2023-11-17 09:16

Market Update - 17 November 2023 EUR/USD struggles to gain any meaningful traction and oscillates in a range on Friday. Bets that the Fed is done hiking rates keep the USD depressed and act as a tailwind. Dovish ECB expectations keep a lid on any meaningful appreciating move for the pair. (FXStreet) USD/JPY remains on the defensive for the second straight day amid a bearish USD. Bets that the Fed is done with its rate-hiking cycle continues to weigh on the buck. The BoJ’s dovish stance could undermine the JPY and help limit any further losses. (FXStreet) GBP/USD losses ground despite stronger US jobless claims data. US Initial Jobless Claims rose to 231K compared to the expected 220K. Pound Sterling faced a challenge due to the downbeat UK inflation data. (FXStreet) NZD/USD faced challenges on concerns over China’s property sector. Kiwi’s Producer Price Index (PPI) – Output improved to 0.8% from 0.2% prior. US Jobless Claims increased to 231K, exceeding the expected 220K. Downbeat US bond yields could undermine the US Dollar. (FXStreet) USD/CAD attracts some sellers around the mid-1.3700s on Friday. US weekly Initial Claims rose by 231,000, the highest level in nearly three months. House sales in Canada declined by the most in 16 months in October. Traders will focus on the US housing data and the Canadian Industrial Product Price Index, the Raw Materials Price Index. (FXStreet) EUR/GBP trades with modest intraday losses around 0.8740 ahead of UK Retail Sales data. The cross keeps the bullish stance as the cross holds above the 50- and 100-hour EMA. The first resistance level is located at 0.8765; 0.8713 acts as an initial support level for the cross. (FXStreet) The index appears side-lined in the low-104.00s. Market chatter of rate cuts by the Fed in H1 2024 remains on the rise. The US housing sector will be in the limelight along with Fedspeak. The greenback, in terms of the USD Index (DXY), navigates a narrow range around 104.30 at the end of the week. (FXStreet) GBP/JPY drifts lower for the second straight day, albeit lacks any follow-through selling. Expectations that the BoE will start cutting rates in 2024 continue to undermine the GBP. Traders look forward to the UK monthly Retail Sales figures for short-term opportunities. (FXStreet) USD/MXN faces downward pressure weaker US economic data. US Initial Jobless Claims marked the highest level in nearly three months. Banxico could maintain policy rates at 11.25% for a prolonged period to achieve a 3.0% inflation target. (FXStreet) USD/CHF faced challenges on concerns over China’s property sector. Swiss Franc could gain ground on prevailing risk-off sentiment. Upbeat US jobless claims data seem ineffective to the US Dollar’s resilience. (FXStreet) WTI is seen consolidating the overnight sharp downfall to its lowest level since July 10. Worries about global demand turn out to be a key factor undermining the commodity. Dovish Fed expectations continue to weigh on the USD, albeit do little to lend support. (FXStreet) Gold price gains momentum around $1,982 on the lower US Treasury bond yields. The markets have priced in the end of the tightening cycle and expect a rate cut in the middle of 2024. Gold traders will focus on the US housing data on Friday. (FXStreet) Silver attracts some buyers for the fifth successive day on Friday. The overnight breakout through the $23.60-70 area favours bulls. Corrective declines are likely to get bought into and remain limited. (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.

