A combination of peace and stronger dollar saw Gold with a big sell-off Tuesday closing just above the days lows. While inflation pressures elsewhere proved to be a boon for the US dollar we note that Gold is actually the traditional asset used to hedge against rising prices. As such we could see the yellow…
EURUSD yesterday was mostly a US story with the market once again focusing on inflation pressures with the Employment Cost Index coming in at 1.2% against a 1.0% quarter-on-quarter forecast. The Euro area mostly saw second liner data with Flash CPI Estimates for the region mostly inline with the consensus forecast at 2.4%. Ahead we…
Strengthening Dollar Amidst Inflation Concerns The U.S. dollar is experiencing a rebound, primarily driven by the latest Employment Cost Index, which rose by 1.2% in Q3, indicating the fastest pace of increase since the same quarter in 2022. This surge in employment costs contributes to a broader narrative that the U.S. economy remains robust, characterized…
Shōwa Day, the late Emperor Hirohito’s birthday fittingly saw USDJPY taking a peak of the 160 region for highs at 160.192 before seeing the pair crash back to the 155 region ahead of the open of European Markets. Note, the fundamental picture for the currency is little changed from what it was last Friday when…
The British Pound has remained buoyant at the start of the week pushing past prior highs on the lack of fresh perspective. This said the fundamental picture of the UK is little change inflation is easing and manufacturing on a contraction. For today potential driver for the pair will be US Employment Cost Index and…
The upcoming release of China’s official Purchasing Managers’ Index (PMI) for April (0130GMT) could signal a slight deceleration in the manufacturing sector, with the PMI projected to decrease to 50.3 from 50.8 in March. This suggests that China’s manufacturing activity is expanding at a slower pace, barely maintaining above the critical 50-point mark that separates…
As we head into another eventful week in global markets, several key indicators and policy decisions are poised to shape investor sentiment and market dynamics. Here’s a comprehensive look at the expected movements and their potential impacts: USD and Federal Reserve Focus This week, all eyes will be on the Federal Reserve’s monetary policy decision…
After seeing a big sell-off Monday the past week, Gold was mostly in a range play crisscrossing its previous accelerated trend-line from February 28. This as geopolitical tensions in the middle east has come-off with Iran’s decision not to retaliate directly against Israel. That said a looming ground attack by Israel on Rafa in southern…
Oil markets stayed on pace with the general dollar dumping with the previous weeks bounce attributed to the possibility of rate cuts possibly driving demand. For now we have little catalyst early in the week which suggest we play a range retreating to the trendline, likely not pushing under last weeks lows. On the top…
Cable has been a major beneficiary of dollars retreat the past week given a strong performance of its services sector. But with manufacturing still in contraction and inflation pressures easing faster vis-a-vis the US, policy risks still point at the BoE possibly being the first to ease among the major central banks. Ahead we have…
