The value of the American Dollar (USD) is slipping after reaching multi-decade highs. After climbing by 22% between May 2021 and September 2022 against the Euro (EUR), the value of the dollar has just seen quite a significant decline since October against the single currency, as the EUR/USD is up almost 13% since then. Is this the beginning of a durable downward trend for the USD, or will the currency bounce back? What about the EUR? Is the single currency able to rise in 2023? In trying to predict the foreign exchange market in 2023, the regulated CFD broker ActivTrades…
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Quite a lot of news broke last week, much of which influenced the value of the Forex pair EUR/CHF, such as the European Central Bank’s (ECB) monetary policy decision, the Credit Suisse saga, as well as worries about the strength of the global financial system. Rising interest rates around the world have indeed increased borrowing costs, which have led to unprecedented bank collapses and bank runs, as the recent news has shown regarding Silicon Valley Bank, Silvergate, Signature Bank, First Republic Bank in the United States, and Credit Suisse in Switzerland. And things are far from over this week, with…
When the Reserve Bank of Australia (RBA) met on its monetary policy today, many analysts were unsure of how things would pan out with interest rates given the recent drop in CPI among other things. Eventually, after 10 straight hikes in the Official Cash Rate, the RBA has decided to hold steady at 3.6%, for the time being. The interest rate on Exchange Settlement balances has also remained unchanged at 3.5%. The Board also used the occasion to emphasize how robust, well-capitalized, and highly liquid the Australian banking sector presently is and how well-positioned it is to provide the credit…
Last May 2023, Gold reached its highest level since August 2020 at $2,078.54, according to the financial data from ActivTrades on Gold. Earlier this year, the ongoing banking crisis and uncertainties in the financial markets supported the price of Gold. It is interesting to note that during the first quarter of the year, the demand for Gold from central banks has reached an all-time high since the data series began in the 2000s, according to the World Gold Council. A weaker USD at the beginning of the year also helped support Gold demand, not forgetting that the recent rate hikes…
Between July 6th and July 17th, the EUR/USD showed a remarkable upward trend, soaring from 1.08536 to 1.12484. Yet, the tides have shifted since then, as the pair embarked on a correction phase, experiencing a decline of around 1%. As forex traders gear up for what promises to be a busy week ahead, the EUR/USD is currently trading at 1.11221, leaving market participants eagerly awaiting new developments from the Fed and the ECB. Daily EUR/USD Chart – Source: ActivTrader’s data on TradingView A crucial week for the EUR/USD The week ahead promises to be a significant one for economic and…
Since the Bank of Japan changed its position on its yield curve management policy at its last meeting at the end of July, the yen has been gradually losing value. This latest adjustment has caused the value of 10-year Japanese government bonds to rise to its highest level in the last nine years. As yield differentials have expanded, the Japanese yen has fallen close to the point that prompted the first yen-buying intervention from the BoJ since the late 1990s. Last year, the Japanese government eventually stepped in and acquired ¥$2.84 trillion on September 22nd, when the exchange rate was…
The Reserve Bank of Australia has maintained the official cash rate at 4.1% for the third consecutive month on September the 5th. However, it has indicated that there is a possibility of future rate hikes in order to effectively manage inflation. The cash rate remains at its highest level in over a decade, and the latest decision marks the fourth instance in which the RBA has halted its ongoing tightening cycle of rate increases since it all began in May 2022. The most recent board meeting also marked the end of RBA governor Philip Lowe’s tenure, spanning seven years, with…
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Australian Dollar Vs US Dollar, Australia Jobs – Talking Points:AUD held gains after Australia jobs data beat expectations.AUD/USD is attempting to form an interim base.Speculative short AUD positioning is at the highest level since early 2022.What is the outlook for AUD/USD and what are the key levels to watch? Recommended by Manish Jaradi How to Trade AUD/USD The Australian dollar held early Asia gains against the US dollar after the Australian economy created more jobs than expected last month.The Australian economy created 64.9k jobs in August, compared with forecasts for a gain of 23k, following job losses in July. The…
If you’re a forex trader looking to enhance your trading strategy and gain valuable insights into market trends, the Exponential Moving Average (EMA) MT4 indicator is a powerful tool that deserves your attention. In this article, we’ll delve into the intricacies of the EMA MT4 indicator, exploring its significance, application, and benefits. By the end of this read, you’ll have a comprehensive understanding of how this indicator can elevate your trading game. Understanding Moving Averages Moving Averages are fundamental tools that help traders identify trends by smoothing out price fluctuations over a specified period. They serve as dynamic support and…
Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter USD/JPY TECHNICAL ANALYSISUSD/JPY advanced last week to its highest level since November 2022, but pulled back after a failed attempt to clear channel resistance, which coincided with comments from Bank of Japan Governor Ueda indicating that the monetary authority may be in a better position to move away from negative interest rates by year’s end.Although the yen initially responded positively to these developments, its strength was short-lived. The daily chart below shows how USD/JPY has quickly resumed its…
US DOLLAR ANALYSIS AFTER US INFLATIONThe U.S. dollar, as measured by the DXY index, advanced modestly on Wednesday following somewhat mixed U.S. inflation figures.Headline CPI rose 0.6% on a seasonally adjusted basis in August, pushing the 12-month reading to 3.7% from 3.2% previously, one-tenth of a percent above consensus estimates. Meanwhile, the core gauge, which tends to reflect longer-term trends in the economy, climbed 0.6% monthly and 4.3% compared to the previous year, closely aligning with Wall Street’s projections in both instances.US INFLATION DATA AT A GLANCESource: DailyFX Economic CalendarToday’s data had little impact on market pricing for the September…
Gold Forecast Video for 14.09.23 by Bruce Powers Gold successfully tested the 200-Day EMA as support yesterday and it held. This was an opportunity for gold to subsequently strengthen. Instead, today we have a drop back below the 200-Day line, a new retracement low, and gold is on track to close below the 200-Day line, and possibly closing below the lower uptrend line as well. This is not bullish behavior thereby opening the door to a deeper retracement.Today’s Price Action Points to 1,900 A drop below today’s low signals a continuation lower and puts gold back below the uptrend line.…
Highlights The Australian unemployment rate held steady at 3.7% in August. Participation rate climbed to 67.0%, despite a dip in monthly hours worked. China’s economic challenges showed minimal strain on Australian employment. Australian Employment Employment figures from Australia remained a focal point following the RBA decision to leave the cash rate unchanged. The Australian unemployment rate remained unchanged at 3.7% in August. According to the ABS, The participation rate increased to 67.0%, while monthly hours worked decreased. Employment jumped by 63.9k while full employment rose by a modest 2.8k. The latest figures showed that labor market conditions steadied after a…
XAU/USD PRICE FORECAST:Gold (XAU/USD) Bulls Remain Cautious Following Sticky US CPI. Retest of Recent Lows Grow More Appealing.The Technicals on Gold Remain Conflicted. A Golden Cross Pattern Printed in the Asian Session and a Death Cross Pattern Forming Just Another Sign of the Current Indecision at Play.IG Client Sentiment Shows that Retail Traders are Overwhelmingly Long on Gold Which Could Hint at Further Downside Ahead.To Learn More About Price Action, Chart Patterns and Moving Averages, Check out the DailyFX Education Section.MOST READ: US Headline Inflation Nudges Higher, the US Dollar Remains Nonchalant Recommended by Zain Vawda How to Trade Gold…
Key Insights Crude inventories declined by 6.3 million barrels, exceeding analyst expectations. Strategic Petroleum Reserve grew from 349.5 million barrels to 350.3 million barrels. Domestic oil production remained unchanged at 12.8 million bpd. On September 7, EIA released its Weekly Petroleum Status report. The report indicated that crude inventories declined by 6.3 million barrels, compared to analyst consensus of -2.06 million barrels. At current levels, U.S. crude oil inventories are about 4% below the five-year average for this time of the year. Total motor gasoline inventories decreased by 2.7 million barrels, while distillate fuel inventories grew by 0.7 million barrels.…
Key Insights The growth in crude inventories was driven by rising imports. Strategic Petroleum Reserve increased to 350.6 million. WTI oil settled above the $89.00 level. On September 13, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories increased by 4 million barrels from the previous week, compared to analyst consensus of -1.9 million. At current levels, crude inventories are about 2% below the five-year average for this time of the year. The increase in crude inventories was driven by the strong growth in crude oil imports, which averaged 7.6 million bpd. Total motor gasoline inventories grew…
Michigan Consumer Sentiment numbers for September wrap up another pivotal week for the dollar on Friday. For the EUR: The EUR faces drama, with ECB monetary policy and economic uncertainties testing buyer appetite. German and Eurozone ZEW Economic Sentiment figures kickstart the week on Tuesday. The deteriorating macroeconomic environment suggests a sharp fall in sentiment. Eurozone industrial production (Wed) will likely affirm manufacturing sector woes. However, Eurozone wage growth for the second quarter (Fri) will influence ECB monetary policy expectations. A pickup in wage growth would fuel spending and demand-driven inflation, an ECB concern. While the economic indicators will provide…
