Forex signals news and analysis, fundamental stock market breakdown including geopolitical analysis and in depth discussion. Up to date live news feed from around the world, stock market specific.
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Tuesday, 31 May 2022
US Consumer Confidence Falls as High Inflation Clouds Outlook, S&P 500 Holds Losses
Brent Crude Update: EU Bans Russian Oil after Agreeing on Compromise
EUR/USD Outlook: Record EU Inflation, EUR/USD Risking a Pullback
S&P 500, FTSE 100 Forecasts – Disrupted by a Shortened Week
Monday, 30 May 2022
Brent Crude Oil Price Update: Tailwinds Accrue for Oil
Euro Latest – EUR/USD Nudges Higher as German Inflation Continues to Soar
What Type of Forex Trader Are You?
British Pound Forecast: US Dollar Weakness Supports GBP/USD Recovery
Using the COT Report in Forex Trading
USD/CAD Price Outlook: GDP, Oil and BoC Rate Hike buoys CAD
Euro Holding Firm as US Dollar Undermined by Fed Policy Risks. Where to for EUR/USD?
How to Create a Trading Plan in 7 Steps
Crude Oil Trading Strategies and Tips
Sunday, 29 May 2022
Stock Market Outlook: S&P 500, DAX 40, FTSE 100, Nikkei 225
Euro Week Ahead: EUR/USD Rebound in Focus, but Total Reversal Seems Unlikely
Gold Prices May Rise as US Recession Fears Cool the Fed’s Interest Rate Outlook
Gold Prices May Rise as US Recession Fears Cool the Fed’s Interest Rate Outlook
Saturday, 28 May 2022
Canadian Dollar May Lose Ground Even as the BOC Delivers
Canadian Dollar May Lose Ground Even as the BOC Delivers
Bitcoin Weekly Forecast: Price Continues to Hold Key Support – Is a Breakout on the Cards?
Bitcoin Weekly Forecast: Price Continues to Hold Key Support – Is a Breakout on the Cards?
Friday, 27 May 2022
Australian Dollar Forecast: AUD/USD Key Levels to Watch
Trading the London Session: Guide for Forex Traders
EUR/USD Forecast: Is the Recent Bullish Momentum Sustainable?
Hang Seng Index Soars on Alibaba and Baidu Boosting Tech Outlook and Turns Risk-on
What is Leverage in Forex? Forex Leverage Explained
Dow Jones Soars, Wall Street Aims for Best Week Since March. ASX 200, Hang Seng May Rise
Thursday, 26 May 2022
USD/JPY Outlook: Hawkish Sentiment from SNB and ECB Isolates the BoJ
Currency Carry Trade: What is it and how does it work?
Canadian Dollar Forecast: USD/CAD, EUR/CAD Key Levels to Watch
Forex Vs Stocks: Top Differences & How to Trade Them
How to Trade the Impact of Politics on Global Financial Markets
US Dollar Finds Firmer Footing After FOMC Minutes Boost Market Mood. Where to for DXY?
The Most Volatile Currency Pairs and How to Trade Them
Australian Dollar May Rise After FOMC Minutes Sink the US Dollar and Boost S&P 500
Wednesday, 25 May 2022
U.S. Dollar Drops To Lowest Levels In A Month
The value of the U.S. dollar has moved to the downside over the course of trading on Tuesday, extending a recent downward trend.
Currently, the U.S. dollar index is down 0.31 points or 0.3 percent at 101.77 after hitting its lowest level in almost a month.
The greenback is trading at 126.88 yen compared to the 127.90 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0734 compared to yesterday's $1.0691.
The weakness in the value of the dollar has partly been attributed to comments from European Central Bank President Christine Lagarde, who said that the central bank is planning to exit negative interest rates by the end of the third quarter.
In a blog post, Lagarde said that the central bank is expected to end net purchases under the APP very early in the third quarter.
A lift-off in the interest rate is likely at the meeting in July, in line with the forward guidance, Lagarde said.
On the U.S. economic front, the Commerce Department released a report showing a much steeper than expected drop in new home sales in the month of April.
The report showed new home sales plunged by 16.6 percent to an annual rate of 591,000 in April after tumbling by 10.5 percent to a revised rate of 709,000 in March.
Economists had expected new home sales to slump 1.7 percent to a rate of 750,000 from the 763,000 originally reported for the previous month.
With the much bigger than expected decrease, new home sales dropped to their lowest annual rate since hitting 582,000 in April of 2020.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194321/
NZD/USD Boosted by 50-BP RBNZ Rate Hike. Will New Zealand Dollar Rally Continue?
Treasuries Show Significant Move Back To The Upside
Treasuries showed a significant move to the upside during trading on Tuesday, more than offsetting the pullback seen in the previous session.
Bond prices gave back some ground after an early rally but remained firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 9.9 basis points to 2.760 percent.
The ten-year yield more than offset the 7.2 basis point increase seen on Monday, ending the session at its lowest closing level in over a month.
The rebound by treasuries came amid a pullback by stocks on Wall Street, which once again came under pressure after showing a strong upward move in the previous session.
The pullback on Wall Street came after Snapchat parent Snap Inc. (SNAP) warned of weaker than expected second quarter results, saying the "macroeconomic environment has deteriorated further and faster than anticipated."
Weakness overseas also carried over onto Wall Street, as a broad package of Chinese measures to support the economy underwhelmed investors.
Lingering concerns aggressive interest rate hikes by the Federal Reserve could lead to a recession also continued to weigh on Wall Street.
On Wednesday, the Fed is due to release the minutes from its latest monetary policy meeting, which may shed additional light on the outlook for rates.
The strength among treasuries also came after the Commerce Department released a report showing a much steeper than expected drop in new home sales in the month of April.
The report showed new home sales plunged by 16.6 percent to an annual rate of 591,000 in April after tumbling by 10.5 percent to a revised rate of 709,000 in March.
Economists had expected new home sales to slump 1.7 percent to a rate of 750,000 from the 763,000 originally reported for the previous month.
With the much bigger than expected decrease, new home sales dropped to their lowest annual rate since hitting 582,000 in April of 2020.
The minutes of the latest Fed meeting are likely to be in the spotlight on Wednesday, while traders are also likely to keep an eye on a report on durable goods orders.
Bond trading could also be impacted by reaction to the results of the Treasury Department's auction of $48 billion worth of five-year notes.
Earlier today, the Treasury revealed this month's auction of $47 billion worth of two-year notes attracted modestly above average demand.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194320/
Oil Futures Settle Lower On Demand Worries
Crude oil futures settled lower on Tuesday amid concerns about outlook for energy demand due to the impact of China's Covid-19 curbs.
Beijing stepped up quarantine efforts to curb the spread of the coronavirus outbreak amid fresh signs of frustration in Shanghai.
Meanwhile, markets are worried that aggressive monetary policy tightening by central banks to control inflation could tip the global economy into a recession.
West Texas Intermediate Crude oil futures for July ended down by $0.52 or about 0.5% at $109.77 a barrel.
Markets look ahead to weekly oil reports from American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while EIA's inventory data is due Wednesday morning.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194319/
Gold Settles Higher For 4th Straight Session As Dollar Extends Slide
Gold prices climbed higher on Tuesday, extending gains to a fourth straight session, as the dollar continued to slide, and weak data raised concerns about growth.
A drop in U.S. long-term Treasury yields contributed as well to the yellow metal's uptick.
The dollar slid after European Central Bank President Christine Lagarde said eurozone interest rates will likely be in positive territory by the end of the third quarter, giving the euro a boost.
The dollar index dropped to 101.65, a near one-month low, before recovering slightly to 101.75, still down in negative territory with a loss of more than 0.3%.
Gold futures for June ended higher by $17.60 or about 1% at $1,865.40 an ounce, the highest settlement in about two weeks.
Silver futures for July ended up by $0.340 at $22.063 an ounce, while Copper futures for July settled at $4.3050 per pound, down $0.0405 from the previous close.
Data released by the Commerce Department showed a much steeper than expected drop in new home sales in the month of April.
The report showed new home sales plunged by 16.6% to an annual rate of 591,000 in April after tumbling by 10.5% to a revised rate of 709,000 in March.
Economists had expected new home sales to slump 1.7% to a rate of 750,000 from the 763,000 originally reported for the previous month.
