USD/JPY enters 2025 at a crossroads. Rising US yields, hawkish Fed pivot, and expansionary fiscal policies could fuel more dollar strength, but BoJ moves and carry trade vulnerabilities may keep yen downside in check. The year ahead promises to be an eventful one.In 2025. Many financial institutions expect the yen to gradually appreciate towards the end of the...
The next important NZD/USD data to watch will be published tomorrow when the US publishes its initial jobless claims. Is expected to show that a forecast from 242 k to 222k, which can be positive for the dollar index. The Fed will, therefore, maintain its hawkish view if these numbers are correct since they will signal that prices remain significantly high....
The U.S. dollar will tighten its stranglehold over global currency markets with little standing in the way of its remarkable run, and a significant number of foreign exchange forecasters polled by Reuters expect it to rise to parity with the euro in 2025. The greenback (.DXY), opens new tab surged over 7% against a basket of major currencies last year, falling...
GBP/USD traders have ignored the recent US data so far. Nevertheless, interest rate traders had priced in 74.5 basis points of Fed easing in 2025, down from the 81 bps expected a day ago. Meanwhile, some Bank of England (BoE) members are crossing wires. Megan Greene commented that inflation is unlikely to persist and that it would fade at its own pace, though she...
Dollar strength is expected to stabilize or persist into 2025 for several reasons: Economic growth differentials: The U.S. economy is projected to grow by 2.7% in 2024, outpacing the 1.7% growth forecast for all developed markets. This is driven by superior productivity growth, higher business investment and fewer labor supply issues compared to other developed...
The Fed’s approach to interest rate cuts will be pivotal for gold prices. BMI forecasts acumulative reduction of 125 basis points (bps), bringing rates to 3.50% by the end of 2025. However, the Fed's decisions will hinge on inflation, labor market, and economic data, introducing uncertainty. If rate cuts are slower or smaller than expected, gold could face...
We are still in an uptrend at dxy. This trend could continue if Trump follows through on tariffs for a number of reasons. First, tariffs could rekindle inflation, leading the Federal Reserve to keep interest rates elevated, which could cause the dollar to strengthen. Secondly, tariffs could cause economic weakness in other countries, improving America’s relative...
A combination of the strong greenback, the impact of a weakening Chinese economy and struggling domestic growth are punishing the Aussie dollar on the currency markets. It has been hovering around 62 US cents over past weeks, but recently slumped to 61.32 US cents - almost a five-year low. Then, we had a pullback to 0.64119. Bt this happened after a consolidation...
USD/JPY remains under intense selling pressure to trades near 149.50 in Friday's Asian trading. Despite dismal Tokyo CPI and Japan's Retail Trade data, the Japanese Yen stands resilient due to risk aversion. The US Treasury bond yields sell-off weighs heavily on the pair ahead of US PCE data. In the past, weakness in the Japanese currency has been attributed to...
The euro has been dragged lower by speculation that the US will restrict trade with the region's export orientated economies, leading the European Central Bank to cut interest rates more aggressively. January this year, the euro, near its weakest level in two years, faces mounting risks from Trump's tariff plans, diverging Fed-ECB policies, and geopolitical...
Strong recovery in global economies along with geopolitical stability may reduce gold's demand. Lastly, increasing interest in alternative assets, (like cryptocurrencies or other commodities) could lead to a decline in gold's perceived value. When interest rates rise, gold demand may fall. This relationship becomes particularly important during periods of high...
EUR/USD gains to near 1.059 in Monday’s North American session, with investors focusing on the European Central Bank (ECB) monetary policy decision on Thursday. Markets are almost fully pricing in that the ECB will cut its Deposit Facility Rate by 25 basis points (bps) to 3% as many officials have shown concerns over risks of inflation undershooting the bank’s...
The outcome of the U.S. presidential election was widely seen as a win for the crypto industry. Trump promised during his presidential campaign to make the U.S. the “crypto capital of the planet” and even launched his own crypto coin. Bitcoin’s price has surged since the election. Shares of the coin have risen more than 25% since Nov. 5 and briefly passed...
I think that Eurusd made a strong expanding diagonal since 1970 to 2008. ( rare but not impossible ) This diagonal was made only of corrective waves. Then , 2008 crisis began. Eurusd start it's bearish trend as what it seems also a Diagonal, but this time contractive ( wave A ) It seems to me that we are in the pullback of a shoulder head shoulder created from...
Will the price manage to respect the yearly support area, or its the 4th subwave over yet and we will continue to finish wave 3?
“Gold is basically ignoring a stronger dollar and rising Treasury yields,” Michael Armbruster, co-founder and managing partner at Altavest). He believes that indicates , primarily from central banks that are committed to dedollarization of their reserves.” Similarly, Oxley pointed to speculation that the continued strength in gold is a “wider paradigm shift...
Bullish rally of dxy may persist due to robust indicators of the U.S. economy, contrasted with a weaker Eurozone economy. Additionally, the possibility of Republican candidate Donald Trump winning the upcoming U.S. presidential election is further supporting the dollar. However, the mixed macroeconomic data releases from the US limit the US Dollar's strength,...
Gold made a perfect cup and handle formation for wave 5 profit. I think that if we made a 5th wave extension, it might go even higher to 1.618 of the beginning go 1 and ending of 3. Bullish target at 2878. Then, we can see a huge drop I think.