The dollar jump yesterday was certainly noteworthy but we are seeing a light pullback to the gains in trading today. Of note, USD/JPY is down 0.4% to 138.10 levels but buyers are still looking poised in the bigger picture.Meanwhile, the antipodeans are also taking...
Dow Jones Technical Analysis
On the daily chart below, we can see that the price has bounced from the 33000 level and rallied towards the red long period moving average. This is where the sellers are likely to lean on looking for more downside and targeting the 32684 support. The price action...
Russell 2000 Technical Analysis
On the daily chart below, we can see that after bouncing from the 1723 support, the market started to rally again towards the resistance at the 50% Fibonacci retracement level. The market has been stuck in this range since the Silicon Valley Bank collapse in...
AI Stocks to Check Out for 2023
Unlike other tech-based trends in recent times like the Metaverse or Blockchain technology, AI seems to showthe most promise for real-world applications. In fact, it might not even be appropriate to call AI a trend. It’s been used by Ukraine to (successfully) target...
BOJ’s Ueda: Appropriate to take time in determining when to modify easy policy
No change to BOJ stance of patiently maintaining easy policyWill not hesitate to take additional easing steps if neededWill maintain stimulus measures with yield curve controlThe cost of shifting policy prematurely is extremely highThe downside of waiting to ensure...
Market Update – May 19 – Treasuries extended selloff, Stocks rallied, USD firmed
The USDIndex extended its rally to 103.62, the best since mid-March. Yields have been on the rise all week and are at their highest levels since mid-March. Implied Fed funds futures are now pricing in material risk of about 40% for another 25 bp hike in June, and...
BOJ’s Ueda: Japan inflation likely to slow back below 2% in middle of current fiscal year
Then likely to rebound thereafter through uncertainty regarding outlook is very highCurrent inflation rise is due to external, cost-push factors; not demand strengtheningTightening monetary policy in response to this would hurt the economyInflation expectations must...
European equities slightly higher at the open today
Eurostoxx +0.3%Germany DAX +0.3%France CAC 40 +0.3%UK FTSE +0.3%Spain IBEX +0.3%The DAX continues to track closer towards the highs from last year at 16,285-90 so that is one to watch among European indices. The optimism is still running after the gains from Wall...
ECB reportedly to step up scrutiny of bank liquidity, may raise requirements
This will see the central bank increase scrutiny on lenders' liquidity reserves and also communicate stricter requirements to individual firms later this year. This comes in the aftermath of the banking crisis that struck in March and April. While all of this sounds...
Eurostoxx futures +0.3% in early European trading
German DAX futures +0.3%UK FTSE futures +0.2%The DAX is just a whisker away from fresh record highs once again and the optimistic momentum from Wall Street yesterday looks to be transferring over in early trade. S&P 500 futures are up marginally 0.1% with Nasdaq...
Germany April PPI +0.3% vs -0.5% m/m expected
Prior -2.6%PPI +4.1% vs +4.0% y/y expectedPrior +7.5%This is the first time since September last year that producer prices actually increased and it comes against the estimates of yet another drop. Looking at the details, prices for capital goods (+0.6%), non-durable...
FX option expiries for 19 May 10am New York cut
There is just one to take note of, as highlighted in bold.That being a large one for USD/CAD at 1.3500, which sits near the 100-day moving average at 1.3507 currently. That might limit upside price action in the pair in European trading before rolling off and also...
Trade ideas thread – European session 19 May 2023
The dollar looks to finally broke through key levels this week and all there's left is for Powell not to muck it all up later today.EUR/USD breaks below 1.0800 and 100-day moving average of 1.0806USD/JPY breaks above 138.00 and resistance region of 137.77-91 to highs...
China state banks reportedly seen swapping yuan for dollars in onshore forwards market
The thinking here is to swap the yuan for dollars in the forwards market to manage the fall in the domestic currency itself. This is done via mopping up dollar liquidity from the swap market, thus reducing readiness of dollar sales against the yuan. This is part of...
How has the Fed pricing changed in the past week?
Now, that pricing has moved up to roughly 32% odds especially after the more hawkish headlines from yesterday. A look at the Fed funds futures curve also shows that traders have pared back their expectations on rate cuts. Previously, they saw three rate cuts by...
Little on the agenda in Europe today
There are a couple of interesting themes developing this week across markets and they're not really in sync. For one, the dollar is breaking out alongside higher yields but at the same time, we are seeing stocks rally courtesy of a breakout in tech.It's not your...
Dollar back in the driver’s seat
Once again, it was a day where the dollar rose despite equities rallying late as higher bond yields continue to underpin the currency. And it was definitely helped out by headlines like these:That resulted in another further shift in Fed rates pricing, with traders...
Federal Reserve Chair Powell is speaking on policy Friday, 19 May 2023
Before Powell speaks we get Willaims and then Bowman. Federal Reserve Bank of New York President John Wiliams at 845am US Eastern time (1245 GMT) speaks before the Thomas Laubach Research Conference organized by the Federal Reserve Board of GovernorsFollowing at 0900...
European Central Bank President Lagarde and board member Schnabel speaking Friday
European Central Bank board member Isabel Schnabel will be speaking 19 May 2023 at:1455 GMT, which is 1055 US Eastern time at the Conference on Financial Stability and Monetary Policy Later, at 1600 GMT, 1200 US Eastern time, Isabel Schnabel will participate in a...
Pacific Ocean tsnami threat issued after M7.7 earthquake off New Caledonia
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,...