Articles
Japan Industrial Production (MoM) above forecasts (2%) in May: Actual (2.8%)
398877 June 28, 2024 07:51 FXStreet Market News
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Japan Tokyo CPI ex Fresh Food (YoY) registered at 2.1% above expectations (2%) in June
398876 June 28, 2024 07:40 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
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Japan Jobs / Applicants Ratio came in at 1.24, below expectations (1.26) in May
398875 June 28, 2024 07:40 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
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SOL and AVAX see gains amid corrections looming due to FOMO
398874 June 28, 2024 07:36 FXStreet Market News
- SOL and AVAX have risen around 8% in the past 24 hours.
- Santiment’s data suggests FOMO is the major cause of SOL’s price rally, and it may see a price correction.
- AVAX may continue to rise, as Santiment data suggests FOMO didn’t influence its rally.
Solana (SOL) and Avalanche (AVAX) have rallied by 9% and 7%, respectively, on Thursday following a slight recovery across the crypto market. However, Santiment data reveals FOMO as the major force behind SOL’s rise, while AVAX has had little influence from FOMO on its price.
AVAXÂ surges alongside SOL as crypto market rebounds
In a recent X post, Santiment released key data suggesting what has been spurring a price increase for SOL and AVAX, and why they could face potential corrections.
With both tokens surging around 8%, Santiment’s social volume data suggests that FOMO was the major reason for SOL’s rise after it saw key market-moving developments on Thursday. The data further suggests that SOL may experience a correction soon since FOMO likely fueled the recent demand.
VanEck’s recent S-1 filing for a Solana ETF may have caused the recent price hike in SOL. Another reason for its rise may be GSR’s announcement that it has gone long on SOL, commenting on its “superior technology” and how it “continues to distance itself from the pack.”
A correction is unlikely if SOL continues trading higher when the market settles.
SOL & AVAX Social Volume
Concurrently, AVAX price also shot up by 8% on Thursday, with little influence from FOMO or high social volume. The data from Santiment suggests that since AVAX rallied without seeing increased social volume/FOMO, it may sustain the price rise.
The two price surges highlight contrasting dynamics in the crypto market, showing how psychology can impact price increases. While one token is experiencing a surge likely driven by FOMO, the other’s rise seems more organic.
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Japan Unemployment Rate in line with forecasts (2.6%) in May
398873 June 28, 2024 07:35 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Japan Tokyo CPI ex Food, Energy (YoY): 1.8% (June) vs previous 2.2%
398872 June 28, 2024 07:34 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Japan Tokyo Consumer Price Index (YoY): 2.3% (June) vs 2.2%
398871 June 28, 2024 07:33 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Gold price shines as US Dollar dwindles pre-release of US PCE
398868 June 28, 2024 07:29 FXStreet Market News
- Gold climbs as USD falls, Treasury yields dip.
- XAU/USD rebounds from two-week low following inflation data from Canada and Australia.
- DXY drops 0.12% to 105.91, off monthly high of 106.13.
- Anticipation for May PCE drops to 2.6% YoY, with Core PCE also expected at 2.6%.
Gold rallied more than 1% on Thursday after economic data. The softer Greenback, which is retreating after posting solid gains, undermined lower US Treasury bond yields. US economic data was slightly better than expected, though ebbs and flows toward the golden metal kept XAU/USD trading at $2,326.
Yesterday, XAU/USD dived to a two-week low, sponsored by the release of inflation figures in Canada and Australia that showcased a reacceleration of inflation. This sponsored a jump in most global bond yields, particularly US Treasury yields, and was capitalized by US Dollar bulls.
The US Dollar Index (DXY), which tracks the buckÂ’s performance against a basket of other currencies, hit a new monthly high of 106.13 before erasing some of those gains on Thursday as it tumbled 0.12% to 105.91.
The Gross Domestic Product (GDP) for the first quarter of 2024 in the United States was a tenth higher than forecasts, news already priced in by the markets. Besides that, the number of Americans filing for unemployment benefits dipped compared to last weekÂ’s data, while Durable Goods Orders exceeded projections.
This week, the Federal ReserveÂ’s (Fed) preferred gauge for inflation, the May PCE, is expected to decrease from 2.7% to 2.6% YoY. Core PCE is anticipated to decline from 2.8% to 2.6% YoY.
Daily digest market movers: Gold price advances, capitalizing on soft US Dollar
- US GDP for Q1 2024 came in at 1.4% QoQ, slightly higher than the 1.3% in the previous two readings but still trailing last year’s fourth-quarter expansion of 3.4%.
- US Durable Goods Orders in May rose by 0.1% MoM, surpassing forecasts of a -0.1% contraction. Meanwhile, Initial Jobless Claims dipped from 239K the previous week to 233K, below the forecast of 236K.
- Fed officials crossed the newswires during the week, and delivered mixed stances. Fed Governor Michelle Bowman was hawkish, saying that she would like to increase rates if the disinflation process stalls.
