Double confirmation, GBPUSD bound to depreciate?
“GBPUSD give in to bears as data shows rate hike conundrum.” Pound sterling met with fresh supply as investors react towards last week’s soft data from the UK. For the second quarter and last month respectively, both GDP and Manufacturing Production came shrank, albeit above consensus forecast. Evidently, both data casts hardship upon Bank of England as they try to combat inflation and at the same time, balanced out with the current economic situation. For the week ahead, investors
Greenback slumps, Canadian dollar about to shine?
“Greenback experienced weakness across the board as hope for an aggressive Fed diminishes.” US dollar met with fresh supply as investors reassess recent data from the United States. After CPI came in weaker-than-expected for July, investors trimmed their bets for a larger 75 basis point rate hike during September. Moreover, as US Treasury yield begins to tone down, capital outflow accelerates, with demand shifting towards other risky assets. On the other hand, commodity-linked Canadian
Soft US inflation spur bulls into NZDUSD.
“Lower inflation in US prompts major shift in sentiments across the board.” Kiwi received higher demand overnight as investors shifts their focus following the release of US inflation data. According to Bureau of Labor Statistics, US inflation increased by 8.5%, slightly lower than forecast of 8.7%. The data prompts investors to flock away from safe havens, favoring risky assets such as the kiwi. On the other hand, New Zealand’s inflation rate came in lower than previous month’s
Earnings flashes warning, can S&P500 keep up?
“S&P500 relinquished as investors reassess prior bullish take on US economy.” US shares struggled to secure its profits as semiconductor industry undergoes selloff due to demand concerns. Recently, Nvidia announced weaker-than-expected earnings for the second quarter, placing pressure upon other industry peers as well. Share price of rivals such as AMD and Broadcom ticked down soon after Nvidia’s report was released. On the other hand, investors are currently waiting for US
AUDUSD fate lies upon US inflation data.
“Aussie dollar bulls will keep an eye on key inflation data from the US for more hints with regards to Fed’s policy tightening.” AUDUSD takes a breather after extending its gains for the past few weeks as investors shifts their focus towards key US economic data. For the week, investors will place their attention upon inflation data for both consumer and producers which may provide more signals with regards to Fed’s policy tightening pace. Nonetheless, interest rates divergence in
Downsides establish for GBPUSD?
“Upbeat US data opens up more room for GBPUSD towards the downside.” Pair of GBPUSD extends its bearish bias gradually while market participants wait for more data from both UK and US. Last week, US Nonfarm Payrolls came in at 528,000, significantly higher than forecast of 250,000. Unequivocally, US economy is expected to see soaring price pressure as solid labor market is expected to bolster consumer spending in the coming months. As for UK, investors will keep an eye on GDP data as
GBPUSD depreciates, will 1.2000 rescue the pair?
“Bank of England may slow down policy tightening pace as UK GDP fell during the second quarter.” Pound sterling pared its gains post Bank of England policy meeting while investors gear up for the release of US Nonfarm Payrolls report. As expected, BoE raised interest rates by 50-basis points to 1.75%, its highest level since 2008. However, the market has fully priced in for the rate hike, prompting profit seeking selloff. In addition, BoE indicated that there is no forward guidance in
Gold price creeps higher following US-China tension.
“Precious metal prices, especially gold, creeps up slightly as tension rises in between US and China.” Demand for gold rose slightly as tension in between US and China boils over. After US Speaker Nancy Pelosi left Taiwan, China has reportedly deployed several aircrafts and drones near the shores of Taiwan. However, gains on the commodity were limited as several members of the Federal Reserve stoke up expectations for a larger interest rate hikes this year. San Francisco Fed President
NZDUSD backtracks as economic debacle looms.
“Kiwi slipped as domestic economic data disappoints while risk adverse sentiment makes a comeback.” Kiwi undergoes substantial pullback as recent economic data shows economic vulnerability. According to reports, Unemployment rate rose from 3.2% to 3.3% while Employment Change for second quarter comes in at 0%. Evidently, recent data shows bleak economic outlook, which may create more conundrum for Reserve Bank of New Zealand in terms of policy adjustments. On the other hand, greenback
S&P500 rally towards key resistance, what could happen next?
“S&P500 cleared major hurdle while current resistance poses threat ahead.” US stocks advanced further upwards as recent data from the US suggests possible slowdown in Federal Reserve’s policy tightening. Last month, University of Michigan’s Consumer Inflation Expectation slipped from 5.3% to 5.2%. The data reflects possible depreciation in inflation which may encourage Fed to put a halt on current policy tightening. Quick recap on SPX500 SPX500 recouped its losses as it
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