FX WRAP USD was choppy with the US Dollar Index ending the session flat in range bound trade. Unemployment claims dropped to 239k from 250k the prior week which was in line with consensus and having little effect on the USD, though Philly Fed Manufacturing figures did have a big beat coming in at +12.0 vs an expected -9.8, which was the highest ...
The AUD/USD pair has had a tough month, falling relatively consistently since mid-July. This decline can be attributed to several factors, most notably the strengthening of the USD driven by the Federal Reserve's firm commitment to ‘higher for longer’ rates, aimed at taming inflation to meet target levels. Another contributing factor to the ...
Global markets were buffeted by a risk-off catalysts in Tuesdays session. Weak Chinese trade data, hawkish Fed-speak and a Moody’s downgrade of US regional banks saw stocks and yields tumble FX Markets USD was firmer Tuesday in a session that was firmly risk-off following the Chinese trade data and Moody’s downgrade. Later in the session ...
Todays NFP figure out of the USA is shaping up to be a pivotal moment in market expectations as to whether we’ve seen peak rates from The Federal Reserve, or if there is more to come and the ramifications that will have for the FX market. NFP figures are always interesting, traditionally the biggest market moving figure of the month on the US ...
USD rallied modestly into month end with DXY pushing to the top of its recent range to again test the big 102 resistance level. The data highlight out of the US was the Chicago PMI figure which rose from the prior 41.5 to 42.8, but missing expectations of 43.3. in FedSpeak, Governor Goolsbee added little new from the FOMC statement last week st...
US equity markets snapped a record-breaking run of up sessions in Thursdays trading, with the Dow Jones looking set to close in the green for a 14th straight session (for the first time since the Dow’s inception), before seeing a sell-off on rising yields after a report that the BoJ is looking to tweak their YCC at their meeting today. FX Mark...
The US Dollar was firmer Thursday, continuing its bounce from extreme oversold levels, the DXY peaking at 100.97, just short of the major resistance at the big 101 figure. A much lower than expected initial jobless claims figure saw a jump in US treasury yields, propelling the USD higher with the DXY having it biggest up day since May. AUD w...
After surging close to 4% since early July off the back of a weakening USD, the EURUSD pair has stabilised around $1.123. With very little volatility seen this week in the pair, eyes now turn to the euro, as the European inflation data is set to be released today. Analysts are predicting a continued downward trend in inflation, with a Year-on-Ye...
The US Dollar Index (DXY) has closed its fourth consecutive day in the red, reaching levels last seen in early May 2023. Despite the recent decline, the DXY is coming into support around the 100 level, which has proven to be a resilient bounce point multiple times. However, each bounce appears to be getting smaller, which might indicate growing ...
USD was marginally lower in Tuesdays session , trading in a tight range amid thin newsflow and market participants awaiting the key June CPI reading released later today. After breaking the psychological 102 level in Mondays session, DXY tested a re-entry into the range but found the previous support at 102 acting as stiff resistance, seeing DXY ...
The current market consensus is that the Reserve Bank of New Zealand (RBNZ) would likely keep interest rates at 5.50% at the upcoming meeting on 12th July. This is supported by the RBNZ’s monetary statement indicating that “monetary policy is having a sufficiently moderating effect on demand and inflation, and that we are yet to see the full ef...
USD rose on Wednesday with participants returning from the long weekend pushing the Dollar Index above the key 103.00 level. FOMC minutes from the June meeting were released, with nothing new in Dot Plot projections but they did confirm that some policymakers were pushing for a 25bp hike rather than the hold we got, which lent support to the USD. A...
In June, the Reserve Bank of Australia (RBA) surprised markets with a decision to hike rates by 25bps, taking the Australian cash rate to 4.10%. This was decided on the basis that further increases were required to provide greater confidence that inflation would return to the target range within a reasonable timeframe. This decision led to the AUDU...
USDJPY briefly pushed above 145 in today’s session before a sharp pullback, with traders wary of recent jawboning from Japanese officials regarding the “one sided” trade in the Yen may be setting the Japanese MoF up for another round on FX intervention that we saw late in 2022. Some sharp moves in the Yen in the last day have had t...
Australian CPI figures today see a rapid cooling in Aussie inflation, coming in at 5.6% y/y against an expected 6.1% and a big drop from April’s 6.8% shock to the upside. This saw a rapid re-pricing of rate hike odds at the next RBA meeting on July 4th, with interbank futures signaling odds have dropped to 17% of a 25bp move, from 25% pre-CPI....