Articles

Gold rises as Powell steers middle-way while market still price in rate cuts

401750   July 11, 2024 17:14   FXStreet   Market News  

• 
  Gold
  rises
  as
  Powell
  sets
  a
  cautiously
  optimistic
  tone
  on
  his
  second
  day
  of
  testimony
  to
  lawmakers
  in
  Washington. 
• 
  Although
  he
  did
  not
  state
  when
  the
  Fed
  would
  propose
  to
  cut
  interest
  rates,
  he
  indicated
  it
  might
  be
  soon. 
• 
  Market-based
  gauges
  continue
  to
  show
  a
  high
  probability
  of
  a
  rate
  cut
  in
  September
  –
  a
  positive
  for
  Gold. 

Gold
(XAU/USD)
trades
up
almost
half
a
percent
in
the
$2,380s
on
Thursday
as
markets
continue
to
foresee
interest-rate
cuts
coming
down
the
track.
In
his
second
day
of
testimony
to
US
lawmakers,
Federal
Reserve
(Fed)
Chairman
Jerome
Powell
steered
a
middle
way
between
cautious
optimism
that
inflation
would
come
down
without
causing
too
many
job
losses
–
achieving
what
economists
call
a
“soft-landing”
–
while
retaining
a
data-dependent
vigilant
approach
to
inflation.  

His
comments
supported
Gold,
which
performs
better
when
interest
rates
are
expected
to
fall,
since
lower
interest
rates
increase
the
asset’s
attractiveness
to
investors
by
reducing
the
opportunity
cost
of
holding
it. 

Gold
is
also
benefiting
from
further
emerging
data
showing
that
central
banks
are
continuing
to
hoard
all
over
the
world.
This
comes
despite
the
news
on
Sunday
that
the
largest
consumer
of
Gold,
the
People’s
Bank
of
China
(PBoC),
stopped
buying
the
precious
metal
for
the
second
month
running
in
June,
following
an
18-month
buying
bonanza.

Gold
rises
as
Powell
steers
middle-way,
markets
see
cuts
coming 

Gold
gained
on
Wednesday
after
markets
assessed
Fed

Chairman
Jerome
Powell
as
cautiously
optimistic
in
his
second
day
of
testimony
to
US
lawmakers
in
Washington. 

In
comments
to
the
House
Financial
Services
Committee
Powell
said
that
“We
see
current
Fed
policy
as
restrictive,”
indicating
that
at
their
current
level,
interest
rates
were
successfully
doing
the
job
of
bringing
inflation
back
down
to
the
Fed’s
2.0%
target. 

When
asked
about
the
timing
of
future
Fed
interest-rate
cuts
and
whether
he
would
wait
for
the
Fed’s
preferred
gauge
of
inflation,
the
Personal
Consumption
Expenditures
(PCE)
Price
Index,
to
fall
below
the
Fed’s
target
before
pulling
the
trigger,
Powell
said
that
he
would
not,
because,
“inflation
has
a
certain
momentum,”
and
“you
don’t
want
to
wait
until
inflation
gets
all
the
way
down
to
2.0%.”
At
its
last
reading,
both
headline
and
core
PCE
fell
to
2.6%,
suggesting
the
Fed
might
not
be
that
far
away
from
making
rate
cuts.

This
reinforced
current
market-based
barometers
of
when
the
Fed
will
cut
interest
rates.
The
CME
FedWatch
tool
continues
to
see
a
high
70%
probability
of
a
0.25%
cut
in
the
Fed
Funds
rate
–
the
Fed’s
primary
policy
interest
rate
–
in
September.
Such
a
cut
would
bring
the
policy
rate
down
to
an
upper
bound
of
5.25%.
The
CME
FedWatch
tool
bases
its
probability
on
the
price
of
30-day
Fed
Funds
futures
prices.  

