2023-05-29 09:36

Market Update - 29 May 2023 GBP/USD has shown recovery amid a sell-off in the USD index after approval of a raise in the US debt-ceiling. The US Dollar Index has critically come under pressure as the approval of a higher US debt-ceiling has faded fears of a spike in interest rates. BoE Bailey is bound to halve inflation by year-end as promised by UK PM Rishi Sunak. (FXStreet) EUR/USD prints the first daily gain in five around the lowest levels in 10 weeks. US Dollar retreats as policymakers deliver debt ceiling agreement, challenges to passage prod the Euro buyers. Hawkish Fed bets versus fears of Eurozone recession also exert downside pressure on EUR/USD. Holidays in Germany, US to restrict Euro moves ahead of Eurozone inflation, US NFP. (FXStreet) USD/JPY eases from yearly high, snaps three-day uptrend. One-week-old resistance line, overbought RSI (14) line challenge Yen pair buyers. 12-day-old bullish trend channel, upbeat MACD signals and sustained trading beyond 200-SMA favor buyers. (FXStreet) GBP/JPY retreats from the highest levels since February 2016 as traders pare recent gains amid UK holiday. Off in major bond markets, recently hawkish BoJ concerns versus doubts BoE hawks prod pair buyers. Risk catalysts are important for clear directions, US debt limit passage is the key. (FXStreet) AUD/USD has shown a recovery move from below 0.6530 amid a decline in appeal for the USD Index. Speaker McCarthy agreed for raising the US borrowing cap limit as US Biden got ready for compromise spending initiatives for the budget. Australian retail demand remained stagnated as higher interest rates and sky-rocketing cost of living have trimmed their pockets. (FXStreet) The index appears slightly offered just above 104.00. Biden-McCarthy reached a deal to raise the debt limit. US markets will be closed on Monday due to Memorial Day holiday. The greenback gives away part of the recent rally, although it manages well to keep the trade above the 104.00 mark when gauged by the USD Index (DXY) on Monday. (FXStreet) USD/CAD has shifted its auction below 1.3600 after a modification in the US debt structure. Fresh incoming data is advocating for more interest rate hikes by the Federal Reserve. Resilience in the Canadian economy could force the Bank of Canada to start hiking interest rates again. USD/CAD asset has dropped after facing barricades around the horizontal resistance placed from April 26 high at 1.3651. (FXStreet) NZD/USD has stretched its recovery above 0.6060 amid a sheer sell-off in the USD Index. An increase in $31.4 trillion US borrowing limit is expected to attract downgrades from credit rating firms for US long-term sovereignty. NZD/USD has shown a responsive buying move after dropping below 0.6040 but is likely to face stiff barricades around 0.6110. (FXStreet) USD/INR is making efforts in defending its immediate support of 82.50 amid a subdued USD Index. The USD Index could get a booster shot as investors are anticipating a continuation of the interest rate hike regime from the Fed. USD/INR has delivered a breakdown of the Head and Shoulder chart pattern. (FXStreet) USD/CHF remains depressed after reversing from seven-week high. US Dollar consolidates monthly gains as US debt ceiling agreement lacks overall acceptance ahead of Congress voting. Risk appetite appears slightly positive as off in multiple markets, including Switzerland, limits sentiment. (FXStreet) USD/TRY picks up bids to refresh all-time high, reverses Friday’s corrective pullback. Erdogan marks more than two decades of leadership with the latest election win. Uncertainty about US debt ceiling extension deal also weighs on Turkish Lira. Risk catalysts, US NFP eyed for clear directions. (FXStreet) USD/CAD holds lower ground during two-day retreat from monthly high. Bearish MACD signals add strength to pullback moves targeting previous resistance line. Loonie pair’s recovery needs validation from April’s peak. (FXStreet) Natural Gas struggles to defend the first daily gains in three inside bullish chart formation. Key SMA, impending bull cross on MACD lure XNG/USD buyers. Confirmation of falling wedge becomes necessary to convince Natural Gas bulls. Sellers have a bumpy road to travel unless breaking $2.14. (FXStreet) Gold price is facing delicate hurdles around $1,945.00 despite the USD Index has retreated from 104.20. A downgrade in the US long-term credibility would have a negative impact on the USD Index and US equities. Gold price is defending its cushion near horizontal support plotted from $1.937.39. (FXStreet) Silver price fades the previous day’s corrective bounce off two-month low. Overbought RSI, looming bear cross on MACD adds strength to bearish bias below 200-HMA. Fortnight-old resistance line adds to the upside filters; $23.00 acts as extra support . (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.

