FX

Russia will not be supplying natural gas to Germany until further notice. Can Germany close the natural gas gap? Strategists at Commerzbank try to give an answer. Rationing threatens in winter “In the best-case scenario (the 80 TWh gas gap) and a mild winter, supply could just about be met through conservation and stock withdrawals,

GBP/USD prints seven-day downtrend as bears attack the year 2020 bottom. Firmer DXY joins fears of worsening energy crisis to exert downside pressure. Liz Truss’ plan to overcome cost of living crisis gains more accolades than Rishi Sunak’s reasoning. Any recovery on Truss’ selection appears tepid amid US holiday, broad risk-off favoring the greenback. GBP/USD

The US official employment report showed the US economy added 315K jobs in August, slightly above expectations of 300K; the unemployment rate rose unexpectedly from 3.5% to 3.7%. According to analysts at Wells Fargo, today’s data in isolation tilt the scales toward a 50 basis points interest rate hike at the Fed’s September meeting but

Next week, the Bank of Canada will have its monetary policy meeting. Market consensus is for an increase in the key rate to 3.25%. Analysts at TD Securities look for the BoC to deliver a 75 basis point hike, bringing rates into restrictive territory. They see little incentive for smaller hikes CPI running well above

Lululemon Athletica stock soared 10% after fiscal Q2 earnings, revenue beat. Wall Street expected EPS of $1.87 on revenue of $1.77 billion. LULU reported FQ2 EPS of $2.26 on $1.87 billion in sales. And they have done it again! Lululemon Athletica (LULU) burst out of its shell to advance 10% in Thursday’s extended trade after the athleisure brand showed

Gold price re-attempts $1,700 amid a dead cat bounce, pre-NFP caution. Aggressive global tightening bets, China covid lockdowns keep investors on the edge. XAU/USD closed Thursday below $1,700, bears target $1,681 and $1,677.     Gold price is attempting a dead cat bounce from six-week lows of $1,689, as investors reposition in the run-up to the

The US Bureau of Labor Statistics (BLS) will release the August jobs report on Friday, September 2 at 12:30 GMT and as we get closer to the release time, here are the forecasts by the economists and researchers of eight major banks regarding the upcoming employment data. Expectations are for a 300K rise in Nonfarm

China’s state media quoted the cabinet meeting as saying that Beijing will publish detailed steps for a set of newly-announced policy measures in early September. Key takeaways China will guide commercial banks to provide medium- and long-term loans for key projects and equipment upgrading. To prop up the weak property market, China will also support

How low can the pound go? The GBP/USD pair could dive as low as 1.10, in the opinion of economists at Scotiabank. GBP will not react well to renewed equity market weakness  “Beyond the stagflation risk, the GBP will not react well to renewed equity market weakness as central banks persist with interest rate increases

NZD/USD stays defensive around 1.5-month low, pares recent losses. China flashed upbeat prints of NBS Manufacturing PMI, Non-Manufacturing PMI for August; New Zealand’s ANZ sentiment numbers also improved. Market sentiment dwindles amid recession fears, hawkish Fed bets. US ADP Employment Change can direct intraday moves; NFP is the key. NZD/USD prints mild gains as it

Gold meets with a fresh supply on Tuesday and drifts back closer to a one-month low. Aggressive Fed rate hike bets continue to drive flows away from the non-yielding metal. Retreating US bon9d yields, a weaker USD does little to impress bulls or lend any support. Gold struggles to capitalize on the previous day’s goodish

NZD/USD picks up bids to refresh intraday high, extends recovery from six-week low. Impending bull cross signals further upside, 50-SMA adds to the upside filters. Sellers have a bumpy road to the south before testing yearly low. NZD/USD refreshes intraday top around 0.6180 while extending the previous day’s rebound from a 1.5-month low during Tuesday’s

A dramatic USD turnaround from a 20-year high prompts some short-covering around GBP/USD. Hawkish Fed expectations, rising US bond yields and the risk-off mood should limit the USD losses. The UK’s gloomy economic outlook suggests that the attempted recovery is likely to be short-lived. The GBP/USD pair stages a goodish bounce from the 1.1650-1.1645 region,

GBP/USD leans bearish towards 1.1680 as it drops to the fresh low since March 2020, extending Friday’s downside momentum, despite bullish options market signals. That said, the one-month risk reversal (RR) for the GBP/USD, a difference between the call options and the put options, printed a four-day uptrend by the end of Friday, to 0.025

Silver price prepares to finish the week with losses of 0.64%. Fed’s Chair Powell reiterated the US central bank goal of bringing inflation down, even if it generates “pain to households and businesses.” Upbeat US economic data weighed on the white metal prices, plummeting more than $0.30. Silver price tumbles from around weekly highs around

EUR/GBP prepares to finish the week almost flat, compared to last week’s marginally down 0.06%. The cross-currency pair is range-bound in the 0.8400-0.8490 area, though risks are skewed to the upside. A EUR/GBP break of 0.8500 could put a re-test of the YTD high into play. The EUR/GBP advances to fresh weekly highs, above the

USD/MXN remains above 19.90 but faces pressure. More losses seem likely while under 20.20. The USD/MXN is modestly higher on Friday, but it remains under 20.00. The pair found support above 19.80 and rebounded. The move higher so far shows the lack of strength, keeping the bias in favor of the Mexican peso. A consolidation

NZD/USD plunges more than 1% on Friday, in a risk-off mood. Powell said it would “bring some pain to households and businesses” in achieving the Fed’s 2% goal. US inflation readings show signs of peaking while US consumer sentiment improves. The NZD/USD dropped to fresh weekly lows of 0.8150 on Friday, following hawkish remarks by