The GBPUSD is bouncing higher erasing the declines seen into the London session. The move takes the pair back toward the 100-hour moving average where there should be resistance. A swing area is also near that level (just ahead of natural resistance at...
The Midweek Update: 17 May 2023
Dollar bulls take control midweek as the DXY benefits from a broadly risk-averse investor sentiment. Dollar The Greenback rolls into midweek retreating from a monthly low to set the highest price for the month of May thus far. Factors driving this renewed optimism in...
Major US indices set to open higher
The major US stock indices are rebounding in trading today on hopes that there will be a debt deal. Pres. Biden and congressional leaders met yesterday at the White House with somewhat positive comments that a deal could be hashed out. House Majority Leader McCarthy...
USDJPY makes a break for it…
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,...
EURUSD sniffs key support target and finds early buyers
The EURUSD extended to a new low going back to early April and in the process has moved closer to key support defined by the 100 day moving average and 50% retracement of the move up from the March 15 below. That level comes in at 1.0805. The low price today reach...
Reuters Poll: 65% expect Fed funds to be at 5% – 5.25% at end of year
A Reuters poll of economists shows:65% expect the Fed funds rate to be at 5% – 5.25% at the end of the year (75 of 116)73% expect the US to fall into recession this year ( 34 of the 46)54% see the US default over debt ceiling is higher than previous standoffs (22 of...
US housing starts for April 1.401M vs. 1.400M estimate
Housing starts dipPrior report 1.420M revised lower to 1.371MHousing starts 1.401M vs 1.400M estimate.Building permits 1.416M vs 1.437M estimate. Prior month was revised to 1.437M from 1.430M previouslybuilding permits fell -1.5% versus -3.0 revised last month.It is...
House Speaker McCarthy: We have a structure to find a way to come to a conclusion
US House Speaker McCarthy speaking on CNBC:I'm going to spend all my effort to make sure we get the job doneWe have the opportunity to find a common ground but only a few days to get the job doneThe only thing I'm confident about is now we have a structure to find a...
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The NZD is the strongest and the JPY is the weakest as the North American session begins
The strongest to the weakest of the major currenciesThe NZD is the strongest and the JPY is the weakest as the NA session begins. The USD is mixed with modest gains vs the EUR, GBP, JPY and CHF, and declines vs the AUD and NZD. The JPY is testing the 200 day MA again...
ForexLive European FX news wrap: Dollar keeps steady in mixed trading
Headlines:Markets:NZD leads, JPY lags on the dayEuropean equities mixed; S&P 500 futures up 0.3%US 10-yeaar yields down 3 bps to 3.518%Gold down 0.1% to $1,986.53WTI crude up 0.5% to $71.23Bitcoin down 1.1% to $26,675It was a quiet session in terms of headlines...
US MBA mortgage applications w.e. 12 May -5.7% vs +6.3% prior
Prior +6.3%Market index 214.9 vs 227.8 priorPurchase index 165.4 vs 173.7 priorRefinance index 468.2 vs 507.1 prior30-year mortgage rate 6.57% vs 6.48% priorA rise in rates in the past week led to a notable decline in mortgage activity with both purchases and...
XAUUSD Technical Analysis
On the daily chart below, we can see that after tapping into the record high at 2076, Gold started to fall as better than expected economic data lifted treasury yields and boosted the US Dollar. The price yesterday broke below a key trendline which is the base of an...
BOE’s Bailey: Things are looking a bit brighter than they did a couple of months ago
We expected a shallow, long recession back in NovemberNow we are forecasting modest, but positive growthThere has been greater resilience in the economy than expectedBut inflation has also come in higher than expectedHowever, we have good reasons to expect inflation...
USDJPY Technical Analysis
On the daily chart below for USDJPY, we can see that the price found support at the trendline and the 133.77 level. The moving averages remain crossed to the upside which keeps the uptrend intact. We can also notice that the market is forming an ascending triangle,...
USDCHF Technical Analysis
On the daily chart below for USDCHF, we can see that after the big selloff since the collapse of Silicon Valley Bank, the USD/CHF pair found a bottom at the 0.8858 level and started to range. The moving averages have been quite reliable in defining the trends and we...
Bitcoin set for a deeper correction
Market pictureThe cryptocurrency market capitalisation remained near $1.127 trillion as attempts to develop growth came up against selling pressure near $1.14 trillion. The top cryptocurrencies over the past 24 hours have ranged from a 0.7% decline (Solana) to a 5.6%...
NZDUSD Technical Analysis
On the daily chart below for NZDUSD, we can see that the price couldn’t break above the key 0.6389 resistance again and sold off soon after as the USD appreciated due to better than expected data that might force the Fed to hike again in June. In fact, all the recent...
Eurozone April final CPI +7.0% vs +7.0% y/y prelim
Prior +6.9%Core CPI +5.6% vs +5.6% y/y prelimPrior +5.7%No changes to the initial estimates as headline annual inflation did tick a little higher while core annual inflation was marginally lower in April compared to March. This still just helps to reaffirm the ongoing...
UK’s Hunt: The overwhelming priority has to be lowering inflation
Agrees with people who are worried about high taxBut priority has to be on the inflation frontThere is nothing automatic about bringing down inflationGovernment supports the BOE "150%"Hunt also adds that they are not in a position to know if there will be room to cut...