All Articles Tagged - USDJPY

Week Ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Posted on May 24, 2024 at 10:36 am GMT

Dollar traders lock gaze on core PCE index Eurozone CPIs in focus as June cut looms Tokyo CPIs may complicate BoJ’s policy plans Aussie awaits Australian CPIs and Chinese PMIs Will PCE data break the “higher for longer” mantra? The US dollar stabilized this week, recovering a small portion of the losses it posted after the CPI data revealed that US inflation resumed its downtrend in April. What may have allowed the dollar to stop bleeding were comments by [..]

Technical Analysis – Is USDJPY still searching for new highs?

Posted on May 23, 2024 at 8:40 am GMT

USDJPY surpasses key resistance, but more steps needed Short-term risk tilted to the upside; 157.00 mark under examination US S&P Global PMIs, initial jobless claims, new home sales on the agenda USDJPY closed Wednesday’s session with modest gains at 156.75 as the FOMC minutes highlighted worries about inflation and disagreements among policymakers on the timeline of monetary easing. The soft bullish move was enough to drive the price above the short-term resistance line drawn from April and therefore boost [..]

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 [..]

Technical Analysis – USDJPY struggles to surpass 156.75

Posted on May 21, 2024 at 1:18 pm GMT

USDJPY bounces off uptrend line But looks neutral in very short-term Overall outlook is positive USDJPY is struggling to climb above the 156.75 resistance level but remains beyond the 23.6% Fibonacci retracement level of the upward move from 140.20 to 160.20 at 155.50. As the market trades above the rising trend line, any moves higher could endorse the bullish outlook, testing the 161.8% Fibonacci extension level of the down leg from 151.95 to 140.20 at 159.13. Even higher, the 34-year peak of [..]

Fed rate expectations whipsawed by Fed speakers and the US CPI – Special Report

Posted on May 21, 2024 at 10:12 am GMT

It has been a rollercoaster period for Fed rate cut expectations Sticky US inflation is keeping the market on its toes Numerous Fed speakers this week; market sensitive to hawkish comments Dollar’s 2024 gains dented despite divergent monetary policy outlooks The year started with the market firmly believing that the Fed would deliver six rate cuts during 2024 on the back of an aggressive slowdown in inflation, which has not materialized up to now. Developments elsewhere, in particular the numerous geopolitical [..]

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 [..]

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 [..]

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 [..]

Market Comment – Dollar rebounds as US import prices accelerate

Posted on May 17, 2024 at 8:01 am GMT

US import prices see largest surge in two years Investors scale back Fed rate cut bets Yen slides on BoJ bond operation, Ueda’s remarks Wall Street pulls back after hitting fresh record highs Dollar recovers some CPI-related losses The US dollar rebounded on Thursday and is holding onto those gains today as data showed that import prices increased 0.9% month-on-month in April, taking the annual rate up to 1.1% from 0.4%. Despite the slowdown in the CPI figures on [..]

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