2023-11-16 09:03

Market Update - 16 November 2023 NZD/USD trades in positive territory for three straight days on Thursday. House prices in New Zealand dropped marginally in October, while sales activity has been steadily increasing since 2022. US PPI declined 0.5% MoM in October vs. 0.4% prior, Retail Sales dropped by 0.1% from a fall of 0.3%. (FXStreet) GBP/USD struggles to gain any meaningful traction and oscillates in a range on Thursday. Bets that the Fed is done raising rates cap the USD recovery and lend support to the pair. Expectations that the BoE will start cutting rates in 2024 act as a headwind for the GBP. (FXStreet) USD/JPY meets with some supply on Thursday and reverses a part of the overnight strong move up. Intervention fears, along with the cautious mood, underpin the JPY and exert pressure on the major. The Fed-BoJ policy divergence should continue to act as a tailwind for the pair and help limit losses. (FXStreet) USD/CAD snaps a two-day losing streak on improved Greenback. Weaker Crude Oil prices are weighing on the Canadian Dollar. US Dollar gains ground, driven by investors possibly adopting a cautious stance. (FXStreet) EUR/USD lose ground near 1.0835 on the firmer USD. The markets believe that the Federal Reserve (Fed) is done with hiking cycle. Eurozone Industrial Production for September declined 1.1% MoM vs 0.6% rise prior. European Central Bank (ECB) President Lagarde speech, US weekly Initial Jobless Claims will be closely watched events. (FXStreet) The index hovers around the mid-104.00s. Speculation of Fed’s rate cuts next year remain firm. Weekly Claims, Philly Fed index take centre stage. The USD Index (DXY), which measures the greenback vs. a bundle of its main competitors, trades with humble losses around the 104.50 region on Thursday. (FXStreet) EUR/JPY snaps its four-day winning streak below 164.00 on Thursday. The pair holds above the 50- and 100-hour EMA; the RSI indicator stands in bullish territory above 50. The immediate resistance level is seen at 164.22; 163.07 acts as an initial support level for the cross. (FXStreet) USD/MXN struggles as market sentiment is cautious on Fed policy in the December meeting. US Retail Sales raised a red flag on inflation, justifying further interest rate tightening by the Fed. Banxico could maintain interest rates at 11.25% to achieve its 3.0% inflation target. (FXStreet) EUR/GBP gains ground near 0.8745 on weaker UK inflation data. The cross holds above the 50- and 100-hour EMA; RSI indicator stands in bullish territory above 50. The 0.8750-0.8755 zone acts as an immediate resistance level; the initial support level is located at 0.8721. (FXStreet) USD/CHF halts a four-day losing streak as US Dollar rebounds. US Retail Sales eased at 0.1% in October, compared to the expected 0.3% decline. Fed uncertainty over policy decisions in the December meeting is supporting the Greenback. (FXStreet) Crude Oil prices weakened on weekly build in US crude stockpiles. EIA Crude Oil Stocks Change improved to 3.6M from 0.774M prior. China’s oil refinery experienced a slight slowdown, impacting Oil prices. (FXStreet) Gold price catches fresh bids on Thursday and is supported by a softer tone around the equity markets. The US Dollar builds on the overnight bounce from a two-month low and should cap gains for XAU/USD. Bets that the Federal Reserve will not hike interest rates further could act as a headwind for the Greenback. (FXStreet) Silver snaps a three-day winning streak to a near four-week high touched on Wednesday. The technical setup seems tilted in favour of bulls and should help limit any further losses. Bulls still need to wait for a move beyond the $23.60-70 barrier before placing fresh bets. (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.

