Adding strength to the USD retreat could be the inaction in the bond market as major yields remain sidelined after posting. With this, US Dollar Index prints the first daily loss in three while keeping the early Asian session pullback from the highest levels since December 01, 2022. The US Dollar eases from over a three-month high and turns out to be a key factor pushing the AUD/USD pair higher. The USD downtick, meanwhile, lacks any obvious fundamental catalyst and is more likely to remain limited amid expectations for more aggressive policy tightening by the Fed. In fact, the markets are now pricing in a jumbo 50 bps lift-off at the next FOMC policy meeting on March and the bets were reaffirmed by hawkish comments by Fed Chair Jerome Powell.
Covering worldwide breaking news and instant analysis 24-hours-a-day for currency, bond, treasury, fixed income, futures and FOREX traders. Malaysia’s central bank left its key interest rate unchanged for the a second policy meeting in a row in order to assess the …. The U.S. dollar moved in a tight range on Wednesday, but stayed largely firm against its major counterparts, with investors reacting to the Federal Reserve’s testimony before the Congress, and digesting the private sector jobs data. Payroll processor ADP released a report this morning showing private sector employment in the U.S. increased by ….
Meanwhile, the overall risk-aversion theme has failed to infuse fresh blood into the US Treasury yields. The alpha delivered on 10-year US Treasury bonds has failed to sustain above 4.0%. Elsewhere, the US removed testing restrictions on travelers from China and joined a light calendar to allow the traders to lick their wounds after a volatile Tuesday. Japan’s final readings of Q4 GDP, China inflation data for February will be crucial for immediate direction.
The Economist— not too quick on the freshest news, but offers a lot of great analysis and insights. FinBERT is a pre-trained NLP model to analyze sentiment of financial text. Those who report the news often have their own agenda and have their own strengths and weaknesses. The more you know about the “Who”, the better off you will be in understanding how accurate the news is. Economic data rumors do exist, and they can occur minutes to several hours before a scheduled release of data. While there are tons of financial news resources out there, we advise you to stick with the big names.
European Open: USD/JPY bulls return in style
That said, the consensus for Friday’s NFP has edged higher to 225k vs. 517k in January. The unemployment rate is seen steady at 3.4% and average hourly earnings picking up to 4.7% y/y vs. 4.4% in January. Obviously, one big question is whether January NFP gets revised significantly in either direction,“ the analysts explained further. When giving their outlook for EURUSd, they said that they believe it remains on track to test 2023 low near $1.0485.
At some point, it is going to hurt, Kit Juckes, Chief Global FX Strategist at Société Générale reports. US Initial Jobless Claims aimed higher, suggesting that the Fed could increase rates gradually. Email us the type of bloggers you want to reach out for your marketing campaign at We’ll share blogger’s data in an Excel or CSV format.
- Gold price edges higher on Thursday, albeit lacks any follow-through buying and remains confined well within the previous day’s broader trading range.
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- The official US Employment data is expected to show a decline in the payrolls to 203K from the former release of 514k.
- Silver price reached a multi-month low of around $19.92, but buyers stepped in, dragging the XAG/USD price above the $20.00 figure.
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- The upside bias for the USD index is intact amid expectations of more resilience in the US labor market.
Bets for rate hikes by the Federal Reserve have failed to cap the yellow metal, strategists at TD Securities repo… “Today’s print reduces the odds that chooses to go ahead with a 50 bps hike, though incoming data as well as the outlook for the Fed remain key influences on the bank’s decision,” Scotiabank economists said in a note. Catch the latest FX news with their latest updates on the ongoing market, forex trading platforms, prices & charts, forex signals, and many more in one place. In-depth Forex news from the FX Empire’s news desk, providing you with updated market news throughout the day, every day. FX Empire is financial portal offering news and analyses to professional traders.
Moving on, a light calendar may allow the WTI crude oil to pare some of its weekly gains ahead of Friday’s all-important US Nonfarm Payrolls. Amid these plays, the S&P 500 Futures struggles for clear directions after bouncing off a one-week low the previous day. Further, the US 10-year Treasury bond yields rise to 3.99%, up one basis point , whereas the two-year counterpart pares intraday losses near 5.05% at the latest.
It should be noted that the https://forexbitcoin.info/ comments from Fed Chair Jerome Powell, showing the readiness for further rate hikes if needed, join the optimistic prints of employment clues to challenge the XAU/USD’s latest rebound. Meanwhile, the prospects for further tightening the Fed add to worries about economic headwinds stemming from rapidly rising borrowing costs. This, along with fading optimism over a strong Chinese economic recovery, which could dent fuel demand, should keep a lid on Crude Oil prices, suggesting that the path of least resistance for the USD/CAD pair is to the upside. Open interest in natural gas futures markets remained choppy and shrank by just 805 contracts on Wednesday, according to preliminary readings from CME Group. Volume followed suit and went down for the second straight session, this time by around 36.8K contracts. Bets for a 50 bps rate hike by the Federal Reserve to limit the USD downfall and cap gains.
