2023-10-23 09:15

Market Update - 23 October 2023 NZD/USD continues to move on the downward trajectory that began on October 17, trading lower around 0.5820 during the European session on Monday. The pair faces challenge as the US Dollar rebounds, driven by higher US Treasury yields. Additionally, increased risk aversion, stemming from the Israel-Hamas military situation, weighing on the NZD/USD pair. (FXStreet) USD/MXN aims to recover recent losses, trading around 18.2500 during the Asian session on Monday. The pair gained ground due to increased risk aversion stemming from the Israel-Hamas military situation. (FXStreet) The USD/CHF pair hovers around 0.8935 during the early European session on Monday. The renewed US Dollar (USD) demand lends some support to the pair. However, geopolitical tensions continue to hang over the market and might cap the Greenback’s upside. (FXStreet) The EUR/USD pair snaps a two-day winning streak during the early European session on Monday. Market players await the European Central Bank (ECB) Interest Rate Decision on Thursday, with no rate change expected. The markets anticipate ECB’s rate hiking cycle is over, but it won't be until at least July 2024 before it begins easing as the battle against elevated inflation rattles on. At the press time, the major pair is losing 0.15% on the day to trade at 1.0577. (FXStreet) The USD/CAD pair trades sideways around 1.3715 during the early Asian session on Monday. Investors await the Bank of Canada (BoC) Interest Rate Decision on Wednesday, which is expected to hold the rate at 5.0%. Meanwhile, A rise in US Treasury bond yields and the escalating geopolitical tensions in the Middle East might boost the US Dollar (USD) and weigh on the pair. (FXStreet) USD/JPY trades higher near 149.90 during the Asian session on Monday. The pair receives upward support following the comments from Bank of Japan (BoJ) Governor Kazuo Ueda on Friday. (FXStreet) GBP/USD struggles to continue the winning streak. trading around 1.2160 during the Asian session on Monday. However, the currency pair encountered a hurdle following the release of downbeat United Kingdom (UK) Retail Sales data for September on Friday. The Pound Sterling (GBP) managed to recover its losses against the weaker US Dollar (USD). (FXStreet) WTI prices retreated from the area of weekly peaks on Friday, closing the session with humble losses. The downtick was on the back of increasing open interest, which hints at the potential continuation of the decline in the very near term. That said, further selling pressure should meet the next support around the monthly lows near $81.50 (October 6). (FXStreet) Gold price halts the winning streak that began on October 17, trading lower around $1,970 per troy ounce during the Asian session on Monday. While geopolitical tensions between Israel and Hamas typically contribute to a higher demand for gold as a traditional safe-haven asset, the current risk-on sentiment is posing a challenge to the price of gold. (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.