2023-11-15 08:54

Market Update - 15 November 2023 EUR/USD edges lower and snaps a three-day winning streak to over a two-month high. A modest USD uptick is seen exerting pressure, though the downside seems cushioned. Bets that the Fed is done raising rates should cap gains for the USD and lend support. (FXStreet) NZD/USD reverses an Asian session dip and moves back to over a one-month top set on Tuesday. The mixed Chinese macro data does little to provide any impetus amid a modest USD recovery. Expectations that the Fed is done with its rate-hiking cycle should cap the USD and favour bulls. (FXStreet) GBP/USD recorded a notable surge of 1.79% in the last trading session. US CPI eased at 3.2% from 3.7%; Core CPI rose 0.2% against the expected 0.3%. BoE may hold off on making any policy adjustments if UK inflation follows the anticipated slowdown. (FXStreet) USD/CAD gains ground around 1.3688 on the softer USD. October's US Consumer Price Index (CPI) grew 3.2% YoY vs. 3.7% prior. The rebound in oil prices might lift the Canadian Dollar (CAD). All eyes are on the US Retail Sales and Producer Price Index (PPI) on Wednesday. (FXStreet) GBP/JPY gains positive traction for the fourth straight day and trades near a multi-year peak. The BoJ’s dovish stance, along with the risk-on mood, undermines the JPY and offers support. Traders now look to the latest UK consumer inflation figures before placing directional bets. (FXStreet) The sharp sell-off in the index meets some support near 104.00. Investors now see the Fed reducing its rates in the summer 2024. Producer Prices, Retail Sales take centre stage later in the session. The greenback attempts to grab some breathing space following Tuesday’s steep CPI-driven pullback to the vicinity of 104.00 when tracked by the USD Index (DXY). (FXStreet) USD/JPY experiences challenges on weaker Japan’s economic data. Japan's GDP declined by 0.5% in Q3 against the previous growth of 1.2%. Japanese Economy Minister Yasutoshi Nishimura warned about the impact of a global slowdown on Japan's GDP. Weaker US inflation reinforces the prevailing sentiment of concluding the rate-hike cycle by the Fed. (FXStreet) EUR/GBP trades in positive territory around 0.8700 ahead of the UK key data. The Eurozone Gross Domestic Product (GDP) contracted quarter-on-quarter in the third quarter (Q3). The UK monthly and annual CPI figures are expected to rise 0.1% and 4.8%, respectively. (FXStreet) USD/CHF plunged more than 100 pips as US inflation eased more than anticipated. Soft US CPI data raises the likelihood of the Fed not increasing interest rates further. SNB Chairman Jordan suggested the room for more rate hikes in the future. (FXStreet) USD/MXN experienced losses as the US Dollar dropped on weaker inflation. Weaker US inflation reinforces the prevailing sentiment of concluding the rate-hike cycle by the Fed. Banxico Governor Rodriguez mentioned the possibility of rate cuts on easing the inflationary outlook. (FXStreet) WTI catches fresh bids on Wednesday and stalls the overnight retracement slide from a one-week high. Optimism over the EIA and OPEC demand forecast for 2023 turns out to be a key factor lending support. Signs that tensions in the Middle East could be easing might keep a lid on any further gains for Oil prices. (FXStreet) Gold price gains some positive traction for the third straight day and climbs to a one-week high on Wednesday. The USD languishes near its lowest level in more than two months amid bets that the Fed is done raising rates. The prevalent risk-on mood might hold back bulls from placing fresh bets and cap the upside for the XAU/USD. (FXStreet) Silver price aims to climb above $23.20 amid easing US price pressures. The USD Index fell sharply due to the risk-on mood. Silver price recovered strongly after discovering buying interest near 61.8% Fibo retracement at $21.86. (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.