On a quarterly basis GDP is forecast to fall 0.3% in the first quarter of 2023, before showing zero growth in the second quarter and rising by 0.2% in each of the third and fourth quarters of 2023. An increase in US Average Hourly Earnings data might fuel inflationary pressures ahead. Apart from the 100-DMA support, the bullish MACD signals also keep the DXY buyers hopeful. However, the RSI line approaches the overbought territory as the US Dollar Index nears the aforementioned trend channel’s top line, close to 106.15, which in turn suggests limited upside room for the greenback’s gauge. Sour-sentiment, 100-DMA and upbeat oscillators allow DXY bulls to stay hopeful. Japan Gross Domestic Product came in at 0%, below expectations (0.2%) in 4Q…
The Swiss Franc has rejected new lows overnight with more sideways action. stock market index trading strategies data will be winding down as year-end approaches, although there are still a few important events scheduled for next week. On the opening next week, the focus will likely continue to be the Coronavirus. In case we couldn’t get through, we will try again at the same time the next day. Krispy Kreme, Inc. announced Thursday it is making St. Patrick’s Day celebrations „Good as Gold“ by introducing four all-new gold-themed doughnuts along with the return of the fan favorite green O’riginal Glazed Doughnut. Retailer BJ’s Wholesale Club Holdings, Inc. announced Thursday that profit for the fourth quarter increased 20.7 percent from last year, driven by improved gross margins and 13.1 percent revenue growth.
Using News Sentiments in the High-Frequency Forex Market
Going into the weekend, some market participants will be wondering whether more Middle East drama will unfold over the next couple of days, and if so, what might that mean for their open positions. Last week’s extended and deeper COVID lockdowns saw the Australian Government roughly double its support for the economy to over $1B a week. What is the outlook for the Turkish currency given the country’s inflation policy? At Forex News API, we have a strict curation process that ensures that all news items are relevant to the specified currency pair. The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls. E-commerce company JD.com, Inc. reported Thursday a net income attributable to ordinary shareholders for the fourth quarter of RMB3.03 billion or $441 million, compared to a net loss of RMB5.17 billion in the year-ago quarter.
FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results. AUD/USD reverses the previous day’s corrective bounce off four-month low, taking offers to refresh intraday bottom near 0.6580, as inflation numbers from Australia’s key customer China came in softer for February.
AUD/JPY sellers attack the short-term key support around 90.20 after China released downbeat inflation data during early Thursday. Also weighing on the cross-currency pair are the headlines suggesting challenges to sentiment emanating from US President Joe Biden’s budget proposal for 2024, up for publishing on Friday. Against this backdrop, S&P 500 Futures reverses the previous day’s bounce off a one-week low while refreshing the intraday bottom around 3,985. Talking about the sentiment, the S&P 500 Futures struggles for clear directions after bouncing off a one-week low the previous day. It’s worth noting that US yield curve inversion widened to the highest levels since 1981 and propelled the recession fears on Wednesday.
The dollar now appears well supported by firmer expectations of a 50 bps rate raise at the Fed’s gathering later in the month. This view has been propped up by hawkish message from Fed speakers from many weeks now and lately by Chief Powell at both his testimonies earlier in the week. The market sentiment, meanwhile, remains fragile amid growing worries about economic headwinds stemming from rapidly rising borrowing costs. From a technical perspective, bearish traders need to wait for a sustained break below the $1,800 round figure, which coincides with the 100-day Simple Moving Average , before placing fresh bets.
We should be in for an exciting week for markets, with three ‘major currency’ central banks announcing their monetary policy decisions and a Nonfarm payroll report. Gold price drops for the third consecutive day as it drops to the lowest level in one week amid a broad US Dollar strength. The Aussie pair tried paring weekly losses at the lowest levels in four months during early Wednesday amid sluggish markets. However, dovish comments from Reserve Bank of Australia Governor Philip Lowe joined upbeat US data and repetition of the hawkish statements from Federal Reserve Chairman Jerome Powell confirmed the bear’s dominance.
- Further, the US Goods and Services Trade Balance dropped to $-68.3B from the $-67.2B previous reading and $-68.9B analysts’ estimations.
- Canadian shares are likely to open lower on Thursday amid concerns about global economic outlook and possibility of more interest rate hikes by the Federal Reserve.
- By Harshita Swaminathan – Investors turned even more bearish on Asian currencies after China’s tepid growth target and the U.S dollar’s renewed strength after the Federal Reserve chair warned of higher and faster interest rates.
- Institutional traders are also often rumored to be behind large moves, but it’s hard to know the truth with a decentralized market like spot forex.
Data revealed by the BLS, Jobless Claims for the week ending on March 4 were 211K higher than expected at 195K. Despite a strong ADP report on Wednesday and more job openings than anticipated, rising unemployment claims could ease the tightness of the labor market. A downbeat US Nonfarm Payrolls report, coupled with high unemployment claims, could reduce the Federal Reserve’s needs to tighten conditions at a faster pace. DailyFX is the leading portal for forex trading news, charts, indicators and analysis. Australia’s central bank hiked its key interest rate by a quarter-point, as widely expected, on Tuesday.