April’s inflation numbers show core inflation accelerated to 2.1% as expected That should enough for the Fed to sit on its hands and refrain from rate cuts. The greenback may recover from and even extend its gains after the light drop. US core consumer prices are accelerating once again. They have edged up from 2% … “Is it time to buy the dollar? The post-inflation fall does not seem warranted”
Category: Opinions
GBP/USD has room to rise on weak GDP expectations
The UK is projected to announce an unimpressive growth rate of 0.2% in Q1. The low expectations are based on Brexit uncertainty. A minor surprise could provide the spark for a GBP/USD recovery. How hard has Brexit uncertainty hit the UK economy? Economists believe that it had a substantial adverse impact on growth, and this explains … “GBP/USD has room to rise on weak GDP expectations”
C$ may struggle with the jobs report
After a loss in jobs in March, minimal changes are projected for April. Wage growth may steal the show but also here, Canada may have hit its limits. The Canadian dollar is already under pressure, and it could intensify now. Has rapid job growth come to an end in Canada? Loonie traders will get an … “C$ may struggle with the jobs report”
Elliott wave Analysis: USDJPY is Targeting 109.70 Level In Sharp Fashion
On USDJPY we are tracking a bigger triangle correction which can be fully visible on the weekly chart but maybe still incomplete. If that’s the case then current leg up on the daily time frame is wave D in three legs which can be headed much higher after current blue sub-wave B is completed, which … “Elliott wave Analysis: USDJPY is Targeting 109.70 Level In Sharp Fashion”
How these 5 currencies can react to the trade showdown
The US has announced new tariffs on China on Friday unless talks succeed. China’s delegation will try to resolve the situation on Thursday. Some currencies are set to win if the situation escalates, and others if things are resolved. The trade wars are flaring up once again and the situation is deteriorating rapidly. The US has … “How these 5 currencies can react to the trade showdown”
EW Update: USDZAR and EURNZD Into A Retracement, then Up
USDZAR made a clear five-wave rally, so pair remains bullish, but before a bullish continuation, we may see a deeper three-wave a-b-c setback, where ideal support would be around the previous wave »iv« and 14.25 level. USDZAR, 1h EURNZD can be already trading in an a-b-c correction, but wave »c« is still missing, so the … “EW Update: USDZAR and EURNZD Into A Retracement, then Up”
NFP opens the door to further USD gains
US Non-Farm Payrolls are more than good enough. The Fed’s unwillingness to cut interest rates has been vindicated. In currency markets, the greenback has more room to rise. America is hiring: 263K jobs were gained in April, above 185K expected but closer to the ADP NFPprivate sector number of 275K. Wages came out at a tad … “NFP opens the door to further USD gains”
GBP/USD is back to focusing on Brexit
The BOE has left its policy unchanged in a unanimous vote, as expected. They strike a balance between positives and negative, seeming keen not to rock any boat. GBP/USD is back to focusing on Brexit, with cross-party talks in the limelight. Does the Bank of England want to stay in the shadows? This is the … “GBP/USD is back to focusing on Brexit”
5 positive dollar drivers from Powell, and why it can continue
Powell triggered a massive turnaround in the USD with his upbeat comments. There are five reasons why it happened and three to justify another drive higher. The Fed has fired up markets, but and they continue burning. After the FOMC statement had been balanced and consisted of a technical cut to the IOER, Fed Chair … “5 positive dollar drivers from Powell, and why it can continue”
USD: FOMC On Hold With A Balanced Message; Expected USD Response – BofAML
The US Dollar is eagerly awaiting the Fed decision. How will the greenback respond? Here is their view, courtesy of eFXdata: Bank of America Merrill Lynch Research discusses its expectations for the FOMC policy meeting on Wednesday. “As widely expected, we expect the FOMC to stay on hold at the conclusion of the 30 April-1 May meeting. The Fed should deliver a balanced message on … “USD: FOMC On Hold With A Balanced Message; Expected USD Response – BofAML”