Although
investors
had
been
hoping
for
more
concrete
details
of
when
the
Fed
would
cut
interest
rates,
Powell’s
overall
optimism
about
achieving
a
“soft-landing”
for
the
economy
–
when
inflation
falls
back
to
target
without
unemployment
rising
too
high
–
buoyed
sentiment.
That
said,
Friday’s
official
jobs
report,
the
Nonfarm
Payrolls
release,
reported
the

US
Unemployment
Rate
rising
to
4.1%
from
4.0%,
when
no
rise
had
been
expected.
It
was
the
third
month
of
increase
in
a
row. 

Gold
buoyed
by
central
bank
buying

Gold
makes
further
gains
on
Thursday
due
to
the
emergence
of
data
showing
central
banks
around
the
world
are
still
hoarding
Gold
despite
the
news
that
the
largest
consumer,
the
People’s
Bank
of
China
(PBoC),
has
ceased
Gold
purchases
for
two
months
running
in
June. 

Despite
the
PBoC’s
absence
from
the
market,
which
accounts
for
over
a
quarter
of
buying,
the
Bank
of
India
(BOI)
bought
nine
tons
of
Gold
in
June,
the
National
Bank
of
Poland
four
tons,
and
the
Czech
National
Bank
two
tons,
according
to
TD
Securities. 

Analysts
at
Citibank
remain
optimistic
about
central-bank
demand,
which
they
see
rising
in
the
second
half
of
the
year
to
reach
a
total
of
around
1,100
tons
in
2024,
a
5.8%
increase
from
the
previous
year.
They
put
the
gains
down
to
an
increasing
likelihood
of
trade
wars
and
concerns
about
US
fiscal
policies. 

To
that
end,
Citibank’s
official
forecast
is
for
Gold
to
hit
$2,600
by
the
end
of
2024. 

Meanwhile,
Bert
Melek,
Head
of
Commodity
Strategy
at
TD
Securities,
forecasts
Gold
to
hit
$2,475
in
Q1
of
2025.

Technical
Analysis:
Gold
rising
for
third
day
in
a
row

Gold
makes
gains
for
the
third
day
in
a
row
following
the
formation
of
a
bearish
Two-Bar
reversal
pattern
(green-shaded
rectangle
in
the
chart
below)
at
the
top
of
the
early
July
up
move.
This
pattern
forms
after
a
long
green-up
day
is
followed
by
a
long
red-down
day
of
a
similar
length
and
size.
It
can
be
a
sign
of
a
short-term
reversal.
In
the
case
of
Gold
this
has
not
played
out.

XAU/USD
Daily
Chart

The

outlook
is
unclear.
There
is
still
a
risk
Gold
could
pull
back
to
the
50-day
Simple
Moving
Average
(SMA)
at
$2,344,
fulfilling
the
negative
implications
of
the
Two-Bar
pattern.
At
the
same
time,
the
recovery
after
its
formation
has
partially
invalidated
it
and
suggests
the
price
could
go
higher.

A
break
above
the
high
of
the
pattern
and
Friday’s
peak
at
$2,393
would
provide
strong
bullish
confirmation
of
a
continuation
higher.
This
would
probably
also
unlock
the
next
target
at
the
$2,451
all-time
high. 

The
bearish
Head
&
Shoulders
(H&S)
topping
pattern
that
formed
from
April
to
June
has
been
invalidated
by
the
recent
recovery.
However,
there
is
still
a
chance
–
albeit
much
reduced
– that
a
more
complex
topping
pattern
may
have
formed
instead. 

If
a
complex
pattern
has
formed
in
place
of
the
H&S,
and
the
price
breaks
below
the
pattern’s
neckline
at
$2,279,
a
reversal
lower
may
still
be
possible
with
a
conservative
target
at
$2,171,
the
0.618
ratio
of
the
height
of
the
pattern
extrapolated
lower. 

The
trend
is
now
sideways
in
both
the
short
and
medium
term.
In
the
long
term,
Gold
remains
in
an
uptrend.