2023-10-20 09:29

USD/CAD extends gains as fears over the Middle East situation escalate. US Dollar faced resistance after Fed Chair Powell’s dovish remarks over interest rate trajectory. Solid US economic figures provide support to underpin the Greenback. (FXStreet) USD/JPY regains positive traction on Friday and climbs back closer to a multi-week top. The divergent BoJ-Fed policy outlook turns out to be a key factor acting as a tailwind. The risk-off mood could benefit the safe-haven JPY and cap gains amid intervention fears. (FXStreet) NZD/USD continues the losses on fears over the escalating Middle-East situation. Fed Chair Powell's recent statements provided some support for the pair. Upbeat US data is reinforcing the strength of the US Dollar. (FXStreet) Pound Sterling dropped after data showing that UK Retail Sales declined by almost 1% in September. The decrease in Retail Sales suggests weakening households’ spending, which is the main driver of the UK economy. The Bank of England is widely expected to leave interest rates unchanged. (FXStreet) Australian Dollar continues to lose ground over escalating fears of the Israel-Gaza conflict. Australia's Unemployment Rate outperformed expectations, standing at 3.6%. The PBoC left Loan Prime Rates (LPR) unchanged at 3.45% for the one-year and 4.20% for the five-year. US Jobless Claims declined to 198K the lowest level since January. Fed Chair Powell suggested that the central bank is not planning to raise rates in the short term. (FXStreet) The Euro trades on the defensive against the US Dollar. Stocks in Europe open Friday’s session with losses. EUR/USD retreats from weekly highs over 1.0600. The USD Index (DXY) appears well supported by 106.00. Markets continue to digest Fed Chairman Powell’s comments. (FXStreet) USD/CHF recovers some lost ground, holds above the 0.8900 mark on Friday. The Swiss Trade surplus widened more than expected in September. Fed Chair Jerome Powell signaled a desire to hold the interest rate. (FXStreet) USD/MXN is seen oscillating in a range on Friday and consolidating its weekly gains. The technical setup favours bullish traders and supports prospects for additional gains. Any meaningful corrective slide could attract some dip-buying and remain cushioned. (FXStreet) EUR/GBP continues the winning streak after downbeat UK economic data. UK Retail Sales dropped to 0.9% against the anticipated 0.1% decline. German PPI data reveals a decline in prices in the primary markets. (FXStreet) Indian Rupee gains ground amid global uncertainty and risk-off mood. The escalating geopolitical tension between Israel-Hamas, higher crude oil prices might cap the upside of the Indian Rupee. The Reserve Bank of India's October bulletin showed economy is anticipated to further strengthen through the rest of the year. (FXStreet) Crude oil prices surge as the US to purchase 6M barrels of crude oil for the SPR. Escalating fears over the Israel-Gaza conflict are underpinning the oil prices. Temporary suspension of US oil sanctions on Venezuela is anticipated to not prompt immediate policy adjustments from the OPEC+ alliance. (FXStreet) Gold price prolongs its recent uptrend and rallies to a near three-month high on Friday. Geopolitical risks continue to drive haven flows and remain supportive of the move. Elevated US bond yields and a stronger USD might cap gains amid the overbought RSI. (FXStreet) Silver turns positive for the fourth straight day and climbs back closer to a multi-week high. The technical setup seems tilted in favour of bulls and supports prospects for further gains. Bulls might wait for a move beyond the $23.30-$23.35 confluence before placing fresh bets. (FXStreet) S&P 500 PRICE FORECAST: Heightened Volatility in the Afternoon Session has Dragged the S&P Lower. Is the Attack on an Air Base in Iraq a Sign of What is to Come? IG Client Sentiment Shows that Retail Traders are Long with 55% of Traders Currently Holding Long Positions. A Sign of Further Downside Potential. 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.

