The Bank of Japan said last Friday that it would begin reducing its bond purchases, but the reduction remains limited. So, from a fundamental perspective, this is not stimulating the Japanese yen at all. Show transactions OANDA:USDJPY is still watching for signs of how the Japanese government will intervene to support the yen to continue its appreciation....
Taking advantage of the weak US consumer price index (CPI) on Thursday to push the US Dollar down in price on the foreign exchange market, the Japanese government intervened, causing USD/JPY to plummet. The amount of intervention by the Japanese government that day amounted to 3.57 trillion yen (22.43 billion USD), less than 3 months since the last...
OANDA:XAUUSD recovered after correcting and testing support at the $2,400 base price point on Monday. At the time this article was completed, gold was trading at 2,430USD/oz, an increase equivalent to 0.31% of more than 7Dollar on the day. Gold price rose for a third straight week but fell short of its daily high as Federal Reserve Chairman Jerome Powell kept...
"Dovish" comments by Federal Reserve officials reinforced market expectations of a US interest rate cut in September. Investors flocked to gold, the safe-haven asset and Gold prices increased further and continuously reached new all-time records. Federal Reserve Chairman Jerome Powell said Monday that recent inflation data has reinforced policymakers' confidence...
Since the beginning of this year, the pound has been one of the best performing currencies. There are three factors that are driving sterling's strength and these are likely to continue to support gains in sterling over the medium term. 1. Interest rate difference Interest rate differentials are the main fundamental driver of currencies and are currently having...
GBPUSD accelerated to the upside this past week, briefly reaching its highest level in nearly two months at one point before the weekend. If the rally continues and gains momentum in the coming sessions, resistance is likely to appear at 1.2720, the 61.8% Fibonacci retracement of the 2023 decline. Further strength could then direct focus toward the 1.2800...
GBP/USD rallied early on Tuesday, briefly reaching its highest point since March 21, but gains were short-lived as sellers quickly pushed the pair down from the psychological 1.2800 level, driving it towards 1.2755. If this ceiling holds in the near term, bulls may start bailing, creating the right conditions for a move toward 1.2700. Further weakness could shift...
UK inflation data for April showed a slower-than-expected decrease in consumer inflation. However, services inflation, which has been persistently high, exceeded the estimated level predicted by analysts and economists. This unexpected outcome caused a delay in the expected rate cut from August to November, with only one rate cut now anticipated for this year. As...
GBPUSD also edged down on Thursday, but managed to stabilize around the 1.2515/1.2500 range. Bulls must strive to maintain prices above this support region to prevent sentiment towards the pound from deteriorating; otherwise, sellers could seize the opportunity to launch a bearish assault on 1.2430. On the other hand, if buyers make a new appearance and propel...
British private sector business activity grew in June at its slowest pace since November last year, according to the latest S&P Global Flash UK PMI report. According to Chris Williamson, chief economist at S&P Global, the slowdown partly “reflects the uncertainty surrounding the business environment in the run-up to the general election.” UK service sector...
OANDA:EURUSD ANALYSIS - Focus returns to Europe and France in particular in the lead up to the elections - Will the ECB step in to calm widening bond spreads considering Frances debt load? - EUR/USD fails to capitalize on Mondays reprieve – downside risks remain WILL THE ECB STEP IN TO CALM WIDENING BOND SPREADS CONSIDERING FRANCE'S DEBT LOAD? With the...
EURUSD ticked up on Tuesday but failed to decisively push past confluence resistance between 1.0865 and 1.0880, where the 50% Fibonacci retracement of last year's decline intersects a key short-term descending trendline. Traders should continue to watch this ceiling in the coming days, bearing in mind that a bullish breakout could set the stage for a rally toward...
The US economic surprise index suggests that incoming data will likely remain soft due to restrictive monetary conditions and a return to disinflation. Despite an expected rate cut from the ECB, softer US data has caused EUR/USD to rise. The pair has been moving within a downward sloping channel since mid-May, with support at 1.0800 and resistance at 1.0942/1.0950.
The lack of US data last week resulted in lower volatility, benefiting the dollar and treasury yields. Low volatility favors higher yielding currencies in the FX market. The upcoming US PCE data could impact the dollar's performance. Better than expected survey data on Friday revealed a decrease in inflation expectations, causing temporary weakness in the dollar...
Earlier this week, ECB President Christine Lagarde expressed confidence in the euro zone inflation being under control. In contrast, the recently released Fed minutes indicate a negative impact on the committee's confidence in achieving 2% inflation and suggest that it will take more time to recover. The minutes were recorded before the latest US CPI data,...
EUR/USD fell through all three simple moving averages and prior horizontal support in early trade before finding stability around 1.0750. The next level of support is seen just below 1.0700.
Latest data shows that it is impossible to cool down the gold market. Spot gold closed down about 4 dollars at 2,410 USD/oz, recovering quickly from the short-term selling pressure created when PPI data was released. US PPI rose slightly higher than expected in June as higher carrier margins more than offset falling commodity costs. On Friday (July 12), data...
The release of the US inflation report shows that the Federal Reserve will soon cut interest rates. The US Dollar fell sharply and gold prices reached a 6-week high then corrected slightly in the Asian trading session today Friday (July 12). CPI data reinforces expectations of a Fed rate cut • US consumer prices unexpectedly fell in June, with the smallest...