2023-05-26 09:18

Market Update - 26 May 2023 GBP/USD has rebounded firmly from 1.2320 amid hopes of a pause in the policy-tightening spell by the Fed. The deviation in proposed budget spending by the White House to Republican leaders has narrowed to $70 billion from original proposal of $1 trillion. A rebound in retail demand could fuel inflationary pressures and create more troubles for the BoE. (FXStreet) AUD/USD renews intraday top as it reverses from the yearly low, snaps three-day downtrend. Australia Retail Sales’ growth stagnates in April versus 0.4% prior. US Dollar bulls step back from key resistance line amid mixed concerns about debt ceiling, unimpressive Fed talks. US Durable Goods Orders, Fed’s preferred inflation gauge eyed, US default updates are critical. (FXStreet) EUR/USD has jumped to near 1.0740 as the USD Index has extended correction. Tight credit conditions by US regional banks are effectively weighing on US inflationary pressures. The ECB is anticipated ECB to raise interest rates further despite the German recession. (FXStreet) NZD/USD has turned sideways around 0.6060 posts a soft recovery ahead of US Durable Goods Orders. Fed policymakers are anticipated to capitalize on tight credit conditions to weigh pressure on inflation rather than hiking interest rates further. RBNZ Silk advised holding rates ahead and remaining data-specific. (FXStreet) GBP/JPY has recovered sharply and has climbed to near 172.50 after the release of mixed UK Retail Sales. Monthly UK Retail Sales have expanded sharply, portraying resilience in the households’ demand. BoJ Ueda is considering options for tweaking YCC. (FXStreet) The index gives away some loses following recent peaks. Policy makers move closer to a deal in the debt ceiling. US inflation tracked by the PCE takes centre stage later on Friday. The USD Index (DXY), which measures the greenback vs. a basket of its main rival currencies, recedes from recent multi-week peaks near the 104.30 region. (FXStreet) USD/JPY retreats from the YTD peak amid a modest USD pullback from over a two-month high. A softer risk tone benefits the safe-haven JPY and further contributes to the intraday downfall. The Fed-BoJ policy divergence should help limit losses ahead of the US Core PCE Price Index. (FXStreet) USD/CAD renews intraday low, prints the first daily loss in three around monthly top. Key resistance line prods Loonie pair bulls but oscillators, previous run-up suggest the quote’s further advances. Convergence of 50-DMA, three-week-long rising trend line challenges bears. (FXStreet) USD/CNH takes offers to refresh intraday low while reversing from the highest levels since December 2022. China’s state banks allegedly selling US Dollar in onshore FX markets to defend Yuan. Market’s consolidation ahead of the US data, events join fears of more PBOC intervention to weigh on USD/CNH price. (FXStreet) USD/ZAR retreats from all-time high to pare the biggest daily gains in a year amid overbought RSI. 18-month-old rising trend channel keeps South African Rand sellers hopeful. Previous resistance from March restricts immediate downside ahead of 10-DMA. WTI crude oil consolidates the biggest daily loss in three weeks. Mixed sentiment about US debt ceiling deal, Oil demand-supply concerns prod energy traders. Cautious mood ahead of the key data/events also restricts immediate WTI moves. US data, OPEC+ meeting eyed for directions, US debt ceiling updates are key. (FXStreet) Gold price defends 100-day SMA and rebounds from over a two-month low touched on Friday. A modest US Dollar profit-taking slide is seen as a key factor lending support to the XAU/USD. Hawkish Federal Reserve expectations might cap the upside ahead of the US PCE Price Index. (FXStreet) Silver price has fit above $23.00 amid a sheer decline in the USD Index. White House officials and Speaker McCarthy-led team are vigorously involved in negotiations for raising the US debt-ceiling. Silver price has shown a decent recovery and has climbed back above the 50% Fibo retracement at $23.00. (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.

