psychological mark on Monday. The bullish outlook of EUR/USD looks vulnerable; RSI indicator stands below the 50.0 midline. The 1.0900–1.0910 zone acts as an immediate resistance level; the initial support level is seen at 1.0827. (FXStreet) The index looks slightly bid around 103.30. US yields look to recovery from Friday’s decline. Factory Orders come next in the US docket. The greenback, when tracked by the USD Index (DXY), manages to pick some mild upside traction around 103.30. (FXStreet) GBP/USD loses ground as the USD trades with mild gains on Monday. The markets were confident the rate-hike cycle was done, although Powell emphasized the Fed's willingness to tighten policy further if necessary. UK S&P Global/CIPS Manufacturing PMI climbed to 47.2 in November vs. 46.7 prior, better than expected. (FXStreet) EUR/GBP was seen at 0.856 with a downside movement of 0.70%, it lowest since early September. In the daily and 4-hour chart, indicators hit oversold conditions after a seven-day losing streak. The cross will also close a 1.40% weekly loss.(FXStreet) The EUR/CHF is down in a three-day bear binge. Euro chart action is decidedly one-sided as the EUR falls back across the board on the week. Next week sees Eurozone PPI, GDP growth. (FXStreet) EUR/JPY records significant weekly losses, closing down by more than 2.20%. A key focus for traders is the Ichimoku Cloud support around the 158.00 level, which could accelerate the downtrend toward 154.00. For a shift back to bullish resumption, EUR/JPY must reclaim the Kijun-Sen at 161.00 and surpass the rece. (FXStreet) GBP/JPY experiences a decline of 0.24% as Friday’s session ends. Key support levels for GBP/JPY include 185.63 (Senkou Span A) and the 185.00 psychological mark, with further support at 184.71 (Kijun-Sen). On the upside, resistance is seen at 187.00, with a break above potentially targeting 188.00 and the November 24 high at 188.66. (FXStreet) AUD/USD retreats after touching over a fresh five-month top during the Asian session on Monday. The cautious market mood underpins the safe-haven USD and weighs on the risk-sensitive Aussie. The technical setup favours bullish traders as the focus shifts to the RBA policy meeting on Tuesday. (FXStreet) NZD/USD gains ground near 0.6210 on the USD weakness. New Zealand’s Terms of Trade Index for the third quarter (Q3) fell 0.6% QoQ vs. 0.3% prior. Fed Chair Jerome Powell said it was premature to rule out additional rate hikes or start discussing cuts. (FXStreet) Crude Oil rises, then tumbles again in frothy energy markets. WTI backslides into $74.50 in exacerbated market volatility. OPEC production cuts unlikely to eat away at oversupply amidst declining demand. (FXStreet) Gold price witnessed an intraday turnaround from an all-time peak touched this Monday. An uptick in the US bond yields revives the USD demand and prompts some profit-taking. Geopolitical tensions, looming recession risks and Fed rate cuts should limit further losses.(FXStreet) Silver is threatening to test YTD highs after reaching a multi-month high. For that outcome, XAG/USD needs to rally above the $26.00 figure. XAG/USD could turn bearish if it drops below the $25.00 mark. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-12-01 09:18

The EUR/USD pair finds some support near 1.0880 and then rebounds above the 1.0900 mark during the early European session on Friday. The recovery of the pair is bolstered by the softer US Dollar (USD) despite Eurozone inflation coming in worse than market expectations. The major currently trades around 1.0907, up 0.20% on the day. (FXStreet) GBP/USD recovers its recent losses registered in the previous session, trading higher around 1.2650 during the Asian session on Friday. The GBP/USD pair strengthened on weaker US Dollar (USD) amid downbeat US Treasury yields. Additionally, Bank of England (BoE) officials have been sending hawkish signals throughout the week, providing a boost to the Pound Sterling (GBP). There is an estimate that the BoE will maintain higher interest rates for an extended period, especially considering that inflation is currently more than twice the central bank's target. (FXStreet) USD/CHF hovers near 0.8750 during the Asian session on Friday, retracing its gains registered on Thursday. The decline in the US Dollar (USD) weighs on the USD/CHF pair following the likelihood of ending the interest rate hike by the US Federal Reserve (Fed). (FXStreet) USD/CAD extends its losses for the second successive day, trading lower around 1.3530 during the European session on Friday. The weakened US Dollar (USD) exerts pressure and undermines the pair. Furthermore, the rebound in WTI prices could provide support to the Canadian Dollar (CAD), consequently putting downward