With the much bigger than expected decrease, new home sales dropped to their lowest annual rate since hitting 582,000 in April of 2020.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194318/
How Current Markets Will Impact Traders | DailyFX Exclusive Q2 Forecast
Tuesday, 24 May 2022
*South Korea Consumer Confidence Index 102.6 In May - BoK
South Korea Consumer Confidence Index 102.6 In May - BoK
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194263/
Dollar Loses Ground Against Major Rivals As Risk Sentiment Improves
The U.S. dollar drifted lower on Monday, losing ground against most of its major peers, as news about potential easing of lockdowns in China and U.S. President Joe Biden's remarks that he might drop trade tariffs on China resulted in improved risk sentiment.
Biden said that the tariffs imposed on China by the Trump administration will be reviewed after discussing with Treasury Secretary Janet Yellen.
"I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they're under consideration," Biden said.
The dollar index dropped to 102.04, losing nearly 1.1%.
Against the Euro, the dollar weakened to $1.0691 from $1.0565.
The dollar is trading at $1.2582 against Pound Sterling, easing from $1.2493.
Against the Japanese currency, the dollar is little changed at 127.91 yen.
Against the Aussie, the dollar is at 0.7106, nearly 1% down from the previous close.
The Swiss franc firmed to 0.9658 against the dollar, gaining from 0.9748, while the Loonie is stronger at C$1.2773 a dollar, firming from C$1.2840.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194262/
Oil Futures Pare Early Gains, Settle Flat
Crude oil futures pared gains and settled flat on Monday.
Oil prices climbed higher earlier in the day amid hopes of increased demand from China as Shanghai lifted some of its restrictions after a two-month lockdown.
A weaker dollar too aided oil's uptick.
However, oil prices came off higher levels as the day progressed and eventually settled little changed from the previous close.
West Texas Intermediate crude oil futures for July ended at $110.29 a barrel, up slightly from Friday's close of $110.28 a barrel. The contract rose to a high of $111.96 earlier in the day.
The market also noted a report that the U.S. Administration is considering the potential release of diesel from a rarely used emergency stockpile as President Biden scrambles to tame soaring fuel prices amid low inventory levels ahead of the summer driving season.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194261/
Major Forex Trading Sessions from Around the World
Treasuries Give Back Ground Amid Strength On Wall Street
After trending higher over the past few sessions, treasuries moved gave back some ground during the trading day on Monday.
Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 7.2 basis points to 2.859 percent.
The ten-year yield closed higher for the first time in four sessions after ending last Friday's trading at its lowest closing level in almost a month.
The pullback by treasuries came as traders cashed in some of the recent strength among bonds amid a rebound on Wall Street.
Stocks showed a strong move to the upside during the day after seeing considerable volatility over the past few sessions.
The strength on Wall Street came as traders continued to pick up stocks at reduced levels, extending the recovery seen late in the trading session last Friday.
The S&P 500 climbed well off its worst levels to end the day roughly flat after tumbling more than 20 percent from January's record closing high, which is seen as signaling a bear market.
Buying interest may also have been generated in reaction to news the financial hub of Shanghai has lifted some of its COVID-19 restrictions and U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods.
"I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they're under consideration," Biden said.
Banking stocks have helped to lead the rebound on Wall Street, with JPMorgan Chase (JPM) surging after the financial giant said a key performance target may be achieved this year.
Looking ahead, trading on Tuesday may be impacted by reaction to a report on new home sales as well as remarks by Federal Reserve Chair Jerome Powell.
Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $47 billion worth of two-year notes.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194260/
Australian Dollar, S&P 500 at Risk as Snapchat Earnings Sink Social Media Stocks
Gold Futures Settle Higher As Dollar Turns Weak
Gold futures settled higher on Monday, extending gains to a third straight session, as the dollar dropped down, coming further off the two-decade highs it touched recently.
A surge in coronavirus cases in Beijing and fears of economic slowdown pushed up the demand for the safe haven metal.
The dollar weakened against major currencies after U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods. "I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they're under consideration," Biden said.
The dollar index dropped to 102.07, losing nearly 1.1%.
Gold futures for June ended higher by $5.70 or about 0.3% at $1,847.80 an ounce, the highest close in about two weeks. Gold futures climbed to a high of $1,864.30 earlier in the session.
Silver futures for July ended higher by $0.049 at $21.723 an ounce, while Copper futures for July settled at $4.3455 per pound, gaining $0.0695.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194259/
Monday, 23 May 2022
Euro Price Forecast: EUR/USD Extends Last Week’s Upside, Lagarde and China
A Guide to Trading Psychology
Crude Oil Bumps Up as US Dollar Sinks on Yield Slip Ahead of Quad Meetings in Tokyo
Taiwan Data On Tap For Monday
Taiwan will on Monday provide April numbers for industrial production, retail sales and unemployment, setting the pace for a light day in Asia-Pacific economic activity.
In March, industrial production rose 2.15 percent on year, retail sales gained 4.8 percent on year and the jobless rate was 3.70 percent.
Singapore will see April data for consumer prices; in March, overall inflation was up 1.2 percent on month and 5.4 percent on year, while core CPI rose an annual 2.9 percent.
Hong Kong will release April figures for consumer prices; in March, inflation was up 0.2 percent on month and 1.7 percent on year.
Thailand will provide April numbers for imports, exports and trade balance. Imports are expected to rise 17.8 percent on year, easing from 18.0 percent. Exports are called higher by an annual 14.55 percent, down from 19.5 percent in the previous month. The trade balance is called roughly flat following the $1.46 billion surplus a month earlier.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194223/
Australian Dollar Lifted in Risk On Environment Post Election as Labor Win Office
How to Control Greed When Trading
Hawkish vs Dovish: How Monetary Policy Affects FX Trading
Sunday, 22 May 2022
Markets Week Ahead: S&P 500, US Dollar, Gold, FOMC Minutes, New Zealand Dollar, RBNZ
Markets Week Ahead: S&P 500, US Dollar, Gold, FOMC Minutes, New Zealand Dollar, RBNZ
S&P 500 Forecast for the Week Ahead: Bear Market Beckons as Recession Fears Rise
S&P 500 Forecast for the Week Ahead: Bear Market Beckons as Recession Fears Rise
Gold Price Rebound May Fail as Top Central Bankers Sound Off
Gold Price Rebound May Fail as Top Central Bankers Sound Off
Saturday, 21 May 2022
US Dollar Outlook: Recession Woes Take Their Toll, but USD May Prevail Anyway
Bitcoin Outlook: Stocks and Cryptos Struggle to Rebound, FOMC Looms
Bitcoin Outlook: Stocks and Cryptos Struggle to Rebound, FOMC Looms
Dollar Turns Stronger Against Some Major Counterparts
The U.S. dollar traded firm against most of its peers on Friday, edging further up from the lows it touched earlier in the week.
The dollar index climbed to a two-decade high of 105.01 late last week after Fed Chair Jerome Powell reiterated that the central bank is considering to raise interest rates by a half point at the coming meetings in June and July.
However, it kept losing ground since then and dropped to around 102.70 on Thursday, despite having displayed some strength a day earlier on Powell's comments that the Fed won't hesitate to raise rates beyond neutral levels until prices start falling back towards healthy levels again.
The dollar index climbed to 103.26 earlier this afternoon, before paring some gains. At 103.01, the index is up 0.28% from the previous close.
Against the Euro, the dollar has firmed to $1.0560, gaining from $1.0586.
The dollar has weakened to $1.2495 against Pound Sterling, easing from $1.2473.
Against the Japanese currency, the dollar is up marginally, fetching 127.90 yen a unit. The dollar is slightly stronger against the Aussie at 0.7045.
The Swiss franc is trading at 0.9744 a dollar, weakening from 0.9728, while the Loonie is down marginally at 1.2838 a dollar.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194222/
Oil Futures Settle Modestly Higher
Crude oil futures settled higher on Friday, lifted by the proposed ban on Russian oil by the EU, and relaxation in Covid lockdowns in China.
Strong consumption and stockpiles data from the U.S. Energy Information Administration helped lift oil prices.
Worries about global economic slowdown capped oil's upside.
West Texas Intermediate Crude oil futures for July ended higher by $0.39 or about 0.4% at $110.28 a barrel.
Brent crude futures were up $0.58 or 0.51% at $112.62 a barrel a little while ago.
