FX

Share: The strong downtrend in USD/MXN continues as emerging market currencies advance against the US Dollar. USD/MXN eyes 17.5000 support; bullish potential remains limited, with key resistance at 17.9492 and 18.2263. The USD/MXN fell to fresh six-year lows of 17.7462, hit in the middle of the New York session even though the US economy revealed

Share: USD/JPY tests 50-day EMA at 133.85; bullish-engulfing pattern hints at a potential uptrend. Downside risks loom, with the 100-day EMA at 132.83 in sight if 134.00 support breaks. The USD/JPY rises after dropping to a weekly low of 133.50, advances 0.42%, spurred by buyers stepping in at around solid technical support level. An upbeat

Share: GBP/USD is sliding and forming a peak formation.  Bears are seeking a move down to test the 1.2620s. GBP/USD is being pressured to the downside in lunchtime NY trade and is taking on a support structure that could lead the way to a move into test the 1.2020s and lower for the remainder of the

Share: The Brazilian Real and the Mexican Peso benefited from the signal of a pause in US interest rates. Economists at Commerzbank expect both currencies to remain strong against the US Dollar. BRL and MXN remain attractive “Both central banks have been so hawkish of late that I think the Fed’s rate pause was a

Share: USD/CNH has witnessed a recovery move to near 6.9200 after Caixin Services PMI failed to match estimates. Caixin Services PMI has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8. Broadly, the USD Index is showing signs of volatility contraction ahead of the release of the US

Share: Brent Crude Oil is under heavy pressure after recently rejecting key resistance levels, suggesting a resumption of the downtrend is likely, with next supports at $65.72 and $63.02, analysts at Credit Suisse report. Key resistance at $86.41/89.37 still expected to cap “With medium-term momentum still negative and short-term momentum crossing back into outright bearish

Share: GBP/USD is marching towards 1.2600 as a Fed rate-cycle pause would trim Fed-BoE policy divergence. US labor market conditions carry the potential of making inflation persistent. S&P500 futures are showing further losses in early Asia, indicating a risk-off mood. The GBP/USD pair is approaching the round-level resistance of 1.2600 in the early Tokyo session.

Share: Crude oil has weakened significantly in the last two weeks. Economists at Rabobank expect Brent Oil to test the $70 mark.  Second half of 2023 will witness crude oil prices in the $90s “Declining diesel crack spreads as fears of a wider economic slowdown materialize has led us to caution that Brent will test

Share: AUD/NZD seesaws, after NZ Employment data came aligned with estimates. The AUD/NZD rally to weekly highs after the RBA’s decision was short-lived, as the cross paired those gains. Traders await the release of S&P Global PMIs for Australia at around 23:00 GMT. The AUD/NZD floats at around the 1.0730 area, after Tuesday’s session, witnessed

Share: US Dollar starts the month of May on a firm footing, gathers strength against its major rivals. US Dollar Index climbed to its highest level in three weeks above 102.0. Federal Reserve’s policy meeting could significantly influence the US Dollar’s valuation this week. The US Dollar gathered bullish momentum on Monday and the US

Share: AUD/USD fails to extend week-start gains, remains pressured of late. First Republic Bank linked improvement in market sentiment, mixed Aussie PMI allowed buyers to prepare for RBA. US Dollar remains firmer despite unimpressive data, cheers upbeat yields, immediate solution to banking fallout. RBA is expected to keep the benchmark rates unchanged, future guidance is

Share: Commenting on the US growth data, “GDP growth slowed to 1.1% q/q annualised, according to the advance estimate, which was well below our and consensus forecasts for a 2% expansion, and down from 2.6% growth in Q4,” said Bill Diviney, Senior Economist at ABN Amro. Consumption still grew very strongly in the first quarter

Share: S&P 500 continued the short squeeze, more than vindicating my call for no setback Friday. Market breadth and internal strength isn‘t though that positive – yet markets are celebrating as if the banking crisis was over, as if the Fed pivoted, or as if Big Tech earnings were to lend similar resilience to other

Share: USD/JPY skyrocketed after BoJ’s dovish decision and high US core PCE data. USD/JPY Price Analysis: Rallied more than 200 pips, set for a pullback, before challenging YTD high, The USD/JPY rose sharply after the first monetary policy decision by the Bank of Japan (BoJ) new Governor Kazuo Ueda struck a dovish tone, a greenlight

Share: WTI is set to post back-to-back weekly losses, despite gaining more than 2% on Friday. US crude oil output shortages were outweighed by gasoline demand; therefore, WTI rose. Western Texas Intermediate (WTI), the US crude oil benchmark, posted gains of more than 2% after US companies related to the energy sector exceeded earnings estimates.

Share: Analysts at MUFG Bank continue to see the EUR/USD pair moving to the upside over the next few days. They expect the pair to break out to the upside and move back closer to pre-Ukraine conflict levels from early last year. Key quotes:  “The pair has been attempting to break above the top of

Share: The Central Bank of Colombia (BanRep) raised its key interest rate by 25bps to 13.25%. Analysts at TD Securities think this was the last hike in the cycle and they warn that after the recent Cabinet reshuffle form the President, the central bank has now additional reasons to be cautious in coming months. Key

Share: The preliminary release published by Eurostat revealed on Friday that the Eurozone economy expanded by 0.1% on a quarterly basis in the three months to March of 2023, missing the 0.2% expected and against the no growth seen in the previous quarter. The bloc’s annual GDP rate grew by 1.3% in the first quarter (Q1)