Author: lisa burids
Australian Dollar Gains Momentum Amid Mixed Economic Signals On Monday, the Australian Dollar (AUD) regained ground following a decline in the previous trading session. This resurgence came after the US Dollar (USD) showed strength, buoyed by better-than-expected US employment data released on Friday. This data has led traders to delay their expectations for Federal Reserve (Fed) rate cuts, applying downward pressure on the AUD/USD pair. US Dollar Strengthens on Robust Employment Data The US Dollar’s recent gains can be attributed to a robust US jobs report, which has bolstered expectations of a hawkish stance from the Federal Reserve. The CME…
The cryptocurrency market experienced a notable downturn today, with Bitcoin falling below its critical $71,000 support level to $68,500, and Ethereum dropping to $3,600. This decline caused the global crypto market cap to decrease by 2.60%, reaching $2.55 trillion, while the total market volume surged by 42.17% to $106.43 billion. Many are left questioning the primary reasons behind this sudden market drop. Reasons Behind the Market Decline A significant factor contributing to this downturn is the recent release of the U.S. Employment Situation Summary Report. This report indicated that 272,000 jobs were added in May, surpassing expectations. However, it also…
Euro Remains Steady as ECB Cuts Rates: Markets Await U.S. Payroll Data NEW YORK/LONDON/SINGAPORE, June 6 (Reuters) – On Thursday, the euro remained in a narrow trading range following the European Central Bank’s (ECB) decision to lower interest rates from their record highs. The highly anticipated move saw the euro fluctuate briefly before stabilizing, with the outcome largely anticipated by the markets. By midday, the euro edged up by 0.04% to $1.0872, slightly below the two-and-a-half month high of $1.0916 achieved earlier in the week. Against the yen, the Japanese currency increased by 0.10% to 169.895 yen. The dollar index,…
Trade Balance Boosts AUD On Thursday, the Australian Dollar (AUD) managed to recoup its recent losses against the US Dollar (USD). The AUD/USD pair gained strength following the release of Australia’s Trade Balance data, which widened to 6,548 million in May, surpassing the anticipated 5,500 million and April’s 5,024 million. This improvement in trade balance was primarily driven by a significant 7.2% month-over-month (MoM) decrease in imports, contrasting sharply with April’s 4.2% increase. However, exports continued to decline, falling by 2.5% after a 0.6% drop in the previous month. Hawkish Signals from the RBA The appreciation of the Australian…
Canadian Dollar Drops as Manufacturing PMI Misses Expectations The Canadian Dollar (CAD) started the week on a lower note after May’s S&P Canadian Global Manufacturing Purchasing Managers Index (PMI) figures fell short of expectations. Similarly, the US ISM Manufacturing PMI also missed the mark, creating a situation where both the Canadian Dollar and the US Dollar (USD) were vying for the less favorable position in the currency markets. Manufacturing PMI Woes for Canada For 13 consecutive months, Canada’s manufacturing PMI has been below the crucial 50.0 threshold, indicating a sustained contraction in the sector. The May reading slipped to 49.3…
The GBP/USD exchange rate is expected to potentially test the $1.28 level in the week ahead, driven by strong technical momentum and a potential undershoot in the critical U.S. job report. The exchange rate has been in a short-term uptrend, suggesting that reaching and surpassing 1.28 is a feasible goal in the coming days. Technical Analysis and Momentum The Pound is showing robust technical momentum, with the Relative Strength Index (RSI) at 63 and trending higher. Additionally, the exchange rate remains above its key moving averages, reinforcing the bullish sentiment. For dollar buyers, the 1.28 level is crucial. However, if…
Federal Reserve Rate Hike Still Possible Amid Hawkish Sentiments, Sticky Inflation, and Labor Market Tightness Despite the marginal probability of a rate hike by the Federal Reserve (Fed) in the next three meetings, the possibility remains on the table. This is supported by persistent hawkish rhetoric from Fed officials, continued inflationary pressures, and a tight labor market. Recent revisions to the Q1 GDP figures revealed a slight slowdown in U.S. economic activity, but nothing unexpected. Inflation and the PCE Price Index Inflation remains a key concern, with the headline Personal Consumption Expenditure (PCE) Price Index meeting expectations in April. It…
The USD/CAD pair continued its downward trajectory The USD/CAD pair continued its downward trajectory, falling to 1.3650 during Friday’s European session. This decline reflects a broader weakness in the US Dollar, which has struggled to gain ground amidst growing anticipation of the US core Personal Consumption Expenditure (PCE) Price Index data for April. The PCE data, a key measure of inflation, is set to be released at 12:30 GMT and is expected to show a steady rise of 0.3% monthly and 2.8% annually. Impact of Revised US Q1 GDP Growth Adding to the pressure on the US Dollar was the…
GBP/USD Bounces Back from Weekly Lows Around 1.2680 The GBP/USD pair showed resilience on Thursday, rebounding from weekly lows of around 1.2680. The Pound Sterling’s recovery against the US Dollar was largely attributed to a decline in US Treasury yields, which weakened the Greenback. By the end of the trading session, the pair was trading at 1.2728, reflecting a gain of 0.20%. Technical Outlook: Neutral to Upward Bias From a technical perspective, the daily chart indicates a neutral to upward bias for the GBP/USD pair. Despite bullish momentum, as evidenced by the Relative Strength Index (RSI), the pair’s inability to…
Pakistani Rupee Holds Steady Against US Dollar Amid Economic Developments In the early hours of trading on Thursday, the Pakistani rupee displayed remarkable stability against the US dollar, appreciating slightly by 0.02% in the inter-bank market. By 11:45 AM, the rupee was trading at 278.35, marking a modest gain of Re0.05 against the greenback. This follows a close of 278.40 on Wednesday, when the rupee had slipped by Re0.10. Recent Stability and IMF Bailout Program In recent weeks, the Pakistani rupee has remained largely stable, fluctuating within the 277-278 range against the US dollar. This period of relative stability coincides…