FOREX-U.S retail sales numbers are due for release today

For the past few weeks, the U.S dollar has oftentimes moved in a completely opposite direction from Treasury yields. That trend continued yesterday as the greenback shrugged off losses in 10-year rates to trade higher against all of the major currencies. Federal Reserve Chairman Powell may not be as eager to normalize monetary policy as other central banks but U.S data could force his hand. According to the latest report, jobless claims fell to a new post-pandemic low of 360K. Manufacturing activity in the Philadelphia region slowed but the Empire state index hit a record high. June retail sales numbers are due for release today and the risk is to the upside. Economists are looking for spending to fall for the second month in a row due to slower auto sales but with strong non-farm payrolls and higher wages, retail sales could beat expectations which would drive USD/JPY higher and EUR/USD lower. BoJ rate decisions are not generally big market movers especially when no policy changes are expected from the central bank. Still, a cautiously grim outlook is anticipated along with lower economic projections. Japan is struggling with the pandemic. Not only is the country in its fourth state of emergency but outbreaks have been reported at the Tokyo Olympics. While the commodity currencies sold off hard yesterday, EUR/USD is the most vulnerable to extended losses. Amidst all of the hawkish language by policymakers, ECB officials said they don’t want to taper until the time is right because Europe is still struggling with the delta variant, mixed data and a slow recovery. Tomorrow’s Eurozone CPI and trade reports will take a backseat to U.S retail sales. The selloff in sterling masked a sharp intraday reversal. GBP/USD almost hit 1.39 on the back of hawkish comments from the Bank of England. BoE member Saunders said it may become appropriate to withdraw stimulus soon which echoes yesterday’s comment from Deputy Governor Ramsden who said he could envision tightening sooner as he wouldn’t be surprised if CPI hit 4%. This would be a significant increase from the 2.5% YoY rate just reported. Labor market numbers were mostly better with jobless claims falling more than expected, the unemployment rate improving and average earnings rising sharply. All of this plays into our view that the BoE is preparing to taper again this summer.

 Euro

The single currency bounced off a more-than 3-1/2 month low against the U.S dollar after dovish comments by the Fed chief broke a recent spike in Treasury yields. In testimony to the U.S Congress, Fed Chair Jerome Powell said the U.S economy was "still a ways off" from levels the central bank wanted to see before tapering its monetary support. Overall, the EUR/USD traded with a low of 1.1823 and a high of 1.1880 before closing the day around 1.1877 in the New York session.

Yen

The Japanese Yen fell as the dollar is headed for its best weekly gain in about a month today, supported by investors' drift toward safety as rising COVID-19 infections loomed over the pandemic recovery. Solid U.S data and a shift in interest rate expectations after the Fed flagged sooner-than-expected hikes in 2023 have put a floor under the greenback. Overall, the USD/JPY traded with a low of 109.71 and a high of 110.24 before closing the day around 110.10 in the U.S session.

British Pound

The British Pound retreated further against the dollar and euro yesterday, shrugging off another set of stronger economic data and focusing on the impending end of activity curbs even as COVID-19 infection rates climbed. Britain is set to drop all COVID-linked activity curbs from next Monday, including mandatory mask-wearing. Overall, the GBP/USD traded with a low of 1.3754 and a high of 1.3898 before closing the day at 1.3897 in the New York session.

Canadian Dollar

The Canadian Dollar fell to near a three-month low against its U.S counterpart yesterday, hurt by dismal economic data and weakness in oil prices. Canada's scorching hot housing market is starting to cool, as buyers shift their focus from getting more space to getting back to normal after the COVID-19 pandemic. Overall, USD/CAD traded with a low of 1.2440 and a high of 1.2554 before closing the day at 1.2441 in the New York session.

Australian Dollar

The Australian Dollar has fallen again during the course of the trading session yesterday as the Australian dollar continues that very sickly, as the Australians have been locking parts of their economy down yet again. With this being the case, the market is likely to continue going lower, and it is worth noting that the US Dollar Index is on the verge of a breakout. Overall, AUD/USD traded with a low of 0.7408 and a high of 0.7485 before closing the day at 0.7421 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 35 and lies below the neutral zone. In general, the pair has gained 0.63%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 41 reading and lies below the neutral zone. On the whole, the pair has gained 1.15%.

