NZDUSD – technical overview
Overall pressure remains on the downside with the market continuing to stall out on runs up into the 0.6500 area. At the same time, there are some signs of the market wanting to put in a longer-term base. Ultimately, a break back above 0.6500 would be required to take the medium-term pressure off the downside and encourage this...
This week's economic calendar is dominated by US inflation data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) set for release.
Expectations are for a further decline in inflation, potentially strengthening the case for multiple Federal Reserve interest rate cuts this year. Economists polled by Reuters forecast annual consumer price...
The euro held steady at $1.0825 on Monday, recovering from a dip to $1.0815 as traders absorbed the surprising French election results, which saw a leftist alliance lead both the centrists and the right in the number of sets gained.
Key drivers for the EURUSD's next moves include Biden's potential resignation, upcoming bank earnings, Powell's testimony in...
France is on the brink of a hung parliament, with the left-wing coalition capturing the most seats in a stunning upset over Marine Le Pen’s National Rally.
Obviously, the forex markets are closed on the weekend. So will be interesting to see the reaction to these shock election results in France on the EUR/USD and EUR/GBP when the market opens. Regardless of...
Euro eyes French vote after pound's rally
The British pound surged above $1.276 on Thursday, reaching its highest level in three weeks, as voters across the United Kingdon headed to the polls for parliamentary elections.
The Labour Party, currently leading in the polls, appears poised to unseat Prime Minister Rishi Sunak's Conservative Party. Some projections...
USDCAD – technical overview
Above 1.3000 signals an end to a period of longer-term bearish consolidation and suggests the market is in the process of carving out a more significant longer-term base. Next key resistance now comes in up into the 1.4000 area. Setbacks should be very well supported down into the 1.3000 area.
R2 1.3847 – 16 April/2024 high –...
Bloomberg reports that dozens of U.S. House Democratic lawmakers are considering sending President Biden a letter urging him to withdraw from the race. The New York Times confirms this, citing a key Biden ally who reveals that the president understands the fragility of his candidacy following a lackluster debate performance last week.
Despite the speculation,...
This week is set to be a pivotal one for global markets, with significant economic and political events on both sides of the Atlantic.
In the United States, the spotlight will be on nonfarm payrolls at the end of the week, with the economy expected to have added 180,000 jobs in June. This would mark a slowdown from the 272,000 jobs added in May and signal a...
NZDUSD – technical overview
Overall pressure remains on the downside with the market continuing to stall out on runs up into the 0.6500 area. At the same time, there are some signs of the market wanting to put in a longer-term base. Ultimately, a break back above 0.6500 would be required to take the medium-term pressure off the downside and encourage this...
The Japanese yen tumbled beyond 160 per USD, marking its weakest level since 1986. This is a critical threshold that previously prompted intervention by Japanese authorities. In May, Japan depleted a record ¥9.8 trillion to bolster the yen.
Masato Kanda, Tokyo's top currency diplomat, attempted to mitigate the surge above 160.00 with strong verbal interventions,...
EURUSD – technical overview
The Euro has been in a multi-month consolidation since bottoming out in 2022. Setbacks have since been exceptionally well supported on dips below 1.0500, with a higher platform sought out ahead of the next major upside extension. Look for a push through the 2023 high at 1.1276 to strengthen the constructive outlook and extend the...
As the UK approaches the July 4th general election, the Labour Party is set to end the Conservatives' 14-year rule. According to the latest BBC poll tracker, Labour leads by 20 points, with 41% of the vote, while the Conservatives hold 21%, and Reform UK is at 16%.
Labour's pledge to improve EU relations could strengthen the pound by reducing Brexit-induced...
GOLD (SPOT) – technical overview
The 2019 breakout above the 2016 high at 1375 was a significant development, opening the door for fresh record highs and this next major upside extension into the 2500-3000 area. Setbacks should now be well supported above 2000 on a monthly close basis.
R2 2451 – 20 May Record high – Strong
R1 2388 –7 June high – Medium
S1...
Investors are bracing for a series of political events in the coming weeks, beginning with Thursday’s debate between U.S. President Joe Biden and Republican Nominee Donald Trump, and extending to elections in France and the United Kingdom.
Thursday's debate is expected to offer contrasts between Biden's and Trump's economic visions (in-between personal jabs)....
Net short position in the Canadian dollar is at their largest since data collection began in 1986. As of June 11, non-commercial accounts increased their net short positions in the Canadian dollar to 129,493 contracts, up from 91,639 the previous week, data from LSEG and the U.S. Commodity Futures Trading Commission showed
The Bank of Canada (BoC) become the...
USDCAD – technical overview
Above 1.3000 signals an end to a period of longer-term bearish consolidation and suggests the market is in the process of carving out a more significant longer-term base. Next key resistance now comes in up into the 1.4000 area. Setbacks should be very well supported down into the 1.3000 area.
R2 1.3847 – 16 April/2024 high –...
In the UK, inflation data expected tomorrow is projected to fall to 2% in May, down from 2.3% in April. This would mark the first time since April 2021 that inflation has hit the Bank of England’s 2% target. However, a positive inflation report is unlikely to result in a rate cut at Thursday’s meeting, especially with an election on July 4th. Markets are pricing...
US SPX 500 – technical overview
Longer-term technical studies continue to look quite extended, begging for a deeper correction ahead. At the same time, the latest bullish breakout to a fresh record high beyond the 2024 high opens the door for the next measured move upside extension targeting the 5650 area. Key support comes in at 5194.
R2 5500 – Round Number –...