IEA sees oil demand growth slowing as China consumption eases

401749   July 11, 2024 16:43   Forexlive Latest News   Market News  

As
for
this
year
itself,
the
agency
is
keeping
their
demand
growth
forecast
largely
steady
at
970k
bpd.
IEA
notes
that
the
post-pandemic
rebound
in
Chinese
consumption
has
now
run
its
course.
And
while
China
has
accounted
for
roughly
70%
of
global
demand
gains
last
year,
it
is
only
holding
a
share
of
around
40%
for
this
year
and
next.

Besides
that,
IEA
notes
that
subpar
economic
growth,
greater
efficiencies
and
vehicle
electrification
to
continue
to
weigh
on
demand
in
2024
and
2025.

AUD/USD Price Analysis: AUD/USD remains above 0.6750; next barrier at upper boundary

401747   July 11, 2024 16:40   FXStreet   Market News  

• 
  AUD/USD
  may
  test
  the
  upper
  boundary
  of
  the
  ascending
  channel
  around
  the
  level
  of
  0.6785.
• 
  The
  14-day
  RSI
  is
  positioned
  slightly
  below
  the
  70
  level,
  indicating
  potential
  overbought
  conditions
  and
  a
  forthcoming
  correction.
• 
  The
  key
  support
  appears
  at
  the
  lower
  boundary
  of
  the
  ascending
  channel
  around
  0.6675
  level.

AUD/USD
extends
its
losses
for
the
third
successive
day,
trading
around
0.6760
during
the
European
hours
on
Thursday.
The
analysis
of
the
daily
chart
shows
that
the
AUD/USD
pair
consolidates
within
an
ascending
channel,
indicating
a
bullish
bias
in
the
pair’s
price
action.

Additionally,
the
14-day
Relative
Strength
Index
(RSI)
is
positioned
slightly
below
the
70
level,
indicating
confirmation
of
the
bullish
trend
while
also
suggesting
potential
overbought
conditions.
A
breach
above
this
level
could
signal
a
need
for
caution,
possibly
indicating
a
forthcoming
correction.

Furthermore,
the
momentum
indicator
Moving
Average
Convergence
Divergence
(MACD)
line
is
above
the
centerline,
suggesting
upward
price
movement.
Divergence
above
the
signal
line
further
confirms
this
bullish
trend,
as
it
indicates
increasing
positive
momentum.

The
AUD/USD
pair
may
test
the
upper
boundary
of
the
ascending
channel
at
approximately
0.6785.
If
it
breaks
through
this
level,
the
pair
could
target
the
psychological
level
of
0.6800.

On
the
downside,
the
AUD/USD
pair
may
find
support
around
the
lower
boundary
of
the
ascending
channel
at
the
0.6675
level,
with
additional
support
near
the
50-day
Exponential
Moving
Average
(EMA)
at
0.6651.
A
break
below
this
level
could
push
the
pair
toward
the
throwback
support
around
0.6590.

AUD/USD:
Daily
Chart

Pound Sterling approaches annual highs on strong UK GDP, BoE rate-cut bets fade

401745   July 11, 2024 16:39   FXStreet   Market News  

• 
  The
  Pound
  Sterling
  performs
  strongly
  against
  the
  US
  Dollar
  and
  other
  currencies
  on
  faster
  UK
  GDP
  growth
  and
  a
  decline
  in
  BoE
  rate-cut
  prospects.
• 
  The
  UK
  economy
  expanded
  at
  a
  faster
  pace
  of
  0.4%
  in
  May,
  beating
  an
  estimate
  of
  0.2%.
• 
  Investors
  await
  the
  US
  inflation
  data
  for
  fresh
  guidance
  on
  the
  Fed’s
  interest
  rates
  path.

The
Pound

Sterling
(GBP)
rallies
to
near
1.2870
and
approaches
the
year-to-date
high
against
the
US
Dollar
(USD)
in
Thursday’s
London
session.
The
GBP/USD
pair
strengthens
due
to
multiple
tailwinds,
such
as
weakness
in
the
US
Dollar
due
to
firm
speculation
that
the

Federal
Reserve
(Fed)
will
begin
reducing
interest
rates
in
September
and
an
upbeat

outlook
for
the
British
currency
amid
easing
Bank
of
England’s
(BoE)
early
rate
cut
bets
and
strong
United
Kingdom
(UK)
Gross
Domestic
Product
(GDP)
report
for
May.