2023-05-25 09:28

Market Update - 25 May 2023 USD/CAD renews three-week high but stays sidelined of late. Traders rush to US Dollar in search of risk safety amid anxiety about US debt ceiling extension talks. Oil price struggles to justify surprise draw in inventories, fears of less supplies amid firmer USD. Risk catalysts, second-tier data may entertain Loonie traders amid cautious markets. (FXStreet) EUR/USD has refreshed its four-week low at 1.0740 as the USD Index has shown significant strength amid a cautious market mood. Federal Reserve policymakers advocated that the interest rate hike in May’s meeting should be followed by a pause due to banking turmoil. Higher interest rates by the European Central Bank in Eurozone are having catastrophic effects on its economic prospects. EUR/USD has kissed the 61.8% Fibonacci retracement at 1.0738. (FXStreet) GBP/USD has shown recovery from 1.2330 however, the downside bias seems solid. Investors are entirely focusing on the US debt-ceiling issues rather than dovish cues From FOMC minutes. UK Hunt remained confident that inflation will get halved by the year-end. (FXStreet) AUD/USD refreshes yearly bottom as traders rush to US Dollar amid market’s indecision. Fears of US default contrast with policymakers’ optimism to keep trouble traders. RBA vs. Fed divergence regain attention after RBNZ’s dovish hike. Risk catalysts, second-tier data can entertain intraday Aussie pair traders. (FXStreet) USD/JPY eases from the highest levels in six months as Yen bears take a breather. BoJ’s Kuroda cites welcome signs of economic development but defends easy money policy. Mixed Fed talks, FOMC Minutes and anxiety about US debt ceiling issue keep Yen pair traders on a dicey floor. Risk catalysts, bond market moves are the key for clear directions. (FXStreet) The index advances to multi-week highs north of 104.00. Concerns around the debt ceiling remain on the rise. Flash Q! GDP, weekly Claims, housing data take centre stage later. The greenback, in terms of the USD Index (DXY), extends the upside beyond the 104.00 hurdle for the first time since mid-March. (FXStreet) USD/ZAR picks up bids to refresh intraday high, extends previous day’s rebound towards record high. Fears of US default, mixed Fed concerns favor US Dollar bulls. SARB is expected to announce 0.25% rate hike, recently easy South African inflation teases Rand sellers. Multiple US data, risk catalysts eyed for clear directions as ZAR braces for fresh all-time low. (FXStreet) USD/TRY grinds near all-time high as markets wait for CBRT Interest Rate Decision. Political turmoil in Turkiye, CBRT’s hesitance to raise rates despite inflation fears propel USD/TRY price. US debt ceiling woes, hawkish Fed concerns also keep Turkish Lira on bear’s radar. (FXStreet) USD/INR picks up bids to pare the previous day’s heavy losses, bounces off important support confluence. Convergence of 50-SMA, 13-day-old rising trend line puts a floor under Indian Rupee pair’s price. 21-SMA, one-week-long horizontal resistance zone challenge buyers amid bearish MACD signals. (FXStreet) Natural Gas prices are going through a corrective move after failing to sustain above $2.58. The US EIA is expected to report a build-up of inventory by 119 bcf for the week ending May 19. Natural Gas prices resumed their upside journey after a bullish Hidden Divergence. (FXStreet) Gold Price holds lower ground as it prods bottom of short-term key trading range. Firmer US Treasury bond yields, US Dollar cap XAU/USD’s haven demand amid dicey markets. Mixed feelings about US debt ceiling deal, Federal Reserve restrict the Gold Price moves. US data, risk catalysts eyed for clear directions as US negotiators brace for long weekend. (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.

