2023-08-03 09:38

Market Update - 03 Aug 2023 AUD/JPY attracts some buyers and holds ground near the 94.00 mark on Thursday. The stronger Chinese data offset the disappointing Australian data. AUD/JPY trades within a descending trend channel line from the middle of June. The immediate resistance level is seen at 95.50; the initial support level is located at 93.30. (FXStreet) EUR/GBP remains sidelined after refreshing a one-week high the previous day. Bearish moving average crossover teases sellers but three-week-old rising support line can prod downside moves. BoE needs to defy dovish bias to convince EUR/GBP sellers. Five-week-old horizontal resistance challenges buyers targeting July’s top. (FXStreet) USD/CAD prods July’s peak after two-day uptrend, sidelined of late. Oil Price extends fall from multi-day high amid fears of no change in OPEC+ output cut policy, risk-off mood. Market’s consolidation after a volatile day, preparations for US data prod Loonie pair at multi-day top. Bulls flex muscles amid hawkish Fed hopes, upbeat yields and firmer early signals for top-tier data. (FXStreet) USD/JPY gains momentum and edges higher to the 143.65 mark. The pair stands above the 50- and 100-hour EMAs with an upward slope. The initial resistance level to watch is 143.80; the first support stop is located at 142.80. (FXStreet) USD/CHF remains on the front foot for the sixth consecutive day, clings to mild gains of late. Swiss CPI slides to -0.1% MoM, 1.6% YoY in July. Clear upside break of 21-DMA, bullish MACD signals keep buyers hopeful. May’s bottom lures bulls but 0.8880 is a tough nut to crack for bulls. (FXStreet) The index keeps the rally well in place so far. US 10-year yields rose to nine-month tops past 4.15%. Weekly Initial Claims, ISM Services PMI, Factory Orders next on tap. The rally in the greenback remains well and sound and lifts the USD Index (DXY) to the vicinity of the key barrier at 103.00 the figure on Thursday. (FXStreet) EUR/JPY corrects sharply to 156.00 as the market mood turns extremely cautious. Eurozone inflation is almost three times the desired rate of 2%, therefore, further policy-tightening seems warranted. The BoJ provided more flexibility to the YCC and delivered a message that the central bank is exiting from the expansionary policy. (FXStreet) NZD/USD remains depressed for the third straight day and hits a fresh multi-week low. The overnight breakdown through the 0.6145-0.6140 confluence favours bearish traders. Bears might now aim back to retest sub-0.6000 levels, or the YTD trough touched in May. (FXStreet) AUD/USD drifts lower for the third straiday and drops to its lowest level since early June. Bets for more rate hikes by the Fed continue to underpin the USD and exert downward pressure. The fundamental and technical setup favour bears and support prospects for additional losses. (FXStreet) Gold price seems fragile above $1,930.00 as the US labor market remains resilient while wage growth slows. Janet Yellen calls Fitch’s downgrade to US government long-term credit rating ‘entirely unwarranted’. Investors await US Services PMI, monthly Factory Orders, and weekly jobless claims data. (FXStreet) Silver drifts lower for the third successive day and drops to over a three-week low. The overnight breakdown through key technical supports favours bearish traders. Any attempted recovery is likely to get sold into and remain capped near $24.00. (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.

