As the dust settles from the Bank of Japan USD/JPY is rising above 141.00 and I think that's the right trade. A week ago, I warned not to chase USD/JPY as it rose to 141.73 and we got a retracement all the way to 138.06 on a series of leaks and a messy trade. It...
Fed says banks should consider conducting small value discount wind transactions
The Fed is out with a report with some suggestions for banks in raising liquidity.Banks should ensure they are familiar with the pledging process for different collateral types and be aware that pre-pledging collateral can be useful if liquidity needs to arise quickly...
USDJPY makes a new week low today, then tests the high for week. What’s up for next week?
The USDJPY traded to a new low today, and also equaled the high for the week. The day has been volatile, but is more bullish heading into the close and the new trading week. What does the price action and technicals say for next week's trading? This video will define...
Former ECB VP says ‘no need for more hikes’
Former ECB VP Vitor Constâncio today highlighted the latest survey for processional forecasters and highlighted that it showed Q4 inflation around 3% and 2% in 2024."No need for more hikes," he wrote.Lately he has been noting signs of an economic slowdown, including...
US equities lose some altitude but USD/JPY doesn’t
The S&P 500 has pared its intraday gain to 28 points, or about half of what it was a few hours ago. There's no correlation with USD/JPY today as BOJ-inspired flows dominate instead. That pair is at the highs of US trading, up 147 pips to 104.91.For US stocks, a...
Canadian Q2 GDP is tracking at about 1%
Today's May Canadian GDP report met expectations at +0.3% but the advance estimate for June was -0.2%. With that, CIBC calculates that growth in the quarter is tracking close to 1.0%, less than the 1.5% assumed in the latest Bank of Canada estimates. Some of that was...
Baker Hughes weekly US oil rig count -1
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Biden advisor Brainard: Biden very focused on making sure we have resilient supply chains
Biden economic advisor - and former Fed vice chair - Lael Brainard is speaking and says:Biden is very focused on making sure we have resilient supply chainsThat kind of resilience means diversification, not decoupling from ChinaThe comments are trying to soften the...
Biden plan to signed Executive Order to limit critical US technology investments in China
> Biden plan to signed Executive Order to limit critical US technology investments in China Executive Order to go into effect but mid August <!--> --> <!--> Bloomberg is reporting:Pres. Biden to sign Executive Order to limit critical US technology...
As Europe heads home, what are the EURUSD technicals telling us for next week’s trading?
As the week comes to a close in Europe, what does the price action from the EURUSD this week tell us about next week's trading. In this video, I take a close look at the daily chart and the hourly chart to define the bias, risk, and target levels. Be aware and be...
Atlanta Fed GDPNow model starts Q3 growth at 3.5%
Atlanta Fed GDPNow growth est for Q3 starts at 3.5%The Atlanta Fed GDPNow model which forecasts growth for the quarter from published data has started its Q3 estimate at 3.5%. In their own words:The initial GDPNow model estimate for real GDP growth (seasonally...
European equity close: DAX pops the top
European stocks were mixed today but the DAX broke out higher, generating some momentum. Still, the gains aren't on par with the strong day for the Nasdaq:Stoxx 600 -0.1%German DAX +0.4%FTSE 100 +0.1%French CAC +0.4%Italy MIB -0.1%Spain IBEX -0.1%For the week:Stoxx...
GBPUSD this week stayed within support and resistance targets. Trades near neutral levels.
It is Friday, so it is a good time to look back at the price action this week and then look forward to what the price action tells us going forward into the new trading week.Looking at the GBPUSD on the hourly char this week this weekt above, the price today moved to...
USD/ZAR Shrugs Off Resurgent Dollar, Eyes Break of 17.50 Support
USD/ZAR PRICE FORECAST: Recommended by Zain Vawda Get Your Free USD Forecast Get My Guide MOST READ: USD/ZAR Rises as SA Reserve Bank (SARB) Pauses After 10 Consecutive HikesThe South African Reserve Banks (SARB) recent pause in the hiking cycle was no doubt met with...
Dallas Fed June trimmed mean price index falls to 2.5% m/m annualized versus 3.2% prior
> Dallas Fed June trimmed mean price index falls to 2.5% m/m annualized versus 3.2% prior The trimmed mean inflation index from the Dallas Fed <!--> Adam Button Friday, 28/07/2023 | 14:28 GMT-0 28/07/2023 | 14:28 GMT-0 --> <!--> Prior was 3.2%...
July final UMich US consumer sentiment 71.6 vs 72.6 expected
Prelim was 72.6Prior was 64.4Current conditions 76.6 vs 77.5 prelim (69.0 prior)Expectations 68.3 vs 69.4 prelim (61.5 prior)1-year inflation 3.4% vs 3.4% prelim (3.3% prior)5-10 year inflation 3.0% vs 3.1% prelim (3.0% prior)This indicator has little use for traders,...
USDJPY has a volatile up and down day as traders digest BOJ move(and other data this week)
The Bank of Japan met and eased their yield curve control on the 10 year effectively expanding their tolerance by a further 50 basis points to 1.0%. That news - and the other news this week - has the pair moving back toward a neutral level after...
US equities run but risk trades doesn’t flow to FX
The Nasdaq is up 1.4% as Treasury yields retreat and the market sorts through the post-BOJ wreckage. The strength in stocks demonstrates that there is a mountain of cash on the sidelines looking for a dip to buy.That kind of stock market performance would usually come...
Positive start in the US stock market as earnings lower PCE help
Major US stock indices are off to a positive start. Earnings overnight came in better than expectations and that has been the trend this week (generally speaking). The prices are rebounding as well after yesterday's decline which saw the Dow industrial average snap...
EURUSD corrects higher into overhead resistance
The EURUSD has corrected higher in trading today and the softer-than-expected core PCE data helped to push the price to a new high for the day at 1.1032. That move did extend above a swing area up to 1.10267, but overhead resistance defined by the 50% midpoint of the...