2023-05-24 09:31

Market Update - 24 May 2023 NZD/JPY slumps to the lowest level in a week, extends previous pullback from yearly high. RBNZ announces 0.25% OCR hike, keeps peak rate forecasts unchanged. Retreat in yields, upbeat concerns about Japan manufacturers also weigh on prices. Risk catalysts are the key, RBNZ’s Orr eyed for immediate directions. (FXStreet) AUD/NZD has shown a stellar run above 1.0650 after the RBNZ hiked its OCR by 25 bps to 5.5%. The RBNZ was expected to hike its OCR further as NZ inflation has not shown evidence of decent softening. Australia’s Unemployment Rate has soared sharply to 3.7% as firms are anticipating a bleak economic outlook due to higher interest rates. (FXStreet) EUR/USD picks up bids to consolidate recent losses, forms bullish chart pattern. Convergence of 50-HMA, 100-HMA and fortnight-long resistance line appears a tough nut to crack for Euro buyers. Sellers can aim for late March swing lows on 1.0760 breakdown. ECB’s Lagarde, Fed Minutes eyed for clear directions. (FXStreet) NZD/USD remains on the back foot despite recent corrective bounce following comments from RBNZ Governor Orr. RBNZ’s Orr struggles to restore market’s confidence despite keeping peak rate unchanged, matching 0.25% rate hike expectations. Clear downside break of 200-SMA, one-month-old ascending trend line keeps Kiwi pair sellers hopeful. (FXStreet) AUD/USD has managed to climb back above 0.6600 amid subdued performance by the USD index. Speaker McCarthy made clear that we are nowhere near cracking bipartisan with the White House as their partisan terms are ‘unacceptable’. The Australian economy has started slowing down as labor market conditions are facing the heat of higher interest rates. (FXStreet) The index fades part of the recent 2-day advance on Wednesday. US debt talks entered an impasse on Tuesday. Weekly Mortgage Applications, FOMC Minutes next on tap. The upside momentum in the greenback appears to struggle to gather fresh impulse beyond 103.50/60 when gauged by the USD Index (DXY). (FXStreet) GBP/USD picks up bids to refresh intraday high as UK inflation for April offers positive surprise. UK CPI marks 8.7% YoY numbers for April versus 10.1% prior, 8.2% expected. Pound Sterling benefits from US Dollar’s retreat amid an impasse in debt ceiling talks. BoE’s Bailey needs to defend hawkish bias to favor Cable buyers. (FXStreet) USD/JPY portrays bearish chart formation at the highest levels in six months. Downbeat MACD signals also lure Yen pair bears, 100-HMA, 200-HMA act as extra checks for sellers. Bulls need validation from 139.40 to retake control. (FXStreet) USD/CAD remains illiquid for the fourth consecutive day, retreating from intraday high of late. Oil price prods two-day uptrend at the highest levels in three weeks, struggles recently amid cautious markets. US Dollar tracks yields to pare recent gains amid deadlock in debt ceiling talks. FOMC Meeting Minutes, US default and weekly Oil inventories updates will be the key for clear directions. (FXStreet) USD/INR takes offers to refresh intraday low, reverses from five-week high. Failure to cross five-month-old resistance line joins overbought RSI to lure Indian Rupee buyers. Descending trend line from October 2022, bullish MACD signals prod bears. (FXStreet) USD/ZAR is looking to extend its downside built after printing an all-time high of 19.52. The US Dollar Index has shifted below the crucial support of 103.50 ahead of the FOMC minutes. The South African Rand remained in a weak spot due to deepening tensions between South Africa and the US. (FXStreet) Gold Price remains sidelined around key support confluence as markets await for Fed Minutes, US debt ceiling extension. Anxiety ahead of the key data/events prods XAU/USD traders amid mixed clues. Hawkish Fed bets, hopes of no US default underpin bearish bias about the Gold price. (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.