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 36 reading and lies below the neutral region. In general, the pair has gained 1.15%.

Euro-Sterling

This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is issuing a bullish signal. The Relative Strength Index is above 44 and lies below the neutral region. Overall, the pair has lost 0.54%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 46 and lies below the neutral region. In general, the pair has gained 0.67%.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Technical Analysis-The euro continues to lose value against the dollar

EUR/USD Current level - 1.1807

The euro continues to lose value against the dollar and, despite its short-term correction from Wednesday, during yesterday's trading session the pair was down again. The forecasts are that this downward movement will continue and the pair will focus on a test of the local bottom and important support at 1.1773. The first important resistance is at 1.1891. During today's trading session, investors' attention will be focused on the data on the consumer price index for the Eurozone (09:00 GMT).

USD/JPY Current level -  109.99

Although in the first hours of today's trading session the currency pair saw an upward movement, the forecasts are that it will be short-term, after which the downward movement will continue. The first important support is the level at 109.53 and, if it is not broken, a short-term correction may follow. Important resistance is the level at 110.40.

GBP/USD Current level - 1.3824

Since the beginning of the week, the currency pair is in a relatively narrow range between 1.3909 and 1.3795 and these are the critical support and resistance. As a rule, if any of them is broken, this will determine the direction of the subsequent movement. However, expectations are for a downward movement and strengthening of the dollar against the pound.

DAX30 Current level - 15618

The German index is in a corrective phase after testing but failed to break the key resistance and a record high at 15807. The correction is projected to be short-term and limited by key support at 15358, after which the uptrend will recover and the index could test and break the said key resistance at 15807.

US30 Current level -  34948

The US blue-chip index has been consolidating since the beginning of the week, but the uptrend has not been broken and expectations are that the uptrend will return soon and the index will set new records. The first important resistance is at 35010, followed by 35062 and the record level at 35092. Critical support is at 34125.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market-U.S monetary policy will offer “powerful support” to the economy

The S&P 500 ended with a gain after briefly hitting an intra-day record in a choppy session on Wednesday, as investors balanced worries about inflation with reassuring comments from Fed Chair Jerome Powell. Of the 11 S&P 500 sector indexes, utilities, and consumer staples were among the strongest, while energy sank over 3%. U.S monetary policy will offer “powerful support” to the economy “until the recovery is complete,” Powell told a congressional hearing in remarks that portrayed a recent jump in inflation as temporary and focused on the need for continued job growth. Powell’s comments followed data this week showing U.S producer prices increased more than expected in June and U.S consumer prices rose by the most in 13 years. Investors in recent weeks have focused on inflation, with many fearing a possible hawkish shift by the Federal Reserve, as well as a spike in coronavirus infections that could knock U.S equities off record highs.

Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.13%. The best performers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 2.47% or 3.60 points to trade at 149.24 at the close. Meanwhile, Coca-Cola Co added 2.31% or 1.27 points to end at 56.29 and Honeywell International Inc. was up 1.65% or 3.69 points to 227.77 in late trade. The worst performers of the session were Chevron Corp, which fell 1.89% or 1.96 points to trade at 101.97 at the close. Boeing Co declined 1.69% or 3.86 points to end at 224.34 and Caterpillar Inc. was down 1.65% or 3.54 points to 211.65.

NASDAQ 100

The NASDAQ index declined 0.22%. The top performers on the NASDAQ Composite were SGOCO Group Ltd which rose 36.33% to 13.074, Datasea Inc. which was up 34.81% to settle at 3.950 and Bon Natural Life Lt which gained 33.26% to close at 11.86. The worst performers were Allena Pharmaceuticals Inc. which was down 35.47% to 0.8969 in late trade, Allied Healthcare Products Inc. which lost 31.13% to settle at 6.240 and Antelope Enterprise Holdings Ltd which was down 25.75% to 2.970 at the close.

