Gold inched higher on Friday supported by doubts that meeting between Trump and Xi will ease trade tensions. Xi made a list of preconditions in order to discuss their trade dispute, however, earlier White House economic adviser, Kudlow said Trump has agreed to no preconditions for his meeting with Xi reiterating that he didn't promise to pullback from imposing...
Gold retraced from a six-year peak in the last two sessions. Tempered fed fund rate cut expectations and widespread trade optimism cooled down buying of gold supporting the dollar. Gold retraced to 38.2% of an increase started in mid-June. The correction could be extended to 50% around 1390 if the talks in Japan prove to be successful. On a daily chart RSI still...
Pair is posting gains in the fifth day in a row. Aussie greatly benefited from the optimism among investors that the US and China may seal a deal in the following meeting at the end of the week. Moreover, RBA Governor Lowe implied that the Australian economy could benefit from infrastructure spending enabled by lower rates for government borrowing. As globally...
The pound is posting limited gains against the dollar as investors are cautious ahead of the main events. Political uncertainty is the main driver of the currency and it is unlikely to see much of support until the new PM takes on Brexit saga. The dollar pulled back from the multi-months lows following the Fed comments. The awaited G20 summit will make the biggest...
The Pound sharply fell from May onwards against the Canadian Dollar moslty weighed by the political uncertainty. BoE is likely to adjust the monetary policy depending on Brexit outcome. With Boris Johnson as a favourite to be next PM, no deal exit from the bloc is on the table. Canadian Dollar on the other hand gains on rising oil prices and dovish Fed....
The US stocks inched higher after falling in the previous session when Fed Chair Powell tempered the aggressive rate cut expectations. The index inched 1% after Treasury Secretary Steven Mnuchin said he is almost certain a trade deal between China and the US will be reached soon after forthcoming meeting in Osaka. Bloomberg News also reported that Washington will...
Kiwi extended gains against the Euro after the RBNZ held its interest rates on the current level. Yesterday's strong nation's trade data supported the currency against most of its peers inducing the Central bank to have less dovish tone. However, possibilities of a rate cut are still open. Pair is likely to retrace to 0.6800 level or 50% Fibonacci of an increase...
The Canadian Dollar advanced against Swiss Franc supported by the rising oil prices. Mideast crises along with the improved demand underpinned oil. API data showed decreasing crude stockpiles by 7.5 million barrels in the week ending June 21. Official EIA data are due later in the session. The commodity-linked currency could advance further to 0.7500 and if...
The pair is posting its fifth gain in a row against the loonie after RBNZ left the interest rates unchanged at 1.50% in line with the expectations. However, it did indicate a possible cut in the future if economic outlook deteriorates. The last rate cut was in May and by quarter percentage points. The Canadian dollar is supported by the rising oil price but the...
The Aussie advanced against the Japanese Yen following a bit of improvement in risk sentiment after the Fed Chair Powell spoke. There will be no aggressive rate cut but a quarter percentage point cut is certain. Investors are eying the talks between Trump and Xi for further cues on trade negotiations. Any sign of an improvement could support the pair advancing to...
Pair surged after the official data showed better-than-expected May trade surplus and record exports. Exports rose to $5.8 billion in May, an 8.5 percent from a year earlier, with imports rising 7.6 percent to $5.5 billion. The surplus accounted for $264 million beating expectations for $200 million. The dollar plunged against most of the peers. Trump blamed Fed...
Dow changed little on Tuesday as markets are awaiting Fed Chair Powell to speak after assuming dovish stance in the last minutes. Investors are fully pricing Fed funds rate cut in the next July decision and as much as 50 basis points by the year-end, It would support the stock market and lead Dow upwards. New highs in sight are even more certain after the US and...
Both haven Swiss Franc and Japanese Yen benefited from an economic turmoil. However, the world's biggest creditor currency is gaining against the Swiss Franc heading below the daily 50 MA. Most of the May it moved sideways, however, falling to 108.00 and below could open the way to lower band around 107.00. Appreciation of Yen is not, however, welcomed as Japan is...
Gold extended gains on Tuesday rising more than 6% since last week to the highest level in six years. Plunging dollar, rising tensions in the Mideast and dovish Fed supported bullion. Investors rushed in buying gold to seek protection. The precious metal could see further rally if Trump and Xi fail to make truce in the meeting in Osaka later in the week. The...
Pair is rebounding from a 15-days low. ECB signalled it may cut rates in order to support the growth, however, the rates are already running in the negative territory leaving little space for a manoeuvre. Haven Yen, however, will benefit from the economic weaknesses. Not many data to expect in the weak ahead apart from the Eurozone CPI on Friday. Whether the price...
The dollar lost its ground after the Fed changed its "patient" approach pledging it would act appropriately according to the economic outlook. It clearly opened the door for rate cuts devaluating its currency. Both US inflation expectations for 2019 and 2020 were revised down. Swissie could benefit because of its haven feature. Pair is heading to a year low,...
Euro struggles to rebound from previous falls. Friday data showed services PMI for Eurozone advanced to 53.4, but manufacturing slowed to 47.8 showing a strong contraction. Overall, Markit PMI advanced to 52.1. Bearish sentiment persists but overvalued Swiss Franc is not welcomed indicating SNB could intervene. The new low at 1.1500 in sight. If breached the...
Australian Dollar posted small gains against Swiss Franc on Monday. However, following RBA rate cut in June meeting bearish sentiment weighs on Aussie. Markets are highly speculating around the next cut in July minutes. Haven Swiss Franc benefits from a weak economic outlook. Pair is trading far below 50 MA being in the oversold area according to RSI. Pair aims...