2023-11-14 09:23

Market Update - 14 November 2023 EUR/USD trades in positive territory for the third consecutive day on the lower Treasury bond yields. European Central Bank (ECB) Vice President Luis de Guindos said Eurozone economic growth will remain weak in the near term. Fed Chair Jerome Powell reiterated that the Fed will hike rates again if deemed necessary to bring inflation to the 2% target. Investors will closely watch the Eurozone growth numbers, and US inflation data on Tuesday. (FXStreet) GBP/USD snaps a two-day winning streak ahead of UK data. BoE policymakers expressed fear over the deepening recession, endorsing rate cuts. US CPI is expected to rise but at a slower pace. with the core annual rate to remain stable. (FXStreet) USD/JPY pair consolidates its losses ahead of the US key data. New York Fed’s one-year and five-year inflation outlook eased to 3.57% and 2.72% respectively. Japanese Finance Minister Suzuki and Bank of Japan (BoJ) Deputy Governor Shinichi Uchida denied to comment on FX levels. Traders will focus on the US inflation data ahead of Japan’s growth numbers on Wednesday. (FXStreet) NZD/USD continues the downward trajectory for more than a week. NZD faces downward pressure as New Zealand's Food Price Index fell 0.9% in October. Goldman Sachs anticipates the RBNZ to commence rate cuts starting in the fourth quarter of 2024. US inflation could grow but at a slower pace, which could put pressure on the US Dollar. (FXStreet) USD/CAD moves higher due to the market caution before US data. US Treasury Secretary Yellen disagrees with Moody's decision to cut its outlook on US debt. CAD fails to cheer the improved Crude oil prices. WTI price strengthened on OPEC’s monthly report, stating market fundamentals remained strong. (FXStreet) The index trades without a clear direction on Tuesday. All the attention will be on the release of October CPI figures. Fed’s Barr, Goolsbee and Mester also speaks later. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, alternates gains with losses around the 105.70 zone on turnaround Tuesday. (FXStreet) EUR/GBP remains volatile due to the slew of economic data from both economies. UK ILO Unemployment Rate remained consistent at 4.2% in September. UK fears over the stagflation scenario following the elevated inflation levels and a higher unemployment rate. Eurozone GDP is expected to contract by 0.1% in the quarter, while the annual growth is estimated to expand by 0.1%. (FXStreet) USD/MXN could weaken as US inflation is expected to rise at a lower rate. Fed may consider a rate hike if US CPI data exceeds the expectation. Banxico Governor Rodriguez highlighted the possibility of rate cuts. (FXStreet) EUR/JPY prints a fresh decade high near 162.30 ahead of Eurozone Q3 GDP data. The Eurozone Q3 GDP is seen contracting by 0.1%. A delay in Japan’s intervention plans has weakened the Japanese Yen. (FXStreet) USD/CHF seems well-cushioned above 0.9000 ahead of US CPI data. A stubborn inflation report may allow the Fed to emphasize raising interest rates further. SNB Jordan is likely to emphasize keeping interest rates higher to keep inflation below 2%. (FXStreet) WTI prices trades in negative territory around $78.30 on Tuesday. OPEC's monthly report suggests that oil demand remains strong, revised up its 2023 forecast for global oil demand growth. Oil traders will closely monitor the US Consumer Price Index (CPI) for October. (FXStreet) Gold price loses ground around $1,945 ahead of the US CPI data. The geopolitical conflicts in the Middle East could boost safe-haven assets like gold. The immediate resistance level is seen at $1,953; the initial support level will emerge at $1,934. (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.

2023-11-10 09:13

Market Update - 10 November 2023 EUR/USD oscillates around the 1.0663-1.0675 region in a narrow trading band. The pair holds above the key 100-hour Exponential Moving Averages (EMA), but the RSI indicator is located in bearish territory. The first immediate resistance level will emerge at 1.0725; 1.0659 acts as an initial support level. (FXStreet) USD/JPY receives upward support on hawkish remarks by the Fed Powell. Japanese authorities may intervene in the FX market to provide support for the JPY. BoJ Governor Ueda mentioned that the central bank will approach the exit from ultra-loose monetary policy. (FXStreet) USD/CAD trades close to 1.3800 after a sharp recovery. The USD Index struggles to climb above 106.00. USD/CAD continues to move higher in a Rising Channel chart pattern. (FXStreet) USD/CHF continues to gain ground on the likelihood of another rate hike by the Fed. Fed Chair Powell’s hawkish sentiment led to a surge in US Treasury yields. US weekly Initial Jobless Claims eased at 217K compared to the previous week's figure of 220K. (FXStreet) The index alternates gains with losses near 106.00. Chief Powell remained cautious at his speech on Thursday. The flash Consumer Sentiment gauge takes centre stage later. The greenback looks to extend its strong weekly recovery and already flirts with the key barrier at 106.00 the figure when measured by the USD Index (DXY) on Friday. (FXStreet) EUR/JPY is prolonging the consolidative note below the mid-161.00s on Friday. The cross holds above the 50- and 100-hour EMAs; RSI indicator is located in the bullish territory above 50. The critical resistance level will emerge at 161.80; 160.85 acts as an initial support level. (FXStreet) EUR/GBP faces an intermediate resistance near 0.8730, more upside remains likely. BoE Pill warned that higher interest rates for a sufficiently longer period could result in an excessive slowdown. Economists expected that the UK economy contracted by 0.1% in the third quarter of 2023. (FXStreet) GBP/JPY regains positive traction on Friday and reverses a part of the overnight slide. The BoJ’s dovish stance is seen undermining the JPY and lending support to the cross. The better-than-expected UK GDP print also contributes to the modest intraday uptick. (FXStreet) NZD/USD struggles to halt the losing streak amid improved US Dollar. MACD suggests tepid momentum, monitoring for potential shifts in market dynamics. The pair could revisit the 1.0750 major level aligned to the weekly high at 1.0756. (FXStreet) Prices of WTI dropped marginally on Thursday amidst the steep weekly decline. The daily losses were on the back of declining open interest and volume and open the door to a potential rebound in the very near term. In light of the recent price action, the commodity appears underpinned by the $75.00 region per barrel for the time being. (FXStreet) Prices of natural gas declined further on Thursday. The daily drop followed another uptick in open interest, which leaves the commodity vulnerable to further losses in the very near term. Against that, there is an important support zone around the $3.00 mark per MMBtu for the time being. (FXStreet) Gold price trades with a mild negative bias through the first half of the European session. Reviving Fed rate hike bets underpin the USD and weigh on the non-yielding yellow metal. Receding safe-haven demand contributes to the offered tone, though China’s economic woes may mitigate its losses. (FXStreet) Silver trades with a positive bias for the second straight day, though lacks follow-through. The technical setup favours bears and warrants caution before positioning for further gains. A sustained move beyond the $23.60-70 supply zone is needed to negate the negative bias. (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.

