Asian equities are trading mixed as investors have turned cautious on slippage in US indices futures. The renewed recession fears have put the DXY on the tenterhooks. On the oil front, investors are shifting their focus on prolonged supply worries. Markets in the Asian domain are displaying mixed responses to falling S&P 500 futures in
FX
The EUR/GBP seesawed in a volatile 100-pip trading session on Friday. Weak data from the UK and the EU left traders undecided on which direction to take. The EUR/GBP daily chart depicts the pair as upward biased, but the 4-hour illustrates the cross might correct towards 0.8550 before resuming the uptrend. The EUR/GBP advances during
The USD/CAD ended the week almost flat amidst a volatile’s Friday session. Canada’s May GDP contracted by 0.2%, on its preliminary reading, a headwind for the CAD. US manufacturing data showed signs of slowing down; will the Fed slow its tightening pace? The USD/CAD pares some of Thursday’s losses after reaching a weekly high of
Analysts at MUFG Bank, point out that the South Korean won will likely remain affected by the ongoing concerns on global economic growth and the tightening from the Federal Reserve. They forecast USD/KRW at 1250.00 by the end of the second quarter, and at 1230.00 by the fourth quarter. Key Quotes: “KRW depreciated this June
The USD/CHF to finish the week with decent gains of 0.39%. Risk-aversion dominates Friday’s session, as throughout the whole week. The USD/CHF double top in the daily chart is still in play, but failure at 0.9544, paves the way for further gains as buyers eye 0.9700. In the near term, the major is upward biased,
Emerging market currencies extend weekly losses on Friday. US dollar firm on risk aversion, DXY up 0.65%. USD/MXN testing critical resistance that contains the 100-week SMA. The US dollar is rising against emerging market currencies on Friday, extending weekly gains boosted by global concerns about the growth outlook and as central banks raise interest rates.
A double top formation strengthens the odds of a bearish reversal in the asset. An establishment below the 20-and 50-period EMAs adds to the downside filters. The RSI (14) is attempting to shift into the bearish range of 20.00-40.00. The USD/JPY pair has witnessed a significant fall after violating the crucial support of 135.55 in
USD/MXN turns negative, after hitting weekly highs near 20.30. A recovery in market sentiment helped the Mexican peso during the American session. A consolidation above 20.20 is likely to trigger more gains. Emerging market currencies recovered ground during the American session from multi-day lows. They remain under pressure affected by the sharp decline in global
USD/CAD is likely to display some losses as DXY skids and oil rebounds. As per Fed Powell, even a spree of rate hikes doesn’t guarantee the return of the inflation rate to 2%. Oil prices witnessed a significant correction as comments from central banks diminishes demand forecasts. The USD/CAD pair has sensed barricades around the
Gold reversed from two-day highs and is back near weekly lows. US dollar rises across the board following comments from Portugal. Gold prices dropped sharply during the American session, erasing daily gains. XAU/USD peaked at $1833, the highest level in two days and then turned lower, falling to $1814, slightly above the daily low of
EUR/USD fades bounce off weekly low as amid market’s anxiety ahead of the key data/events. ECB’s Lagarde failed to recall pair buyers amid inflation fears, yields remain pressured amid recession risks. Fed’s Powell need to defend hawkish policy moves to keep USD buyers hopeful. EUR/USD struggles to defend the early Asian session’s corrective pullback during
Consumer confidence in the US continued to weaken in June. US Dollar Index clings to strong daily gains near mid-104.00s. The data published by the Conference Board showed on Tuesday that the Consumer Confidence Index dropped to 98.7 in June from 103.2 in May. This print came in weaker than Reuters’ estimate of 100.00. Further
AUD/USD extends the previous day’s pullback from weekly top, stays pressured around intraday low. Market sentiment dwindles amid fears of recession, lack of major catalysts challenge momentum traders. Australia’s business sentiment gauge dropped for the second month, China rejects expectations of heavy stimulus. RBA rate hike expectations ease ahead of Wednesday’s Aussie Retail Sales, US
The AUD/USD reports minimal gains of 0.03% on Monday. Higher global bond yields shifted Wall Street sentiment mixed, a headwind for the AUD. AUD/USD Price Forecast: Range-bound but skewed to the downside. The AUD/USD seesaws from daily highs around 0.6958 printed during the Asian session towards daily lows near 0.6910, in a narrow trading range
China’s economy is expected to grow 4.7% this year, Wang Yiming, an adviser to the monetary policy committee of the People’s Bank of China (PBOC) said in a statement on Monday. Wang said, China’s economy could see a strong rebound in the second half, “but difficulties remain for the 5.5% target”. On Saturday, the central
The shared currency finished the week with decent gains of 0.21%. Sentiment remains optimistic, despite recession fears threatening. EUR/GBP Price Analysis: Remains upwards but struggling at 0.8600 might open the door for selling pressure. The EUR/GBP accelerates for the fourth day out of five in the week, set to finish with decent gains of 0.21%.
The NZD/USD erased early week losses and finished the week flat. On Friday, recession fears abated, but growing risks remain skewed to the downside. St. Louis Fed’s Bullard commented that the US economy is fine and that recession worries are exaggerated. The New Zealand dollar recorded solid gains vs. the greenback, snapping two days of
The EUR/USD is about to end the week hovering around 1.0550, with a modest gain. Analysts at Rabobank continue to see the risk of a dip back to the year’s low at the 1.0350 region on a one to three-month view. They revised lower their 12-month forecast to 1.08 from 1.10. Key Quotes: “The move