2023-05-23 09:37

Market Update - 23 May 2023 EUR/USD is oscillating above 1.0800 as investors are confused over further action after Monday’s US debt-ceiling meet ended without agreement. Federal Reserve policymakers delivered mixed responses on interest rate guidance as June’s monetary policy is approaching faster. European Central Bank has already warned that more than one interest rate hike is appropriate to bring down sticky inflation. EUR/USD is making efforts for shifting comfortably above the 50% Fibonacci retracement at 1.0806. AUD/USD fades bounce off intraday low, turns bearish after sluggish week-start. Mixed prints of Aussie PMIs, hawkish Fed concerns join hopes of no US default to weigh on AUD/USD. Cautious optimism in the markets, sluggish yields fail to lure bulls. USD/CAD picks up bids to recover from intraday low, remains sluggish for third consecutive day. Oil price retreat recently weighs on Loonie pair even as US Dollar grinds higher. May’s monthly PMIs for US, Oil inventory data eyed for clear directions. GBP/USD is expected to display more weakness below 1.2420 as the focus shifts to BoE Bailey’s speech. The USD Index is facing barricades above 103.30 as the upside is capped due to further delay in US debt-ceiling issues. UK’s inflation is seen declining due to a fall in the oil price. USD/JPY pulls back after touching a fresh YTD peak on Tuesday, albeit lacks follow-through. Elevated US bond yields continue to underpin the USD and act as a tailwind for the major. The Fed-BoJ policy divergence supports prospects for a further near-term appreciating move. The index alternates gains with losses around 103.30. No deal emerges from the Biden-McCarthy debt discussions. Housing data, flash PMIs next of note in the US calendar. The greenback trades without a clear direction around the 103.30 region when gauged by the USD Index (DXY) on Tuesday. NZD/USD comes under some selling pressure after facing rejection near the 0.6300 mark on Tuesday. The USD stands tall near a two-month high and turns out to be a key factor dragging the pair lower. Traders now look to the US PMIs for some impetus ahead of the RBNZ policy meeting on Wednesday. USD/INR is oscillating in a narrow range above 82.80 as investors are confused due to a further delay in US debt-ceiling issues. The USD Index is approaching the 103.50 resistance as Fed policymakers are confident of more rate hikes this year. The Indian economy is going through the buzz of a ban on Rs. 2000 notes by the Reserve Bank of India. USD/ZAR steadies above short-term moving average, pauses the previous pullback from all-time high. RSI conditions suggest pullback in prices but previous resistance line from October 2022 holds gate for South African Rand buyers. Week-long resistance line restricts USD/ZAR run-up towards 20.00. WTI crude oil fades week-start rebound amid inverse correlation with US Dollar. IEA warns about Oil supply shortage in H2 2023, output from Canada, OPEC+ also drop. US Dollar cheers hawkish Fed bets, optimism about debt ceiling despite no deal in sight. API’s weekly inventory data, risk catalysts and monthly PMIs eyed for clear directions. Gold price drops closer to its lowest level since early April amid modest US Dollar strength. A combination of factors keeps the US bond yields elevated and underpins the Greenback. Looming recession risks could lend support to the safe-haven XAU/USD and help limit losses. Silver price prints two-day downtrend, reverses Friday’s corrective bounce. Looming bear cross on MACD, sustained trading below 50-SMA keeps XAG/USD sellers hopeful. Silver sellers can keep 61.8% Fibonacci retracement on radar unless breaking $24.55 resistance. 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.

