Forex Market News
Updated: 1 hour 39 min ago
The British Pound fell amid worries that a new push for Scottish independence from the UK will include a proposal to ditch Sterling in favor of another currency.
Gold and crude oil prices look set to chart divergent paths as cooling trade tensions between the US and China boost risk appetite across financial markets.
The rise of a populist Italian government has started to stir concern among market participants. Meanwhile, the preliminary May Eurozone PMI readings aren’t set to improve, giving little reason for the Euro’s downtrend to end.
A rising US Dollar is putting pressure on the Indonesian Rupiah and other ASEAN bloc currencies making external event risk ever more prominent. USD/SGD is showing signs it may fall.
Fed monetary policy remains in focus for financial markets as minutes from May’s FOMC meeting and a speech from Fed Chair Powell cross the wires.
Gold prices could be in for another week of loses as government bond yields continue rising around the world and non-interest bearing assets lose relative appeal and the US Dollar rises.
In the week ahead, we have a couple of key events which may test global stock markets, but overall the outlook remains relatively positive until bearish behavior shows itself.
What a week for crude! Brent traded at its highest premium to WTI in three years by trading above $80/bbl as bullish forces continue.
In less than two weeks, Chinese A-shares will be officially added to MSCI indices, which will likely boost the demand in the Yuan. At the same time, China may find more mutual interests with Germany than with US.
The Australian Dollar is unlikely to perk up meaningfully this week, but there is reason to suggest that it may not fall much further either
GBPUSD saw a somewhat calm week with the pair finding a base at 1.3450, while employment data remained robust. Key risk next week comes in the form of UK Inflation and GDP data.
The US Dollar may continue higher as minutes from May’s FOMC meeting and a speech from Chair Powell boost Fed rate hike expectations further.
The Australian Dollar has set a well-defined May opening-range just above weekly support. These are the updated targets & invalidation levels that matter from here.
Even with US Treasury yields taking a step backwards this morning, the DXY Index has been able to push to a fresh 2018 high again this week.
Another 2.3% print for Canada’s Consumer Price Index (CPI) may continue to foster range-bound prices in USD/CAD as it does little to alter the outlook for monetary policy.
The Euro rebounded from a five-month low as worries about Italian politics ebbed a bit. The Canadian Dollar fell as the US deflated hopes for a NAFTA deal.
Crude oil prices may turn lower from resistance near $72/barrel on the WTI benchmark, validating accumulating bearish technical clues.
Gold prices remain under pressure after snapping the 2018 range, with the precious metal at risk for further losses as the bearish momentum appears to be gathering pace.
A broader technical picture offers perspective on price with respect to trend. Here are the updated targets & invalidation levels that matter on the weekly charts.
The aussie-dollar exchange rate may stage a larger recovery over the coming days as the bearish momentum from earlier this year dissipates.