2023-11-09 09:30

Market Update - 09 November 2023 USD/JPY trades with a negative bias on Thursday and snaps a three-day winning streak. The divergent BoJ-Fed policy outlook might continue to act as a tailwind for the major. The technical setup supports prospects for a move back towards retesting the YTD top. (FXStreet) AUD/USD stages a modest recovery from the weekly low touched on Wednesday. A modest USD downtick is seen as a key factor lending some support to the major. Spot prices react little to rather unimpressive Chinese inflation figures for October. (FXStreet) USD/CHF moves sideways as markets adopt a cautious stance. Investors focus on Fed Chair Powell's involvement in a panel discussion, seeking fresh cues. US Dollar experiences lukewarm response despite hawkish remarks from Fed officials. (FXStreet) USD/CAD trades with a mild negative bias and is pressured by a modest USD downtick. The uncertainty over the Fed’s rate-hike path should help limit any meaningful USD fall. Bearish Oil prices might continue to undermine the Loonie and lend support to the pair. (FXStreet) GBP/USD struggles to gain any meaningful traction and oscillates in a narrow range on Thursday. A further decline in the US bond yields keeps the USD bulls on the defensive and lends some support. The uncertainty over the Fed’s rate hike is holding back traders from placing fresh directional bets. (FXStreet) The index looks side-lined in the mid-105.00s. Chief Powell will participate in a discussion panel. Weekly Claims, Fedspeak comes next on the docket. The greenback, in terms of the USD Index (DXY), navigates within a consolidative range around the 105.50 region following the opening bell in Euroland on Thursday. (FXStreet) EUR/USD struggles to stay in the green zone amid weaker US Dollar. Combined technical indicators support a positive outlook for the pair. The pair could revisit the 1.0750 major level aligned to the weekly high at 1.0756. (FXStreet) NZD/USD trades higher as the US Dollar takes a breather. Downbeat China’s CPI had no impact on the Kiwi pair. RBNZ’s inflation report contributed to pressure on the NZD. (FXStreet) WTI is seen consolidating its recent downfall to the lowest level since July 20 touched on Wednesday. Easing worries about supply disruptions in the Middle East and demand concerns continue to weigh. The fundamental backdrop supports prospects for an extension of a three-week-old descending trend. (FXStreet) Prices of natural gas dropped further on Wednesday amidst increasing open interest and volume. That said, the continuation of the ongoing correction appears well on the cards in the very near term and with the immediate support at the key $3.00 mark per MMBtu. (FXStreet) Gold price remains on the defensive near a multi-week trough touched on Wednesday. Sliding US bond yields undermine the USD and lend some support to the XAU/USD. China’s economic woes further help limit losses ahead of Fed Chair Powell’s speech. (FXStreet) Silver remains under some selling pressure for the fourth successive day on Thursday. The technical setup favours bearish traders and supports prospects for deeper losses. A sustained strength beyond $23.60-70 barrier is needed to negate the negative bias. (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.