USDCHF restrained, could it go higher?
“Greenback edged lower on Friday as investors prepares for more market signals during Jackson Hole symposium.” Greenback slipped slightly during Asian trading session while investors wait for Federal Reserve Chair Jerome Powell’s speech during Jackson Hole symposium. Currently, investors have mixed feeling with regards to next interest rate hike, which would either be 50 or 70 basis points. According to CME FedWatch Tool, investors are currently pricing in for a 65% chance of 75 basis
Oil price heading to $100?
“Oil price cemented its course for a rebound following hawkish signal in the market.” Oil prices extended its recovery on Thursday as recent signal suggests possibility of supply tightness in the market. According to reports, Organization of the Petroleum Exporting Countries and its allies may cut their production to prop up the commodity’s price. Moreover, recent data from US shows larger-than-expected drop in oil inventories due to record high export. The data indicates high
Dow Jones slumps as expected, Fed talk in focus.
“Stocks ended lower; Dow may extend its tumble.” US equities tumbled on Tuesday, snapping out of previous bull-run with Dow Jones Industrial Average knocked lower by 0.47% to 32,909.59. Investors continue to trim their holdings in equities as they anticipate more hawkish tilts from the Federal Reserve at the upcoming Jackson Hole symposium. Quick recap of US30 For the time being, US30 structure remains tilted towards the downside as it recently retraced from the top level of the
EURUSD fell below parity, more room for further losses?
“Euro tumbled sharply as recession fear rises due to pipeline cut.” Euro breaches parity against the US dollar, hitting its lowest level since December 2002. According to reports, Russian energy giant Gazprom announced that they will drastically reduce gas supplies to EU due to maintenance. They expect Nord Steam 1 pipeline will cut daily production to 20%, half of the current level of supply. Traders fear that such move would push EU to the brink of recession as energy price is
S&P500 declined as expected, will it extend its losses?
“S&P500 snapped out of its recovery, traders adopt wait-and-see approach.” Bears market continues to exert pressure on equities as Federal Reserve continues to deliver hawkish views. Last week, two Federal Reserve officials commented that interest rates is expected to increase by 75-basis points due to persistent high inflation in the US. Likewise, as Fed and other central bankers is expected to meet this week at Jackson Hole, traders refrain from placing their capital in risky
US dollar leaps as Fed provide hawkish rhetoric.
“Dollar-bull revitalized after Fed officials deliver hawkish rhetoric.” Federal Reserve officials rattled the market, prompting US dollar to hit one-month high on yesterday. According to report, St Louis Fed President James Bullard commented that he supports for another 75-basis point rate hike in September, citing concerns over high inflation in the US. On a similar notion, San Francisco Fed President Mary Daily emphasized that a rate hike by 50 or 75 basis point would be reasonable
Red hot inflation propels US dollar higher.
“Federal Reserve July policy meeting minutes restructure market’s view towards the greenback.” US dollar climbed to three-weeks high as latest meeting minutes reaffirms the market with possibly the longest streak of high inflation. In the minutes, Federal Reserve highlighted last month’s inflation data shows “little evidence” of easing. While the minutes signaled eventual slowdown in rate hike pace, Fed is expected to keep it at high level until inflationary pressure is under
Oil prices turn south as recession fears dominates.
“Traders remain fixated on recent negative events and data which may spark global recession.” Global oil price fell to multi-months low as recession worries bloom. Yesterday, People’s Bank of China cut interest rates unexpectedly as the world’s largest economy reported bleak results from industrial output and retail sales. The move also came as the country continues to impose “zero-covid policy” by imposing strict social distancing rules and lockdowns when coronavirus case
Can S&P500 sustain its uptrend?
“S&P500 extends its gains despite lingering in the overbought region.” US stocks extended its price rally for the week, building up for fourth consecutive week of gains while investors gear up for upcoming earnings report. Overall, equities market in the US remains in demand after recent inflation data shows signs of hitting its peak. The data signaled possibility of slowdown in policy tightening from Federal Reserve, which may reduce chances of an economic downturn. Nonetheless, it
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
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