The
US
Dollar
Index
(DXY),
which
tracks
the
Greenback’s
value
against
six
major
currencies,
falls
back
after
failing
to
extend
recovery
above
the
immediate
resistance
of
105.20.

The
Greenback
comes
under
pressure
as
Fed
Chair
Jerome
Powell
signalled
some
disinflation
progress
in
his
semi-annual
Congressional
testimony
comments.
Powell
refrained
from
announcing
a
victory
over
inflation
but
assured
that
policymakers
are
very
focused
on
the
path
toward price
stability.

In
Thursday’
session,
investors
will
keenly
focus
on
the

United
States
(US)

Consumer
Price
Index
(CPI)
for
June,
which
will
provide
cues
about
potential
market
expectations
for
Fed
rate
cuts
in
September.
Economists
expect
that
the
core
inflation,
which
excludes
volatile
food
and
energy
items,
grew
steadily
by
0.2%
and
3.4%
on
monthly
and
annual
basis,
respectively.
Annual
headline
inflation
is
estimated
to
have
decelerated
to
3.1%
from
May’s
reading
of
3.3%,
while
the
monthly
figure
is
expected
to
have
grown
by
0.1%
after
remaining
unchanged
previously.

Daily
digest
market
movers:
Pound
Sterling
outperforms
against
its
peers
on
multiple
tailwinds

• The
  Pound
  Sterling
  outperforms
  its
  major
  peers
  on
  Thursday
  as
  the
  UK
  economy
  grew
  at
  a
  faster
  pace
  in
  May
  and
  the
  maintenance
  of
  a
  hawkish
  stance
  by
  BoE
  policymakers.
  UK’s
  Office
  for
  National
  Statistics
  (ONS)
  has
  reported
  that
  the
  economy
  expanded
  strongly
  by
  0.4%
  from
  the
  estimates
  of
  0.2%
  and
  a
  stagnant
  performance
  recorded
  in
  April.
• The
  UK
  ONS
  also
  showed
  that
  monthly
  Industrial
  and
  Manufacturing
  Production
  grew
  in
  line
  with
  expectations
  after
  contracting
  in
  April,
  while
  annual
  figures
  missed
  estimates.
  Monthly
  Industrial
  and
  Manufacturing
  Production
  rose
  by
  0.2%
  and
  0.4%,
  respectively.
  Annually,
  Industrial
  and
  Manufacturing
  Production
  grew
  at
  a
  slower
  pace
  of
  0.4%
  and
  0.6%,
  respectively.
  The
  factory
  data
  has
  returned
  to
  a
  positive
  trajectory
  after
  contracting
  at
  a
  stronger
  pace
  in
  April,
  suggesting
  a
  strong
  recovery
  in
  the
  domestic
  and
  overall
  demand
  for
  factory
  products.
• Meanwhile,
  Bank
  of
  England
  (BoE)
  policymakers
  have
  pushed
  back
  expectations
  of
  rate
  cuts
  in
  August.
  On
  Wednesday,
  BoE
  policymaker
  Catherine
  Mann
  warned
  that
  the
  decline
  in
  annual
  headline
  inflation
  to
  the
  2%
  target
  was
  merely
  a
  “touch
  and
  go”.
  Mann
  added
  that
  price
  pressures
  could
  rise
  again
  and
  remain above
  the
  required
  rate
  for
  the
  rest
  of
  the
  year.
  She
  indicated
  that
  her
  stance
  would
  remain
  hawkish
  until
  she
  sees
  a
  sustained
  decline
  in
  service
  inflation
  and
  wage
  growth.
• This
  week,
  BoE
  policymaker
  Jonathan
  Haskel
  also
  maintained
  hawkish
  guidance
  on
  interest
  rates
  due
  to
  sticky
  wage
  growth.
  Haskel
  said: “I
  would
  rather
  hold
  rates
  until
  there
  is
  more
  certainty
  that
  underlying
  inflationary
  pressures
  have
  subsided
  sustainably”,
  Reuters
  reported.