The European Union expects to clinch a deal with member states to effect a ban of Russian crude imports.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194221/
Treasuries Climb Firmly Into Positive Territory After Early Volatility
After showing a lack of direction early in the session, treasuries climbed firmly into positive territory over the course of the trading day on Friday.
Bond prices moved to the upside in mid-day trading and remained positive going into the close. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.8 basis points to 2.787 percent.
The ten-year yield closed lower for the third straight day, ending the session at its lowest closing level in almost a month.
Treasuries continued to benefit from their appeal as a safe haven, as stocks once again came under pressure after failing to sustain an early upward move.
The major averages tumbled to their lowest intraday levels in over a year, with the S&P 500 poised to end the session down more than 20 percent from January's closing high, which is seen as bear market territory.
Concerns about the global economic outlook and the possibility aggressive interest rate hikes by the Federal Reserve could trigger a recession continued to weigh on stocks.
Looking ahead, next week's trading may be impacted by reaction to reports on new home sales, durable goods orders, and personal income and spending as well as the minutes of the latest Federal Reserve meeting.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194220/
Gold Futures Settle Flat, But Gain 1.8% In Week
Despite recovering from the session's lows, Gold futures settled flat on Friday, weighed down by a strong dollar.
The dollar index climbed to 103.20, gaining nearly 0.5%.
Gold prices recovered after U.S. stocks turned weak after an initial uptick. While bargain hunting after recent sharp losses pushed up stock prices early on in the session, worries about inflation and growth pulled the market down into negative territory.
Gold futures for June ended with a gain of $0.90 at $1,842.10 an ounce. Gold futures for June gained about 1.8% in the week, its first weekly loss since the week ended April 22. The four-week losing stretch was gold's longest in nearly four years.
Silver futures for July ended lower by $0.234 at $21.674 an ounce, while Copper futures for July settled at $4.2750 per pound, down $0.0080 from the previous close.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194219/
Friday, 20 May 2022
South Korea Producer Prices Spike 9.2% On Year In April
Producer prices in South Korea jumped 9.2 percent on year in April, the Bank of Korea said on Friday - accelerating from 9.0 percent in March.
Individually, prices were down 1.5 percent on year for agricultural, forestry and marine products; up 14.4 percent for manufacturing products; up 16.0 percent for utilities; and up 2.8 percent for services.
On a monthly basis, producer prices climbed1.1 percent - slowing from 1.5 percent n the previous month.
Individually, prices were up 2.0 percent on month for agricultural, forestry and marine products; up 1.2 percent for manufacturing products; up 4.5 percent for utilities; and up 0.4 percent for services.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194177/
*South Korea Producer Prices +1.1% On Month, +9.2% On Year In April
South Korea Producer Prices +1.1% On Month, +9.2% On Year In April
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194176/
Dollar Exhibits Weakness Against Major Rivals
The U.S. dollar turned weak against most of its major counterparts on Thursday, after having rebounded in the previous session and regained some ground it had lost earlier in the week.
The dollar index, which had climbed to a two-decade high at 105.01 on Friday, dropped to 102.66 today before recovering slightly to 102.84, still down nearly 1% from the previous close.
Against the Euro, the dollar has weakened to $1.0587 from $1.0465. The Pound Sterling has firmed against the dollar, fetching $1.2480 a unit, compared with $1.2344 on Wednesday.
The dollar has weakened against the Japanese currency, fetching 127.77 yen, nearly 0.4% less than yesterday's close of 128.23 yen.
Data from the Labor Department showed initial jobless claims rose to 218,000 in the week ended May 14th, an increase of 21,000 from the previous week's revised level of 197,000.
Economists had expected jobless claims to edge down to 200,000 from the 203,000 originally reported for the previous week.
Growth in Philadelphia-area manufacturing activity showed a significant slowdown in the month of May, the Federal Reserve Bank of Philadelphia revealed in a report on Thursday.
The Philly Fed said its current general activity index tumbled to 2.6 in May from 17.6 in April, hitting its lowest level in two years.
A report released by the National Association of Realtors showed existing home sales showed a significant decrease in the month of April, tumbling by 2.4% to an annual rate of 5.61 million in April after plunging by 3% to a revised rate of 5.75 million in March. Economists had expected existing home sales to decrease by 0.7%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194175/
Oil Futures Recover After Early Weakness, Settle Sharply Higher
Crude oil prices rallied sharply on Thursday, rebounding strongly after drifting down earlier in the session amid fears of a recession and uncertainty over sanctions on Russia by the European Union.
Oil prices moved higher amid expectations of a pick up in energy demand on reports Chinese officials are planning to ease restrictions in Shanghai.
The dollar's weakness - the dollar index dropped more than 1% today - contributed significantly to the rise in oil prices.
West Texas Intermediate Crude oil futures for June ended higher by $2.62 or about 2.4% at $112.21 a barrel, moving up after two successive days of losses. WTI crude futures dropped to a low of $105.13 a barrel earlier in the day.
Brent crude futures for July settled at $112.04 a barrel, gaining $2.93 or 2.7%.
Data released by the Energy Information Administration (EIA) on Wednesday said crude inventories dropped by 3.4 million barrels last week, as against expectations for a rise of 2.1 million barrels.
Gasoline stocks fell 4.8 million barrels in the week, nearly five times more than the expected drop, while distillate supplies increased by 1.2 million barrels, against an expected drop of 1 million barrels.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194174/
US Dollar Stumbles on Rising Recession Fears, AUD/USD Eyeing Chinese Loan Rate Data
Treasuries Pull Back Off Early Highs But Still Close Positive
Following the upturn seen over the course of the previous session, treasuries saw some further upside during trading on Thursday.
Bond prices gave back ground after seeing early strength but remained in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 2.855 percent.
Treasuries continued to benefit from their appeal as a safe haven amid concerns about the outlook for the global economy.
Traders remain worried that aggressive interest rate hikes by the Federal Reserve could lead to a period of stagflation or an outright recession.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits unexpectedly increased in the week ended May 14th.
The report showed initial jobless claims rose to 218,000, an increase of 21,000 from the previous week's revised level of 197,000.
Economists had expected jobless claims to edge down to 200,000 from the 203,000 originally reported for the previous week.
Existing home sales showed a significant decrease in the month of April, according to a report released by the National Association of Realtors on Thursday.
NAR said existing home sales tumbled 2.4 percent to an annual rate of 5.61 million in April after plunging by 3.0 percent to a revised rate of 5.75 million in March. Economists had expected existing home sales to decrease by 0.7 percent.
With the bigger than expected slump, existing home sales dropped to their lowest annual rate since June of 2020.
A separate report from the Federal Reserve Bank of Philadelphia showed a significant slowdown in the pace of growth in regional manufacturing activity.
Looking ahead, trading activity may be somewhat subdued on Friday amid a lack of major U.S. economic data.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194173/
Gold Futures Settle Sharply Higher As Dollar Tumbles
Gold prices climbed higher on Thursday as a sell-off in global stock markets amid worries over rising inflation and growth concerns pushed up the demand for the safe-haven metal.
The dollar's sharp slide contributed as well to gold's surge.
Investors fretted over the impact of the prolonged Ukraine-Russia war, higher interest rates and China's zero-COVID policy on global growth.
Also, downside risks to growth intensified after U.S. retail giants Target and Walmart missed earnings expectations by wide margins and issued back-to-back profit warnings.
The dollar index dropped to 102.70, losing about 1.1%.
Gold futures ended higher by $25.30 or about 1.4% at $1,841.20 an ounce, recording the biggest gains in terms of percentage in about five weeks.
Silver futures for July ended up by $0.364 at $21.908 an ounce, while Copper futures for July settled at $4.2830 per pound, gaining $0.1045.
Data from the Labor Department showed initial jobless claims rose to 218,000 in the week ended May 14th, an increase of 21,000 from the previous week's revised level of 197,000.
Economists had expected jobless claims to edge down to 200,000 from the 203,000 originally reported for the previous week.
Growth in Philadelphia-area manufacturing activity showed a significant slowdown in the month of May, the Federal Reserve Bank of Philadelphia revealed in a report on Thursday.
The Philly Fed said its current general activity index tumbled to 2.6 in May from 17.6 in April, hitting its lowest level in two years.