pressure on the USD/CAD pair. (FXStreet) NZD/USD trims its intraday gains, still trading higher near 0.6160 during the Asian session on Friday. The NZD/USD pair received upward support as the US Dollar (USD) drifted lower on the back of subdued US bond yields. Additionally, New Zealand’s Roy Morgan Consumer Confidence released for November by the ANZ, showed that consumer confidence improved to 91.9 from 88.1 prior. The improved data could have supported the Kiwi pair’s strength. (FXStreet) USD/MXN snaps a two-day winning streak on the back of the weaker Greenback amid downbeat US Treasury yields, trading around 17.30 during the European session on Friday. The likelihood of ending the interest rate hike by the Federal Reserve drags the US yields downward. Furthermore, the US Dollar (USD) might have found support in recent US data. (FXStreet) The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Friday at 7.1104 as compared to the previous day's fix of 7.1018 and 7.1458 Reuters estimates. (FXStreet) West Texas Intermediate (WTI) recovers the recent losses, trading higher around $75.90 per barrel. Crude oil prices see an improvement, propelled by a weaker US Dollar (USD). However, the WTI price faced losses following the decision of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to implement voluntary output cuts, smaller than expected, for the first quarter of 2024. (FXStreet) Gold price (XAU/USD) sticks to its modest intraday gains through the early European session and has now reversed a major part of the previous day's losses. The precious metal remains well within the striking distance of its highest level since May 5 touched on Wednesday and currently trades around the $2,043-$2044 area, up nearly 0.40% for the day. Growing acceptance that the Federal Reserve (Fed) is done with its policy-tightening campaign and may start cutting rates as early as March 2024 turns out to be a key factor acting as a tailwind for the non-yielding yellow metal. (FXStreet) Silver (XAG/USD) retreats from the vicinity of mid-$25.00s, or a near seven-month peak touched this Friday and refreshes daily low during the early part of the European session. The white metal, however, manages to hold above the $25.00 psychological mark and seems poised to prolong its well-established upward trajectory witnessed over the past three weeks or so. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet

2023-11-30 09:17

The EUR/USD pair trades with modest intraday losses during the early European session on Thursday. The pair currently trades near 1.0970 after retreating from nearly four-month highs of 1.1017. Market players await the Italian, French, and Eurozone inflation data on Thursday. The Eurozone Harmonized Index of Consumer Prices (HICP) is estimated to grow 3.9% YoY in November from the previous reading of 4.2%. (FXStreet) GBP/USD struggles to continue its winning streak that began on November 23, treading water around 1.2700 during the Asian session on Thursday. However, the GBP/USD pair marked a three-month high at 1.2733 on Wednesday on a softer US Dollar (USD). (FXStreet) USD/CHF moves on a five-session losing streak, primarily driven by US Dollar (USD) weakness and subdued US Treasury yields. The pair is trading near 0.8730 during the Asian session on Thursday. (FXStreet) USD/CAD gains ground for the second consecutive session, maintaining its position near the 1.3600 psychological level during the European session on Thursday. A decisive breakthrough above the latter could open the doors for the USD/CAD pair to explore the barrier around 23.6% Fibonacci retracement at 1.3623 aligned with the seven-day Exponential Moving Average (EMA) at 1.3626. (FXStreet) NZD/USD extends its gains for the sixth successive day, trading higher around 0.6170 during the early European session on Thursday. The NZD/USD pair reached near four-month highs on Wednesday on subdued US Dollar (USD). However, the Greenback experienced strength from upbeat Gross Domestic Product Annualized data, which indicated a growth of 5.2%, surpassing the anticipated increase of 5.0% in Q3. (FXStreet) USD/MXN recovers its intraday losses on Wednesday. trading higher around 17.3000. The recovery in the US Dollar (USD) could be extended due to the upbeat US Gross Domestic Product Annualized data for Q3 showed robust growth at 5.2%, surpassing the anticipated 5.0%. (FXStreet) Indian Rupee (INR) drifts higher on Thursday as dovish comments from Federal Reserve (Fed) officials undermine the US Dollar demand. Asia's third-largest economy grew at 7.8% in the first quarter of the current fiscal year. India’s GDP number for the second quarter are scheduled to be released later in the day and is expected to grow at 6.8% in the July–September quarter