EURUSD: key events loom As a reminder, the central bank cut the fed funds rate 0.25% in July for the first time since December 2008. Traders expect the Fed to cut the rate by another quarter percent next month and will be thoroughly assessing the message from the minutes in this context. The dollar holds steady ahead of this event, also focusing on the...
The EURUSD pair has been nursing losses for a fifth day in a row on Monday, with the euro remains under the selling pressure despite a better risk sentiment in the global financial markets after the Chinese central bank unveiled a reform of the LPR formation mechanism in order to make borrowing costs lower for companies and support the local economy, suffering...
Gold prices remain in the uptrend, with the bullion refreshed six-year lows earlier this week. This is the thirteenth week of growth out of fourteen, and demand for the precious metal remains robust despite overbought conditions. On Thursday, however, the prices have settled around $1,1520 and struggled to challenge new highs. In early session on Friday, the...
Recession fears sent Brent crude lower on Wednesday as the inverted US Treasury yield curve spooked global investors and sparked a widespread risk aversion. As a result, oil prices slipped to lows marginally above $58 and are clinging to the $59 handle early on Thursday. Apart from a broad risk-off sentiment, Brent came under renewed bearish pressure amid...
Global equity markets are broadly lower again on Tuesday, with safe-haven gold retains support amid regional fears. Continued political tensions in Hong Kong coupled with a plunge in the Argentina’s peso after voters signaled they could reject market-friendly President Mauricio Macri at an election in October, unnerve investors, in addition to lingering trade...
The recent escalation in the US-China trade war fueled an aggressive risk aversion, which in turn pushed the safe-haven yen higher. USDJPY registered fresh 2019 lows around 105.45 yesterday and remains under the selling pressure on Thursday. Market sentiment has deteriorated after Washington determined China as a currency manipulator following a dip to...
On Monday, rising US-China trade tensions triggered a massive sell-off in global equities but the greenback failed to take an advantage as a safe-haven currency. That’s because lower odds of striking a trade deal fuels expectations of delivering more aggressive stimulus measures by the Federal Reserve which is a bearish sign for the dollar. Against this...
Brent crude remains relatively resilient amid a massive sell-off in the global financial markets. Trump escalated his trade war with China last week, with Beijing wowed to retaliate. Moreover, the yuan plunged below 7 per dollar for the first time since 2008, which may be a sign that China doesn’t expect a conclusion of a trade deal any time soon. As such,...
After the latest round of talks ended with no signs of a breakthrough, Trump unexpectedly escalated trade war with China. Overnight, the US President threatened to impose fresh 10% tariffs on another $300 billion of Chinese goods. As a result, risk aversion intensified across the global markets, lifting safe-havens including the Japanese yen. Following the...
The uncertainty on further easing by the Federal Reserve increased after the central bank’s tone came not as dovish as expected. Powell’s rhetoric fueled a widespread dollar rally which sent gold prices lower on Wednesday. The precious metal extended losses to $1,404 today, with the futures are now threatening the $1,4000 handle. As investors priced in a...
Mixed Chinese PMI data coupled with fresh threats from Trump curbed investor optimism early on Wednesday. However, the greenback failed to attract safe-haven demand as traders turned cautious ahead of the crucial Federal Reserve decision. Trading ranges in the currency markets are tight, with the dollar is under a mild pressure against major counterparts. As...
Ahead of this week’s resumption of the U.S.-China trade talks and FOMC monetary policy decision, crude oil prices regained some ground on Monday and keep trading with a modest bullish bias today, as traders hope for at least some progress in relations between the two world’s largest economies after a break. Meanwhile, U.S. President Donald Trump said...
GBPUSD extends losses on Monday, with the pair registered fresh more than two-year lows around 1.2320, now threatening the 1.23 figure. After two bearish weeks, sterling remains under pressure from two major factors – stronger USD and growing threat of a no-deal Brexit. The greenback remains on the offensive against major counterparts as the latest strong...
EURUSD managed to attract some demand around 1.11 on Thursday and finished with marginal gains. The central bank left the key rates unchanged and the accompanying statement was rather dovish but Draghi’s speech was more neutral as the central bank governor pointed to “pretty low” recessionary risks and noted that the governing council should assess fresh...
There is rising volatility in the oil market, with Brent plunged from daily highs around $64.60 to $62.50 and finished around the $63 handle on Wednesday. It looks like traders remain at a loss due to a number of conflicting signals and drivers in the industry. Today, the futures are trading with a modest bullish bias but downside risks persist. The Energy...
EURUSD dived to nearly two-month lows around 1.1140 on Wednesday, as the selling pressure intensified after a break below the 1.12 support that capped the sellers since mid-June. A widespread dollar demand was one of the key drivers behind the reversal, with rising trading tensions add to the pressure. On Tuesday, the EU trade chief said that the European...
Crude oil prices failed to show a sustainable recovery on Monday and has been trading with a modest bullish bias on Tuesday. Brent has settled marginally above the $63 handle and remains vulnerable to losses as the bulls remain on the sidelines amid conflicting signals in the market. Brent is now torn between geopolitics and worries over oversupply. On the...
EURUSD dropped dramatically on Friday and remains marginally above the 1.12 handle today, trying to show a bullish bias as dollar demand looks subdued after the recent rally. Volatility in the market remains elevated amid conflicting signals from the Federal Reserve officials ahead of the crucial meeting later this month. Now, traders shift focus to the ECB...