2023-08-02 09:13

Market Update - 02 Aug 2023 EUR/USD drops below 1.1000 amid cautious market mood ahead of US Employment data. In spite of downgraded ratings by FITCH, the US Dollar Index has rebounded after a corrective move to near 102.00. Outperformance by Eurozone in the April-June quarter on GDP parameter could force the ECB to raise interest rates. (FXStreet) USD/CHF pauses four-day winning streak amid market’s indecision amid dicey US Dollar. Fitch downgrades US credit rating but market players rule out fears. Rising trend channel from Friday, sustained trading beyond key moving averages keep Swiss Franc pair buyers hopeful. Sellers need validation from 0.8700 support confluence to retake control. (FXStreet) EUR/GBP bulls take a breather at weekly top after rising the most in fortnight the previous day. Market’s reassessment of mixed Eurozone, German data joins UK recession woes to prod buyers. BoE is expected to ease on rate hikes as inflation woes recede, 0.25% lift in benchmark rates loom on Thursday. ECB’s dovish hike may prod pair buyers even if the BoE tames the hawks. (FXStreet) AUD/JPY extends its downside near the 93.80 area on Wednesday. BoJ policymaker stated that Japan is in a position where it is critical to maintain an easy policy. AUD/JPY trades within a descending trend channel on the four-hour chart. The immediate level is seen at 95.50; the initial support level is located at 93.30. (FXStreet) USD/JPY reverses from three-week high, prints the first daily loss in four as BoJ’s Uchida sounds hawkish. 61.8% Fibonacci retracement, 21-DMA limits Yen pair’s downside amid bullish MACD signals. Descending trend line from late October 2022 appears a tough nut to crack for bulls. (FXStreet) The index extends the upside momentum north of 102.00. US yields look for direction in the European morning. The ADP report will take centre stage later in the NA session. The USD Index (DXY), which gauges the greenback vs. a bundle of its main competitors, keeps the optimism well and sound for yet another session on Wednesday. (FXStreet) GBP/JPY corrects sharply from a three-week high and is pressured by reviving safe-haven demand. The risk-off impulse provides a strong lift to the JPY and is seen as a key factor weighing on the cross. The BoJ-BoE policy divergence should limit losses ahead of the central bank event risk on Thursday. (FXStreet) AUD/USD drifts lower for the second straight day and drops to a nearly two-month low. The risk-off impulse, China’s economic woes and the RBA’s inaction weigh on the Aussie. Retreating US bond yields undermines the USD, though fails to lend support to the pair. (FXStreet) USD/CAD attracts some dip-buying and edges higher to 1.3305, gaining 0.19% for the day. The next barrier for USD/CAD is located at 1.3350; 1.3285 acts as an initial support level. The Relative Strength Index (RSI) stands above 50. (FXStreet) WTI crude oil seesaws at multi-day high as risk-off mood prods energy buyers. Notable draw in Oil inventories, the heaviest slump in OPEC crude output in three years favor bulls. US credit rating cut, fears of US-China tussle prod sentiment and the WTI buyers. US ADP Employment Change for July, EIA Weekly Oil Storage Change eyed for clear directions. (FXStreet) Gold Price bounces off three week low but stays on bear’s radar on breaking key supports, now resistances. US credit rating cut prods US Dollar bulls, puts a floor under XAU/USD price. Fears of hawkish Fed moves, receding Gold demand from Asia weigh on bullion. Strong US employment data can bolster September Fed rate hike odds and exert downside pressure on XAU/USD. (FXStreet) Silver struggles to preserve modest intraday gains, though holds above the weekly low. The technical setup warrants some caution before positioning for any meaningful slide. A break below the $24.00 mark, or the 100-day SMA, is needed to confirm a breakdown. (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.