compared with a year earlier. (FXStreet) On Thursday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1018 as compared to the previous day's fix of 7.1031 and 7.1273 Reuters estimates. (FXStreet) West Texas Intermediate (WTI) Crude Oil prices struggle to capitalize on the weekly gains registered over the past two days and oscillate in a narrow band during the Asian session on Thursday. The commodity currently trades around the $77.75-$77.80 region, nearly unchanged for the day and just below a one-week high touched on Wednesday, as traders remain on the sidelines ahead of the OPEC+ meeting later today. (FXStreet) Gold price hovers lower around $2,040 per troy ounce during the Asian session on Thursday. The yellow metal has retreated from the six-month high it reached at $2,052 on Wednesday. The pullback in Gold's price suggests a shift in market sentiment or profit-taking after the recent rally. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-29 09:15

The EUR/USD pair gains traction for the fifth consecutive day during the early European session on Wednesday. The decline of the US Dollar (USD) lends some support to the major pair. As of writing, EUR/USD is trading near 1.1001, gaining 0.12% on the day. (FXStreet) The Japanese Yen (JPY) surrenders a major part of its intraday gains to a two-and-half-month high against the US Dollar (USD) in reaction to Bank of Japan (BoJ) board member Seiji Adachi's less hawkish remarks. Downplaying speculation that the BoJ is considering ending negative interest rates, Adachi said that the economy is yet to reach a stage where the central bank could debate an exit from ultra-easy monetary policy. This, along with a generally positive risk tone, is seen undermining the safe-haven JPY. (FXStreet) The GBP/USD pair gains momentum above 1.2700 during the early European session on Wednesday. The uptick of the pair is supported by the weaker US Dollar (USD) and lower US Treasury bond yields. The pair currently trades near 1.2715, up 0.19% on the day. (FXStreet) USD/CHF touched a 13-week low at 0.8757 during the Asian session on Wednesday and recovered some of its intraday losses, trading near 0.8770 at the time of writing. (FXStreet) The USD/CAD pair reached a nine-week low at 1.3541 during the Asian session on Wednesday, currently trading below 1.3550. The decline in the USD/CAD pair is attributed to the accommodative remarks from US Federal Reserve (Fed) Governor Christopher Waller. Waller's suggestion that the Federal Reserve may not insist on maintaining high interest rates if inflation consistently declines has likely contributed to the downward pressure on the Loonie pair. (FXStreet) NZD/USD retraces its intraday gains as the US Dollar rebounds during the early European session on Wednesday. However, the NZD/USD pair received upward support after the release of the Reserve Bank of New Zealand (RBNZ) interest rate decision. RBNZ board members decided to keep the interest rate steady at 5.50%. This decision aligns with widespread expectations in the market. (FXStreet) USD/MXN halts its three-day winning streak due to the softer US Dollar (USD), which could be attributed to the mixed remarks from the Federal Reserve’s (Fed) members. Moreover, the mixed data from the United States (US) failed to heal the Greenback. The USD/MXN pair trades around 17.1400 during the European session on Wednesday. (FXStreet) Indian Rupee (INR) gathers strength on Wednesday on the foreign banks' Dollar sales and a weaker US Dollar (USD). The Indian economy is projected to expand by over 6% this year, bringing its Gross Domestic Product close to $4 trillion. Additionally, India’s economy is anticipated to be the fastest-growing on the globe in the coming years, according to the International Monetary Fund (IMF). (FXStreet) On Wednesday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1031 as compared to the previous day's fix of 7.1132 and 7.1340 Reuters estimates. (FXStreet) Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $76.60 so far on Wednesday. The recovery of WTI prices is bolstered by the possibility that OPEC+ will cut production and the weaker US Dollar (USD). (FXStreet) Gold prices have been strengthening largely on the back of the bearish narrative associated with the US dollar in 2024. Markets have been swiftly ticking higher but may be slightly impatient. Although the implied Fed funds futures (see table below) suggests roughly 85bps of cumulative interest rate cuts by December 2024, the Fed along with other central banks have been rather cautious in their language and highly data dependent which could easily sway forecasts should economic data oppose the current trend. (DailyFX) Bitcoin continues to threaten the $38k mark but remains unable to find acceptance above the key level. The reason the world’s largest cryptocurrency has held onto its gains may have to do with an increase in capital inflow from institutional investors over the past week, per a report by CoinShares. (DailyFX) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-28 09:13