Oil

Oil prices fell nearly 1% today, extending losses as investors braced for more supplies following a compromise between top OPEC producers and as U.S fuel stocks rose, raising concerns about demand in the world's largest consumer. U.S West Texas Intermediate (WTI) crude for August was at $72.51 a barrel, down 62 cents, or 0.9%. The market is not taking any chances. Prices are much overbought anyway so traders might want to take some money off the table before the deal is concrete. Talks among the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, had broken down earlier this month after the UAE objected to extending the supply cut deal beyond April 2022. The deal will take some time to get finalized, but it seems the UAE will be allowed to produce more output next year. It seems OPEC+ will shortly have a plan to raise output and that is welcomed the news as surging demand had the oil market getting too tight.

Precious and Base Metals

Gold prices hovered near a four-week peak yesterday after U.S Federal Reserve Chair Jeremy Powell soothed investor fears by reassuring that he was in no rush to tighten policy, lifting the metal’s appeal as an inflation hedge. Spot gold was flat at $1,826.27 per ounce, having hit a peak since June 16 at $1,829.55 yesterday. U.S gold futures edged up 0.1% to $1,827.00. Powell stuck to the view on Wednesday that the current price increases are transitory and the Fed expects to continue its bond-buying until there is “substantial further progress” on jobs, with interest rates pinned near zero likely until at least 2023. Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement. Growing inflationary pressures are going to keep investors on edge, but they are becoming more comfortable about the Fed’s stance, allowing them to continue to build positions in the market. The conditions are relatively supportive of further gains in gold. It’s not going to be a sprint but a very gentle, gradual trend higher for the year at the moment. Weighing on bullion’s appeal, the dollar found some footing during the Asian trade on the back of coronavirus jitters, after Powell’s comments caused the greenback to retreat from recent peaks. On the technical front, spot gold may test a resistance at $1,833 per ounce, a break above could lead to a gain at $1,853. Among other precious metals, silver edged up 0.1% to $26.26 per ounce. Copper prices lost ground in low volumes yesterday on tepid demand in top metals consumer China and uncertainty about rising inflation. A dip in physical demand in top metals consumer China was also weighing on the market after China’s copper imports fell for a third straight month in June. The high copper prices are having an impact on demand, which has reduced some of the downstream orders and we are seeing that in the lower Chinese import numbers in June.

Traditional Agricultures

Corn and soybean futures hit their highest in nearly two weeks yesterday as forecasts called for dry weather in the Midwest crop belt next week and continued dryness in the northern Plains, threatening crop prospects.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

FOREX-The U.S dollar weakened against all of the major currencies

The U.S dollar weakened against all of the major currencies as Treasury yields took a tumble. Federal Reserve Chairman Powell admitted that inflation data has been higher than expected and they lack certainty on transitory inflation even though they believe that to be the case. This line is important because it reinforces the possibility of Fed taper this year. Powell sees the next six months as critical for inflation, to see if falls back like they expect. The fact that he still maintains the view that inflationary pressures will subside indicates that policy changes are a ways off. The Fed is trailing behind New Zealand, Canada, and the U.K central bank, and the worry are they will fall further behind on the curve and be forced to tighten more aggressively in the future. Looking ahead, the Empire State and Philadelphia Fed surveys will provide more insight into how quickly the Fed will act. If manufacturing activity continues to weaken, even if it is driven by supply chain disruptions, the Fed will wait. If manufacturing issues are resolved and activity accelerates, the pressure on the Fed to taper increases. Central banks are taking bigger leaps to normalize monetary policy and investors are wondering If the Federal Reserve is next. Yesterday, the Reserve Bank of New Zealand shocked investors by suddenly halting asset purchases. Although hawkishness was widely anticipated with a number of local banks forecasting a November rate hike, most expected the RBNZ to taper not cease asset purchases. But “more persistent consumer price inflation pressure,” that is “expected to build over time due to rising domestic capacity pressures and growing labor shortages,” prompted more aggressive action from the central bank. Unlike other countries, New Zealand’s labor market returned to pre-pandemic levels earlier this year and with the prices proving to be persistent, the Reserve Bank is worried that inflation could overshoot its target. The Bank of Canada also reduced monetary stimulus but their adjustment was less significant compared to the RBNZ. They scaled back bond buys for the second time in a row by 1 billion per week, which was more than the consensus forecast for an overall reduction of 1 billion.

