All Articles Tagged - GBPUSD

Commodities’ volatility jumps due to geopolitics – Volatility Watch

Posted on May 21, 2024 at 2:45 pm GMT

Euro/dollar volatility eases aggressively Volatility in gold and silver skyrockets US equities enjoy low volatility amidst weekly gains Euro/dollar volatility has dropped aggressively as the market is adjusting to a quieter data calendar that nevertheless includes a plethora of Fed speakers. Similarly, volatility in yen crosses remains moderate as market participants, especially in dollar/yen, appear unwilling to further provoke the BoJ and risk significant losses. On the contrary, volatility in the commodities space has gone through the roof. While oil price volatility has eased further despite the latest [..]

Market Comment – Fed uncertainty puts stocks on edge, dollar edges up

Posted on May 21, 2024 at 8:42 am GMT

Fed policymakers maintain caution ahead of minutes as risk appetite ebbs Commodities retreat from highs amid hawkish Fed, calm in Middle East Dollar inches higher, ether jumps 19% on spot ETF hopes Fed officials sing from same hymn sheet Expectations of two rate cuts by the Fed are in doubt again as investors pared back some of their bets following a string of hawkish commentary by Fed policymakers in the last 24 hours. Markets had priced in 50 basis points [..]

Weekly Technical Outlook – USDJPY, NZDUSD, GBPUSD

Posted on May 20, 2024 at 1:02 pm GMT

USDJPY’s recent bullish turn looks promising ahead of FOMC minutes NZDUSD takes a breather after meaningful weekly gain; RBNZ decision looms GBPUSD examines critical resistance zone amid busy data week FOMC meeting minutes, S&P Global PMIs –> USDJPY Despite surprising stagnation in April’s retail sales data and a slight easing of CPI inflation last week, the Fed is unlikely to reduce interest rates before September. The odds for two rate cuts have increased with the data, but investors are still doubtful about the second reduction, according [..]

Will UK inflation corroborate a June BoE rate cut? – Preview

Posted on May 20, 2024 at 10:08 am GMT

Investors assign 60% chance for a June rate cut by the BoE UK CPI data to reveal whether inflation hit the BoE’s target But PMIs imply some upside risks The data is scheduled for Wednesday at 06:00 GMT BoE appears more dovish than expected While a few weeks ago investors were convinced that the European Central Bank (ECB) may be the first major central bank to start lowering interest rates, the latest developments seem to have somewhat mixed up [..]

Market Comment – Rate cut optimism buoys equities, gold jumps on geopolitical risks

Posted on May 20, 2024 at 8:51 am GMT

Stocks remain on the front foot despite wavering rate cut bets Optimism prevails even as gold rallies on Middle East uncertainties Subdued dollar eyes Fed speakers, rising Japanese yields fail to lift yen Stocks extend post-CPI gains Equity markets remained buoyant at the start of the new trading week following last week’s somewhat cooler-than-expected inflation report out of the United States, as the data further extinguished any lingering fears about a possible Fed rate hike. Yet, the latest CPI readings [..]

Technical Analysis – GBPUSD retreats from one-month high

Posted on May 17, 2024 at 10:57 am GMT

GBPUSD remains above downtrend line RSI and stochastic move lower GBPUSD is trading around the vicinity of 1.2630 after the pullback from the one-month high around the 1.2708 barrier. The pair failed on a second attempt to breach the overpowering latter level. Looking to the short-term oscillators, the stochastics and the RSI indicate bearish movements as the first posted a bearish crossover within its %K and %D lines in the overbought region, while the RSI is heading south above the [..]

Week Ahead – Flash PMIs, UK & Japan CPIs in focus; RBNZ to hold rates

Posted on May 17, 2024 at 10:20 am GMT

After cool US CPI, attention shifts to UK and Japanese inflation Flash PMIs will be watched too amid signs of a rebound in Europe Fed to stay in the spotlight as plethora of speakers, minutes on tap No fireworks expected from RBNZ policy decision Will CPI report bring BoC nearer to a rate cut? Inflation data will dominate the economic agenda once again in the coming week as CPI numbers are due in Canada, Japan and the United Kingdom. The [..]

Higher euro/dollar volatility ahead of US CPI report – Volatility Watch

Posted on May 14, 2024 at 2:25 pm GMT

Euro/dollar enjoys strong volatility ahead of key data releases Gold and silver see higher volatility amidst muted price rally Volatility drops in US equities as risk appetite returns Euro/dollar volatility has jumped higher as the market is preparing for some key US data prints. On the flip side, volatility in yen crosses remains moderate after the recent Japanese interventions, with market participants trying to avoid further provoking the BoJ at this stage. Volatility in the commodities space remains mixed. Oil price [..]

Market Comment – Range trading continues as markets prepare for Wednesday’s CPI

Posted on May 14, 2024 at 8:30 am GMT

Dollar recovers somewhat while US stocks’ rally stalls PPI and Fed Chairman Powell could wake up the market later today Mixed UK labour data complicate the BoE’s outlook Dollar recovers but still in the red during May Range trading continues in most currency pairs as the market is in waiting mode for tomorrow’s crucial US inflation report. The US dollar managed to reverse yesterday’s initial underperformance against the euro with the pair now hovering below the 1.08 level and facing some key [..]

Technical Analysis – GBPUSD advances above 200-day SMA

Posted on May 14, 2024 at 7:08 am GMT

GBPUSD looks neutral in very short-term A jump above 1.2630 could add some optimism Stochastic and MACD are mixed GBPUSD has successfully jumped above the 200-day simple moving average (SMA) with the next crucial obstacle coming from the short-term downtrend line and the 50-day SMA around 1.2590. Technically, the MACD oscillator is still developing with weak momentum above its trigger line and below the zero level, while the stochastic is extending its upside movement towards the overbought region after the [..]

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