It will be Memorial Day in the US on Monday and that will see both the stock and bond markets closed. The latter will also close early later today (at 2pm ET), so keep that in mind as we look towards the session ahead.In Europe, it will also be Whit Monday and that is...
Dollar mildly lower with PCE price data in focus today
The key levels from yesterday (summary post here) are all still holding as the dollar remains in the driver's seat in trading this week. We're seeing a light pullback today but the ranges for most dollar pairs are still relatively narrow. EUR/USD is up 0.2% to 1.0740...
European equities kick start the day on better footing
Eurostoxx +0.5%Germany DAX +0.4%France CAC 40 +0.5%UK FTSE +0.6%Spain IBEX +0.4%It's a welcome bounce for French stocks especially after running into support from its 100-day moving average and its key trendline support (as seen below). But it still doesn't take away...
Market Update – May 26 – 2-year Debt Ceiling Deal Approaching?
The USDIndex holds the breach of 104.00 on news the US debt ceiling talks are progressing and a 2-year deal is possible. Strong US data yesterday also added to pressure on the FED to hike at least one more time. Susan Collins from the Boston Fed, suggested that a...
France May consumer confidence 83 vs 84 expected
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,...
UK April retail sales +0.5% vs +0.3% m/m expected
Prior -0.9%; revised to -1.2%Retail sales -3.0% vs -2.8% y/y expectedPrior -3.1%; revised to -3.9%Retail sales (ex autos, fuel) +0.8% vs +0.3% m/m expectedPrior -1.0%; revised to -1.4%Retail sales (ex autos, fuel) -2.6% vs -2.8% y/y expectedPrior -3.2%; revised to...
Trade ideas thread – European session 26 May 2023
The dollar continues to stay in control as we look to close out the week and it will be a question of whether the PCE price data will add to the gains in the currency later today. I outlined the moves in the dollar pairs yesterday below:And adding to that, we also...
USDJPY below BOJ’s September 2022 intervention & JPN225 consolidates!
BOJ Governor Kazuo Ueda emphasized the importance of avoiding premature monetary policy tightening, to ensure that Japan can achieve its 2% inflation target on a sustainable basis. Ueda spoke with reporters at the bank’s headquarters in Tokyo in his first group...
FX option expiries for 26 May 10am New York cut
There is just one to take note of, as highlighted in bold.That being for EUR/USD near 1.0800, which adds to technical resistance and offers at the figure level as well as the 100-day moving average at 1.0815. That might come into play if we do see a notable rebound in...
BOJ to maintain yield curve control policy until at least next year – poll
6/24 (25%) economists expect BOJ to end yield curve control (YCC) this year11/24 economists expect BOJ to end YCC in 20245/24 economists expect BOJ toe end YCC in 2025 or later2/24 economists expect BOJ to not end YCC at all10/24 economists expect BOJ to start scaling...
UK retail sales on the agenda today
The dollar continued its run higher this week with a convincing performance yesterday, fueled by higher Treasury yields. Markets are starting to doubt themselves further as to whether the Fed will pause in June, as odds of a rate hike slowly climb. Fed funds futures...
China’s state owned banks intervening to support the yuan, selling USD
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,...
JPMorgan’s 5 reasons that the risk-reward for US equities is poor & why they “favour cash”
A quickie note overnight from JPMorgan on their US equity outlook:Even aside from the debt ceiling issue, we maintain that the risk-reward for equities is poor given the elevated risk of recession, stretched valuations, high rates and tightening liquidity, and we...
ForexLive Asia-Pacific FX news wrap: Tokyo core-core CPI hits a 40 year high
We had more US debt limit talks Thursday evening US time and headlines to the effect that Biden and McCarthy were ‘near’ a debt limit deal. More on what this entails in the bullet point above. Yesterday Fitch placed the US on negative credit rating watch, today the...
European Central Bank’s Lane is speaking on getting to the inflation target today
0740 GMT / 03:40 US Eastern time: Member of the Executive Board of ECB Philip R. Lane participates in panel discussion "How quickly will inflation return to target?" at 29th Dubrovnik Economic Conference in Dubrovnik Philip Lane is the Bank's chief economistThe ECB is...
Deutsche says BoE will be forced to hike higher & further. Raise terminal forecast to 5.25
The title to Deutsche Bank 's note says it all:Inflation – we have a problem; terminal now at 5.25%ICYMI, the data can be found from here:Deutsche Bank, in brief (bolding is mine):April inflation data was stronger than expectedPrice persistence remains a dominant...
Underlying inflation in Tokyo hit a 40 year high in May – recap
The data for Tokyo CPI is here from earlier:Reuters have a recap posted, in brief:Core consumer inflation in Japan's capital slowed in May but a key index stripping away the effect of fuel hit a four-decade high, underscoring broadening price pressure that may keep...
BOJ Gov Ueda says targeting 5 year JGBs (from current 10yrs) is among options if needed
Bank of Japan Governor Kazuo Ueda said changing the Bank's policy target to the five-year bond yield, from the current 10-year zone, would be among options if it were to modify its yield curve control (YCC) policy in the future. falling raw material costs likely to...
Australia April Retail Sales 0.0% m/m (expected 0.3%)
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,...
PBOC sets USD/ CNY reference rate for today at 7.0760 (vs. estimate at 7.0752)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...