The USD/CAD continues to tip to the downside
The USD/CAD continues to tip to the downside as the Loonie (CAD) gets pushed higher by rising oil prices. Oil prices continue to chew through chart paper, with West Texas Intermediary (WTI) US crude oil marking a fresh high of $91/bbl in Monday trading. The USD/CAD is testing into five-week lows as the US Dollar […]
Gold price runs north swiftly
Gold price (XAU/USD) attempts to come out of the woods as investors digest the fact that the Federal Reserve (Fed) will raise interest rates by 25 basis points (bps) to the 5.25%5-5.50% range. The precious metal picks strength as market participants hope July’s rate hike will be the last one this year, prompting the Fed to pause the rate-hiking spell for a longer period. Easing fears of a global recession, the United States upbeat Consumer Confidence, and expectations of the Fed announcing an interest rate peak have built pressure on the US Dollar Index (DXY). The index retreats as investors are anticipating that Fed Chair Jerome Powell won’t be much formidable about sticky inflation. After the Fed’s policy decision on Wednesday, US GDP numbers for the second quarter are in the pipeline on Thursday, keeping investors on edge.
NZD/USD jumped more than 1% above 0.6200 and threatens the 200-day SMA at 0.6222
On Monday, the NZD/USD gained significant ground after three consecutive days of losses jumping above the 0.6200 threshold. However, bulls need the acceptance of the 200-day Simple Moving Average at 0.6222 to continue advancing. The United States released low-tier economic data. The US Chicago PMI for July came in slightly below expectations at 42.8 vs 43, and the Dallas Manufacturing index declined in the same month but at a somewhat lower rate than anticipated, at -20 vs -26.3.
USD/CAD turns sideways after rallying around 1.3250
The USD/CAD pair oscillates in a narrow range after a rally around 1.3250 in the European session. Strength in the US Dollar is backed by Greenback’s fresh three-week high formed around 102.14. The Loonie asset is expected to deliver further action after guidance from United States Manufacturing PMI data. S&P500 futures extend losses in London, portraying caution among market participants ahead of key economic data. The US Dollar Index continues its three-day winning spree on Tuesday as investors expect that the Federal Reserve (Fed) could continue hiking interest rates so that price stability could be achieved quickly.
Silver price is maintaining a lower high formation
Silver price (XAG/USD) falls back swiftly after a short-lived pullback near $24.45 in the early New York session. The white metal faces a significant sell-off as the additions of fresh private payrolls in the United States labor market were higher than expectations in July. The Automatic Data Processing (ADP) agency of the US economy reported that fresh 324K individuals were recruited in July while investors were anticipating employment of 189K. Strong demand for labor by US private sector indicates that inflationary pressures could rebound ahead. This has also set a positive undertone for the Nonfarm Payrolls (NFP) data, which will be published on Friday at 12:30 GMT.
USD/MXN Hits a two-month high at 17.4256
The Mexican Peso (MXN) plunges sharply against the US Dollar (USD), accumulating losses of 2% on Thursday and 4% in the week spurred by higher US Treasury bond yields and traders beginning to unwind the carry trade. Additionally, a surprise rate cut of 50 bps by the Brazil Central Bank could be seen as setting the tone for other Latin American central banks. At the time of writing, the USD/MXN is trading at 17.3617 after hitting a daily low of 16.9800. Wall Street is trading in negative territory as investors’ mood remains depressed, courtesy in part of Fitch’s downgrade to US creditworthiness. Also, a strong US Dollar (USD) across the board underpins the USD/MXN higher, reaching a two-month-high of 17.4256 early in the North American session, as data from the United States (US) crossed the wires.
GBP/JPY Consolidates Around 181.00
The GBP/JPY pair remains back and forth around 181.00 after a recovery move from 180.50 in the London session. The asset recovered confidently as the Bank of England (BoE) raises interest rates by 25 basis points (bps) to 5.25% on Thursday. This was the 14th consecutive interest rate hike by the BoE and interest rates at 5.25% are highest in the past 15 years. BoE Governor Andrew Bailey kept the door open for further policy tightening as the victory against stubborn inflation cannot be announced now. Out of the nine-member Monetary Policy Committee (MPC), BoE policymaker Swati Dhingra favored an unchanged interest rate decision. BoE Haskel and Mann supported for 50 bps interest-rate hike.