- Conversely, San Francisco Fed President Mary Daly was dovish: “At this point, inflation is not the only risk we face,” expressing worries about the labor market.
- Fed Governor Lisa Cook was neutral on Tuesday, saying that inflation was most likely to fall “sharply” next year, adding that it would be necessary to ease policy to keep the Fed’s dual mandate more balanced.
- According to the CME FedWatch Tool, odds for a 25-basis-point Fed rate cut in September are at 59.5%, up from 56.3% last Tuesday.
- December 2024 fed funds rate futures contract implies the Fed will ease policy by just 35 basis points (bps) toward the end of the year.
Technical analysis: Gold price edges higher but remains shy of testing Head-and-Shoulders neckline
Gold remains under pressure as the Head-and-Shoulders chart pattern remains intact, hinting that prices could fall further and clear key support levels. Although XAU/USD traded higher on Thursday, it remains shy of challenging the Head-and-shoulders neckline. If the latter is decisively broken, that could negate the pattern and pave the way to test the June 21 high of $2,368.
Momentum favors sellers as shown by the Relative Strength Index (RSI) standing below the 50-midline.
That said, the XAU/USD next support would be $2,300. Once cleared, the non-yielding metal would fall to $2,277, the May 3 low, followed by the March 21 high of $2,222. Further losses lie underneath, with sellers eyeing the Head-and-Shoulders chart pattern objective from $2,170 to $2,160.
Conversely, if Gold reclaims $2,350, that will expose additional key resistance levels like the June 7 cycle high of $2,387, ahead of challenging the $2,400 figure.
Economic Indicator
Personal Consumption Expenditures – Price Index (MoM)
The Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US).. The MoM figure compares prices in the reference month to the previous month. Price changes may cause consumers to switch from buying one good to another and the PCE Deflator can account for such substitutions. This makes it the preferred measure of inflation for the Federal Reserve. Generally speaking, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
EUR/USD thin gains mired in congestion ahead of key US inflation on Friday
398865 June 28, 2024 07:27 FXStreet Market News
- EUR/USD found some bullish interest on Thursday, but momentum remains limited.
- German labor figures due early Friday, market impact sect to be limited.
- US PCE Price Index inflation to cap off the trading week.
EUR/USD found a thin bid on Thursday, but the pair continues to grind into the midrange near the 1.0700 handle as half-hearted bidders shuffle their feet ahead of FridayÂ’s key US inflation print. European economic data has been strictly mid-tier in the back half of the trading week, leaving markets to turn an eye towards US Personal Consumption Expenditure Price Index (PCE) inflation, due during FridayÂ’s upcoming US market window.
Forex Today: US inflation comes to the fore… again
European data prints moderately softened on Thursday, with the pan-EU Economic Sentiment Indicator ticking down to 95.9 from the previous 96.0, missing the forecast increase to 96.2. FridayÂ’s German Unemployment change is forecast to show 15K net new jobless benefits seekers in June, down from the previous 25K while the seasonally-adjusted Unemployment Rate in June is expected to hold steady at 5.9%.
US Initial Jobless Claims for the week ended Jun 21 came in better than expected, showing 233K net new jobless benefits seekers compared to the forecast 236K, and down slightly further from the previous weekÂ’s 238K. The four-week average for Initial Jobless Claims jumped to 236K, bringing the newest week-on-week figure back below the running average.
US Gross Domestic Product (GDP) met expectations on Thursday, with Q1 GDP slightly revised to 1.4% from the initial print of 1.3%. Core Personal Consumption Expenditures in the first quarter also rose slightly, ticking up to 3.7% QoQ versus the forecast hold at 3.6%. ThursdayÂ’s upcoming Presidential debate, due to start after the dayÂ’s market close, will draw some attention as investors keep an eye out for possible policy hints from candidates.
FridayÂ’s US PCE Price Index inflation print will be the weekÂ’s key data figure as investors hope for continued cooling in US inflation numbers to help push the Federal Reserve (Fed) closer toward rate cuts. At current cut, core PCE Price Index inflation is forecast to tick down to 0.1% MoM in May from 0.2%.
Economic Indicator
Core Personal Consumption Expenditures – Price Index (MoM)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal ReserveÂ’s (Fed) preferred gauge of inflation. The MoM figure compares the prices of goods in the reference month to the previous month.The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
EUR/USD technical outlook
The Fiber caught a Thursday bid as the pair bounced from a demand zone priced in below 1.0680, driving back into the 200-hour Exponential Moving Average (EMA) 1.0717 before settling back into the 1.0700 handle heading into FridayÂ’s market session.
EUR/USD is getting caught in a congestion trap on daily candlesticks, drifting into the low end of a rough descending channel as the pair waffles on the bearish side of the 200-day Exponential Moving Average (EMA) at 1.0785.
EUR/USD hourly chart
EUR/USD daily chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is CanadaÂ’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in CanadaÂ’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.