The inventory data from the private survey is out now, official data follows Wed. morning (US time).Builds across the board.Via Twitter:Expectations I had seen centred on:Headline crude -0.5 mn barrelsDistillates +1.2 mn bblsGasoline +0.3 mn--This data point is from a...
The close: The value trade leads the way as US stocks hit new highs
The S&P 500 continued to break through the August 2022 high after a soft CPI kneecapped Fed hike expectations for tomorrow:S&P 500 +0.7%Nasdaq Comp +0.8%Russell 2000 +1.2%DJIA +0.4%Toronto TSX Comp +0.3%The Russell 2000 has much further to go to get back to...
ICYMI – People’s Bank of China rate cut overnight (that’s two rate cuts in one day)
Here's the first rate cut - on Tuesday the PBOC cut its repo rate:And, the second cut - the Bank followed up with another cut overnight, lowered the interest rates on its standing lending facility (SLF) by 10 basis points:the rate on the overnight SLF was reduced to...
Economic calendar in Asia – Wednesday, 14 June 2023 – a very light one
New Zealand data is all I have on the calendar for the session. And its not likely to move the NZD too much opon release. This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most...
Trade ideas thread – Wednesday, 14 June 2023
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,...
Student debt loan repayments could be a headwind to US consumer spending
An unheralded US economic risk this month is the fate of around $430 billion in forgiven US student debt.The Supreme Court will decide on whether President Biden had the authority to write off the debt this month. The exact date of decisions aren't disclosed but it's...
Crude oil is higher on the day but still stays below the $70 level
Crude oil is higher in the day but below 38.2% retracementThe price of crude oil did rally sharply today with the price settling at $69.42 up $2.30 or 3.43%.The high price extended to $69.83. The low was at $67.15. Looking at the hourly chart above, the run to the...
US to buy about 12 million barrels of oil in 2023
The US government is in the oil trading business now. The 12 million barrels includes the 3 million already announced for Aug and Sept.It will be interesting how this affects balances but it's a tiny amount compared to 250 million barrels that have been...
USD/JPY is thinking about a break to the upside
The market is broadly selling the yen on a higher-rates-for-longer trade globally in the hopes of a soft landing and improving global growth due to China stimulus.The trade makes sense and USD/JPY is now threatening to break out of a consolidation pattern that's...
Trump pleads ‘not guilty’ to all counts
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,...
US five-year treasury yield hits 3 month high of 4.024%. USDJPY moves to new highs.
US 5 year yield moves higherThe US 5-year yield is trading at 4.02% up 10.3 basis points on the day. The high yield reached 4.024%. That extended above the May 2023 high of 3.99% and took the yield to the highest level since March 9. The low yield today was down at...
Big turn in the bond market points to higher inflation later
Lower CPI today should have been a green light for lower yields but instead the opposite is unfolding with 5-year yields tracking from 3.81% after CPI to 4.01% last -- a swing of 20 bps.The rise above 4% is the highest since just before the banking rout.What could be...
NZDUSD buyers had their shot above the 200 day MA. The momentum could not be sustained.
The NZDUSD buyers made a play to the upside in the Asian session and pushed to and through the 200-day MA at 0.61488, with the high for the day reached after the weaker US CPI data. However, after breaking above that key MA, the next target at the 50% retracement area...
White House: We are starting to see a cooling in the housing market
I'm not sure what kind of timeline the White House is talking about here but the American Enterprise Institute's housing center today upgraded its base case for US home prices to rise 4% this year and another 6% in 2024.A year ago everyone was bearish on US...
Trump booked in Florida court room ahead of arraignment
Trump is facing 37 charges including the wilful retention of national defense information, conspiracy to obstruct justice and concealing a document in a federal investigation. The charges carry a threat of significant prison time if he is convicted.Trump is not...
US State Dept says it’s completely false that there is an interim nuclear deal with Iran
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,...
Goldman Sachs foresees limited upside for euro, prefers short EUR/CAD exposure
EUR/CAD dailyGoldman Sachs recently shared its perspective on the euro, suggesting that its upside potential is limited due to similarities in macroeconomic conditions in the eurozone and other regions. The firm believes that the divergence in market pricing between...
U.S. Treasury auctions off $18 billion of 30 year bonds at a high yield of 3.908%
High yield 3.908%Tail: -1.1 basis points 6-month average 0.5bpsBid -to-Cover: 2.52X versus 6 month average 2.35XDirects (a measure of domestic demand): 18.13% versus 6-month average 19.2%Indirects (a measure of foreign demand): 72.91% versus 6-month average...
US treasury to auction off $18 billion of 30 year bonds at the top of the hour
The U.S. Treasury will auction off $18 billion of 30 year bonds at the top of the hour. The six-month averages of the major components shows:Tail: 6-month average 0.5bps Bid-to-Cover: 6 month average 2.35X) Directs (a measure of domestic demand): 6-month average 19.2%...
USDCHF lower but has up and down sloppy price action above swing area support
USDCHF sloppy trading has settled between swing areas.The USDCHF is lower on the day retracing most of the gains seen yesterday when the CHF was the weakest of the major currencies (higher USDCHF). The move higher yesterday stalled near the swing highs from Thursday...