Euro

The single currency traded lower as Eurozone industrial production fell in May by more than expected, driven down mostly by a drop in the output of non-durable consumer goods such as food and clothes, data released yesterday showed. Industrial output fell 1.0% month-on-month, whereas economists polled by Reuters had expected a 0.2% decline. Overall, the EUR/USD traded with a low of 1.1823 and a high of 1.1880 before closing the day around 1.1877 in the New York session.

Yen

The Japanese Yen gained as the dollar retreated from recent peaks today, following further reassurance from Federal Reserve chair Jerome Powell that he was in no rush to tighten policy, though losses were kept in check by investor's nerves ahead of Chinese growth data. Powell said overnight that high inflation seemed linked to reopening. Overall, the USD/JPY traded with a low of 109.71 and a high of 110.24 before closing the day around 110.10 in the U.S session.

British Pound

The British Pound climbed against the dollar yesterday as UK inflation rose more than expected to its highest in almost three years, stoking speculation the Bank of England will have to consider sooner whether to reduce its massive stimulus program. Inflation jumped in June further above the BoE's 2% target to hit 2.5%, its highest since August 2018. Overall, the GBP/USD traded with a low of 1.3754 and a high of 1.3898 before closing the day at 1.3897 in the New York session.

Canadian Dollar

The Canadian Dollar was up as the Bank of Canada reduced the scope of its bond-buying program but held its key interest rates at a record low. The loonie cut its gains against the U.S dollar following the Bank of Canada's announcement. The bank also warned that inflation would be higher than previously forecast over the near term. Overall, USD/CAD traded with a low of 1.2440 and a high of 1.2554 before closing the day at 1.2441 in the New York session.

Australian Dollar

The Australian Dollar gained as Australia's jobless rate, led by the country's remarkable recovery from the coronavirus pandemic, improved to a level last seen during the once-in-a-generation mining boom and may help bring forward the date of monetary policy tightening. 29,000 net new jobs were created in June, in line with forecasts for a 30,000 gain. Overall, AUD/USD traded with a low of 0.7460 and a high of 0.7532 before closing the day at 0.7482 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50, and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 30 and lies below the neutral zone. In general, the pair has gained 0.63%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 33 reading and lies below the neutral zone. On the whole, the pair has gained 1.15%.

Aussie-Yen

Currently, the cross is trading below 14, 50, and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 28 reading and lies below the neutral region. In general, the pair has gained 1.15%.

Euro-Sterling

This cross is currently trading below 14, 50, and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is issuing a bullish signal. The Relative Strength Index is above 48 and lies below the neutral region. Overall, the pair has lost 0.54%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 42 and lies below the neutral region. In general, the pair has gained 0.67%.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market-The NASDAQ index reversed early declines to hit a record high

The NASDAQ index reversed early declines to hit a record high on Tuesday, helped by a rise in growth-linked mega-cap stocks and as earnings season kicked off on a positive note, while a solid rise in consumer prices in June weighed on sentiment. A Labor Department report showed U.S consumer prices rose by the most in 13 years last month amid supply constraints and a continued rebound in costs of travel-related services, while the so-called core CPI surged 4.5% on a year-on-year basis, the largest rise since November 1991, after rising 3.8% in May. Inflation and positive economic data have dictated Wall Street’s movement since mid-June as investors fear an overheating economy amid a faster reopening could force the Federal Reserve to pare back its ultra-loose monetary policies sooner than expected. Nine of the 11 major S&P 500 sector indexes were trading lower, with the defensive real estate and utility sectors leading declines.

Dow Jones Industrial Average

 The Dow Jones Industrial Average fell 0.31%. The best performers of the session on the Dow Jones Industrial Average were Visa Inc. Class A, which rose 1.90% or 4.53 points to trade at 242.40 at the close. Meanwhile, Microsoft Corporation added 1.35% or 3.75 points to end at 281.07 and Coca-Cola Co was up 1.01% or 0.55 points to 55.03 in late trade. The worst performers of the session were Boeing Co, which fell 4.25% or 10.13 points to trade at 228.16 at the close. Caterpillar Inc. declined 1.55% or 3.38 points to end at 215.20 and Home Depot Inc. was down 1.46% or 4.69 points to 317.05.