2023-05-22 09:33

Market Update - 22 May 2023 GBP/USD is making efforts for delivering extending upside as the USD Index loses strength. Federal Reserve Powell cited that tight credit conditions by the US banks are providing room to hold interest rates steady. Bank of England has already conveyed that they underestimated the strength and persistence in inflation. GBP/USD delivered a perpendicular fall after a breakdown of the upward-sloping trendline plotted from 1.2275. (FXStreet) AUD/USD fades bounce off intraday low, struggle to defend the previous day’s bounce off one-month low. US President Joe Biden appears optimistic about Sino-American ties, US debt ceiling talks. China bans Micron Technology, US Republicans seem to stick to their demand and prod risk-on mood. PBOC inaction, doubts about hawkish RBA challenge Aussie pair buyers amid mixed Fed talks. (FXStreet) EUR/USD retreats from intraday high as US Dollar pares recent losses. ECB’s Lagarde tries to defend hawkish bias but says to have covered large chunk of journey toward taming inflation. Fed Chair Jerome Powell cites banking crisis to ease pressure on the bank to raise rates, Fed’s Kashkari sounds defensive. US President Joe Biden’s comments on Sino-American ties, US debt ceiling favor recent sentiment and US Dollar. (FXStreet) GBP/JPY is demonstrating topsy-turvy moves above 171.40. Inflationary pressures in the UK economy are not in the mood to ditch the double-digit territory. BoJ Ueda believes that Japan's inflation is likely to slow back below 2% in the middle of the current fiscal year. (FXStreet) USD/JPY has scaled sharply to near 138.00 as the USD Index has defended its downside near 103.00. The Fed is expected to pause its aggressive policy-tightening spell as US banks’ tight credit conditions have squeezed liquidity disbursement. The Japanese economy is showing resilience as Q1 GDP and inflation have expanded significantly (FXStreet) The index extends the corrective decline and puts 103.00 to the test. Negotiations over the debt ceiling will take centre stage later in the week. The FOMC Minutes, PCE will be in the limelight this week. The greenback, in terms of the USD Index (DXY), starts the new trading week slightly on the defensive and near the 103.00 neighbourhood. (FXStreet) USD Index focuses on dent ceiling, FOMC USD/INR has dropped from a two-month high of 82.90 amid a decline in the USD index. The headlines of the face-to-face US Biden-McCarthy meeting has improved risk sentiment. Fed Kashkari cited that he is interested in supporting Federal Reserve for holding interest rates steady in June. (FXStreet) USD/TRY has refreshed its all-time high above 19.80 as the focus has shifted to US Biden-McCarthy talks. House of Representative McCarthy wants a hefty 8% cut in overall spending proposed by Democrats for the budget. Escalating political uncertainty in Turkey is consistently weighing on the Turkish Lira. (FXStreet) USD/CHF prods 12-day-old ascending support line, extends the previous day’s pullback from 1.5-month high. Swiss Q1 Industrial Production growth eased to 3.4% YoY versus 6.1% prior. US Dollar traces sluggish markets amid mixed concerns about debt ceiling, Fed. US PMIs, Fed Minutes to decorate calendar but US default updates will be crucial for immediate directions. (FXStreet) Natural Gas Price remains pressured after reversing from 11-week high. Bearish MACD signals, RSI’s retreat from overbought territory adds strength to downside bias about XNG/USD. Weekly support line, 200-SMA holds the key to further downside of the Natural Gas Price. (FXStreet) Gold price struggles to defend Friday’s corrective bounce off seven-week low. Haywire US debt ceiling talks flag default fears and weigh on US Dollar, putting a floor under XAU/USD. Federal Reserve communications have also been unimpressive and poke Gold bulls. US PMIs, Fed’s favorite inflation gauge and debt ceiling negotiations are crucial for XAU/USD directions. (FXStreet) Silver edges lower on Monday and reverses a part of Friday’s recovery from the 100-day SMA.The technical setup still favours bears and supports prospects for a further depreciating move. A sustained strength beyond the $25.00 mark is needed to negate the near-term negative bias. (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.