The USDJPYs initial reaction off of the Fitch downgrade was to the downside in the US dollar. The price fell toward a swing area between 142.23 and 142.65 on the daily chart (see video). In between sits the 61.8% retracement of the longer-term move down from the 2022...
US equity futures down as the market weighs Fitch downgrade
US equity futures are down 33 points to 4568 shortly ahead of the open. That's down about 0.7% but above the 4552 low set early in Europe.Selling re-accelerated after the Treasury's quarterly refunding announcement showed larger auction sizes. That boosted Treasury...
EURUSD reverses the gains from the Fitch downgrade. Price finds sellers near 100 hour MA
The EURUSD moved higher after the Fitch US debt downgrade and in the process extended back toward its 100-hour moving average (blue line in the chart below). For the 3rd day in the last 4, sellers leaned near the level and stalled the rally. A few hours later the...
US to increase Treasury auction sizes as debt swells
US 30 year yieldsQuarterly refunding of $103B to raise $19B of cash and refund $84 billion in maturing securitiesIntends to gradually increase coupon sizes in Q32-year and 5-year note auctions to increase by $3B per month 10s to increase by $3B2-year floaters to...
ADP US July employment +324K vs +189K expected
Prior was +497K (revised to +455K)Details:small (less than 50 employees) +237K vs +299K priormedium firms (500 – 499) +138K vs +183K priorlarge (greater than 499 employees) -67K vs -8K priorJob stayers 6.2% vs 6.4%Job changers 10.2% vs 11.2%Full reportWow, yet another...
USDJPY Technical Analysis – Bulls and Bears are watching this key support
The Fed hiked interest rates by 25 bps as expected leaving everything else unchanged. Fed Chair Powell didn’t hint to anything in his press conference and just reaffirmed their data dependency keeping all the options on the table. The data since the FOMC meeting has...
ForexLive European FX news wrap: Risk stays on the defensive after US credit rating cut
Headlines:Markets:JPY leads, NZD lags on the dayEuropean equities lower; S&P 500 futures down 0.5%US 10-year yields down 3 bps to 4.017%Gold up 0.3% to $1,950.98WTI crude up 0.7% to $81.96Bitcoin up 1.1% to $29,550The big news on the day is Fitch downgrading the...
NZDUSD Technical Analysis – Bears are waiting at these levels to sell the rally
The Fed hiked interest rates by 25 bps as expected and kept everything unchanged. Fed Chair Powell reaffirmed their data dependency and kept all the options on the table. The US data since the FOMC meeting has been supporting the soft-landing narrative as the labour...
Stocks recover some poise ahead of North America trading
S&P 500 futures have pretty much more than halved losses now, being down just 0.4% after having been down a little over 1% earlier in the session.It's been a gradual recovery after a dip in the opening hour of European morning trade. Dip buyers are certainly...
US MBA mortgage applications w.e. 28 July -3.0% vs -1.8% prior
Prior -1.8%Market index 200.7 vs 206.9 priorPurchase index 154.1 vs 159.2 priorRefinance index 433.6 vs 444.5 prior30-year mortgage rate 6.93% vs 6.87% priorUS mortgage applications slumped further in the past week as both purchases and refinancing activity declined...
What is priced in ahead of the BOE policy decision tomorrow?
As inflation continues to be a problem and wages data remain strong, the BOE will have not have much of a choice but to raise the bank rate by another 25 bps this week. The decision tomorrow is pretty much a given but the question will be how much more does the...
AUDUSD Technical Analysis – The bears are looking to sell the rally
The Fed raised rates by 25 bps as expected and kept everything unchanged. Fed Chair Powell didn’t hint to anything and just reaffirmed their data dependency keeping all the options on the table. The data since the FOMC meeting has been support the soft-landing...
AUD/USD at lowest in two months as sellers look to retest lows for the year
AUD/USD daily chartThat marks the lowest level for the pair since 2 June with the latest drop looking to take out the end-June and July low near 0.6600. The fall today owes to a softer risk mood mostly amid safety flows but it has been coming since the middle of last...
USDCAD Technical Analysis – Bullish bias intact but watch out for a pullback
The Fed hiked interest rates by 25 bps as expected and kept everything else unchanged. Fed Chair Powell just reaffirmed their data dependency and kept all the options on the table. The economic data since the FOMC meeting has been supporting the soft-landing narrative...
Equities selloff gathers pace in European morning trade
Here's the latest snapshot:Eurostoxx -1.6%Germany DAX -1.6%France CAC 40 -1.4%UK FTSE -1.8%S&P 500 futures -1.0%Nasdaq futures -1.3%Dow futures -0.8%It's a risk-off wave in markets at the moment and a bid in bonds is also lending to a bid in the Japanese yen....
AUD Price Forecast: US Ratings Downgrade Burns Pro-Growth Aussie
AUD/USD & AUD/NZD ANALYSIS & TALKING POINTSRatings downgrade favors low risk USD.ADP employment change in focus today.Double top neckline breach on daily AUD/USD. Recommended by Warren Venketas Get Your Free AUD Forecast Get My Guide AUSTRALIAN DOLLAR...
GBPUSD Technical Analysis – Key support zone for the Bulls
The Fed hiked interest rates by 25 bps as expected and left everything. Fed Chair Powell didn’t offer any hint on the next move and just reaffirmed their data dependency, keeping all the options on the table. The economic data since the FOMC meeting has been...
USD/JPY pushed lower amid safety flows for now
Most dollar pairs are little changed but USD/JPY is keeping lower today as we are seeing a bid in bonds take place after Fitch cut US' credit rating from AAA to AA+ earlier. That is leading to a slightly more risk-off mood in markets with equities being beaten down...
Switzerland July manufacturing PMI 38.5 vs 44.0 expected
Prior 44.9That's an extremely poor reading as Swiss manufacturing activity slumped heavily to start Q3. The reading is the lowest since April 2009 as production fell sharply alongside purchasing volume. That comes despite a fall in purchase prices and shorter delivery...
Market Update – August 2 – U.S. rating downgraded at Fitch
US stock futures fell Tuesday night after Fitch downgraded the US’s long-term rating to AA+ from AAA Tuesday night, citing ”an erosion of governance and expected fiscal deterioration over the next three years”. The agency called out brinksmanship in...