FX

ISM Chicago PMI declined further in September and came in at 64.7. US Dollar Index remains on the defensive just below one-year tops. The Chicago Purchasing Managers Index released by ISM-Chicago dropped to 64.7 in September from 66.8 in the previous month, indicating further deterioration in business conditions. This was worse than consensus estimates pointing

AUD/USD bears are waiting in the flanks to pounce on poor Chinese data.  AUD/USD needs a lifeline, bulls look to 38.2% Fibo.  AUD/USD has been strongly offered overnight on a number of bearish fundamentals playing out and today sees key Chinese data in the next hour. The following illustrates the potential outcomes in price action

Silver witnessed fresh selling on Wednesday and drifted back closer to YTD lows. The set-up favours bearish traders and supports prospects for additional losses. Bears might wait for a break below the $22.00 mark before placing fresh bets. Silver struggled to capitalize on the overnight bounce from the vicinity of YTD lows, instead met with

US 10-year Treasury yields print five-day uptrend, sidelined of late. Fed’s Bulls reiterate support for tapering, Fed Chair Powell backed the move yesterday. US policymakers jostle to avoid debt ceiling expiry, President Biden cancels Chicago visit. US diplomatically reaches China to cut imports from Iran, Evergrande approaches coupon payment date. US 10-year Treasury yields remain

GBP/USD came under intense selling pressure on Tuesday amid a broad-based USD strength. Surging US bond yields, the risk-off impulse in the markets lifted the safe-haven greenback. Oversold RSI on the 1-hour chart warrants some caution for bearish traders ahead of Powell. The GBP/USD pair added to its heavy intraday losses and dived to sub-1.3600s,

USD/JPY edges higher on Tuesday following the previous day’s gains. Higher US Treasury yields underpin the demand for the US dollar. Hawkish Fed members, reduced contagion Evergrande risk and general risk-on mood aids USD. USD/JPY refreshes daily highs above 111.00 on Tuesday extending the overnight gains. The pair composed of nearly 40-pips movement in the

Julia Goh, Senior Economist at UOB Group, and Economist Loke Siew Ting, reviews the latest BSP event. Key Takeaways “As expected, Bangko Sentral ng Pilipinas (BSP) continued to retain its accommodative monetary policy stance…  The central bank kept the overnight reverse repurchase rate unchanged at 2.00% for the seventh straight meeting. Likewise, both the overnight

EUR/USD fades bounce off five-week low flashed last week. German election polls challenge Angela Merkel’s reign, dim bloc’s economic reform hopes. Risk-off mood underpins US dollar’s safe-haven demand, US Treasury yields cheer Fed tapering concerns. US Durable Goods Orders, risk catalysts eyed for fresh impulse, updates from Germany, Evergrande are the key. EUR/USD bears remain

Heading into a German Federal election on Sunday, the latest polls suggest that the race to the country’s leadership tightens, as the key candidates hold their final rallies. Sunday’s vote will mark the end of Chancellor Angela Merkel’s 16 years in office. Exit polls will be released when voting ends at 1600GMT on Sunday and

GBP/USD Weekly Forecast: Rate laurels go the the US Federal Reserve BOE leaves rates, asset purchases unchanged, warns on inflation. Federal Reserve and Chair Powell set the stage for bond taper. US Treasury rates move sharply higher after FOMC meeting. GBP/USD drops below 1.3700 in Friday trading. FXStreet Forecast Poll predicts stronger sterling. The Bank

The Dow Jones and the S&P 500 finished the day with gains of 0.1% each, while the Nasdaq was unchanged. Evergrande’s uncertainty will carry on throughout the weekend. Stocks rose, despite the new Federal Reserve hawkishness. Nike fell 6.5%, claiming supply chains crunch and high freight shipping prices. Two of the three major US stock

AUD/USD struggles at 0.7300 as the market mood is risk-averse. Evergrande’s failure to pay its bond interest weighs in the AUD. Australian Retail Sales and Building Permits for August could provide fresh impetus to AUD/USD. Earlier in the Asian session, the aussie was trading at daily highs around 0.7310’s, on the back of the positive

AUD/USD’s bounce was capped at the 0.7320 resistance. Terence Wu, FX Strategist at OCBC bank, expects the aussie to edge lower to test the 0.7200 level. Downside bias while below the 0.7300/20 key resistance zone “The AUD/USD will be a barometer of Evergrande risks in the near-term. Positives have taken it higher, but note that

Wall Street’s benchmarks rode the waves of positive risk sentiment.  Evergrande and the Fed were catalysts for an optimistic outlook for US stocks.  US stocks rallied on Thursday in broad risk-on sentiment while investors brushed off concerns that the Federal Reserve has turned more hawkish and is expected to reduce bond purchases “soon”. Instead, the Fed’s

GBP/USD bounces off key support just above 1.3600. BOE may hint at tapering, follow Fed’s footsteps. Will the rebound sustain on the BOE rate decision? GBP/USD is bouncing off pivotal support just above the 1.3600 level, as the US dollar keeps shedding ground amid an improvement in the risk sentiment. The bulls are attempting the last

What you need to know on Thursday, September 23: The greenback ended Wednesday higher against most major rivals, as the US Federal Reserve was quite hawkish, hinting at clearer definitions on tapering timing in its upcoming November meeting. “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases

Germany’s Ifo economic institute slash the country’s 2021 GDP growth forecast by 0.8 percentage points to 2.5% on Wednesday, in light of supply chain disruptions and slowing post-pandemic economic recovery. Additional details “Raises German 2022 growth forecast 0.8ppt to 5.1%.” “German economy to grow 1.5% in 2023.” “Sees German inflation at 3.0% in 2021, 2.3%

Evergrande contagion risk is abating and global stocks are back on track, supporting corrective prospects for AUD. Bulls eye a run back to a 50% mean reversion that meets old structure could be targetted near 0.7280. Failures below 0.7220 open risk of a retest of the mid-Aug lows and 071 the figure.  AUD/USD has been pressured