2023-08-01 09:33

Market Update - 01 Aug 2023 EUR/USD struggles to hold ground above the 1.1000 barrier on Tuesday. European Central Bank (ECB) President Christine Lagarde hinted at a possible pause in September. Market players will take fresh cues from the global Manufacturing PMI and German Unemployment rate data for June. (FXStreet) USD/CHF lacks bullish bias within a trend-widening formation during four-day uptrend. RSI, MACD conditions suggest Swiss Franc buyer’s return. 200-SMA, multi-day-old descending resistance line add to the upside filters. Sellers may have to retreat from 0.8550-45 even as bearish megaphone favors downside bias. (FXStreet) USD/CAD stays firmer while paring the biggest daily loss in two weeks. Oil price retreats amid firmer US Dollar, fears about China. Cautious mood ahead of top-tier activity data from US, Canada also propel Loonie pair. Friday’s US/Canada employment figures are the key to clear directions. (FXStreet) AUD/USD reverses Monday’s recovery from three-week low after RBA inaction. RBA disappoints Aussie bulls by keeping rates unchanged for the second consecutive month. Looming death cross, downbeat break of immediate support line favor AUD/USD sellers in aiming 0.6630 key support. Aussie pair remains on the bear’s radar below 0.6800. (FXStreet) The index gathers further traction and surpasses 102.00. US yields continue to trade without a clear direction. US ISM Manufacturing PMI will take centre stage. The greenback, in terms of the USD Index (DXY), extends the recovery to fresh three-week highs north 102.00 the figure on turnaround Tuesday. (FXStreet) USD/JPY scales higher for the third successive day and climbs to a three-week high. The BoJ’s dovish outlook and unscheduled bond-buying operation weigh on the JPY. Bets for one more Fed rate hike boost the USD and remain supportive of the move. (FXStreet) NZD/USD meets with a fresh supply on Tuesday and is pressured by a combination of factors. Bets for one more rate hike by the Fed lift the USD to a multi-week high and weighs on the pair. China’s economic woes dent the market sentiment and further undermine the risk-sensitive Kiwi. Traders now look to the US macro data for some impetus ahead of NZ jobs data on Wednesday. (FXStreet) Gold price trades on the defensive near $1,955, down 0.41% for the day. The Chinese Caixin Manufacturing PMI for July fell to 49.2 from 50.5 prior, versus the market consensus of 50.3. The softer US inflation data might convince the Federal Reserve (Fed) to ease its hawkish stance. Investors await the US ISM Manufacturing PMI data later in the North American session. (FXStreet) Silver meets with a fresh supply on Tuesday and stalls a two-day-old recovery from the 100-DMA. The setup seems tilted in favour of bulls and supports prospects for the emergence of dip-buying. A convincing break below $24.00 will negate the positive bias and pave the way for deeper losses. (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.

2023-07-31 10:19

Market Update - 31 July 2023 AUD/USD recovers some ground and currently trades around 0.6680, gaining 0.48% for the day. The US Core PCE Price Index came in at 4.1% annually, down from 4.6% in May and 4.2% prior. Australia's Retail Sales fell 0.8% MoM, against the market expectation of 0.0% and 0.7 prior. Investors will closely watch the RBA Interest Rate Decision and US Nonfarm Payrolls later this week. (FXStreet) NZD/USD takes the bids to refresh intraday high, prints the first daily gain in four. Kiwi pair’s recovery from two-month-old support line needs validation from 200-EMA and NZ/US data. Downbeat oscillators, two-week-old falling resistance line acts as additional upside filters. (FXStreet) USD/CAD takes offers to refresh intraday low during the first daily fall in five. Oil price snaps two-day uptrend with mild losses near multi-day high. US Dollar bulls struggle to keep the reins amid pre-NFP anxiety, mixed Fed talks and data. Month-end consolidation joins dicey markets to prod Loonie pair buyers ahead of US NFP, Canada employment data. (FXStreet) EUR/GBP oscillates in a tight range around 0.8565, down 0.12% on the day. Germany's Retail Sales MoM decreased by 0.8% against the market consensus of -0.2% and 0.2% prior. Most economists surveyed by Reuters expect the BoE to hike rates to 5.25% from 5%, peaking at 5.75%. Market players will closely watch the BoE interest rate decision on Thursday. (FXStreet) The index advances marginally around 101.70. US yields kick off the week with small gains so far. Investors’ attention will be on the US labour market this week. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, looks to extend the ongoing rally near the 101.70 region on Monday. (FXStreet) USD/JPY surpasses 142.00 as investors digest BoJ policy tweak. BoJ allowed more flexibility in the YCC but kept interest rates in the negative territory. Risk-perceived assets discovered strength as the US core PCE price index softened further. (FXStreet) EUR/JPY rises to near 157.00 as upbeat Eurozone data warrants more interest rate hikes from the ECB. Monthly Eurozone inflation deflated by 0.1% in July while GDP came out of contraction and expanded by 0.3% in Q2. The Japanese Yen has been hit hard despite BoJ allowing more flexibility to the YCC. (FXStreet) GBP/JPY adds to Friday’s strong move up and scales higher for the second straight day. The BoJ’s unscheduled bond-buying operation weighs on the JPY and extends support. The divergent BoJ-BoE policy stance supports prospects for a further appreciating move. (FXStreet) Gold price seeks US economic data to gauge a decisive move. The US Dollar Index remains in the bullish trajectory as the tight labor market supports more rate hikes from the Fed. The US manufacturing sector looks to be contracting for the ninth month in a row amid an aggressive rate-tightening cycle. (FXStreet) Silver comes under fresh selling pressure and reverses a part of Friday’s modest recovery gains. The technical setup favours bearish traders and supports prospects for further near-term losses. A sustained strength above the $25.00-$25.25 region is needed to negate the negative outlook. (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.

