As widely expected by markets and economists, the European Central Bank (ECB) reduced all three key benchmark rates by 25 basis points (bps) today amid easing inflationary pressures. This places the deposit facility rate, the main refinancing rate and the marginal lending facility rate at 3.25%, 3.40% and 3.65%, respectively. It also marks the central bank’s third...
According to a report released by the Office for National Statistics (ONS) this morning, UK inflationary pressures in September eased across all key indicators. This, of course, will be welcomed news for the Chancellor of the Exchequer, Rachel Reeves, as she prepares to deliver her first Annual Budget at the end of the month.
CPI Inflation Dips Below BoE...
Month to date, the USD/CAD currency pair (US dollar versus the Canadian dollar) is up 2.0% and testing monthly highs.
Monthly Price Action Suggests Further Upside Ahead
The monthly timeframe exhibits scope to explore higher terrain until reaching resistance at C$1.3945, following a rebound from a support zone around C$1.3534. Technically, the pair has been...
With the sell-off in US Treasuries, spot gold has taken a back seat versus the US dollar (XAU/USD) from recently printed record highs (US$2,685) and is establishing a picture-perfect AB=CD correction on the daily scale.
Daily ‘Alternate’ AB=CD Support
For any harmonic traders reading, you will likely note that the daily AB=CD in focus represents an...
Versus the Japanese yen (JPY), the US dollar (USD) is exploring terrain within the Ichimoku Cloud (formed by the Leading Span A at ¥160.10 and the Leading Span B at ¥161.18). As you can see, sellers have recently displayed interest in the area despite not establishing much presence.
Technical Confluence Demands Attention
Overhead, the 200-day simple...
Overnight, the Reserve Bank of New Zealand (RBNZ) reduced its Official Cash Rate (OCR) by 50 basis points (bps) and signalled further policy easing is on the table amid softening inflation. This leaves the current OCR at 4.75%.
Cuts Ahead
The accompanying Rate Statement communicated that the current economic landscape provides scope to reduce rates further....
Upcoming Earnings:
JP Morgan Chase & Co. (ticker: JPM) is scheduled to report earnings before the market opens on 11 October. The consensus earnings per share (EPS) estimate for the fiscal quarter ending September 2024 is US$4.04. The reported EPS for the same quarter a year prior was US$4.33.
Upside Strength; Price Rebounding from Ichimoku Cloud
Basic...
In an interview with the Guardian, Bank of England (BoE) Governor Andrew Bailey echoed a marked shift in tone today and underlined that the BoE could become more aggressive regarding policy easing if inflationary pressures continued to subside. This follows Bailey calling for a ‘gradual approach’ in September after the central bank held the Bank Rate steady at...
According to Israel, military forces have mounted a ground incursion across local communities around Southern Lebanon, in what it has described as a ‘limited operation’ against Hezbollah.
The Israel Défense Forces (IDF) described the attack as ‘limited, localised, and targeted ground raids based on precise intelligence against Hezbollah terrorist targets and...
Versus the Japanese yen (JPY), the British pound (GBP) is seen rebounding from its Ichimoku Cloud Support on the H4 chart. Made up of the Leading Span A (light green at ¥192.77) and the Leading Span B (light orange at ¥190.90), the Ichimoku Cloud Support is seen sharing chart space with traditional support at ¥189.94 and a 50.0% retracement ratio at ¥189.86....
‘Easy does it’ was today's primary message from the Bank of England (BoE).
Unlike the US Federal Reserve cutting rates by an outsized 50 basis points (bps) yesterday, the BoE is clearly in no rush to ease policy, with most policymakers backing a slow and steady approach.
In an 8-1 majority vote, the BoE left the Bank Rate on hold at 5.0% (external member Swati...
Inflationary pressures in Canada continued to subside in August, underpinning the possibility of more policy easing this year.
According to a report released by Statistics Canada (StatCan) earlier today, headline CPI inflation (Consumer Price Index) cooled to +2.0% in August (YoY), down from +2.5% in July and south of economists’ expectations of +2.1%.
This...
On track to end the week up +3.0%, spot gold (ticker: XAU/USD) has outperformed versus the US dollar (USD), underpinned by lower moves in US Treasury yields and the deterioration of the USD ahead of next week’s rate announcement from the US Federal Reserve.
Breakout Higher
In the latest edition of The Pattern Pulse, the FP Markets Research Team noted the...
Following economic activity in July stagnating for a second consecutive month, the focus was on the GBP/USD currency pair (British pound versus the US dollar).
Monthly Resistance
Technically, the trend remains to the upside for the pairing and recently reached a year-to-date high of US$1.3267.
Longer-term price action on the monthly timeframe is struggling...
The US dollar (USD) remains on the back foot versus the Japanese yen (JPY), poised to retest the August 2024 lows around ¥141.69.
Active Conversion Line/Base Line Resistance
While downside momentum has noticeably slowed for the USD/JPY currency pair, sellers are still in control. You will probably see that since the Conversion Line (blue at ¥144.49) crossed...
The S&P 500 fell sharply on Tuesday, shedding more than -2.0%. This completed a double-top pattern at 5,651 (just shy of all-time highs of 5,669) and positioned the Index within striking distance of the pattern’s take-profit objective at 5,472, which could serve as support. Complementing this level is the 50-day simple moving average at 5,505 and support at 5,488....
Looking at GBP/USD from a technical point of view, it is clear the pairing is higher in the long term, recently forging a fresh YTD high at US$1.3267.
Monthly Chart: Scope for Further Buying
Based on the monthly timeframe, the fresh high positioned price north of resistance coming in at US$1.3111, which could now deliver support to the market. The next port...
From a technical perspective, according to Moderna's weekly chart, sentiment is clearly to the downside in the long term. Following a test of support-turned-resistance at US$87.35, follow-through selling has emerged over the past few weeks. This has led price action within a stone’s throw of support consisting of US$74.46 and a trendline resistance-turned-support...