The EUR/USD pair snaps the three-day winning streak during the early European session on Tuesday. A modest US Dollar (USD) demand dragged the major pair lower. As of writing, EUR/USD is trading near 1.0950, down 0.06% on the day. (FXStreet) The USD/JPY pair trades in negative territory for the third consecutive day during the early Asian session on Tuesday. The downtick of the pair is backed by the decline in the US Dollar (USD) and the lower US Treasury bond yields. The pair currently trades around 148.45, losing 0.12% on the day. (FXStreet) GBP/USD continues its winning streak that began on Thursday, trading higher around 1.2630 during the Asian session on Tuesday. The Pound Sterling (GBP) shows strength against the US Dollar (USD) for the fourth consecutive day, showcasing the resilience of the UK economy. This steadfast performance comes despite the tightening measures implemented by the Bank of England (BoE). (FXStreet) USD/CHF trades above the 0.8800 psychological level during the Asian session on Tuesday, rebounding from the three-month low at 0.8793. The USD/CHF pair struggles to halt the losses due to the weaker US Dollar (USD) following the likelihood of the US Federal Reserve (Fed) to conclude its monetary rate hike cycle. Additionally, investors price in nearly 85 basis points of interest rate cuts by the Fed in the next year. (FXStreet) The Australian Dollar (AUD) continues its winning streak for the fourth successive session despite downbeat seasonally adjusted Retail Sales data from Australia on Tuesday. The AUD/USD pair hovers near its peak from early August near the 0.6625 level, benefiting from a downward bias that has left the Greenback appearing susceptible. (FXStreet) USD/CAD extends its losses for the third consecutive session, trading lower around 1.3600 psychological level during the Asian session on Tuesday. The rebound in Crude oil prices and positive market sentiment provide some support for the Canadian Dollar (CAD). NZD/USD recovers its recent losses registered in the previous session. The NZD/USD pair trades higher near 0.6100 during the early European session on Tuesday. The strength of the New Zealand Dollar (NZD) against the US Dollar (USD) is further bolstered by the subdued performance of the US Dollar (USD). This comes in the wake of expectations that the US Federal Reserve (Fed) is nearing the end of its monetary rate hike cycle, coupled with the anticipation of almost 85 basis points of interest rate cuts by the Fed in the coming year. (FXStreet) Indian Rupee (INR) loses ground on Tuesday amid the US Dollar (USD) demand from state-run and foreign banks. Nirmala Sitharaman, India's finance minister, said on Monday that the government is keeping a close eye on the exchange rate, especially following the Indian rupee's decline. (FXStreet) The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1132 as compared to the previous day's fix of 7.1159 and 7.1432 Reuters estimates. (FXStreet) Western Texas Intermediate (WTI) price struggles to snap its losing streak that began on Wednesday, hovering above $75.00 per barrel during the European session on Tuesday. Amidst the negative bias for the US Dollar, there's an expectation that the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Thursday could bring some support to crude oil prices. The anticipation is centered around the possibility of OPEC+ extending the oil production cut in 2024. (FXStreet) Gold price (XAU/USD) pushed through the $2,008-2,010 horizontal barrier and advanced to the $2,018 region on Monday, or its highest level since mid-May. The precious metal, however, fails to capitalize on the breakout momentum and enters a bullish consolidation phase on Tuesday. The US Dollar (USD) stages a modest recovery from a near three-month low amid an uptick in the US Treasury bond yields. This, along with a positive risk tone, turns out to be a key factor capping gains for the non-yielding yellow metal through the early part of the European session. (FXStreet) Silver (XAG/USD) enters a bullish consolidation phase and oscillates in a narrow trading band just above mid-$24.00s through the first half of the European session on Tuesday. The white metal, however, remains well within the striking distance of a near three-month high touched on Monday and seems poised to prolong its recent strong appreciating move witnessed over the past two weeks or so. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.