2023-07-28 09:27

Market Update - 28 July 2023 AUD/USD continues losing ground on Friday and drops to a nearly three-week low. The USD gains follow-through traction and is seen as a key factor exerting pressure. Technical selling below the 200-day SMA also contributes to the heavily offered tone. (FXStreet) GBP/USD adds to the overnight losses and drops t a nearly three-week low on Friday. The USD remains well supported by Thursday's upbeat macro data and exerts pressure. A sustained break below a two-month-old ascending trend-line favours bearish traders. (FXStreet) The index adds to Thursday’s gains and approaches 102.00. US yields trade in a mixed fashion so far on Friday. Inflation tracked by the PCE, Consumer Sentiment next on tap. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, extends the optimism seen in the second half of the week and trades at shouting distance from the key hurdle at 102.00 the figure on Friday. (FXStreet) USD/CAD gains momentum near 1.3230 ahead of the economic data released from Canada and the US. The Federal Reserve (Fed) Chairman Jerome Powell left the room for another 25 bps rate hike this year. BoC Governor Tiff Macklem said future policy decisions will be based on the incoming data and inflation. (FXStreet) USD/JPY shed gains and reverses quickly after the BoJ policy announcement. The US Dollar Index is juggling in a narrow range around 101.80 after a rally as the US economy turned surprisingly resilient than expected. USD/JPY is declining towards the horizontal support which is plotted around 137.43. (FXStreet) EUR/USD remains sidelined at the lowest level in three weeks as market await the key inflation data from Germany, US. ECB rate hike failed to please Euro bulls amid recession fears in bloc. Strong US growth numbers back Fed’s September rate increase but US Core PCE Price Index will be crucial to follow. German inflation can trigger corrective bounce as ECB emphasizes “meeting by meeting” approach for interest rate decisions. (FXStreet) USD/CHF prints mild gains after bouncing off the lowest level since 2015, picking up bids of late. Swiss Real Retail Sales growth improves to 1.8% YoY in June, versus -0.9% prior. US Dollar Index grinds near three-week high as bulls lack follow-through ahead of Fed’s favorite inflation. Market’s cautious optimism, lackluster yields also prod Swiss Franc pair after a volatile week. (FXStreet) GBP/JPY cross remains under selling pressure and slides to the 177.20 area after the BoJ rate decision. Bank of Japan (BoJ) kept its short-term interest rates at -0.1%, 10-year JGB yield target around 0%. BoJ is closely watching the Federal Reserve's (Fed) and other central banks' policy decisions. (FXStreet) EUR/JPY witnessed good two-way price swings on Friday after the crucial BoJ decision. The BoJ pledges to guide yield with flexibility and provides a strong boost to the JPY. The lack of hawkish signals from the ECB undermines the Euro and should cap the upside. (FXStreet) NZD/USD stays pressured at the lowest level in three weeks, down for the third consecutive day. Downside break of 200-SMA, short-term key support line favor Kiwi bears. 61.8% Fibonacci retracement level, rising trend line from late May can test further downside amid oversold RSI. (FXStreet) WTI prices rose past the key $80.00 mark per barrel on Thursday, although they closed below it. The daily gains were amidst shrinking open interest and warns against the continuation of the uptrend in the very near term. In the meantime, the $80.00 region remains a key resistance area for the time being. (FXStreet) Thursday’s decline in prices of natural gas was amidst rising open interest, which suggests that extra decline could be in the pipeline in the very near term. Against that, the commodity should face the next contention around the monthly lows near the $2.50 mark per MMBtu (July 17). (FXStreet) Gold price falls back as Greenback swallows steroids amid US economic resilience. US Q2 GDP, demand for Durable Goods in June remained robust due to higher consumer spending. US recession fears fade significantly amid upbeat labor market conditions. (FXStreet) Silver regains positive traction on Friday and moves away from a two-week low. The bearish technical setup warrants caution before positioning for further gains. A sustained move beyond the $25.00 mark 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.

