All Articles Tagged - USDJPY

Will US inflation convince investors that more Fed hikes are needed? – Preview

Posted on August 8, 2023 at 10:18 am GMT

Even after the US employment report revealed higher-than-expected wage growth for July, investors continued to believe that the Fed has already concluded its own tightening crusade. Will this week’s CPI numbers make them change their mind? Where are the risks tilted to and how could the markets respond? “We could hike, we could pause” At their July gathering, Fed officials decided to raise interest rates by 25bps to their highest level in 22 years, with the statement accompanying the decision [..]

Market Comment – Dollar pulls back after weaker US jobs growth

Posted on August 7, 2023 at 8:39 am GMT

US NFPs increase by less than expected in July Dollar, Treasury yields slide, traders add to rate cut bets Loonie suffers, BoJ debates prospect of sustained inflation Wall Street extends correction after US employment report Dollar comes under pressure as NFPs miss estimates The US dollar slid against all but one of the other major currencies on Friday, but it is showing signs of stabilization at the start of this week. What prompted dollar traders to liquidate their long positions [..]

Technical Analysis – USDJPY bulls stay in power as NFP looms

Posted on August 4, 2023 at 11:59 am GMT

USDJPY is waiting for fresh impetus as the clock ticks down to the US nonfarm payrolls release at 12:30 GMT. The pair has climbed back above its 20- and 50-day simple moving averages (SMAs) recently, but the 143.30 area has been a tough obstacle over the past couple of days. Nevertheless, the RSI and MACD are in the bullish area, indicating that buyers are still in town. An extension above the 143.30-144.00 bar could retest the important barrier of 145.00. A step [..]

Market Comment – Equities left reeling from yields spike, FX quiet ahead of NFP

Posted on August 4, 2023 at 9:23 am GMT

China support aids rebound in stocks after bruising week amid surging yields Dollar steady as markets brace for possible surprises in July jobs report Pound off lows but BoE offers little upside, aussie crawls higher too Mood improves as bond rout eases before NFP Global equity markets started Friday on a somewhat more optimistic tone after coming under heavy selling pressure this week from a spike in bond yields even as major central banks signal doubts about the need for [..]

What does the US credit downgrade mean for markets? – Special Report

Posted on August 3, 2023 at 8:11 am GMT

The United States government’s credit rating has been downgraded by Fitch, citing concerns about runaway deficits and rising debt burdens. Riskier assets like stocks fell on the news, while the US dollar traded higher amid a flight to safety. Is this downgrade a game-changer for global markets? Downgrade Credit ratings agency Fitch just downgraded the quality of US government debt, from the top tier of AAA down one notch to AA+. The firm justified its decision by pointing to rising [..]

Market Comment – Dollar extends gains, BoE enters the limelight

Posted on August 3, 2023 at 7:54 am GMT

Dollar strengthens on ADP and US debt downgrade ISM non-mfg. PMI the next test for dollar traders BoE expected to hike by 25bps; Will it sound hawkish? Wall Street slumps after US rating cut Dollar wears its safe-haven suit The US dollar continued gaining ground on Wednesday and it appears to be holding firm today as well. The greenback has been slowly gaining ground since the beginning of the day on Wednesday, perhaps due to safe-haven inflows after the unexpected [..]

Technical Analysis – USDJPY near the midpoint of recent upward channel

Posted on August 2, 2023 at 7:23 am GMT

USDJPY is edging lower today following the good move recorded since the latest BoJ meeting. The pair remains near the midpoint of the upward trending channel that has been in place since the March 2023 banking sector-induced pullback and a tad below the 2023 high, thus keeping the recent rhetoric about a likely intervention alive. The bulls are trying to register a series of higher highs and higher lows and reestablish their control over the market but the momentum indicators [..]

Market Comment – Yen on the slide again, aussie slips on RBA, China worries persist

Posted on August 1, 2023 at 9:12 am GMT

Yen extends losses following BoJ’s surprise bond market intervention Aussie plunges after RBA holds rates, weak Chinese PMI weighs too Dollar stays supported, euro fails to capitalize on strong data No love for the yen from the BoJ The Japanese yen found itself in the familiar position of eyeing fresh lows against its major peers after the Bank of Japan unexpectedly intervened in the bond market on Monday to rein in the steep rise in local yields. The jump in [..]

Weekly Technical Outlook – USDJPY, GBPUSD, AUDUSD

Posted on July 31, 2023 at 2:54 pm GMT

Central bank meetings will stay in the limelight for another week, with the Reserve Bank of Australia (RBA) and the Bank of England (BoE) expected to follow their European and US pears in raising interest rates. On the data front, the US employment report might cause fresh swings in rate expectations as the Fed indicated a more data-dependent approach. RBA policy meeting –> AUD/USD The RBA has been raising interest rates with some breaks since March, skipping a rate increase in July for the [..]

Market Comment – Stocks rally but dollar holds firm on soft PCE inflation

Posted on July 31, 2023 at 9:04 am GMT

Expectations of further Fed rate hikes evaporate after dip in core PCE Stocks rejoice but dollar stays in demand as yen’s comeback bid falters RBA decision coming up, BoE next on Thursday ahead of US jobs report Fed pause seen as a certainty after core PCE eases The markets’ conviction that the Fed’s July rate hike was a one and done got a boost on Friday after the central bank’s favourite inflation metric fell more than expected, underscoring the view [..]

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