2023-10-19 09:40

USD/CAD scales higher for the third straight day and advances to a near two-week high. Sliding Oil prices undermine the Loonie and remain supportive amid a bullish US Dollar. Hawkish Fed expectations, rallying US bond yields and a softer risk tone benefit the buck. Traders look to the US macro data for some impetus ahead of Fed Chair Powell’s speech. (FXStreet) USD/JPY trades in negative territory near 149.80, down 0.10% on the day. The US Building Permits came in better than expected; Housing Starts arrived worse than the market consensus. The Bank of Japan (BoJ)’s quarterly report suggested a recovery in Japan’s economy for all regions. The Fed Chair Jerome Powell’s speech, Japanese inflation data will be closely watched events this week. (FXStreet) EUR/USD consolidates in a narrow trading band through the Asian session on Thursday. The fundamental backdrop and the technical setup support prospects for further losses. A convincing breakout through the descending channel hurdle will negate the bearish bias. (FXStreet) Pound Sterling finds some support after a fresh four-day low as room remains open for further policy-tightening by the BoE. A slowdown in progress in achieving 2% inflation has escalated hawkish BoE bets. The market mood remains risk-off amid increasing Israel-Hamas tensions. (FXStreet) Australian Dollar continues to lose ground after the release of jobs figures by the Australian Bureau of Statistics. Australia's Unemployment Rate outshone predictions at 3.6%, surpassing the expected 3.7%. Employment Change fell below the consensus forecast, reporting 6.7K instead of the anticipated 20K. US housing market is currently presenting a puzzle with conflicting signals, keeping observers on alert. (FXStreet) NZD/USD drifts lower for the third straight day and touched its lowest level since November 2022. The Israel-Hamas war, hawkish Fed expectations underpin the Greenback and weigh on the major. Traders look to the US macro data for some impetus ahead of Fed Chair Jerome Powell’s speech. (FXStreet) USD/CHF receives upward support despite stronger Switzerland’s Trade Balance data. Swiss balance of trade increased from 3,814M to 6,316M in September. Higher US bond yields contribute support to underpinning the US Dollar. (FXStreet) USD/MXN continues the winning streak as negative sentiment sours on the Israel-Hamas war. Banxico Deputy Governor Mejia has affirmed that the balance of inflation risks has not worsened. US Building Permits surpassed expectations, and Housing Starts rebounded in September. (FXStreet) GBP/JPY continues the losing streak on market caution regarding the BoE interest rate trajectory. Japan’s Trade Balance increased to ¥62.4B surplus from negative ¥937.8B previously. UK revealed a resilient headline CPI at 6.7%, defying expectations of a decrease to 6.6%. (FXStreet) EUR/GBP hovers below the psychological level at 0.8700. The uncertainty over the BoE's further policy actions put pressure on the Pound Sterling. ECB is expected to hold further interest rate hikes could weigh on the Euro. (FXStreet) Indian Rupee posts modest gains amid the further escalation of geopolitical tensions in the Middle East. The rising geopolitical tension between Israel-Hamas might limit the INR’s upward path. The Federal Reserve’s Beige Book update showed the US economic outlook had "little to no change" between September and early October. (FXStreet) WTI: Upside momentum appears limited around $95.00. WTI prices added to Tuesday’s advance and flirted with the key $90.00 mark per barrel on Wednesday. The daily gains were on the back of shrinking open interest, however, and seem to favour some corrective knee-jerk in the very near term. On the upside, the 2023 high around the $95.00 mark per barrel (September 28) remains the next barrier for bulls for the time being. (FXStreet) The index meets resistance around the 106.50 area. Chief Powell will discuss the Economic Outlook later in the session. Weekly Claims, Philly Fed index, Fedspeak take centre stage as well. The greenback exchanges gains with losses in the mid-106.00s when tracked by the USD Index (DXY) on Thursday. (FXStreet) Gold price trades with a positive bias for the third successive day on Thursday. Geopolitical risks continue to underpin demand for the safe-haven XAU/USD. Hawkish Fed expectations, rising US bond yields and stronger USD cap gains. (FXStreet) Silver regains positive traction on Thursday and climbs back to the $23.00 round-figure mark. The technical setup seems tilted in favour of bulls and supports prospects for additional gain. A convincing break below the 38.2% Fibo. level is needed to negate the constructive outlook. (FXStreet) Bitcoin continues to be well supported, now testing a formidable resistance on the 200-day moving average, roughly coinciding with the end-August high of 28150. This follows a hold last month above strong support at the June low of 24750, which has kept intact the higher-top-higher-bottom formation since the end of 2022. Importantly, this keeps alive the possibility of an extended recovery given the 2021-2022 decline and the possibility of Bitcoin shedding some of its underperformance Vs Ethereum in recent years. (DailyFX) ETHEREUM: Beginning to look vulnerable. The lack of a meaningful upward momentum in recent weeks raises the risk of Ethereum staging a secondary/lower high on the weekly charts, relative to early 2023. This would be the first time since the recovery started in late 2022 that the higher-highs-higher-lows sequence would be broken. ETH/USD in August fell below crucial support on the 200-day moving average for the first time since January. (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.

2023-10-18 09:39

Market Update - 18 October 2023 NZD/USD posts modest gains around 0.5905 after the upbeat Chinese growth numbers. China’s Gross Domestic Product (GDP) for Q3 climbed 1.3% QoQ vs. 0.8% prior, better than expected. US Retail Sales for September grew 0.7% MoM, beating the market estimation. (FXStreet) EUR/USD trades above the major support at 1.0550 ahead of the Eurozone CPI. MACD indicated a shift in momentum towards a bullish trend. 21-day EMA emerges as the immediate resistance, followed by the 1.0600 psychological level. (FXStreet) USD/CAD trades in negative territory near 1.3635 amid the USD weakness. The Canadian CPI data showed an easing in inflationary pressure. US Retail Sales for September rose by 0.7% MoM, beating the market consensus. Investors await the US housing data, Canadian Retail Sales data due later this week. (FXStreet) EUR/GBP loses traction to 0.8670 after the upbeat UK inflation data. The UK inflation figures for September came in better than the market consensus. EU's ZEW Economic Sentiment Survey came in at 2.3 vs.-8.9 prior, better than expected. Traders await the Eurozone Consumer Price Index (CPI), ECB's President Lagarde's speech on Wednesday. (FXStreet) USD/JPY recovers its intraday losses pre-release of US economic data. Chinese GDP exceeded expectations; contributing support for the Japanese Yen. Higher US Treasury yields provide support to underpinning the US Dollar. (FXStreet) The index alternates gains with losses in the low-106.00s. US yields trade within narrow ranges near recent peaks. Housing data, Fed Beige Book, Fedspeak take centre stage midweek. The USD Index (DXY), which gauges the greenback vs. a bundle of its main competitors, navigates a tight range in the 106.10-106.20 band ahead of the opening bell in the old continent on Wednesday. (FXStreet) USD/CHF aims to defend the crucial support of 0.9000 amid a risk-off market mood. The US Dollar remains well supported above 106.00 due to strong Retail Sales data. Robust US Retail Sales were prompted by upbeat demand for automobiles, rising dining out, and higher gasoline prices. (FXStreet) WTI prices climbs to $87.35 amid the geopolitical tension in the Middle East. An escalating tension between Israel-Hamas might trigger the fear of potential oil supply disruptions. Chinese growth numbers came in better than expected. US crude oil inventories fell nearly 4.383M barrels last week vs. 12.93M barrels rise prior. (FXStreet) Gold prices gain upward support from the Middle-East conflict. Upbeat China data could provide support in underpinning the prices of Gold. US Dollar strengthens on the solid economic data. (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.