2023-07-27 09:47

Market Update - 27 July 2023 USD/CHF remains pressured for the third consecutive day while declining toward multi-year low marked the last week. US Dollar weakness fades amid cautious mood ahead of ECB, US GDP. Fed announces 0.25% increase in interest rates but markets expect its to be the last. Swiss Franc pair’s recovery remains elusive as US statistics fail to underpin September rate hike concerns. (FXStreet) USD/CAD prints the first daily loss in three but lacks momentum of late. Two-week-old triangle restricts immediate Loonie moves at yearly low. Month-long horizontal support, 1.3250 resistance confluence act as additional trading filters. US Q2 GDP eyed after Fed failed to impress pair buyers. (FXStreet) AUD/USD climbs to a one-week high and draws support from sustained USD selling bias. Bets that the Fed will end its rate hike cycle and the risk-on mood undermine the USD. The technical setup supports prospects for further intraday gains to the 0.6845-50 area. (FXStreet) USD/JPY loses momentum after reaching the 140.25 mark in the Asian session. Investors have closely watched the trajectory of Japan's ultra-loose monetary policy. The US dollar fell across the board following the Federal Reserve's (Fed) decision. Market players will focus on US Q2 GDP, weekly Jobless claims, and Durable Goods Orders later in the day. (FXStreet) EUR/USD prints mild gains despite retreating from intraday high, up for the second consecutive day. US Dollar fails to cheer Fed’s 0.25% rate hike, signals for September amid fears of nearness to policy pivot. Recently mixed Eurozone, German data prod ECB hawks even as Lagarde might try hard to defend restrictive policy. US Q2 GDP, Durable Goods Orders are also important for clear directions as Fed Chair Powell rejects dovish concerns. (FXStreet) The index loses further ground post-FOMC. The dollar retreats to multi-session lows near 100.60. Flash Q2 GDP, Durable Goods Orders, weekly Claims next on tap. The greenback, in terms of the USD Index (DXY), extends the weekly decline to the area of multi-session lows near 100.60 on Thursday. (FXStreet) EUR/JPY holds below the 50- and 100-hour EMAs on the one-hour chart. The immediate resistance level is located at 155.40; 154.90–155.00 is the crucial support zone. Investors await the European Central Bank (ECB) and Bank of Japan (BoJ) decisions. (FXStreet) GBP/JPY recovers from 180.80 as the BoE looks set to deliver the 14th consecutive interest rate hike. The IMF said on Tuesday that the BoJ should look for moving away from supportive monetary policy. Wage rise could force the BoJ to discuss a tweak in YCC in the next policy meetings. (FXStreet) EUR/GBP remains on the back foot at weekly low during four-day losing streak, holds lower ground of late. Oversold RSI (14) conditions, pre-ECB anxiety check pair sellers targeting six-week-old horizontal support. Intraday buyers need validation from 0.8585 to retake control. (FXStreet) NZD/USD shows a decline in volatility after a rally move propelled by less-hawkish Fed policy. The US Dollar Index has extended its correction sharply as fears of a recession in the US have eased significantly. NZD/USD tests the strength of the breakout of the consolidation formed around 0.6235. (FXStreet) Prices of WTI reversed four sessions of gains on Wednesday. The daily decline came on the back of increasing open interest and a strong drop in volume and points to a potential consolidation around current levels. In the meantime, the immediate target remains at the key $80.00 mark per barrel for the time being. (FXStreet) Wednesday’s negative price action in natural gas prices was on the back of shrinking open interest and volume, which hints at the idea that a near-term rebound appears on the cards with the immediate target initially around the $2.80 mark per MMBtu. (FXStreet) Gold price strengthens as the scale of interest-rate hike by the Fed met expectations. The US Dollar Index is facing wrath due to the Fed’s less-hawkish guidance. Investors will keenly watch GDP numbers, Durable Goods Orders, and weekly Jobless claims on Thursday. (FXStreet) Silver scales higher for the third straight day and climbs to a fresh weekly high on Thursday. The technical setup seems tilted in favour of bulls and supports prospects for further gains. A sustained break below the $24.00 mark is needed to negate the near-term positive 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.