Well, there were certainly no complaints when the yen was strengthening up until the end of last week. But now as yen bulls are throwing in the towel amid the latest round of disappointment from the BOJ, we are starting to see the verbal jawboning return.MoneyMaker FX...
USDCHF Technical Analysis – The USD comes back to life
USDCHF 4 hourThe miss in the US NFP and CPI reports triggered a selloff in the US Dollar across the board. The market got increasingly confident that the July hike will be the last one for this cycle and what will follow are rate cuts sometime in early 2024. The...
The aussie elation yesterday proves short-lived
The Australian dollar got a double boost in trading yesterday but that is ultimately proving to be short-lived as the currency declines further again today. Against the dollar, AUD/USD traded to a high of 0.6846 yesterday but is now down nearly 100 pips from there to...
Japan 10-year yields fall to two-week lows as BOJ hopes squandered once again
The report here is at least keeping things interesting on the session, with the Japanese yen falling sharply as a result. The currency drop is a function of JGB yields, where we're seeing a considerable drop today as well. 10-year JGB yields are now down to 0.42% as...
USDJPY Technical Analysis – BoJ kills again the JPY
The miss in the US NFP and CPI reports triggered a broad USD selloff as the market expected the Fed to be done with rate hikes after the July FOMC meeting. In fact, the market has even started to bring forward rate cuts, although it looks premature due to a strong...
Market Update – July 21 – US100 falls, US30 shines
It has been a mixed session on Wall Street where US500 and US100 lost 0.7% and 2.3% respectively but US30 wrapped up a ninth day of wins, its longest winning streak since 2017 and its highest intraday level since April 2022. This can feel like rotation -for now- after...
Japanese yen falls further on the week on word that BOJ is likely to keep policy unchanged
USD/JPY daily chartThis comes after the headlines here, which is disappointing yen bulls once again - whom have kept up hope for a potential policy tweak next week by the BOJ. 10-year JGB yields have also fallen down to 0.45% from around 0.48% at the start of the day....
BOJ reportedly erring towards leaving policy unchanged next week
The Japanese yen is falling further on the headline here, with the sources stating that the BOJ is not likely to introduce any changes to its yield curve control settings next week. Adding that many policymakers see no imminent need to take fresh steps on that matter,...
ECB to Hike Again
The ECB is expected to deliver another 25-basis point hike next week, while keeping all options open for September. This will mean the presser should be a tad more dovish than in June, when Lagarde signaled more tightening is underway. However, while a September hike...
European equities see mixed start to the session
Eurostoxx -0.3%Germany DAX -0.5%France CAC 40 +0.1%UK FTSE +0.1%Spain IBEX +0.1%It's a more mixed and tentative one as we get the session underway so we'll have to see how Wall Street takes to this later. For now, US futures are marginally higher by around 0.2% so...
AUDUSD Technical Analysis – Playing the Range ahead of the FOMC
The miss in the US CPI report triggered a heavy US Dollar selling across the board as the market started to see the end of the Fed tightening cycle. Moreover, the soft-landing narrative caused a strong positive risk sentiment in the markets as the labour market...
USDCAD Technical Analysis – Awaiting a big breakout
The miss in the US CPI report last week has led to a broad US Dollar weakness as the market anticipated one last hike at the July FOMC meeting. The falling inflation with a resilient labour market have also strengthened the soft-landing narrative and caused a positive...
UK June retail sales +0.7% vs +0.2% m/m expected
Prior +0.3%; revised to +0.1%Retail sales -1.0% vs -1.5% y/y expectedPrior -2.1%; revised to -2.3%Retail sales (ex autos, fuel) +0.8% vs +0.2% m/m expectedPrior +0.1%; revised to 0.0%Retail sales (ex autos, fuel) -0.9% vs -1.6% y/y expectedPrior -1.7%; revised to...
Japanese Yen Steady After CPI; USD/JPY, AUD/JPY, CAD/JPY, MXN/JPY Price Action
US Dollar, Australian Dollar, Canadian Dollar, Mexican Peso Vs Japanese Yen – Outlook:USD/JPY steady after Japan nationwide price pressures re-accelerated last month.Key focus is now on BOJ meeting next week.How do the key JPY crosses look going into next week?...
Tesla & Netflix Weigh on Tech, J&J Supports Industry
The USDIndex on Thursday (20/07) rose to a 1-week high of +0.56% and closed above the psychological threshold of $100.00. Signs of strengthening in the US labour market were seen as weekly initial jobless claims fell to a 2-month low. US weekly initial jobless claims...
Trade ideas thread – European session 21 July 2023
Well, it looks like the dollar is making a stand by putting its foot down to halt the rout from last week. USD/JPY is leading the charge this week in a reversal back above 140.00 now. I did say on Monday here that if the dollar was to drop further, it would need the...
ICYMI: Nasdaq to undergo “special” rebalancing effective next week
Essentially, the cause of this "special" rebalance is the fact that have seen a significant rise in Big Tech shares amid the AI boom. Nvidia, Microsoft, Alphabet, Amazon, Apple, and Tesla have seen their stock price rise by roughly 60% on average this year and that is...
FX option expiries for 21 July 10am New York cut
There is perhaps just one to take note of for the day, as highlighted in bold. That being for USD/CAD but it isn't one that should be too impactful since the expiries are split between 1.3145 ($446m) and 1.3155 ($661m). Adding to that, there isn't much technical...
ECB’s de Cos is speaking on Friday on monetary policy – September hint?
Bank of Spain governor and European Central Bank Governing Council member Pablo Hernández de Cos is participat in a monetary conference organized by the Central Bank of Bolivia today.Coming up from 1340 GMT, which is 0940 US Eastern time de Cos, like many of his...
Morgan Stanley revise their US GDP forecast to +1.3%, from +0.6%, citing Biden Boom
Morgan Stanely have made what they refer to as, quite rightly, a "sizeable upward revision" to their 2023 US economic growth forecast.Analysts at the bank now expect +1.7% Q4/Q4, from +0.6% previously. Morgan Stanley cite stronger-than-expected public investment as...