Pound
Sterling
Price
Today:

Technical
Analysis:
Pound
Sterling
sets
for
inverted
H&S
breakout

The
Pound
Sterling
approaches
a
fresh
annual
high
against
the
US
Dollar
near
1.2870.
The
GBP/USD
pair
is
expected
to
extend
its
upside
as
it
is
on
the
verge
of
an
inverted
Head
and
Shoulder
(H&S)
breakout.
The
neckline
of
the
above-mentioned
chart
pattern
is
plotted
near
1.2850,
and
a
breakout
of
the
H&S
formation
results
in
a
bullish
reversal.

Advancing
20-day
Exponential
Moving
Average
(EMA)
near
1.2747 suggests
that
the
near-term
trend
is
bullish.

The
14-day
Relative
Strength
Index
(RSI)
established
into
the
bullish
range
of
60.00-80.00,
indicating
that
the
momentum
has
leaned
to
the
upside.

German manufacturers still taking a more pessimistic view for the remainder of the year

401744   July 11, 2024 16:18   Forexlive Latest News   Market News  

This
speaks
to
the
continued
struggle
in
Germany’s
manufacturing
sector,
which
is
the
key
economic
driver
for
Europe’s
largest
economy.
According
to
the
VDMA,
around
40%
of
German
manufacturers
see
revenue
continuing
to
fall
in
the
current
year
with
23%
expecting
stagnation.

Meanwhile,
almost
a
third
of
companies
are
rating
their
present
situation
as
being
“bad”
or
“very
bad”
while
only
29%
are
rating
it
as
“good”
or
“very
good”.

VDMA
economic
analyst,
Ralph
Wiechers,
says
that:

“Quite
a
few
companies
had
pinned
their
hopes
on
a
positive
second
half
of
2024.
However,
in
terms
of
incoming
orders,
these
hopes
have
not
materialised
for
many.”

NZD/USD appreciates to near 0.6100 as traders await US inflation

401743   July 11, 2024 16:17   FXStreet   Market News  

• 
  NZD/USD
  rebounds
  ahead
  of
  US
  Consumer
  Price
  Index
  (CPI)
  data
  scheduled
  for
  Thursday.
• 
  The
  US
  core
  CPI
  is
  expected
  to
  remain
  steady
  at
  3.4%
  year-over-year
  in
  June.
• 
  The
  New
  Zealand
  Dollar
  may
  limit
  its
  upside
  due
  to
  dovish
  sentiment
  surrounding
  the
  RBNZ.

NZD/USD
recovers
its
recent
losses,
trading
around
0.6090
during
the
European
session
on
Thursday.
Traders
await
the
release
of
the
upcoming
US
Consumer
Price
Index
(CPI)
data
for
June,
scheduled
for
release
on
Thursday,
for
more
clarity
on
the
Federal
Reserve’s
(Fed)
monetary
policy
direction.

Market
forecasts
generally
predict
that
the
annualized
US
core

CPI
for
the
year
ending
in
June
will
remain
steady
at
3.4%.
Meanwhile,
headline
CPI
inflation
is
expected
to
increase
to
0.1%
month-over-month
in
June,
compared
to
the
previous
flat
reading
of
0.0%.

Meanwhile,
on
Wednesday,
Federal
Reserve
(Fed)

Chairman
Jerome
Powell
underscored
the
importance
of
closely
monitoring
the
labor
market,
highlighting
its
significant
deterioration.
Additionally,
Powell
expressed
confidence
in
the
downward
trend
of
inflation,
following
his
remarks
on
Tuesday
that
emphasized
the
necessity
of
further
data
to
strengthen
confidence
in
the
inflation

outlook.

