xtreamforex26 Posted October 4, 2023 Report Share Posted October 4, 2023 USD Index Holds Steady Above 107.00, Focus on US Data The USD Index (DXY) has been exhibiting a seesaw pattern, hovering above the 107.00 mark on Wednesday, as it grapples with a mix of gains and losses. This performance comes amid a keen focus on upcoming US economic data and remarks from Federal Reserve officials. The DXY finds itself in a consolidative phase around the levels last witnessed in 2023, just above the 107.00 threshold. This situation unfolds against the backdrop of rising US yields across the yield curve and a modest uptick in overall risk sentiment. The index’s recent bullish momentum has been further fortified by hawkish commentary from Federal Reserve policymakers, as well as growing speculation of an additional interest rate hike by the central bank before the year draws to a close. In the upcoming US trading session, a slew of critical economic data releases is set to command the market’s attention. Investors will be closely monitoring the release of the weekly Mortgage Applications data by the Mortgage Bankers Association (MBA), the ADP Employment Change report, final readings of the Services Purchasing Managers’ Index (PMI), Factory Orders figures, and the always pertinent ISM Services PMI. These data points are anticipated to provide valuable insights into the state of the US economy and potentially impact the direction of the USD. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 5, 2023 Report Share Posted October 5, 2023 USD/CAD Falters Near 1.3730; Eyes on US, Canada Jobs Data The USD/CAD pair is experiencing a slight dip in the vicinity of 1.3730 as market participants eagerly anticipate labor market data from the US and Canada. The US Dollar (USD) has been on a losing streak, which has led to the CAD’s current position. In September, the US ISM Services PMI dropped from 54.5 to 53.6, matching predictions. However, the ADP Employment Change for the same month saw an increase of just 89,000, falling short of the anticipated 153,000 and hitting its lowest point since January 2021. The US Dollar Index (DXY) is also receding from an 11-month high due to a decline in US bond yields, currently hovering around 106.50. Despite this, market wariness about the trajectory of the US Federal Reserve’s (Fed) interest rates could provide some support to the USD/CAD pair. Expectations of prolonged higher interest rates from the Fed had driven US yields to multi-year highs before they began to bounce back. The 10-year US Treasury yield, which reached a peak of 4.88% on Wednesday—the highest since 2007—was at 4.71% at the time of writing. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 9, 2023 Report Share Posted October 9, 2023 GBP/USD Holds Steady Above 1.2200 Amid Geopolitical Tensions The GBP/USD currency pair has been exhibiting some resilience in the face of geopolitical tensions and economic uncertainty. After opening with a modest bearish gap below 1.2200 levels at the start of a new week, the pair managed to recover, moving closer to a one-week high touched on the preceding Friday. Spot prices are currently fluctuating around the 1.2220-1.2225 region, primarily influenced by the performance of the US Dollar (USD). The USD, traditionally seen as a safe-haven currency, received a slight boost due to a global shift towards safer assets. This trend was triggered by escalating geopolitical tensions in the Middle East. The Hamas militant group in Gaza launched attacks on Israeli towns, an event that shocked the world due to its unprecedented nature. Israel responded with airstrikes on Gaza and declared war against the Palestinian enclave of Gaza. This conflict resulted in hundreds of casualties on both sides, further intensifying global anxieties. However, the USD’s bullish momentum is held back by uncertainties about the future path of the Federal Reserve’s (Fed) rate hikes. These uncertainties lend some support to the GBP/USD pair, preventing it from a steep decline. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 10, 2023 Report Share Posted October 10, 2023 Gold Maintains One-Week High Amid Israel-Palestinian Conflict Gains The gold market has experienced a week of consistent gains, with prices holding steady above the $1,860 mark. These gains are primarily attributed to the ongoing geopolitical tensions between Israel and Palestine, which have heightened global risk sentiment. Investors seeking a safe haven have turned to the precious metal as a refuge amidst the uncertainty. Another factor contributing to the upward trajectory of gold prices is the retreat in U.S. Treasury bond yields. This retreat is a consequence of shifting expectations regarding further rate hikes by the Federal Reserve (Fed). Recent comments from Fed officials, including Dallas Fed President Lorie Logan and Fed Vice Chair Philip Jefferson, have signaled a more cautious approach to future rate increases. The rise in long-term U.S. Treasury bond yields has been seen as a useful tool in the fight against inflation. This change in the Fed’s tone has led to a decrease in U.S. Treasury bond yields and has also put pressure on the U.S. Dollar. These factors collectively contribute to the continued rise in the price of gold. However, it’s important to note that the market is still factoring in the possibility of at least one more rate hike by the Fed before the end of the year. This expectation may limit the downside for U.S. bond yields and the U.S. Dollar. As a result, investors are closely monitoring key events and data releases this week. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 11, 2023 Report Share Posted October 11, 2023 USD/JPY Climbs Toward 149.00, US Data Watched The USD/JPY pair continued its upward trajectory, reaching approximately 148.80 during the Asian session on Wednesday. This consecutive gain followed a rebound in the previous session, driven by a positive risk sentiment amidst ongoing Middle East conflict. One noteworthy development is the Bank of Japan’s (BoJ) contemplation of revising its fiscal year 2023/24 core Consumer Price Index (CPI) estimate. They are aiming for a 3% target, up from the previous forecast of 2.5%, reflecting an optimistic outlook on inflation. This potential shift in the BoJ’s stance has implications for currency dynamics. Adding complexity to the situation is China’s Country Garden facing the prospect of defaulting on a $15 million coupon payment. This issue is particularly relevant given the challenges in the Chinese property sector, even as the overall Chinese economy exhibits signs of recovery. Any disruption in China’s economic landscape can have a cascading effect on the Japanese Yen due to the intertwined nature of their economic relations. Moreover, the recent decline in Japan’s non-seasonally adjusted Current Account for August, falling short of expectations, raises concerns within the broader economic context. The report posted a reading of ¥2,279.7B, well below the forecast of ¥3,090.9B and the previous reading of ¥2,771.7B. Although the Japanese economic calendar for the remainder of the week is relatively thin, this disappointing data point warrants attention. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 13, 2023 Report Share Posted October 13, 2023 USD/CAD Retreats from Weekly High, Stays Below 1.3700 The USD/CAD pair is experiencing a decline in the Asian trading session on Friday, retreating from the weekly high it reached at 1.3700. As of the moment, the pair is trading within the range of 1.3680 to 1.3675. Several factors are contributing to this downward movement, although there is some support preventing a significant decline. One key factor putting pressure on the USD/CAD pair is the rise in Crude Oil prices, which is bolstering the Canadian dollar (often referred to as the Loonie). Additionally, the US dollar (USD) is showing a slightly weaker performance, serving as another headwind for the USD/CAD pair. The recent dovish statements made by various Federal Reserve (Fed) officials have indicated that the central bank is approaching the end of its interest rate hike cycle. This has led to a containment of US Treasury bond yields, hindering the USD from capitalizing on the robust recovery it exhibited on Thursday, rebounding from a low that lasted for over two weeks. However, any substantial losses for the USD are somewhat limited due to the revival of expectations for additional tightening of Fed policies. This, in turn, supports the potential for dip-buying in the USD/CAD pair. Both the headline and core Consumer Price Index (CPI) in the US have remained above the Fed’s 2% target, rekindling expectations for at least one more rate hike by the Fed by the end of the year. This scenario restricts the decline in US bond yields and warrants caution when considering new bearish positions in the USD. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 16, 2023 Report Share Posted October 16, 2023 USD/CHF Maintains 0.9000 Level Before US Retail Sales The USD/CHF pair is facing a sustained downtrend, with its value hovering around 0.9020 during the Asian trading session on Monday. This decline in the USD/CHF pair can be attributed to the lingering uncertainty surrounding the Federal Reserve’s (Fed) upcoming decisions on interest rates, which is creating a complex and volatile environment for the US Dollar (USD). Meanwhile, the Swiss Franc (CHF) is experiencing increased demand due to the ongoing military conflict in the Middle East. The CHF has traditionally been considered a safe-haven currency during times of geopolitical instability, and investors seeking a secure and stable currency are turning to the CHF amid the current geopolitical uncertainties. Recent reports have indicated discussions between US officials and Israel regarding a potential visit by President Joe Biden to Israel. Israeli Prime Minister Benjamin Netanyahu is reported to have extended an invitation for this visit, which adds a layer of geopolitical complexity to the situation. On the economic front, the Swiss Producer and Import Prices (YoY) for September showed a 1.0% decline, which was a slight increase from the previous month’s decline of 0.8%. However, the monthly data revealed a 0.1% decrease, contrasting with the 0.8% decline observed in August. Later in the week, the Trade Balance for September is set to be released, offering further insights into the Swiss economy. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 17, 2023 Report Share Posted October 17, 2023 Australian Dollar Holds Steady After RBA Minutes Release The Australian Dollar (AUD) continued its upward trajectory against the US Dollar on Tuesday, marking the second consecutive day of gains. This buoyancy in the currency was primarily fueled by the release of the Reserve Bank of Australia (RBA) minutes for the October 2023 meeting, which revealed a relatively hawkish tone. During the RBA’s October meeting, the central bank’s board deliberated whether to increase interest rates by 25 basis points (bps) or maintain the existing rate. Ultimately, the board decided that the more prudent course of action was to keep rates unchanged. Their decision was informed by a careful assessment of various factors, including inflation data, employment figures, and updated forecasts, which will be available at the November meeting. Of particular note was the acknowledgment by RBA board members that there were significant concerns about potential upside risks to inflation. This suggests a cautious approach, highlighting the board’s vigilance regarding factors that could lead to an inflationary uptick. However, on the domestic front, there are indications of waning consumer confidence in Australia. The latest Australian Weekly ANZ Roy Morgan Consumer Confidence survey, released on Tuesday, reported a decline in consumer confidence, with the reading falling to 76.4, compared to the previous figure of 80.1. This dip is observed across all sub-indices, reflecting a more cautious or negative sentiment among consumers. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
Root Admin MrD Posted October 17, 2023 Root Admin Report Share Posted October 17, 2023 @xtreamforex.com, @xtreamforex26 you are invited to nominate your company for the GoldForum Community Awards in the Forex Category. More details here: https://awards.gold.forum/for-companies/ Question? Let me know by PM me Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 30, 2023 Report Share Posted October 30, 2023 USD/JPY Maintains Stability Above Mid-149.00s As Market Awaits Crucial Decisions from BoJ and Fed The currency pair USD/JPY is exhibiting a steady performance, registering around 149.65, having made a minor pullback from its monthly zenith of 150.77 earlier during the Asian trading window on Monday. The trading community appears to be adopting a cautious stance, opting to remain on the periphery in anticipation of impending monetary policy decisions from both Japan and the United States. Such key financial events are known to induce significant market fluctuations. A notable aspect shaping the dynamics of the currency pair is the differing monetary stances of the US and Japan. This difference is exerting pressure on the Japanese Yen when juxtaposed against the US dollar. Market whispers are rife with speculations regarding the Bank of Japan’s (BoJ) potential recalibration of its Yield Curve Control (YCC) strategy. A recent poll conducted by Reuters indicates a growing consensus among market analysts. They project that the BoJ might bid adieu to its prevailing negative interest rate approach by the next year. This shift aligns with the prevalent sentiment that the central bank is inching closer to wrapping up its ultra-supportive monetary stance. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted October 31, 2023 Report Share Posted October 31, 2023 Gold’s Pricing Dynamics Amidst External Influences Gold’s pricing trajectory has experienced a downturn, reflecting a negative sentiment for two consecutive days, particularly as it lingers beneath the notable $2,000 benchmark. As we transition into the European trading session, numerous factors contribute to this phenomenon. At the forefront of these influences is the anticipation surrounding the Federal Reserve’s (Fed) strategies. Market analysts largely believe that the Fed will remain unyielding in its hawkish approach, all in a bid to realign inflation to its designated 2% target. Such expectations have invigorated the US Treasury bond yields. Consequently, a rejuvenated demand for the US Dollar (USD) has emerged. The resultant effect of this surging USD demand is a palpable pressure on gold, primarily because gold doesn’t offer yield, distinguishing it from bonds and equities. Geopolitical developments further accentuate these price dynamics. Israel’s recent tactics, reflecting restraint in its actions within Gaza, have assuaged overarching concerns about a potential exacerbation of tensions in the Middle East. This de-escalation sentiment, in turn, challenges gold’s traditional stature as a ‘safe-haven’ asset, leading to a softened demand for the precious metal. However, it’s crucial to acknowledge that the prevailing tension between Israel and Hamas hasn’t entirely dissipated. This lingering volatility, coupled with the prevailing ambiguity surrounding China’s economic revival, infuses some buoyancy into the gold price. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 3, 2023 Report Share Posted November 3, 2023 Gold Price Stable; Awaits US NFP for Direction The gold market has witnessed a consistent pattern over the past few days, with the price of gold, represented as XAU/USD, maintaining its position in a recognizable range. For the second consecutive day on Friday, there has been an observable inclination of buyers towards the precious metal. However, the enthusiasm behind this trend lacks a firm bullish underpinning. A predominant optimistic sentiment prevailing in the equity markets has been instrumental in keeping the gold’s value below the significant $2,000 benchmark during the initial hours of the European trading session. Investors currently display a conservative approach, hesitant to commit to substantial stakes. Their caution is primarily driven by the anticipation of the forthcoming US monthly jobs report. This report is highly significant as it is expected to shed light on the Federal Reserve’s future decisions regarding rate hikes. A decisive directional push for the XAU/USD could emerge post this revelation. Meanwhile, there’s growing speculation in the financial circles that the Federal Reserve is approaching the culmination of its stringent monetary policy. There’s talk of potential rate cuts beginning as soon as June 2024. Such a move could lead to a diminishing appeal of the US Treasury bonds, consequently pressing down their yields. This scenario poses a challenge for the US Dollar (USD), albeit offering an indirect prop to the gold prices, which don’t yield returns. The global scenario also plays its part. The prevailing unrest in the Middle Eastern regions combined with apprehensions about the slowing pace of the Chinese economy adds a supportive undertone to the XAU/USD. However, investors tread carefully, given the lack of sustained buying momentum, advocating a cautious stance for bullish traders. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 7, 2023 Report Share Posted November 7, 2023 Gold Price Lingers at Monthly Low Amid Anticipation of Fed Rate Insights As the markets navigate through uncertain tides, the price of gold persists at a near-monthly nadir, weighed down by continued selling pressure. As of Tuesday, gold (XAU/USD) wrestles with tepid demand, barely holding above its monthly low as it enters the European trading session. The strengthening U.S. Dollar (USD), which is rebounding from its September 20 low—its weakest point reached just the day before—casts a shadow over the traditional stalwart of commodities. Compounding this is the absence of new developments in geopolitical tensions, which traditionally might bolster gold’s appeal as a refuge asset. Market sentiment remains fragile amidst geopolitical anxieties, particularly due to uncertainties in the Middle East. The lackluster performance of global equity markets mirrors this nervousness, providing a somewhat supportive backdrop for gold prices. However, a notable decline in U.S. Treasury bond yields—prompted by increasing speculation that the Federal Reserve may be approaching the tail end of its rate-hiking cycle—offers a glimmer of hope for gold, an asset that typically does not offer yields. This complex dynamic calls for a strategic approach from investors, particularly those with bearish inclinations towards the precious metal. Looking forward, the anticipation is palpable among traders who are closely monitoring the Federal Reserve for hints on the future trajectory of interest rates. All eyes are on the upcoming pronouncements from pivotal figures within the Federal Open Market Committee (FOMC), including the much-anticipated commentary from Fed Chair Jerome Powell scheduled for mid-week. These communications are expected to significantly influence the short-term fluctuations of the USD and, by extension, the strategic positioning for gold. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 8, 2023 Report Share Posted November 8, 2023 Decline in China’s Forex Reserves to $3.1 Trillion Amidst a Stronger US Dollar China’s foreign exchange reserves have decreased to $3.1012 trillion at the conclusion of October, representing a $13.8 billion reduction from September’s figures, as reported by the State Administration of Foreign Exchange (SAFE) on a recent Tuesday. This downtrend marks the third month in a row where a reduction in reserves has been noted. However, the rate of decline has seen a deceleration compared to the figures from September. The main driving force behind this dip in reserves is attributed to the strengthening of the U.S. dollar, which has subsequently led to a depreciation in global asset prices. Despite this, analysts and officials have noted that China’s economic resurgence is gathering pace, and the foundational aspects of China’s economic structure remain unchanged, providing a supportive backdrop for the continued stability of the foreign exchange reserves. The uptick in the U.S. dollar index, which climbed by 0.49 percent in October, coupled with the dollar strengthening by 0.64 percent against the yuan, has been linked to various factors. These include anticipated shifts in monetary policy among key economies, macroeconomic data fluctuations, and geopolitical developments. As a result, the decrease in forex reserves has been the cumulative outcome of adjustments in currency valuations and changes in asset prices. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 9, 2023 Report Share Posted November 9, 2023 USD/CHF Rebounds and Holds Steady at 0.9000 Amidst Fed Uncertainty and Global Factors The USD/CHF currency pair has managed to recover some of its recent losses and is currently hovering around the psychologically significant level of 0.9000 during the European trading session on Thursday. This rebound in the pair’s value comes as the market experiences a shift in confidence, driven by the cautious stance of US Federal Reserve (Fed) officials regarding the possibility of lowering interest rates. During the US Central Bank statistics conference held on Wednesday, Fed Chair Jerome Powell refrained from providing commentary on the current monetary policy. Investors are now eagerly awaiting Powell’s participation in a panel discussion later in the day, where he may shed light on the “Monetary Challenges in a Global Economy.” His insights and perspectives in this discussion could significantly impact market sentiment. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 10, 2023 Report Share Posted November 10, 2023 USD/JPY Nears Break Above 151.50 Amid Strengthening US Dollar The U.S. Dollar/Japanese Yen exchange rate has been exhibiting remarkable tenacity, consistently edging upwards for five consecutive days. As of the latest observations during the early trading hours in Europe on a Friday, the pair was quoted just shy of 151.50. This bullish trend has been largely attributed to an unexpected shift in tone from Jerome Powell, the Chair of the Federal Reserve, whose comments exuded a more hawkish stance than anticipated. These remarks have had a significant influence, catalyzing an uptick in U.S. Treasury yields and bolstering the U.S. Dollar‘s position against the Japanese Yen. The currency market’s reaction to Powell’s statements, made during an International Monetary Fund event, was swift. The Fed Chair’s expression of concern regarding the inadequacy of current policies to rein in inflation sent the U.S. Dollar Index (DXY) climbing, with readings around 106.00, and the yield on 10-year U.S. bonds reaching 4.62% at the time of reporting. Contrasting the posture adopted by other central banks, which have been actively tightening monetary policy, the Bank of Japan remains an outlier, adhering to a dovish outlook. Governor Kazuo Ueda of the Bank of Japan has indicated that any transition away from the institution’s long-held ultra-loose monetary policy will be approached with caution, aiming to mitigate the risk of inducing excessive volatility within the bond market. Yet the pressure on the Japanese Yen persists, as the anticipated policy shift continues to be deferred, partly due to stagnating wage growth. The BoJ deems adequate wage increases essential before it can commit to altering its stance on monetary policy, which has been characterized by its leniency for an extended period. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 13, 2023 Report Share Posted November 13, 2023 USD/CAD Holds Above 1.3800 Amid Falling Oil Prices The USD/CAD currency pair has shown resilience, maintaining its strong stance above the 1.3800 level as crude oil prices experience a downturn. The pairing saw a rebound from the losses it suffered last Friday, climbing to a value around 1.3810 in the Monday Asian trading session. This upswing for the Canadian Dollar (CAD) follows a session of gains bolstered by an initial rise in crude oil prices. However, a reversal in this trend emerged as West Texas Intermediate (WTI) crude oil prices retracted, dipping below the $76.50 mark. The pullback in oil prices can be attributed to the renewed anxieties over a potential slump in demand from two of the world’s largest economies, the United States and China. These concerns have cast a pall over market sentiment, affecting the dynamics of the oil market. With China being a significant oil importer, the country’s reported annual drop in inflation in October has sparked fears that global growth could be stifled, subsequently influencing crude oil demand negatively. On the front of the United States Dollar (USD), the currency did not find support from the unexpected hawkish comments by Federal Reserve (Fed) Chair Jerome Powell. Powell expressed concern over the current policy measures not being stringent enough to reduce inflation to the Fed’s ideal rate of 2.0%. As a result, the USD has been caught in a state of uncertainty. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 14, 2023 Report Share Posted November 14, 2023 NZD/USD Downward Trend Continues, Eyes on US Economic Indicators The New Zealand dollar, commonly referred to as the Kiwi, has seen a continuous decline, intensifying its losses to approach a value of 0.5870 against the US dollar during the Asian market hours on Tuesday. This downturn, which initiated on the 6th of November, is largely being linked to internal economic indicators, especially the Food Price Index (FPI) in New Zealand, which reported a 0.9% month-on-month decrease in October. Food costs are a significant component in New Zealand’s calculation of inflation, accounting for about 19% of the nation’s Consumer Price Index (CPI). The FPI is particularly critical as it reflects the change in price for a group of food items that are typically purchased by New Zealand families, thereby serving as a pulse check on inflationary pressures within the domestic economy. The influential financial firm Goldman Sachs has projected that inflation rates in New Zealand, as measured by the CPI, will fall below 3% by the fourth quarter of 2024. This projection also carries the implication that the rate hike cycle, administered by the Reserve Bank of New Zealand (RBNZ), may have reached its conclusion. Consequently, Goldman Sachs expects that the RBNZ may embark on a rate-cutting journey starting from the same quarter in 2024. In parallel, the US Dollar Index (DXY), which is a measure of the strength of the US dollar against a basket of currencies, is experiencing its own set of challenges. Despite efforts to stem further losses, it has been trading around the mark of 105.70. The US dollar is under pressure, partly due to the unpredictable nature of US bond yields, with the 10-year Treasury note yield hovering around 4.63% at the time of reporting. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 15, 2023 Report Share Posted November 15, 2023 GBP/JPY Nears Multi-Year Peak, Over 188 Before UK Inflation Data As the British Pound to Japanese Yen (GBP/JPY) exchange rate hovers around a significant peak, surpassing the 188.00 threshold, market participants are keenly awaiting the upcoming UK inflation data with a sense of cautious optimism. The currency pair has demonstrated a resilient uptrend, garnering buying interest after a slight decline to the 187.65 zone during the Asian trading hours, marking the fourth consecutive day of gains on Wednesday. The current spot rates linger near the 188.15 region, flirting with levels not seen since the latter part of 2015, just before the latest UK consumer price index (CPI) numbers are due for release, prompting investors to reassess their market positions. Forecasts predict a substantial drop in the annual UK CPI rate, from 6.7% in September to an estimated 4.8% for October. This anticipated decline is juxtaposed against the risks of an impending recession, and should the inflation figures come in lower than expected, it would likely reinforce market speculation that the Bank of England (BoE) is poised to initiate a cycle of interest rate reductions, potentially weakening the Sterling. Nonetheless, the potential downside for the GBP/JPY pair appears to be moderated by the Bank of Japan’s (BoJ) recent dovish adjustments to its monetary policy. The BoJ’s subtle shift in its yield curve control policy, signaled earlier this month, hints at a gradual exit from the long-standing expansive monetary stance. Moreover, a rather unimpressive GDP report indicating a contraction in Japan’s economy for the first time in several quarters, provides the central bank with enough reason to postpone any significant deviations from its current extensive monetary easing strategy. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
xtreamforex26 Posted November 16, 2023 Report Share Posted November 16, 2023 GBP/USD Stabilizes Above 1.2400 Amid Mixed Market Signals The GBP/USD currency pair exhibits a steady stance above the 1.2400 level, navigating through a complex landscape of market signals and economic indicators. This stability comes after the pair recoiled from a near two-month high around the 1.2500 mark, following a setback from the 100-day Simple Moving Average (SMA). In the Asian trading session on Thursday, the pair showed limited fluctuation, indicating a cautious approach by traders amidst varied influences. The US Dollar (USD) dynamics play a pivotal role in this equation. The USD Index (DXY), a measure of the dollar’s strength against a group of major currencies, struggles to build on its modest recovery from early September lows. This struggle is primarily due to anticipations of a dovish stance by the Federal Reserve (Fed), especially following a recent US Consumer Price Index (CPI) report. This report highlighted a quicker cooling of consumer inflation than expected, bolstering predictions of a potential rate cut by the Fed in the first half of 2024. Consequently, US Treasury bond yields remain subdued, exerting pressure on the dollar. Meanwhile, a prevailing sentiment of risk-taking in the markets further challenges the dollar, historically seen as a safe-haven asset. This atmosphere indirectly supports the GBP/USD pair, though the gains are limited. This limitation stems from the growing consensus that the Bank of England (BoE) may soon reduce interest rates. This view gained traction with the latest UK consumer inflation data, which showed a significant slowdown. The October figures indicated a flat monthly CPI and a sharp year-on-year decline to 4.6%, marking a two-year low. Additionally, the Core CPI also witnessed a decrease. Read More : Daily & Weekly Analysis On Xtreamforex Link to comment Share on other sites More sharing options...
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