A report released by the National Association of Realtors showed existing home sales showed a significant decrease in the month of April, tumbling by 2.4% to an annual rate of 5.61 million in April after plunging by 3% to a revised rate of 5.75 million in March. Economists had expected existing home sales to decrease by 0.7%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2194172/
Thursday, 19 May 2022
Dollar Rebounds On Powell's Interest Rates Comments
The U.S. dollar climbed higher against most of its major counterparts on Wednesday, buoyed by comments from Federal Reserve Chair Jerome Powell that the central bank is determined to keep raising interest rates until there is convincing evidence that inflation moves down.
Powell said on Tuesday that the Fed won't hesitate to raise rates beyond neutral levels until prices start falling back towards healthy levels again.
The Fed Chair added that "there could be some pain involved to restoring price stability," but the labor market would remain strong, with low unemployment and higher wages.
A report released by the Commerce Department this morning showed a modest decrease in new residential construction in the month of April.
The Commerce Department said housing starts edged down by 0.2% to an annual rate of 1.724 million from a revised rate of 1.728 million in March.
The slight drop in housing starts came as single-family housing starts plunged by 7.3% to an annual rate of 1.100 million.
Meanwhile, the report showed building permits, an indicator of future housing demand, tumbled by 3.2% to an annual rate of 1.819 million from a revised rate of 1.879 million in March.
The dollar index climbed to 103.93, gaining 0.55% from the previous close.
Against the Euro, the dollar is trading at $1.0468, firming from $1.0553.
The dollar is trading at $1.2339 against Pound Sterling, strengthening from $1.2496.
The Japanese currency Yen is stronger against the dollar thanks to its safe-haven status, with the dollar fetching 128.25 yen a unit, compared with 129.36 yen on Tuesday.
The dollar has firmed against the Aussie, strengthening to 0.6952 from 0.7028.
The Swiss franc is stronger at 0.9883 a dollar, gaining from 0.9938. Meanwhile, the Loonie has weakened to 1.2891 a dollar, easing from 1.2810, weighed down by inflation data and weak crude oil prices.
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source http://www.mt5.com/forex_news/quickview/2194120/
The Basics of Technical Analysis
Oil Futures Pare Early Gains, Settle Sharply Lower
Crude oil futures pared early gains and settled lower on Wednesday despite data showing a drop in crude inventories in the week ended May 13.
The data also showed a fall in gasoline supplies last week.
Reports that the United States is planning to relax sanctions against Venezuela and allow Chevron Corp to negotiate oil licences with state producer PDVSA weighed on oil prices.
A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve too contributed to the drop in crude oil prices.
According to reports, capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.
West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.
Oil prices surged higher earlier in the day amid expectations of increased demand from China following the decision to ease Covid restrictions from June 1.
Data released by the Energy Information Administration (EIA) said crude inventories dropped by 3.4 million barrels last week, as against expectations for a rise of 2.1 million barrels.
Gasoline stocks fell 4.8 million barrels in the week, nearly five times more than the expected drop, while distillate supplies increased by 1.2 million barrels, against an expected drop of 1 million barrels.
On Tuesday, the American Petroleum Institute had said in its report that crude inventories in the U.S. fell 2.4 million barrels last week.
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source http://www.mt5.com/forex_news/quickview/2194119/
Japanese Yen Soars, Dow Jones Bear Market Rally Unwinds. ASX 200, Nikkei 225 at Risk
Gold Futures Settle Lower As Dollar Rebounds On Rate Hike Bets
Gold prices drifted lower on Wednesday as the dollar rebounded from recent losses and bond yields rose amid rising prospects of sharper interest rate hikes by the Federal Reserve.
The Fed Chair Jerome Powell had on Tuesday hinted that the Fed would keep tightening till inflation has been tamed.
U.K.'s inflation rising to a 40-year high and the likely aggressive response by the Bank of England also weighed on market sentiment.
Bond Yields increased across tenors and geographies in response to the developments around inflation and its management, and impacted prices of the non-interest-bearing yellow metal.
The dollar index climbed to 103.70, gaining about 0.35%.
Gold futures for June ended lower by $3.00 or about 0.2% at $1,815.90 an ounce.
Silver futures for July ended down by $0.206 at $21.544 an ounce, while Copper futures for July settled at $4.1785 per pound, down $0.0605 from the previous close.
On the U.S. economic front, a report released by the Commerce Department showed a modest decrease in new residential construction in the month of April.
The Commerce Department said housing starts edged down by 0.2% to an annual rate of 1.724 million from a revised rate of 1.728 million in March.
The slight drop in housing starts came as single-family housing starts plunged by 7.3% to an annual rate of 1.100 million.
Meanwhile, the report showed building permits, an indicator of future housing demand, tumbled by 3.2% to an annual rate of 1.819 million from a revised rate of 1.879 million in March.
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source http://www.mt5.com/forex_news/quickview/2194118/
Wednesday, 18 May 2022
*Japan GDP -0.2% On Quarter, -1.0% On Year In Q1
Japan GDP -0.2% On Quarter, -1.0% On Year In Q1
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source http://www.mt5.com/forex_news/quickview/2194059/
Nasdaq 100 Skips Up Despite Fed Chair Powell’s Red-Hot Hawkishness. Where To for Tech?
How to Manage the Emotions of Trading
Japan GDP Data Due On Wednesday
Japan will on Wednesday release preliminary Q1 numbers for gross domestic product, highlighting a modest day for Asia-Pacific economic activity. GDP is expected to sink 0.4 percent on quarter and 1.8 percent on year after expanding 1.1 percent on quarter and 5.4 percent on year in the three months prior.
Japan also will provide final March figures for industrial production; in February, output was up 2.0 percent on month and 0.5 percent on year.
Australia will see April results for the leading economic index from Westpac, as well as Q1 data for wages. In March, the economic index rose 0.3 percent on month. Wage prices are expected to gain 0.8 percent on quarter and 2.5 percent on year after rising 0.7 percent on quarter and 2.3 percent on year in the previous three months.
China will see April numbers for its house price index; in March, prices were up 1.5 percent on year.
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source http://www.mt5.com/forex_news/quickview/2194058/
Dollar Continues To Slide As Upbeat Economic Data Dims Safe-haven Demand
The U.S. dollar drifted down on Tuesday, coming further off the two-decade highs it touched late last week, as some upbeat economic data and easing Covid concerns in China triggered hectic buying in global equities and dimmed the currency's safe-haven appeal.
Fed Chair Jerome Powell said today that he is confident that the central bank can raise rates and deal with inflation without sending the economy into recession, although he noted that it will be a challenging task.
"The economy is strong. We think it is well positioned to withstand less accommodative monetary policy," Powell said.
Data released by the Commerce Department showed retail sales climbed by 0.9 percent in April after jumping by an upwardly revised 1.4 percent in March. Economists had expected retail sales to rise by 0.7 percent compared to the 0.5 percent increase originally reported for the previous month.
Excluding a rebound in sales by motor vehicle and parts dealers, retail sales rose by 0.6 percent in April after surging by 2.1 percent in March. Ex-auto sales were expected to edge up by 0.3 percent.
Industrial Production in the United States increased 6.4 percent year-on-year in April of 2022, following a downwardly revised 5.4 percent rise in March.
The dollar index dropped to a low of 103.23 before edging up slightly to 103.32, still down as much as 0.82 percent from the previous close. The index had climbed to 105.01 on Friday before turning weak.
Against the Euro, the dollar is trading at $1.0552, compared with $1.0433 on Monday.
The dollar is trading at $1.2492 against Pound Sterling, losing ground from $1.2321.
Against the Japanese currency, the dollar is stronger, fetching 129.36 yen. The dollar has weakened to 0.7030 against the Aussie from 0.6971.
The Swiss franc has firmed to 0.9936 a dollar, gaining from 1.0020, while the Loonie is stronger at 1.2811 a dollar.
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source http://www.mt5.com/forex_news/quickview/2194057/
Oil Futures Settle Lower As U.S. Looks To Ease Some Venezuela Sanctions
Crude oil prices pared early gains and settled notably lower on Tuesday, reacting to reports that the Biden administration is set to ease some of the sanctions imposed on Venezuela.
West Texas Intermediate Crude oil futures for June ended lower by $1.80 or about 1.6% at $112.40 a barrel, after having climbed to a seven-week high at $115.56 a barrel earlier in the day.
The U.S. government is reportedly moving to ease a few economic sanctions on Venezuela in a gesture meant to encourage resumed negotiations between the U.S.-backed opposition and the government of President Nicol?s Maduro.