NASDAQ 100

 The NASDAQ index fell 0.38%. The top performers on the NASDAQ Composite were Allied Healthcare Products Inc. which rose 127.40% to 9.005, Red Cat Holdings Inc. which was up 59.93% to settle at 4.750 and Orbsat Corp which gained 39.43% to close at 9.300. The worst performers were SGOCO Group Ltd which was down 52.25% to 9.550 in late trade, Mediaco Holding Inc. which lost 50.82% to settle at 8.360 and Transcode Therapeutics Inc. which was down 28.99% to 4.58 at the close.

Oil

Oil prices gained almost 2% yesterday after the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additional crude to ship worldwide. The market has been generally stronger as demand has rebounded and the Organization of the Petroleum Exporting Countries and their allies have held millions of barrels of supply from the market. OPEC+, as the group is known, was expected to boost supply, but discussions broke off without an agreement. U.S West Texas Intermediate crude rose $1.15, or 1.6%, to settle at $75.25 a barrel. Oil prices will be volatile, the IEA said, until differences are resolved among members of OPEC+. The group has been unwinding record output curbs agreed on last year to cope with the pandemic. But a dispute over policy between Saudi Arabia and the United Arab Emirates put plans to pump more oil on hold. Still, coronavirus infections are surging in some parts of the world.

Precious and Base Metals

Gold prices firmed today after getting a lift from weaker U.S Treasury yields and dollar, though the main focus was on Federal Reserve Chair Jerome Powell’s testimony due later in the day following a robust rise in consumer prices. Spot gold was up 0.4% at $1,814.13 per ounce, while U.S gold futures rose 0.3% to $1,814.5. While gold has made gentle gains on the back of slightly lower U.S. dollar and yields, it has not been enough to decisively shift momentum higher. Gold held up surprisingly well overnight after the CPI data propelled the dollar higher and lifted long-dated bond yields. That should give some comfort to bullish investors that gold may finally be regaining its inflation hedging tailwind. The dollar index ticked 0.2% lower, having seen its best daily percentage gain in nearly a month on Tuesday. Benchmark 10-year yields also pulled back, which translates into a lower opportunity cost of holding non-interest-bearing gold. Data yesterday showed U.S consumer prices in June rose by the most in 13 years. Focus now shifts to Powell’s testimony before the Congress for any views on the rising price pressures and possible tightening of monetary policy. Powell has repeatedly stated that higher inflation will be transitory, noting that he expected supply chains to normalize and adapt. Gold prices slumped 7% last month after the U.S central bank signaled at a sooner-than-expected interest rate increase. Elsewhere, silver gained 0.5% to $26.10 per ounce, palladium rose 0.4% to $2,838.18, and platinum was 0.6% higher at $1,111.23. Copper prices lost ground in low volumes today as investors waited on the sidelines for U.S central bank officials to clarify their stance on rising inflation. Today the main focus of the market is on the Fed. We have low volumes because people are waiting for more guidance regarding rate policy after the U.S CPI numbers came in much higher than expected.

Traditional Agricultures

Corn futures rose in yesterday’s trading session on concerns about tightening grain supplies while soybean futures advanced on strong global vegetable oil markets. Wheat futures turned lower yesterday on profit-taking after rallying on supply concerns a day earlier.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

