FX

Recap 8/25 – The S&P opened with a 12 handle gap up, rallied another 4 handles and then pulled back 9 handles into a 9:35 AM low of the day. From that low, the S&P rallied 36 handles into a 10:46 AM high.  From that high, the S&P declined 29 handles into a 12:50 PM low. 

What you need to take care of on  Friday, August 26: The greenback ended Thursday mixed across the FX board, although there were no significant changes among major pairs. Investors are mildly optimistic as macroeconomic figures were upbeat but cautious ahead of central banks’ governors, set to speak within the Jackson Hole Economic Symposium. Germany

EUR/USD rebounds to 3-day and advances above the parity level. Germany Business Climate came almost unchanged in August, The Jackson Hole Symposium will take centre stage in the next days. The generalized better tone in the risk complex lifts EUR/USD back above the parity level, although the bull run has so far stalled around 1.0030

NZD/USD is back under pressure following a resurgence in the greenback. The bulls, however, are also feeling the heat in an unfavourable commodities complex environment. NZD/USD is trading at 0.6190 and has been in a range of between 0.6162 and 0.6218 on the day, losing some 0.3% currently into a sleepy close on Wall Street. 

USD/CNY has recently broken above the closely watched 6.80 level. Economists at HSBC expect the CNY’s depreciation to be more gradual and modest this time around. Some potential catalysts could trigger USD/CNY to decline “Currency-wise, USD/CNY has recently broken above the closely watched 6.80 level. We think this means USD/CNY will likely trade in a

Gold is on the verge of a downside correction following today’s 2-year auction and recovery in yields.  Gold bulls are eyeing a deeper correction on the daily chart.  The Fed is the theme with US data taking the front seat in markets.  The gold price rallied on Tuesday following US data that proves the Federal

USD/JPY is likely to overstep the immediate hurdle of 137.40 amid upbeat DXY. Soaring expectations of the Fed’s continuation on a path of interest rate elevation are strengthening the DXY. Also, investors have underpinned the greenback against the yen on downbeat Japan PMI data. The USD/JPY pair is struggling to overstep the immediate hurdle of

USD/CAD reaches a fresh six-week high at 1.3048 on falling crude oil prices and broad US dollar strength. Last week’s Fed hawkish commentary weighed on market mood, with traders preparing for Fed Chair Jerome Powell’s speech. Money market futures odds of a 75 bps rate hike by the Fed lie at 82.8%. The USD/CAD broke

While it’s been a good summer for equities in general after a torrid first half of the year, tech titan Apple (NASDAQ: AAPL) is having a particularly sunny couple of months. Since the start of June their shares have rallied more than 30%, effectively reversing the 30% drop they’d been experiencing since March. What had

EUR/GBP is set to finish the week with gains of 0.49%. Euro buyers stepped in around weekly lows below 0.8400, under the 20, 50, and 200-DMAs. A daily close above 0.8500 might open the door for a re-test of 0.8600. The EUR/GBP extended its rally to three consecutive days, breaking on its way north the

The gold price plunged 3% in the week, despite investors’ perceived dovishness of July’s FOMC minutes. US central bank policymakers continued their campaign against inflation, even though they acknowledged downside risks to growth. Gold Price Analysis (XAU/USD): Break below $1750 opened the door towards the $1711-$1739 range. Gold price drops for the fifth-consecutive day, set to

AUD/USD plunged more than 0.50% on Friday amidst a buoyant greenback. The major slid in each day of the week; losing between Monday-Wednesday almost 3%. A break below 0.6869 clears the path towards 0.6800, followed by 0.6718. The AUD/USD refreshed four-week lows preparing to finish the week with hefty losses, equal to 3.50%. The Aussie

Sticky Russian oil output requires a crude rethink. Strategists at ING have revised their forecasts lower. Oil prices will remain elevated “Stubborn Russian oil output and weaker than expected demand growth mean the oil market is likely to remain in surplus for the remainder of this year and into early next year, which should limit

Richmond Federal Reserve Bank President Thomas Barkin said on Friday that FOMC policymakers had “a lot of times still” before they decide on the size of the September rate increase, as reported by Reuters. Additional takeaways “Fed will need to move rates to restrictive territory but will take signal from the economy on how high that

EUR/USD bulls step in and give some much-needed stability to an otherwise sinking ship. The US dollar has been lit up by the Fed’s hawkish narrative at the end of the week.  EUR/USD is attempting to correct from the lows of the day so far and is back to a flat position in the third

Tesla stock run out of charge and finished Wednesday in the red. Elon Musk “joked” about buying Manchester United. Meme stock rally in full force, but TSLA struggles for momentum. UPDATE: Tesla stock is trying in earnest to hold onto the $900 price level. This is the fourth session in a row that TSLA has traded near the $900 level

AUD/JPY sellers attack a two-week-old support line on downbeat Australia employment data. Australia’s Employment Change marked surprise slump in July, Unemployment Rate eased. MACD, RSI suggest sluggish conditions, which in turn challenge bears. 200-HMA, previous support line restricts immediate upside. AUD/JPY remains pressured near 93.50 as sellers attack a fortnight-long support line during Thursday’s Asian

GBP/USD witnesses an intraday turnaround and retreats nearly 100 pips from the daily high. The USD retains its monthly peak and turns out to be a key factor exerting pressure. The US Retail Sales fail to provide any impetus as the focus remains on the FOMC minutes. The GBP/USD pair extends its intraday retracement slide