The Treasury Department has issued a "narrow license" authorizing Chevron to negotiate on "potential future activity" in Venezuela, the officials said. However, the company is not allowed to enter into any agreements with Venezuela's state-owned oil company, PDVSA.
Markets now look ahead to weekly inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA), due later today and Wednesday morning, respectively.
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source http://www.mt5.com/forex_news/quickview/2194056/
AUD/USD Rebound Takes Shape Ahead of Australia Employment Report
Gold Futures Settle Higher For 2nd Straight Day As Dollar Drifts Lower
Gold prices moved higher on Tuesday, gaining for a second straight session as a weakening dollar boosted the yellow metal's safe-haven appeal.
The dollar index dropped to 103.23, losing nearly 1%.
Gold futures for June ended higher by $4.90 or 0.3% at $1,818.90 an ounce.
Silver futures for July ended up by $0.199 at $21.750 an ounce, while Copper futures for July settled at $4.2390 per pound, up $0.0475 from the previous close.
A report released by the Commerce Department showed retail sales in the U.S. increased by more than expected in the month of April, surging up by 0.9%, after jumping by an upwardly revised 1.4% in March.
Economists had expected retail sales to rise by 0.7% compared to the 0.5% increase originally reported for the previous month.
Excluding a rebound in sales by motor vehicle and parts dealers, retail sales rose by 0.6% in April after surging by 2.1% in March. Ex-auto sales were expected to edge up by 0.3%.
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source http://www.mt5.com/forex_news/quickview/2194055/
Tuesday, 17 May 2022
Thai GDP Data Due On Tuesday
Thai GDP Data Due On Tuesday Thailand will on Tuesday release Q1 figures for gross domestic product, headlining a modest day for Asia-Pacific economic activity. GDP is expected to rise 0.9 percent on quarter and 2.1 percent on year after gaining 1.8 percent on quarter and 1.9 percent on year in the three months prior.
Indonesia will release April numbers for imports, exports and trade balance. Imports are expected to jump 34.97 percent on year, up from 30.85 percent in March. Exports are called higher by an annual 35.97 percent, down from 44.36 percent in the previous month. The trade surplus is pegged at $3.25 billion, down from $4.53 billion a month earlier.
Singapore will provide Aril data for non-oil domestic exports; in March, NODX fell 2.3 percent on month and climbed 7.7 percent on year, resulting in a trade surplus of SGD4.172 billion.
The Reserve Bank of Australia will release the minutes from its May 3 monetary policy meeting. At the meeting, the bank raised its key interest rate by 25 basis points or 0.35 percent as inflation picked up more than expected largely due to supply-side disruptions. The board also increased the interest rate on Exchange Settlement balances from zero percent to 25 basis points.
Japan will see March results for its tertiary industry index; in February, the index slipped 1.3 percent on month.
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source http://www.mt5.com/forex_news/quickview/2193996/
US Dollar Strength has Been Blowing in the Yuan After CNY/JPY Hit Record Highs
Dollar Sheds Ground Against Major Counterparts
The U.S. dollar, which climbed to a fresh 2-decade peak last week before losing some ground, came further off that level on Monday, with traders looking to take some gains despite a slew of economic data raising concerns about global economic slowdown.
Data from the National Bureau of Statistics showed that China's industrial output contracted 2.9% year-on-year in April, missing expectations for an increase of 0.4% and down from 5% in March.
According to a report released by the Federal Reserve Bank of New York, manufacturing activity unexpectedly contracted in the month of May, with the general business conditions index plunging to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.
Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.
The European Commission cut its growth forecast for the 19 countries sharing the euro to 2.7% this year from 4% predicted in February, citing the impact of the Ukraine war and soaring inflation. GDP growth is expected to slow to 2.3% next year, below the 2.7% seen before, the EC report said.
The dollar index, which scaled a new 20-year peak at 105.01 on Friday, dropped to 104.14 this afternoon before edging up slightly to 104.22, still down 0.33% from the previous close.
Against the Euro, the dollar is down at $1.0436, easing from $1.0413.
The dollar is trading at $1.2322 against Pound Sterling, weakening from $1.2264.
Against the Japanese currency, the dollar is weaker by about 0.1% at 129.10 yen.
The dollar is at 0.6971 against the Aussie, compared with 0.6940 Friday evening. Against Swiss franc, the dollar is flat at CHF 1.0018 after having firmed to CHF1.0066 earlier. The Loonie is stronger at 1.2853 a dollar thanks to higher crude oil prices.
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source http://www.mt5.com/forex_news/quickview/2193995/
Oil Futures Pare Early Losses, Settle Sharply Higher
Crude oil futures shrugged off early weakness and settled sharply higher on Monday, buoyed by rising gasoline prices.
Oil prices drifted lower earlier in the day after weak data out of China revived fears of a global recession. Also, traders looked to take some profits after the sharp uptick in the previous session.
Reports that Shanghai is looking to reopen broadly and allow normal life to resume from June 1, helped ease concerns about energy demand from the world's second largest economy and contributed to the rebound in oil prices.
A sharp jump in U.S. gasoline futures amid supply concerns due to the drop in stockpiles pushed up crude oil prices.
West Texas Intermediate Crude oil futures for June ended higher by $3.71 or about 3.4% at $114.20 a barrel.
Brent crude futures were up $2.27 or 2.02% at 113.82 a barrel a little while ago.
Data showed earlier in the day that China's retail sales sank 11.1% in April year-on-year and industrial output also fell a steep 2.9%, raising concerns about a deepening slowdown in the world's second-largest economy.
China, the world's largest importer of oil, processed 11% less crude in April than a year earlier, with daily throughput falling to the lowest since March 2020.
Meanwhile, the European Union's diplomats and officials have expressed optimism about reaching a deal on a phased embargo of Russian oil despite concerns about supply in eastern Europe.
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source http://www.mt5.com/forex_news/quickview/2193994/
Gold Futures Settle Modestly Higher As Dollar Retreats
Gold futures pared early losses and edged higher on Monday as the dollar came further off the 2-decade high recorded last week.
Worries about growth after data showed a contraction in China's industrial output, and a report showing an unexpected contraction in New York manufacturing activity in May boosted the demand for the safe-haven metal.
Data from the National Bureau of Statistics showed that China's industrial output contracted 2.9% year-on-year in April, missing expectations for an increase of 0.4% and down from 5% in March.
The dollar index dropped to 104.32 in the European session, and despite recovering to around 104.60 around late morning, drifted down again and was hovering around 104.40 a little while ago, netting a loss of nearly 0.2%.
Gold futures for June ended higher by $5.80 or about 0.3% at $1,814.00 an ounce.
Silver futures for July ended up by $0.550 at $21.551 an ounce, while Copper futures for July settled at $4.1915 per pound, gaining $0.0165.
In U.S. economic news, New York manufacturing activity unexpectedly contracted in the month of May, according to a report released by the Federal Reserve Bank of New York.
The New York Fed said its general business conditions index plunged to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.
Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.
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source http://www.mt5.com/forex_news/quickview/2193993/
Monday, 16 May 2022
New Zealand Service Sector Ebbs In April - BusinessNZ
The service sector in New Zealand continued to expand in April, albeit at a slightly slower rate, the latest survey from BusinessNZ showed on Monday with a Performance of Service Index score of 51.4.
That's down from 51.6 in March, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Among the components, sales (52.7), employment (51.2), new orders (53.6) and stocks (54.8) all expanded, while supplier delivers (40.1) tumbled.
"For large parts of the service sector that have been through the ringer over recent times, we suspect any result above breakeven would be welcomed. But, on the other hand, April's result also looks somewhat disappointing in the context of easing COVID restrictions from Red to Orange halfway through the month," BNZ Senior Economist Doug Steel said.
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source http://www.mt5.com/forex_news/quickview/2193943/
Copper Trading: Copper Trading Tips and Strategies
*New Zealand Performance Of Service Index 51.4 In April - BusinessNZ
New Zealand Performance Of Service Index 51.4 In April - BusinessNZ
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source http://www.mt5.com/forex_news/quickview/2193942/
China Data On Tap For Monday
China is scheduled to release a batch of data on Monday, highlighting a modest day for Asia-Pacific economic activity. On tap are April figures for fixed asset investment, industrial production, retail sales and unemployment.