2023-10-17 09:20

The Euro trades slightly on the defensive against the US Dollar. Stocks in Europe open Tuesday’s session with decent gains. EUR/USD’s upside falters around weekly highs near 1.0560. The USD Index (DXY) remains propped up by the 106.20 zone. Germany, Eurozone ZEW survey takes centre stage in the old continent. US Retail Sales, Industrial Production, Fedspeak will be in the limelight. (FXStreet) USD/CAD closed deep in negative territory on Monday before stabilized slightly above 1.3600 early Tuesday. Statistics Canada will release Consumer Price Index (CPI) data for September and the Bank of Canada (BoC) will publish core inflation figures. (FXStreet) NZD/USD retraces recent gains after weaker economic data from New Zealand. Kiwi headline CPI (Q3) rose to 1.8%, compared to the 2.0% expected; the yearly rate decelerated. US Dollar could admire the improved US Treasury yields. (FXStreet) The Reserve Bank of Australia's (RBA) minutes of the October policy meeting showed on Tuesday that policymakers considered raising the policy rate by another 25 basis points or holding it steady before deciding to leave it unchanged. “Members acknowledged upside risks to inflation were a significant concern," the RBA noted. AUD/USD gained traction in the Asian session and climbed above 0.6350. (FXStreet) GBP/USD remains on backfoot after UK wage report remains soft. BoE Pill kept doors open for further policy-tightening. The UK’s consumer inflation report for September is expected to remain soft. (FXStreet) USD/JPY attracts some buyers above the mid-149.00s on Tuesday. US NY Empire State Manufacturing Index for October fell to 4.6 vs. a 1.9 rise prior, better than expected. Japanese Finance Minister denied comment about currency intervention. Traders will focus on the US Retail Sales, Industrial Production, and Fed speakers later on Tuesday. (FXStreet) USD/CHF trades higher amid escalating Middle-East conflict. American naval vessels are en route to Israel, sending a message of deterrence to both Iran and the Lebanese militant group. The Greenback faces hurdles amid dovish comments from multiple Federal Reserve officials. (FXStreet) USD/MXN recovers some lost ground and hovers around 17.90. Chicago Fed and Philadelphia Fed President maintained their dovish stances, which weigh on the US Dollar. World Bank raised its economic growth projection for Mexico to 3.2% in 2023. Investors await the US Retail Sales for September. (FXStreet) GBP/JPY pulls back from the recent gains amid moderate UK earning data. UK CPI (YoY) is expected to decrease; monthly figures could report a notable increase. BoJ could intervene in the foreign exchange market to protect the Japanese Yen. (FXStreet) EUR/GBP trades with modest gains near 0.8648 following the UK wage inflation data. UK’s Average Earnings, excluding bonuses, came in at 7.8%, while the gauge including bonuses climbed 8.1% vs. 8.5% prior. ECB's chief economist said they will keep interest rates high until inflation returns to 2%. Investors will monitor the ZEW Economic Sentiment Survey for October, ECB's De Guindos speech on Tuesday. (FXStreet) USD/INR could face trouble as RBI $5B swap deal is set to mature on October 23. Traders are concerned about the availability of US Dollars in the Indian banking system. Greenback encounters challenges due to the dovish remarks from several Fed officials. (FXStreet) WTI: Gains appear limited around $88.00. Prices of WTI rose to new highs just past $88.00 mark per barrel before closing Monday’s session with modest losses. The daily pullback, however, was accompanied by shrinking open interest and volume and suggests that a more sustained retracement in the commodity now seems not favoured for the time being. (FXStreet) Natural Gas: Initial support emerges around $3.00. Monday’s decline in prices of natural gas was in tandem with rising open interest and volume, which is indicative that extra retracements remain in store for the commodity in the very near term. In the meantime, there is a decent contention around the key $3.00 mark per MMBtu. (FXStreet) The index leaves behind Monday’s downtick and revisits 106.40. Retail Sales will take centre stage later in the NA session. FOMC Bowman, Barkin are also due to speak. The greenback regains some balance following Monday’s drop and revisits the 106.40 region when measured by the USD Index (DXY) on turnaround Tuesday. (FXStreet) Gold price trades in a narrow range as investors digest tensions in the Middle East. Fed policymakers see interest rates as sufficiently restrictive due to higher US Treasury yields. US Retail Sales growth is seen slowing to 0.3% in September. (FXStreet) Fake News Blunder of ETF Approval Sends Bitcoin into a Frenzy. A Large Portion of Gains Have Since Been Wiped Away. Binance to Stop Accepting New UK Clients Today as it Searches for Partner Authorized by the FCA to Approve Ads. Today’s Brief Spike a Sign of the Potential Rally Which Could Unfold Should Spot ETFs be Approved. (DailyFX) 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.