The
New
Zealand
Dollar
(NZD)
faced
pressure
following
the
Reserve
Bank
of
New
Zealand’s
(RBNZ)
dovish
monetary
policy
statement.
The
central
bank
held
its
cash
rate
steady
at
5.5%
on
Wednesday
as
expected but
hinted
at
possible
rate
cuts
in
August
if
inflation
decreases
as
anticipated.

ING’s
FX
strategist
Francesco
Pesole
observed,
“The
Bank
displayed
greater
confidence
in
disinflation
in
the
statement,
noting
that
‘restrictive
monetary
policy
has
significantly
reduced
consumer
price
inflation.”

Read
the
full
article:
A
surprise
dovish
tilt
by
the
RBNZ
–
ING

Forex Today: Investors hope for US inflation data to wake markets up

401742   July 11, 2024 16:14   FXStreet   Market News  

Here
is
what
you
need
to
know
on
Thursday,
July
11:

The
action
in
foreign
exchange
markets
remain
subdued
in
the
second
half
of
the
week
following

Federal
Reserve
Chairman
Jerome
Powell’s
two-day
Congressional
testimony.
Thursday’s

economic
calendar
will
feature
the
US
Consumer
Price
Index
(CPI)
data
for
June,
which
have
the
potential
to
ramp
up
the
volatility.
Weekly
Initial
Jobless
Claims
from
the
US
will
also
be
watched
closely
by
participants.

Fed
Chairman
Powell
repeated
his
prepared
statement
before
the
US
House
Financial
Services
Committee
on
Wednesday
and
refrained
from
delivering
any
fresh
clues
regarding
the
timing
of
the
interest
rate
reduction.
Nevertheless,
Wall
Street’s
main
indexes
registered
strong
gains
midweek
and
made
it
difficult
for
the

US
Dollar
(USD)
to
gather
strength
against
its
major
rivals.
After
posting
small
losses
on
Wednesday,
the
USD
Index
holds
steady
at
around
105.00
early
Thursday.
On
a
yearly
basis,
the
CPI
is
forecast
to
rise
3.1%,
while
the
core

CPI
is
seen
increasing
3.4%.

The
data
published
by
the
UK’s
Office
for
National
Statistics
showed
in
the
European
Morning
that
the
Gross
Domestic
Product
expanded
by
0.4%
on
a
monthly
basis
in
May.
This
reading
came
in
better
than
the
market
expectation
for
an
expansion
of
0.2%.
After
closing
in
positive
territory
on
Wednesday,


GBP/USD
continues
to
push
higher
and
was
last
seen
trading
at
its
strongest
level
since
early
March
above
1.2850.

EUR/USD
benefited
from
the
modest
selling
pressure
surrounding
the
USD
late
Wednesday
and
closed
the
day
in
positive
territory.
The
pair
holds
its
ground
on
Thursday
and
edges
higher
toward
1.0850.

The
Melbourne
Institute
reported
in
the
Asian
session
that
the
Consumer
Inflation
Expectation
ticked
down
to
4.3%
in
July
from
4.4%.


AUD/USD
largely
ignored
this
data
and
the
pair
was
last
seen
trading
marginally
higher
on
the
day
slightly
above
0.6750.

USD/JPY
stays
in
a
consolidation
phase
above
161.50
after
closing
the
first
three
days
of
the
week
in
positive
territory.
The
data
from
Japan
showed
that
that
Machinery
Orders
declined
by
3.2%
on
a
monthly
basis
in
May.

Gold
rose
toward
$2,390
on
Wednesday
but
erased
a
large
portion
of
its
daily
gains
during
the
American
trading
hours.

XAU/USD
struggles
to
gather
bullish
momentum
but
sticks
to
modest
daily
gains
near
$2,380
in
the
early
European
session.

What is the distribution of forecasts for the US CPI?

401741   July 11, 2024 15:41   Forexlive Latest News   Market News  

Why
it’s
important?

In
the
Asian
session,
Eamonn
published
the

range
of
estimates
for
today’s
US
CPI
report.
These
ranges
are
important
in
terms
of
market
reaction
because
when
the
actual
data
deviates
from
the
expectations,
it
creates
a
surprise
effect.
Another
important
input
in
market’s
reaction
is
the
distribution
of
forecasts.