FAI is expected to rise 7.0 percent on year, slowing rom 9.3 percent in March. Industrial production is expected to add an annual 0.4 percent, down from 5.0 percent in the previous month. Retail sales are expected to sink 6.1 percent on year after losing 3.5 percent a month earlier. The jobless rate in March was 5.8 percent.
Japan will release April numbers for producer prices, with forecasts suggesting an increase of 0.8 percent on month and 9.4 percent on year. That follows the 0.8 percent monthly increase and the 9.5 percent yearly gain in March.
New Zealand will see April results for its Performance of Services Index from BusinessNZ; in March, the index score was 51.6.
Finally, the markets in Malaysia, Singapore, Indonesia and Thailand are closed on Monday for Wesak Day and will re-open on Tuesday.
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source http://www.mt5.com/forex_news/quickview/2193941/
Australian Dollar Under Pressure on China Activity Data Miss. Where to for AUD/USD?
Sunday, 15 May 2022
Stock Market Week Ahead: S&P 500 & FTSE 100 Forecast
Stock Market Week Ahead: S&P 500 & FTSE 100 Forecast
Oil Price Forecast: The Fundamental and Technical Backdrop Remains Bullish for WTI
Oil Price Forecast: The Fundamental and Technical Backdrop Remains Bullish for WTI
EUR/USD Price Forecast: Euro Hit by Gas Disruptions, Parity Break at Risk
EUR/USD Price Forecast: Euro Hit by Gas Disruptions, Parity Break at Risk
Saturday, 14 May 2022
Dollar Retreats After Climbing To Fresh 2-decade High
After climbing higher against major peers in the European session, the U.S. dollar retreated on Friday, giving up gains against some counterparts, with traders weighing the prospects for futures interest rate hikes.
In an interview on Thursday, Fed Chair Jerome Powell reiterated that the central bank is considering to raise interest rates by a half point at the coming meetings in June and July.
"If the economy performs about as expected, it would be appropriate for there to be additional 50-basis point increases at the next two meetings," Powell said.
However, he said the central bank isn't "actively considering" a 75 bps move.
In economic releases today, a report from the University of Michigan showed consumer sentiment in the U.S. has deteriorated by much more than expected in the month of May.
The report showed the consumer sentiment index tumbled to 59.1 in May from 65.2 in April. Economists had expected the index to edge down to 64.0.
With the much bigger than expected decrease, the consumer sentiment index slumped to its lowest level since hitting 55.8 in August of 2011.
A separate report released by the Labor Department showed imports prices were unexpectedly unchanged in the month of April, after surging by an upwardly revised 2.9% in March. Economists had expected import prices to climb by 0.6% compared to the 2.6% jump originally reported for the previous month.
The report also showed the annual rate of growth in imports prices slowed to 12% in April from an upwardly revised 13% in March.
The dollar index climbed to a fresh two-decade high at 105.01 but dropped to 104.47 around noon before recovering slightly to 104.57. The index had settled at 104.85 on Thursday.
Against the Euro, the dollar weakened to $1.0405 after having firmed to $1.0383 in the European session.
The dollar is weak against Pound Sterling, having eased to $1.2242. Against the Japanese currency, the dollar strengthened to 129.31 yen, rising from 128.32.
The dollar weakened to 0.6933 against the Aussie, losing more than 1%. The Swiss franc is flat at 1.0027 a dollar, while the Loonie has strengthened to C$1.2918 a dollar, gaining more than 1%, thanks to the sharp rise in oil prices.
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source http://www.mt5.com/forex_news/quickview/2193940/
Oil Futures Settle Sharply Higher On Supply Concerns
Crude oil prices rose sharply on Friday, lifting the most active crude futures contracts to a buoyant close, as fears of supply shortage outweighed concerns about a slowdown in global economic growth.
Gasoline prices soared to record highs today, contributing significantly to the sharp jump in crude oil prices.
West Texas International Crude oil futures for June ended higher by $4.36 or about 4.1% at $110.49 a barrel.
Brent crude futures were up $4.03 or 3.75% at $111.48 a barrel a little while ago.
Worries about supply in global oil markets have increased following a reduction in flows of Russian refined products such as diesel, fuel oil and naptha.
Following Russia's move to impose sanctions on more than 30 EU, US and Singaporean energy companies, the necessity to secure alternative gas supplies has now become the top priority.
Russia has also threatened retaliation against Finland after Finnish leaders said the northern European nation must apply to join NATO "without delay."
The International Energy Agency (IEA) said on Thursday that tightening sanctions on Russia's oil exports, including a planned European Union embargo, would take a heavy toll on the nation's oil industry and could set its crude oil output back by nearly two decades.
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source http://www.mt5.com/forex_news/quickview/2193939/
Treasuries Give Back Ground Amid Rebound On Wall Street
After moving sharply higher over the past few sessions, treasuries showed a notable move back to the downside during trading on Friday.
Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 11.8 basis points to 2.935 percent.
The rebound by the ten-year yield came after it tumbled by 30.6 basis points over the three previous sessions after reaching a three-year intraday high of 3.167 percent on Monday.
Treasuries gave back ground as traders cashed on in some of the recent strength in the markets amid a significant rebound on Wall Street.
On the U.S. economic front, the University of Michigan released a report showing consumer sentiment has deteriorated by much more than expected in the month of May.
The report showed the consumer sentiment index tumbled to 59.1 in May from 65.2 in April. Economists had expected the index to edge down to 64.0.
With the much bigger than expected decrease, the consumer sentiment index slumped to its lowest level since hitting 55.8 in August of 2011.
A separate report released by the Labor Department showed imports prices were unexpectedly unchanged in the month of April.
The Labor Department said import prices came in flat in April after surging by an upwardly revised 2.9 percent in March.
Economists had expected import prices to climb by 0.6 percent compared to the 2.6 percent jump originally reported for the previous month.
The report also showed the annual rate of growth in imports prices slowed to 12.0 percent in April from an upwardly revised 13.0 percent in March.
Economic data is likely to attract attention next week, with traders reacting to reports on retail sales, industrial production, housing starts and existing home sales.
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source http://www.mt5.com/forex_news/quickview/2193938/
Australian Dollar Forecast: Jobs Report in Focus as Bear Market Pressures AUD/USD
Australian Dollar Forecast: Jobs Report in Focus as Bear Market Pressures AUD/USD
Gold Futures Settle Lower, Post 4th Straight Weekly Loss
Gold prices slipped on Friday and the most active gold futures contract posted its biggest weekly loss in about eleven months, as traders switched over to buying mode in stock markets after recent hefty losses.
Prospects of the Federal Reserve hiking interest rates by 50 basis points at the next two meetings weighed on the yellow metal.
Jerome Powell, who has been confirmed to head the Fed for a second four-year term, said in an interview that the battle to control inflation would "include some pain" and the U.S. central bank would manage to tighten borrowing costs without going so far as to tip the economy into recession.
The dollar's retreat after climbing to a fresh two-decade high, capped gold's downside. The dollar index, which rose to 105.01, dropped to around 104.50 later on in the session, netting a loss of about 0.3%.
Gold futures for June ended lower by $16.40 or about 0.9% at $1,808.20 an ounce, recording their fourth successive weekly loss. Gold futures shed about 3.9% in the week.
Silver futures for July ended up by $0.228 at $21.001 an ounce, while Copper futures for July settled at $4.1750 per pound, gaining $0.0745.
In economic releases, a report from the University of Michigan showed consumer sentiment in the U.S. has deteriorated by much more than expected in the month of May.
The report showed the consumer sentiment index tumbled to 59.1 in May from 65.2 in April. Economists had expected the index to edge down to 64.0.
With the much bigger than expected decrease, the consumer sentiment index slumped to its lowest level since hitting 55.8 in August of 2011.
A separate report released by the Labor Department showed imports prices were unexpectedly unchanged in the month of April, after surging by an upwardly revised 2.9% in March. Economists had expected import prices to climb by 0.6% compared to the 2.6% jump originally reported for the previous month.
The report also showed the annual rate of growth in imports prices slowed to 12% in April from an upwardly revised 13% in March.
French inflation was confirmed at an annual 5.4%, in April. Industrial output in the euro zone fell an annualized 0.8% in March versus a -0.6% decline expected, Eurostat data showed.
