FX

GBP/USD shows upward bias on daily chart, yet short-term RSI presents mixed signals. Hourly chart reveals bearish trend with the pair below 50, 100, and 200-HMAs; sellers aim for 1.3108 and potentially 1.3100. Additional supports at August 22 low of 1.3076 and August 20 high of 1.3052. Buyers reclaiming 200-HMA at 1.3148 could push recovery

The Pound Sterling falls below 1.3150 against the US Dollar after sticky US core PCE inflation. A decline in market expectations for the Fed’s large interest rate cuts supported the US Dollar. The policy-easing spell from the BoE is expected to be slower than that of its major peers. The Pound Sterling (GBP) extends its two-day losing spree

The core Personal Consumption Expenditures Price Index is seen rising 0.2% MoM and 2.7% YoY in July. Markets fully price in an interest-rate cut by the US Federal Reserve in September. A hotter-than-expected PCE inflation data could rescue the US Dollar ahead of next week’s Nonfarm Payrolls. The United States (US) Bureau of Economic Analysis

Mexican Peso declines as Banxico cuts 2024, 2025 GDP forecast. Political unrest over judiciary reform and dismantling of autonomous bodies further pressures the Peso. Banxico sees inflation reaching 3% target by late 2025, with growth risks skewed downward due to slowing US economy. The Mexican Peso depreciated against the Greenback on Thursday, with the latter

Euro Stoxx 50 Elliott Wave technical analysis Function: Bullish Trend. Mode: Impulsive. Structure: Gray Wave 1. Position: Orange Wave 3. Direction next lower degrees: Gray Wave 2. Details: Orange Wave 2 appears completed. Now, Gray Wave 1 of Orange Wave 3 is in progress. Wave cancel invalid level: 4495. The Euro Stoxx 50 index currently shows a bullish trend according to the

Recovering US yields supported the USD on Wednesday. The August NFP release is the most important reading for the Fed’s policy decision. Current market pricing still sees 100 bps of easing by year-end. The US Dollar, measured by the US Dollar Index (DXY), recovered modestly on Wednesday, after closing lower on Tuesday. The 10-year US

The Japanese Yen remains in the red after cautious remarks from BoJ policymaker Himino. The US Dollar rebounds amid a risk-off mood, but the upside appears limited on dovish Fed bets. The focus now shifts toward Fed policymaker Bostic’s speech and Nvidia earnings report.  The Japanese Yen (JPY) stays on the back foot against the

The Canadian Dollar eased back on Tuesday, but the US Dollar fell faster. Canada remains data-light until Friday’s GDP print. Markets are hunkering down until Friday’s US PCE inflation figures. The Canadian Dollar (CAD) traded with a broadly softer tone on Tuesday, easing back against the majority of its major currency peers, but still found

The Indian Rupee weakens in Tuesday’s early European session. Month-end USD demand and higher crude oil prices weigh on the INR.  Traders await the US August CB’s Consumer Confidence ahead of the key events later this week.  The Indian Rupee (INR) trades on a weaker note on Tuesday. The US Dollar (USD) demand from local

The Greenback managed to regain composure and leave behind part of the recent multi-day bearish move, which was accentuated following Chair Powell’s speech at Jackson Hole. While an interest rate cut by the Fed in September looks largely priced in, there are still significant data releases that could either reinforce that move or undermine it.

The Australian Dollar declines despite a risk-on sentiment following the dovish Fed Chair Powell. The downside of the AUD may be restrained due to the hawkish mood surrounding the RBA. The US Dollar loses ground due to rising expectations of a 25 basis points rate cut in September. The Australian Dollar (AUD) edges lower, still

S&P 500 recovered from weak Thursday close, and there were subtle clues (shared with clients) as to why interest rate sensitive plays (beyond Russell 2000) would do better than largecaps Friday – the whole week slated to be a strong one. Little wonder – rates were not protesting, and confidence in soft landing growing. All

Mexican Peso rallies sharply with USD/MXN falling over 2%. Mexico’s economy shows mixed signals, with Q2 GDP growth at 2.1% YoY but a contraction in economic activity, as Banxico debates the appropriateness of recent rate cuts. Powell’s speech at Jackson Hole hints at upcoming rate cuts. The Mexican Peso rallied sharply against the Greenback on

Gold prices jump over 1% after Fed Chair Powell hints at upcoming rate cuts, expressing confidence in inflation nearing the 2% target. The US Dollar Index (DXY) falls 0.82% to 100.68, as Powell’s remarks push traders to bet on a 50 bps rate cut in September. US 10-year Treasury yields drop five basis points to

Through most of this year, EUR/USD has been contained by a 1.10 to 1.06 range, Rabobank’s Senior FX Strategist Jane Foley notes. EUR/USD set to trade at 1.12 on a 3-month scale “This month’s break higher and the advent of a new policy cycle for the Fed suggests that a new range is in the

The Dow Jones rallied to 41,200.00 after Fed officials agreed its time to cut rates. Equities have immediately moved on to guessing how many rate cuts in 2024. Rate markets see 100 bps in cuts by 2024 year-end. The Dow Jones Industrial Average (DJIA) lurched over 350 points higher on Friday after the Federal Reserve

EUR/GBP trades in negative territory near 0.8485 in Friday’s early European session.  The preliminary UK August PMI data was better than expected, pushing back the expectation of a BoE rate cut. Investors expect two more rate cuts from the European Central Bank (ECB) this year.  The EUR/GBP cross extends its decline near 0.8485 during the early European

USD sellers take a breather after four sessions of losses. Markets digest weekly Jobless Claims and August PMIs. Rate cut expectations remain high ahead of Powell’s words on Friday. The US Dollar (USD), measured by the US Dollar Index (DXY), indicated an incline above the 101.00 level during Thursday’s trading session. This occurs in a