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DOW JONES INDUSTRIAL AVERAGE GRAPPLES WITH FED RATE CUT HOPES AND CAUTIOUS FEDSPEAK
Dow Jones softly higher on Tuesday but risk appetite remains tepid.Fed officials throw caution about broad-market rate cut hopes.Rate markets still see nearly 70% odds of a September rate trim. The Dow Jones Industrial Average (DJIA) finds thin gains on Tuesday, climbing around a tenth of a percent
Technical analysis: Mexican Peso on backfoot as USD/MXN aims toward 16.90
The USD/MXN downtrend remains intact, though it seems to bottom out near the 50-day Simple Moving Average (SMA) around 16.80. Worth noting that on Monday, I wrote that sellers were “gathering momentum as shown by the Relative Strength Index (RSI).” Nevertheless, the RSI has shifted bullish, which co
Daily digest market movers: Mexican Peso appreciates ahead of busy schedule
Last week, Banxico’s April poll showed that private economists estimate inflation to end the year at 4.2% in 2024, underlying prices at 4.1% and the economy to grow by 2.25%. Regarding the USD/MXN, analysts revised their projections downward from 18.10 to 17.Mexico’s economic calendar will feature t
DXY technical analysis: DXY presents battle with bears struggling to hold command
On the daily chart, the Relative Strength Index’s (RSI) positive slope indicates the presence of upward momentum, albeit in negative territory. This suggests that bears currently have control, though buyers are fighting back. The Moving Average Convergence Divergence (MACD) shows a reduction in
US DOLLAR SCORES MILD GAINS IN QUIET TUESDAY
There won’t be any high-level US reports due this week.Fed officials aren’t providing any new insights on the bank’s next movements.The next highlight will be next Wednesday when the US releases April’s CPI figures. The US Dollar Index (DXY) is trading at 105, registering mild gains. Market dyn
Technical analysis: Canadian Dollar stubbornly swims in familiar circles
The Canadian Dollar (CAD) is broadly softer on Tuesday, giving up most of Monday’s early gains to trade into familiar bids. The CAD is flat to down across the board, shedding around a third of a percent against the New Zealand Dollar (NZD) and the Euro (EUR). The CAD is also down around a quarter of
Daily digest market movers: Upbeat Canadian PMIs fail to spark bullish interest
Canada’s seasonally-adjusted Ivey PMI for April improved to 63.0 from 57.5, beating the forecast of 58.1.April’s Ivey PMI hit a two-year high, printing its highest activity survey result since May of 2022.Broader markets continue to focus on Fedspeak as investors hope for signs of rate cuts from the
CANADIAN DOLLAR SKITTISH ON TUESDAY DESPITE IMPROVING IVEY PMI
Canadian Dollar easing but sticking to midrange.Canada Ivey PMI beat expectations in April.CAD markets wait for Friday’s Canadian labor data. The Canadian Dollar (CAD) was broadly softer on Tuesday but stuck close to near-term technical levels as CAD markets shrugged off better-than-expected Ivey Pu
GBP/USD Price Analysis: Technical outlook
The daily chart portrays the pair as neutral-biased, with momentum skewed to the upside, as depicted by the Relative Strength Index (RSI). The RSI is bullish, though close to the 50-midline, an indication that volatile price action could trigger a momentum shift. With that said the first r
GBP/USD PRICE ANALYSIS: RANGE BOUND AROUND 200-DMA, AWAITING BOE’S DECISION
GBP/USD trades with minor losses, movements bounded by key levels before BoE decision.Technical outlook neutral to slightly bullish; resistance at recent high of 1.2594 and 50-DMA at 1.2607.Break below 200-DMA at 1.2545 could trigger further declines, with supports at 1.2500 and May 1 low of 1.2466.
Ueda changes his mind about impact of weak Yen
Given the continued verbal warnings from Japan’s various “Princes of the Yen” however, USD/JPY bulls will still need to be mindful of possible “snakes” of intervention bringing prices sliding back down. On Tuesday, Bank of Japan (BoJ) Governor Katzuo Ueda once again repeated that excessive Yen
Yellen cautions Japanese authorities
USD/JPY has benefited from another backdraught of late after it was revealed that Janet Yellen was not as supportive of Japan and Korea using intervention to prop up their currencies as had been thought – especially after their recent currency summit. In words over the weekend, Yellen was
USD/JPY TRADES HIGHER AS USD FINDS ITS FEET. INTERVENTION STILL A THREAT
USD/JPY recovers after last week’s losses on possible intervention and weak US jobs data. Janet Yellen’s mild criticism of intervention may have helped the pair higher. Japanese currency officials continue to threaten intervention, filling the road higher with “potholes”. USD/JPY&nbs
FED'S KASHKARI: INFLATION MOVING SIDEWAYS RAISES QUESTIONS ABOUT HOW RESTRICTIVE POLICY IS
Minneapolis Federal Reserve President Neel Kashkari said on Tuesday that inflation moving sideways raises questions about how restrictive policy is, per Reuters. Key takeaways "Housing market is proving more resilient to tight monetary policy than it has been in the past." "Possible that h
SILVER PRICE FORECAST: XAG/USD HOLDS GAINS ABOVE $27 ON FED RATE-CUT OPTIMISM
Silver price exhibits gains above $27.00 due to deepening optimism over Fed reducing rates in September.Weak US labor market boosts expectations of Fed rate cuts.Lower bond yields improve demand for Silver. Silver price (XAG/USD) falls slightly from weekly high of $27.50 but manages a firm-footing a
Pull-up Update