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source http://www.mt5.com/forex_news/quickview/2193937/
Friday, 13 May 2022
*South Korea Import Prices -0.9% On Month, +35.0% On Year In April
South Korea Import Prices -0.9% On Month, +35.0% On Year In April
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source http://www.mt5.com/forex_news/quickview/2193872/
Dollar Soars To Fresh Two-decade High
The U.S. dollar firmed against major counterparts and rose to a fresh two-decade high in the process on Thursday, with prospects of sharper rate hikes and tighter policies buoying up the currency's safe-haven appeal.
A report released by the Labor Department showed the annual rate of producer price growth slowed by less than expected in the month of April.
The report showed the annual rate of growth in producer prices slowed to 11% in April from a record high 11.5% in March, although economists had expected a bigger slowdown to 10.7%.
Core producer prices, which exclude prices for food, energy and trade services, were up by 6.9% compared to a year ago, reflecting a modest slowdown from the 7.1% spike seen in the previous month.
A separate report released by the Labor Department unexpectedly showed a slight increase in first-time claims for U.S. unemployment benefits in the week ended May 7th.
The Labor Department said initial jobless claims crept up to 203,000, an increase of 1,000 from the previous week's revised level of 202,000. Economists had expected jobless claims to dip to 195,000 from the 200,000 originally reported for the previous week.
The dollar index soared to 104.93 before easing a bit and paring some gains. It was last seen hovering around 104.80, up more than 0.9% from the previous close.
Against the Euro, the dollar firmed to $1.0379 from $1.0515.
The dollar is trading at $1.2197 against Pound Sterling, strengthening from $1.2251.
Against the Japanese currency, the dollar is weak, fetching 128.34 yen, compared with 129.98 yen on Wednesday.
The dollar is stronger against the Aussie at 0.6859, firming from 0.6938. Against Swiss franc, the dollar has weakened by more than 1%, trading at CHF 0.9961.
The Loonie has weakened to 1.3044 a dollar, drifting from 1.2994, weighed down by weak crude oil prices.
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source http://www.mt5.com/forex_news/quickview/2193870/
EUR/USD Rate Eyes 2017 Low as Bear Flag Formation Unfolds
Treasuries See Further Upside As Stocks Extend Sell-Off
Treasuries moved notably higher during trading on Thursday, extending the upward move seen over the past few sessions.
Bond prices moved to the upside early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 10.4 basis points to 2.817 percent.
The ten-year yield closed lower for the fourth consecutive session after ending last Friday's trading at its highest closing level since November of 2018.
The continued advance by treasuries came as traders continued to look to relative safety of bonds amid an extended sell-off on Wall Street.
The major U.S. stocks indexes have once again fallen to their lowest levels in over a year amid worries about the Federal Reserve aggressively raising interest rates in an effort to combat elevated inflation.
Adding to the worries, the Labor Department released a report this morning showing the annual rate of producer price growth slowed by less than expected in the month of April.
The report showed the annual rate of growth in producer prices slowed to 11.0 percent in April from a record high 11.5 percent in March, although economists had expected a bigger slowdown to 10.7 percent.
Core producer prices, which exclude prices for food, energy and trade services, were up by 6.9 percent compared to a year ago, reflecting a modest slowdown from the 7.1 percent spike seen in the previous month.
A separate report released by the Labor Department unexpectedly showed a slight increase in first-time claims for U.S. unemployment benefits in the week ended May 7th.
The Labor Department said initial jobless claims crept up to 203,000, an increase of 1,000 from the previous week's revised level of 202,000.
The uptick surprised economists, who had expected jobless claims to dip to 195,000 from the 200,000 originally reported for the previous week.
Bond prices remained firmly positive as the Treasury Department revealed this month's auction of $22 billion worth of thirty-year bonds attracted above average demand.
The thirty-year bond auction drew a high yield of 2.997 percent and a bid-to-cover ratio of 2.38, while the ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.31.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Looking ahead, trading on Friday may be impacted by reaction to reports on import and exports prices and consumer sentiment.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193868/
Crude Oil Futures Settle Modestly Higher
Shrugging off early weakness and a mid-session setback, crude oil futures ended modestly higher on Thursday despite persisting concerns about growth and outlook for energy demand.
West Texas Intermediate Crude oil futures for June ended higher by $0.42 or about 0.4% at $106.13 a barrel, after scaling a low of $102.66 and a high of $107.37 in the session.
Brent crude futures were up $0.23 or 0.2% at $107.74 a barrel a little while ago.
Rising inflation has raised concerns that the Federal Reserve will tighten is policy and resort to a series of sharp interest rate hikes this year.
Signs of prolonged Covid-19 lockdowns in China also weighed on oil prices earlier in the session. A stronger dollar hurt as well.
The European Union's proposal to ban Russian oil, which is yet to take effect, is likely to significantly tighten global supplies.
The EU is still working out details of the Russian embargo, as Hungary is opposing the ban because it feels it would be too disruptive to its economy.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193869/
NZD/USD Rebound Hopes Dashed After Poor PMI Data as APAC Eyes China Credit Data
Gold Futures Settle Sharply Lower As Dollar Soars On Rate Hike Bets
Gold prices drifted lower on Thursday as the dollar climbed higher amid prospects of a series of sharp interest rate hikes by the Federal Reserve to combat soaring inflation.
The dollar, which has been climbing higher consistently since mid-April on expectations of further tightening by from the Fed, shot up to a new two-decade high today, with the dollar index soaring to 104.93, gaining more than 1% from the previous close.
Gold futures for June ended lower by $29.10 or about 1.6% at $1,824.60 an ounce.
Silver futures for July ended down by $0.802 at $20.773 an ounce, while Copper futures for July settled at $4.1005 per pound, down $0.1085 from the previous close.
U.S. consumer price inflation data released overnight did little to ease investor worries over the outlook for inflation and interest rates.
The Labor Department's report this morning that showed the annual rate of producer price growth slowed by less than expected in the month of April has added to the woes.
The report showed the annual rate of growth in producer prices slowed to 11% in April from a record high 11.5% in March, although economists had expected a bigger slowdown to 10.7%.
Core producer prices, which exclude prices for food, energy and trade services, were up by 6.9% compared to a year ago, reflecting a modest slowdown from the 7.1% spike seen in the previous month.
A separate report released by the Labor Department unexpectedly showed a slight increase in first-time claims for U.S. unemployment benefits in the week ended May 7th.
The Labor Department said initial jobless claims crept up to 203,000, an increase of 1,000 from the previous week's revised level of 202,000. Economists had expected jobless claims to dip to 195,000 from the 200,000 originally reported for the previous week.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193867/
Thirty-Year Bond Auction Attracts Above Average Demand
The Treasury Department finished off this week's series of long-term securities auctions on Thursday, revealing this month's sale of $22 billion worth of thirty-year bonds attracted above average demand.
The thirty-year bond auction drew a high yield of 2.997 percent and a bid-to-cover ratio of 2.38.
Last month, the Treasury sold $20 billion worth of thirty-year bonds, drawing a high yield of 2.815 percent and a bid-to-cover ratio of 2.30.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
The ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.31.
The Treasury revealed earlier this week that this month's three-year note auction attracted well above average demand, while this month's ten-year note auction attracted average demand.
Earlier in the day, the Treasury announced the details of this month's auction of twenty-year bonds.
The Treasury said it plans to sell $17 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.
Last month, the Treasury sold $16 billion worth of twenty-year bonds, attracting well above average demand.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193866/
Thursday, 12 May 2022
Dollar Turning In Mixed Performance Against Major Rivals
The U.S. dollar retreated after the Labor Department released the consumer inflation data Wednesday morning, but slowly edged higher subsequently amid expectations the Federal Reserve will raise rates aggressively to bring inflation down at a faster rate.
Data released by the Labor Department showed the annual rate of consumer price growth slowed by less than expected in April, coming in at 8.3%, easing from a 40-year high of 8.5% in March. Economists had expected the pace of growth to slow to 8.1%.
The annual rate of growth in core consumer prices also slowed to 6.2% in April from 6.5% in March, although the rate was expected to decelerate to 6%.
On a monthly basis, the Labor Department said its consumer price index rose by 0.3% in April after surging by 1.2% in March. Economists had expected prices to edge up by 0.2%.
Core consumer prices, which exclude food and energy prices, climbed by 0.6% in April after rising by 0.3% in March. Core prices were expected to increase by 0.4%.
The dollar index, which dropped to 103.37 from a high of 104.11, firmed to 104.05, gaining 0.12%.