FOREX-U.S consumer price inflation jumped 5.4%, the largest increase in 12 years

 The U.S dollar traded sharply higher yesterday against all of the major currencies on the back of red hot consumer price growth. CPI rose 0.9% in the month of June, up from 0.6% in May and against a 0.5% forecast. On an annualized basis, consumer price inflation jumped 5.4%, the largest increase in 12 years. Core prices rose 4.5%, the fastest rate since 1991. While everyone expected price pressures to increase, yesterday’s report illustrates how significant the problem has become. Not only are prices rising sharply but the increases are more widespread which means prices can remain high for longer. This is particularly likely given that a large part of the problem is supply chain issues that are not easy fixes. While yesterday’s CPI report casts doubt on the Federal Reserve’s view that high inflation is transitory, the inconsistent performance of stocks and bonds is a sign that investors are still undecided. Fed fund futures are pricing in 90% chance of a rate hike in December 2022 but 10 year Treasury bond yields ended the day lower and not higher. Stocks fell, but the decline was modest. Investors are clearly waiting for guidance from Fed Chairman Powell who delivers his semiannual testimony on monetary policy and the economy tomorrow. The U.S dollar will give back gains if he downplays CPI but if he suggests that taper is right around the corner, the dollar could extend higher quickly. Policy adjustments will be the main focus today. The Reserve Bank of New Zealand and Bank of Canada meet before Powell’s testimony. Both currencies sold off on U.S dollar gains despite the prospect of less dovishness. The RBNZ and the BoC are two of the most hawkish central banks. No changes are expected from the RBNZ this month but they are widely expected to be the first major central bank to raise interest rates. A number of local banks are calling for a rate hike in November which means they could signal this intention as early as this month. There’s about an 80% chance the Bank of Canada will reduce asset purchases today. They kicked off the global taper cycle back in April and is widely expected to continue normalizing monetary policy with inflation above target and growth accelerating. Nearly 68% of Canada’s population has received at least one COVID-19 vaccination dosage, allowing the country to ease restrictions. This has been accompanied by stronger job growth and manufacturing activity.

Euro

The single currency fell against the U.S Dollar after heated U.S inflation spurred bets of faster monetary policy tightening than Federal Reserve officials have so far signaled. Traders are now looking ahead to Fed Chair Jerome Powell testifying before Congress on Wednesday and Thursday for any signals on the timing of a tapering of stimulus. Overall, the EUR/USD traded with a low of 1.1823 and a high of 1.1880 before closing the day around 1.1877 in the New York session.

Yen

The Japanese Yen traded lower against the U.S Dollar as U.S consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum. Another hotter-than-expected U.S CPI print has got the market wondering. Overall, the USD/JPY traded with a low of 109.71 and a high of 110.24 before closing the day around 110.10 in the U.S session.

British Pound

The British Pound fell against the dollar yesterday after data showing the highest U.S inflation in 13 years sent the greenback surging to a six-day high. The pound eased earlier in the day from the two-week highs when the BoE scrapped pandemic-era curbs on British banks’ dividend payments but warned in its FSR that some asset prices looked stretched. Overall, the GBP/USD traded with a low of 1.3754 and a high of 1.3898 before closing the day at 1.3897 in the New York session.

Canadian Dollar

The Canadian Dollar continued to hold its biggest decline in a week to trade at C$1.25155 per greenback, weakening toward a 2-1/2-month low reached last week. The Canadian central bank is due to update its economic forecasts at a policy announcement later in today’s session, with further tapering of asset purchases expected. Overall, USD/CAD traded with a low of 1.2440 and a high of 1.2554 before closing the day at 1.2441 in the New York session.

Australian Dollar

The Australian Dollar firmed slightly earlier in the session yesterday ahead of U.S inflation data, but pandemic lock-downs kept the pressure on the Aussie dollar. The worsening Covid-19 outbreaks in Sydney are keeping the Australian dollar under pressure. Despite the recent pick-up in pace, Australia’s vaccination rate remains low. Overall, AUD/USD traded with a low of 0.7460 and a high of 0.7532 before closing the day at 0.7482 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50, and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also issuing a bearish stance. The Relative Strength Index is above 30 and lies below the neutral zone. In general, the pair has gained 0.63%.

Sterling-Yen

Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 33 reading and lies below the neutral zone. On the whole, the pair has gained 1.15%.

Aussie-Yen

Currently, the cross is trading below 14, 50, and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 28 reading and lies below the neutral region. In general, the pair has gained 1.15%.

Euro-Sterling

This cross is currently trading below 14, 50, and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is issuing a bullish signal. The Relative Strength Index is above 48 and lies below the neutral region. Overall, the pair has lost 0.54%.

Sterling-Swiss

This cross is trading above 14 and below 50, 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 42 and lies below the neutral region. In general, the pair has gained 0.67%.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.