In
fact,
although
we
can
have
a
range
of
estimates,
most
forecasts
might
be
clustered
on
the
upper
bound
of
the
range,
so
even
if
the
data
comes
out
inside
the
range
of
estimates
but
on
the
lower
bound
of
the
range,
it
can
still
create
a
surprise
effect.

Distribution
of
forecasts
for
CPI

CPI
Y/Y

• 3.3%
  (3.9%)
• 3.2%
  (14.9%)
• 3.1%
  (68.8%)
• 3.0%
  (12.4%)

CPI
M/M

• 0.2%
  (2.8%)
• 0.1%
  (79.2%)
• 0.0%
  (18.0%)

Core
CPI
Y/Y

• 3.5%
  (27.3%)
• 3.4%
  (65.5%)
• 3.3%
  (7.2%)

Core
CPI
M/M

• 0.3%
  (16.4%)
• 0.2%
  (76.8%)
• 0.1%
  (6.8%)

We
can
ignore
the
headline
CPI
as
the
market
will
focus
on
the
Core
figures.
We
can
notice
that
the
bias
is
skewed
to
the
upside,
so
3.3%
Y/Y
and
0.1%
M/M
will
be
the
biggest
surprises
for
the
market.

USD/CAD Price Analysis: Trades in tight range above 1.3600 ahead of US Inflation

401739   July 11, 2024 15:40   FXStreet   Market News  

• 
  USD/CAD
  stays
  sideways
  near
  1.3600
  with
  US
  inflation
  in
  focus.
• 
  The
  core
  CPI
  is
  estimated
  to
  have
  grown
  steadily
  by
  3.4%
  on
  monthly
  as
  well
  as
  annual
  basis.
• 
  Easing
  Canadian
  labor
  market
  conditions
  boost
  BoC’s
  rate-cut
  prospects.

The
USD/CAD
pair
consolidates
in
a
tight
range
above
the
round-level
support
of
1.3600
in
Thursday’s
European
session.
The
Loonie
asset
turns
sideways
as
investors
await
the

United
States
(US)
consumer
inflation
data
for
June,
which
will
be
published
at
12:30
GMT.

The
US

Consumer
Price
Index
(CPI)
report
is
expected
to
show
that
annual
and
monthly
core
inflation,
which
excludes
volatile
food
and
energy
prices,
grew
steadily
by
3.4%
and
0.2%,
respectively.
Annual
headline
inflation
is
estimated
to
have
decelerated
to
3.1%
from
3.3%
in
May.

The
inflation
data
will
exhibit
the
strength
in
the
market
speculation
for
the

Federal
Reserve
(Fed)
to
begin
reducing
interest
rates
from
the
September
meeting.
Ahead
of
the
US
inflation
data,
the
US
Dollar
Index
(DXY),
which
tracks
the
Greenback’s
value
against
six
major
currencies,
remains
on
the
backfoot
around
105.00.

Meanwhile,
the
Canadian
Dollar
is
under
pressure
amid
growing
speculation
that
the
Bank
of
Canada
(BoE)
will
deliver
subsequent
rate
cuts.
Deteriorating
Canadian
labor
market
conditions
have
boosted
expectations
of
more
rate
cuts
by
the
BoE.

USD/CAD
exhibits
a
sheer
volatility
contraction,
trading
in
a
limited
range
of
1.3600-1.3780
for
more
than
two
months.
A
volatility
contraction
suggests
lower
volume
and
small
ticks,
while
a
breakout
in
the
same
results
in
wider
ticks
and
heavy
volume.

The
asset
trades
below
the
20-day
Exponential
Moving
Average
(EMA)
near
1.3663,
suggesting
that
the
near-term

outlook
is
bearish.

The
14-period
Relative
Strength
Index
(RSI)
oscillates
inside
the
40.00-60.00
range,
indicating
indecisiveness
among
market
participants.