Against the Euro, the dollar firmed to $1.0513 from $1.0532. The dollar is trading at $1.2244 against Pound Sterling, strengthening from $1.2316.
Against the Japanese currency, the dollar is weak, fetching 130.02 yen a dollar, compared with 130.45 yen a dollar Tuesday evening.
The dollar is flat at 0.6939 against the Aussie, after having weakened to 0.7054 post release of the inflation data.
The Swiss franc is stronger at 0.09938 a dollar, gaining from 0.9956. The Loonie has strengthened to C$1.2992 from C$1.3028, thanks to higher crude oil prices.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193795/
Nikkei 225, ASX 200, Hang Seng Index Brace for Volatility After More Wall Street Rout
Oil Futures Settle Sharply Higher
Crude oil prices climbed higher on Wednesday, rebounding sharply from recent losses, thanks to data showing a significant drop in flows of Russian gas to Europe, and news about Chinese government's fresh stimulus measures.
Data showing U.S. consumer prices increased 8.3% in April, easing from the 8.5% surge in March has raised hopes that the Fed might not aggressively hike rates.
Reports suggesting that Covid-19 infections dropped in Shanghai and Beijing contributed as well to the rise in oil prices.
West Texas Intermediate Crude oil futures for June ended higher by $5.95 or about 6% at $105.71 a barrel.
Brent crude futures were up $4.41 or 4.3% at $106.87 a barrel a little while ago.
Data from the Energy Information Administration (EIA) showed U.S. crude stockpiles rose by more than 8 million barrels in the week ended May 6, due to another large release from strategic reserves.
Gasoline inventories fell by 3.61 million barrels last week as against forecast for a draw of 1.6 million barrels, while distillates stockpiles dropped by 913,000 barrels versus forecasts for a draw of 1.0 million, after the previous week's consumption of 2.34 million.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193794/
Treasuries See Further Upside Amid Continued Weakness On Wall Street
After seeing significant volatility early in the session, treasuries moved notably higher over the course of the trading day on Wednesday.
Bond prices pulled back off their best levels going into the close but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 7.2 basis points to 2.921 percent.
The ten-year yield moved lower for the third straight session, continuing to give back ground after reaching its highest levels since November 2018.
Treasuries seemed to benefit from their appeal as a safe haven amid continued weakness on Wall Street, with the major averages once again falling to their lowest intraday levels in over a year.
The weakness on Wall Street came as traders digested a highly anticipated Labor Department report showing the annual rate of consumer price growth slowed by less than expected.
While the report showed the annual rate of consumer price growth slowed to 8.3 percent in April from a 40-year high of 8.5 percent in March, economists had expected the pace of growth to slow to 8.1 percent.
The annual rate of growth in core consumer prices also slowed to 6.2 percent in April from 6.5 percent in March, although the rate was expected to decelerate to 6.0 percent.
On a monthly basis, the Labor Department said its consumer price index rose by 0.3 percent in April after surging by 1.2 percent in March. Economists had expected prices to edge up by 0.2 percent.
Core consumer prices, which exclude food and energy prices, climbed by 0.6 percent in April after rising by 0.3 percent in March. Core prices were expected to increase by 0.4 percent.
The data has added to recent concerns the Federal Reserve will raise interest rates more aggressively in an effort to bring inflation down at a faster rate.
Traders have recently expressed concerns more aggressive moves by the Fed and other central banks could lead to a period of stagflation or an outright recession.
Bond prices saw continued strength after the Treasury Department revealed this month's auction of $36 billion worth of ten-year notes attracted average demand.
The ten-year note auction drew a high yield of 2.943 percent and a bid-to-cover ratio of 2.49, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.51.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
On Tuesday, the Treasury revealed this month's auction of $45 billion worth of three-year notes attracted well above average demand.
The Treasury is due to announce the results of this month's auction of $22 billion worth of thirty-year bonds on Thursday.
Looking ahead, trading on Thursday may also be impacted by reaction to reports on producer price inflation and initial jobless claims.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193793/
USD/JPY to Face Larger Pullback on Break of Monthly Opening Range
Bitcoin Price Forecast: BTC/USD Faces 2021 Low as Risk Assets Plummet
Wednesday, 11 May 2022
Australian Dollar Bumped Up on China CPI and PPI. Where to for AUD/USD?
Dollar Hovers Near 2-decade High As Traders Await Inflation Data
The U.S. dollar is hovering near a two-decade high on Tuesday, despite turning in a somewhat sluggish performance, as traders look ahead to the crucial inflation data, due on Wednesday.
Expectations that the Federal Reserve will keep hiking interest rates in the coming months to combat soaring inflation.
The Labor Department is due to release its report on consumer price inflation on Wednesday, with the annual rate of price growth expected to slow to 8.1% in April from 8.5% in March.
The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
The dollar index, which settled at 103.65 on Monday after climbed to 104.19, rose to 103.98 today, gaining more than 0.3%.
Against the Euro, the dollar firmed to $1.0530, gaining from $1.0562.
The dollar is trading at $1.2316 against Pound Sterling, strengthening from $1.2331.
Against the Japanese currency, the dollar firmed to 130.41 yen from 130.30.
The dollar is stronger against the Aussie at 0.6937, compared to 0.6953 on Monday.
The Swiss franc is weaker at 0.9956 a dollar, easing from 0.9939. The Loonie is weak at C$1.3030 a dollar, weighed down by sharply lower oil prices.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193740/
Treasuries Extend Rebound Seen In The Previous Session
Following the rebound seen over the course of the previous session, treasuries saw further upside during the trading day on Tuesday.
Bond prices surged early in the session and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 8.6 basis points to 2.993 percent.
The ten-year yield added to the 4.4 basis point drop seen on Monday, continuing to give back ground after reaching its highest levels since November 2018.
The continued rebound by treasuries came as some traders feel the recent weakness in the bond market has been overdone.
While the Federal Reserve is expected to continue raising interest rates in the coming months, recent comments suggest the central bank will stick to raising rates by 50 basis points instead of the 75 basis points some have feared.
Treasuries remained firmly positive after the Treasury Department revealed this month's auction of $45 billion worth of three-year notes attracted strong demand.
The three-year note auction drew a high yield of 2.809 percent and a bid-to-cover ratio of 2.59, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.43.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Trading on Wednesday is likely to be driven by reaction to the Labor Department's report on consumer price inflation in the month of April.
Bond traders are also likely to keep an eye on the results of the Treasury's auction of $36 billion worth of ten-year notes.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193739/
Oil Futures Close Sharply Lower For 2nd Straight Day
Crude oil prices fell sharply on Tuesday, extending losses from the previous session, amid concerns over a likely drop in energy demand due to slowing global economic growth.
A stronger dollar weighed as well on oil prices.
West Texas Intermediate Crude oil futures for June ended lower by $3.33 or about 3.2% at $99.76 a barrel, the lowest settlement in two weeks.
Brent crude futures were down $3.14 or 2.98% at $102.80 a barrel.
Oil prices are weighed down by concerns over demand from China due to the ongoing lockdowns in the country, and on Saudi Arabia's decision to cut oil prices.
China passenger vehicle sales tumbled 35.7% last month from a year ago to 1.06 million units, the biggest decline since March 2020 as the economy took a battering linked to lockdowns and other disruptions brought about by the government's insistence on a hard-line zero-COVID policy, China Passenger Car Association data showed.
Meanwhile, traders await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193738/
Chinese Yuan Forecast: USD/CNH Eyes Chinese CPI Data Ahead of US Inflation
Gold Futures Settle Lower As Dollar Advances
Gold prices drifted lower on Tuesday as the dollar moved higher and hovered near two-decade highs amid prospects of steeper interest rate hikes by the Federal Reserve in the coming months.
The dollar index climbed to 103.98 despite staying a bit sluggish earlier in the day. The index was up nearly 0.25% at 103.90 a little while ago.
A drop in long-term bond yields helped limit gold's decline.
Gold futures for June ended lower by $17.60 or about 0.9% at $1,841.00 an ounce.
Silver futures for July ended down by $0.396 at $21.424 an ounce, while Copper futures for July settled at $4.1545 per pound, down $0.0390 from the previous close.
Investor await Wednesday's release of the U.S. inflation data that could affect the Federal Reserve's monetary policy.
The Labor Department is due to release its report on consumer price inflation on Wednesday, with the annual rate of price growth expected to slow to 8.1% in April from 8.5% in March.
The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2193737/