Iron ore Futures in China dropped 6.0% as demand from the largest user deteriorates in April. Global growth fears, a firmer USD also weighs on the commodity’s prices. Iron ore prices on the Dalian Commodity Exchange not only fail to extend Friday’s corrective pullback but also drops more 6.0% while taking offers towards $124.00 heading
FX
Risk-aversion lifted the low-yielder EUR, despite broad US dollar strength. The US labor market keeps strengthening, adding 428K jobs to the economy. EUR/USD Price Forecast: In the long-term downward biased, but the 1-hour chart depicts the pair as neutral-upwards. The EUR/USD trimmed some of Thursday’s losses, and it is set to finish the week on
GBP/USD grinds lower but stays around 1.2350s after upbeat US NFP report The British pound appears to regain composture but remains losing in the day, down 0.06%, after the Bank of England hiked rates by 25-bps on Thursday. At the time of writing, the GBP/USD is trading at 1.2352. The GBP/USD is still downward biased, though
The Australian dollar finished the week in an upbeat tone, with gains of 0.15%. A dismal market mood was not an excuse for the AUD to appreciate vs. the greenback. The pace of rate hikes by the RBA/Fed would favor the US dollar. The AUD/USD snapped five consecutive weekly losses and is recording decent gains
The US economy created 428.000 jobs for the second month in a row, near market expectations. According to analysts at Wells Fargo, the report is solid and reinforces their belief that the Federal Reserve will execute another 50 bps interest rate hike at its next meeting on June 14-15. Key Quotes: “Nonfarm payroll growth barreled
The GBP/USD will finish the week with hefty losses of 1.74%. Positive US employment figures and BoE’s speaking keeps the GBP downward pressured. GBP/USD Price Forecast: To remain downward biased unless GBP bulls reclaim 1.2600. The British pound appears to regain composture but remains losing in the day, down 0.06%, after the Bank of England
Peter Chia and Quek Ser Leang, FX Strategists at UOB Group, suggested that EUR/USD could accelerate losses on a breakdown of 1.0470. Key Quotes 24-hour view: “The sharp and swift sell-off in EUR came as a surprise as it plummeted to 1.0491 before rebounding. The rapid decline appears to be running ahead of itself but
Wall Street is falling sharply, volatility soars as US yields hit multi-year highs. Emerging market currencies are under pressure on risk aversion. USD/MXN erases losses and looks at 20.50. The USD/MXN is rising sharply on Thursday, erasing Wednesday’s losses and so far, recovering 20.30. During the last two hours, the pair rose more than 1.20%
USD/CAD renews weekly low during three-day downtrend. EU sanctions on Russia challenge oil supplies, underpinning energy prices. Fed’s Powell triggered USD weakness by rejecting 75 bps rate hike expectations. Second-tier US data, risk catalysts will direct short-term moves ahead of Friday’s jobs report from the US and Canada. USD/CAD remains pressured around a one-week low,
Gold prices continue to trade in subdued fashion in the $1860s with markets in wait-and-see mode pre-Fed. A hawkish surprise could send the precious metal under $1850 and towards its 200DMA in the $1830s. The fact that XAU/USD is in a bearish trend channel makes any rally more difficult. Spot gold (XAU/USD) prices are trading
USD/JPY has cemented around 103.00 on lower volumes in the Fx domain. A 50 bps has already priced in, so focus shifts to further guidance. An ultra-loose monetary policy by the BOJ has kept the Japanese yen on the edge. The USD/JPY pair is sustaining itself above the round level support of 103.00 in a quiet
The Aussie dollar gains some 0.72% on Tuesday, following the RBA’s 0.25% rate hike. The RBA’s also noted that it would begin its Quantitative Tightening. AUD/USD Price Forecast: Failure at 0.7165 paved the way for further losses. The Australian dollar registers solid gains after the Reserve Bank of Australia (RBA) delivered a “surprisingly” rate hike
AUD/JPY justifies RBA’s hawkish action while taking bids to refresh intraday high. RBA crosses wide market forecasts with a 25 bps rate hike to 0.35% benchmark rate. Off in Japan restricts bond moves, favoring cautious optimism ahead of top-tier events. Risk catalysts will be important to determine near-term directions, FOMC is the key. AUD/JPY jumps
The April US ISM Manufacturing PMI was weaker than expected at 55.4, with drops across the major sub-indices. FX markets did not react to the latest data. The headline ISM Manufacturing Purchasing Manager’s Index (PMI) fell to 55.4 in April from 57.1 in March, below expectations for a small rise to 57.6, according to the latest release by the Institute for Supply Management (ISM).
GBP/USD retreats towards the two-year low marked last week, fades the previous day’s rebound. BOE vs. Fed drama keeps the pair pressured, Brexit woes also keep sellers hopeful. US dollar stays firmer around 20-year high as yields back bulls ahead of the Fed’s 0.50% rate hike. BOE sounds less optimistic due to economic challenges, which
GBP/USD Weekly Forecast: In search of a bottom, with eyes on Fed and BOE There was no reprieve for GBP bulls, as the previous week’s selling spiral gathered steam and smashed GBP/USD to its lowest level since July 2020 at 1.2410. King dollar reigned supreme amid heightening volatility within the G10 fx space throughout the
The EUR/USD recorded losses in April of 4.75%, the biggest since 2015. Though Wall Street finished with substantial losses, a sudden shift in sentiment failed to boost the greenback vs. the euro. US Core PCE down ticked, but headline inflation rose to 6.6%, as the FOMC will hold its May monetary policy meeting The EUR/USD
It’s been a quiet session for GBP/JPY, with the pair just above 163.00 but capped by its 21DMA. GBP/JPY still looks set to end the week lower by roughly 1.1%, as UK growth concerns outweighed the dovish BoJ. It’s been a quiet session for GBP/JPY, with the pair nudging slightly higher back above the 163.00