A
decisive
breakdown
below
May
3
low
around
1.3600
will
expose
the
asset
to
April
9
low
around
1.3547
and
the
psychological
support
of
1.3500.

On
the
flip
side,
a
fresh
buying
opportunity
would
emerge
if
the
asset
breaks
above
June
11
high
near
1.3800.
This
would
drive
the
asset
towards
April
17
high
at
1.3838,
followed
by
1
November
2023
high
at
1.3900.

USD/CAD
daily
chart

FLOKI price poised for a rally following break above 200-EMA

401736   July 11, 2024 15:39   FXStreet   Market News  

• 
  FLOKI
  price
  faces
  resistance
  around
  $0.000150;
  a
  breakout
  above
  it
  signals
  a
  potentially
  bullish
  move
  ahead.
• 
  IntoTheBlock’s
  In/Out
  of
  the
  Money
  Around
  Price
  shows
  the
  key
  support
  zone
  at
  $0.000144
  and
  $0.0.000148.
• 
  A
  daily
  close
  below
  0.000129
  would
  invalidate
  the
  bullish
  thesis.

FLOKI
(FLOKI)
price
has
encountered
resistance
near
the
$0.000150
mark
during
the
past
week;
however,
a
breakout
above
this
level
could
indicate
a
bullish
trend. 

FLOKI
price
eyes
for
a
20%
rally

FLOKI
price
has
been
facing
resistance
at
the
weekly
level
of
$0.000150
for
the
last
five
days
and
trades
1%
down
at
0.000147
on
Thursday.

This
weekly
resistance
coincides
with
the
200-day
Exponential
Moving
Average
(EMA)
around
$0.000152,
making
a
key
resistance
zone.

If
FLOKI
closes
above
the
$0.000152
level,
it
could
rally
20%
to
retest
the
July
3
high
at
$0.000186.

Moreover,
a
lower
low
in
the
daily
chart
on
July
5
contrasts
with
a
higher
high
observed
in
the
Relative
Strength
Index
(RSI)
indicator
during
the
corresponding
timeframe.
This
phenomenon,
known
as
a
bullish
divergence,
typically
precedes
a
trend
reversal
or
a
short-term
upward
movement.

FLOKI/USDT
daily
chart

Based
on
IntoTheBlock’s 
In/Out
of
the
Money
Around
Price
(IOMAP),
nearly
452
addresses
accumulated
66.92
billion
FLOKI
tokens
at
an
average
price
of
$0.000145.
These
addresses
bought
the
dog-based
meme
token
between
$0.000144
and
$0.0.000148,
which
makes
it
a
key
support
zone. 

Interestingly,
$0.000144
and
$0.0.000148,
the
zone
mentioned
from
a
technical
analysis
perspective,
coincide
with
the
IOMAP
findings,
making
this
zone
a
key
reversal
area
to
watch.

FLOKI
IOMAP
chart

Despite
technical
analysis
and
on-chain
data
suggesting
a
bullish
move,
if
FLOKI’s
daily

candlestick
closes
below
$0.000129
and
establishes
a
lower
low
on
the
daily
timeframe,
it
may
signal
a
shift
in
market
dynamics
that
favors
bearish
sentiment.
Such
a
change
could
invalidate
the
bullish
outlook,
leading
to
a
15%
crash
in
the
FLOKI’s
price
to
the
April
13
low
of
$0.000109.

European equities hold steadier to start the day

401735   July 11, 2024 15:15   Forexlive Latest News   Market News  

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risk
warning:

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exchange
trading
carries
a
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Leverage
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and
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exposure.
Before
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decide
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foreign
exchange,
carefully
consider
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investment
objectives,
experience
level,
and
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tolerance.
You
could
lose
some
or
all
your
initial
investment;
do
not
invest
money
that
you
cannot
afford
to
lose.
Educate
yourself
on
the
risks
associated
with
foreign
exchange
trading
and
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advice
from
an
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Ex-Dividend 12/07/2024

401734   July 11, 2024 15:14   ICMarkets   Market News