2023-10-16 10:00

The Euro trades with decent gains against the US Dollar. Stocks in Europe trade mostly on the defensive. EUR/USD meets decent contention around 1.0500. The USD Index (DXY) looks supported around the mid-105.00s. German Wholesale Prices rose 0.2% MoM in September. US NY Empire State Manufacturing Index takes centre stage in the American session. (FXStreet) Australian Dollar retraces recent losses pre-release of RBA Meeting Minutes on Tuesday. RBA is exploring the possibility of introducing a central bank digital currency to save costs of billions of dollars. Investors hesitate on the Fed interest rate trajectory; contributing to the weakening of the US Dollar. (FXStreet) GBP/USD attracts some buying on Monday and draws support from a modest USD downtick. The uncertainty over the Fed’s rate-hike path and a positive risk tone undermine the greenback. Elevated US bond yields limit the USD losses; Bets that the BoE is done raising rates cap the pair. (FXStreet) Pressured by hawkish comments from Bank of Canada (BoC) Governor Tiff Macklem and surging crude oil prices, USD/CAD closed in negative territory on Friday. Later in the day, the BoC will release the Business Outlook Survey for the third quarter. The barrel of West Texas Intermediate holds steady slightly above $87 early Monday and USD/CAD fluctuates in a tight channel near 1.3650. (FXStreet) NZD/USD moves upward on market hesitation over the Fed’s interest rate trajectory. US Dollar could receive flows due to the risk aversion over the Palestine-Israel conflict. Fed could halt interest rate-hike cycle due to higher US Treasury yields. (FXStreet) USD/CHF continues to lose ground on the Fed’s interest rate uncertainty. Safe-haven Swiss Franc receives flows due to the risk aversion over Middle-East conflict. The recovery in US bond yields could limit losses of the US Dollar. (FXStreet) USD/JPY continues the losses on the Fed’s uncertainty regarding interest rate trajectory. US Dollar could gain momentum due to the risk aversion over the Middle East conflict. BoJ is expected to intervene in the FX market to prevent the depreciation of Japanese Yen. (FXStreet) EUR/JPY currently trades around 157.48, up 0.18% on the day. The key resistance level is located at 157.55; 157.00 will emerge as a key support level. The cross holds below the 50- and 100-hour EMAs; RSI indicator shows the non-directional movement. (FXStreet) Gold price kicks off the new week on a weaker note and reverses a part of Friday’s rise to a multi-week high. Failure to find acceptance above the 200-day SMA prompts some profit-taking amid elevated US bond yields. Israel-Hamas conflict and dovish Fed expectations should help limit any meaningful downfall for the XAU/USD. (FXStreet) Silver meets with some supply and erases a part of Friday’s strong gains to a two-week high. The technical setup supports prospects for the emergence of some dip-buying at lower levels. Sustained weakness back below the $22.30 area could pave the way for further intraday losses. (FXStreet) Crude oil prices retrace the recent surge; seeking more cues on the Israel-Hamas war. Iran warned Israel that the situation could escalate if alleged war crimes are not halted in Gaza, Softer outlook for the Chinese economy could help in dampening the Crude oil demand. (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.