Articles
EUR/USD gains ground as market sentiment leans back into rate cut expectations
401663 July 11, 2024 08:14 FXStreet Market News
-
EUR/USD
extended
a
recovery
from
the
early
week’s
slump
toward
1.0800. -
Rate
cut
expectations
continue
to
drive
broader
market
flows. -
EU
data
remains
thin,
US
inflation
figures
to
be
key
print
for
the
week.
EUR/USD
found
some
room
on
the
high
side
on
Wednesday,
getting
pushed
up
the
charts
by
broad-market
Greenback
selling.
Market
sentiment
has
firmly
recovered
and
leaned
into
renewed
rate
cut
expectations
after
Federal
Reserve
(Fed)
Chairman
Jerome
Powell
gave
his
own
version
of
a
dovish
appearance
while
giving
two-day
testimony
to
US
Congressional
committees.
EU
data
remains
thin
outside
of
final
German
Harmonized
Index
of
Consumer
Prices
(HICP)
inflation
slated
for
Thursday,
and
markets
will
be
pivoting
to
face
a
double-header
of
key
US
inflation
data
due
on
Thursday
and
Friday.
Forex
Today: Gearing
up
for
US
CPI
German
final
HICP
inflation
numbers
are
due
during
Thursday’s
European
market
session,
but
little
change
is
expected
and
the
annualized
figure
for
June
is
broadly
expected
to
hold
steady
at
2.5%.
The
markets,
eager
for
a
rate
cut,
interpreted
Fed
Chair
Powell’s
appearances
before
Congressional
committees
as
dovish
this
week.
Powell
cautiously
acknowledged
recent
progress
on
inflation,
prompting
a
recovery
in
risk
appetite
as
investors
once
again
hope
for
a
rate
cut
in
September.
Investors
will
be
watching
for
lower-than-expected
US
CPI
inflation
on
Thursday,
with
the
median
market
forecast
expecting
annualized
core
CPI
inflation
in
June
to
remain
at
3.4%.
Further
US
inflation
data
is
scheduled
for
release
on
Friday,
including
the
core
US
Producer
Price
Index
(PPI)
wholesale
inflation.
The
index
is
expected
to
increase
to
2.5%
YoY
from
the
previous
2.3%,
which
could
impact
broad-market
rate
cut
expectations.
Euro
PRICE
Today
The
table
below
shows
the
percentage
change
of
Euro
(EUR)
against
listed
major
currencies
today.
Euro
was
the
strongest
against
the
Canadian
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.03% | -0.05% | -0.02% | -0.06% | -0.09% | -0.05% | |
| EUR | 0.01% | -0.01% | -0.02% | 0.02% | -0.03% | -0.06% | -0.03% | |
| GBP | 0.03% | 0.00% | -0.02% | 0.02% | -0.03% | -0.07% | -0.01% | |
| JPY | 0.05% | 0.02% | 0.02% | 0.02% | -0.01% | -0.08% | 0.00% | |
| CAD | 0.02% | -0.02% | -0.02% | -0.02% | -0.06% | -0.10% | -0.03% | |
| AUD | 0.06% | 0.03% | 0.03% | 0.01% | 0.06% | -0.04% | 0.02% | |
| NZD | 0.09% | 0.06% | 0.07% | 0.08% | 0.10% | 0.04% | 0.06% | |
| CHF | 0.05% | 0.03% | 0.00% | -0.01% | 0.03% | -0.02% | -0.06% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
Euro
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
EUR
(base)/USD
(quote).
EUR/USD
technical
outlook
EUR/USD
gave
a
thin
intraday
recovery,
but
bullish
momentum
remains
on
the
anemic
side
and
bids
are
struggling
to
make
further
headway
while
weighed
down
by
a
near-term
ceiling
around
1.0840.
Daily
candlesticks
continue
to
get
squeezed
between
the
upper
bound
of
a
rough
descending
channel
and
the
200-day
Exponential
Moving
Average
(EMA)
at
1.0790.
Without
a
definitive
bullish
break
into
fresh
topside
chart
territory,
price
action
is
likely
to
get
swamped
out
and
begin
making
a
fresh
leg
lower.
EUR/USD
hourly
chart
EUR/USD
daily
chart
Euro
FAQs
The
Euro
is
the
currency
for
the
20
European
Union
countries
that
belong
to
the
Eurozone.
It
is
the
second
most
heavily
traded
currency
in
the
world
behind
the
US
Dollar.
In
2022,
it
accounted
for
31%
of
all
foreign
exchange
transactions,
with
an
average
daily
turnover
of
over
$2.2
trillion
a
day.
EUR/USD
is
the
most
heavily
traded
currency
pair
in
the
world,
accounting
for
an
estimated
30%
off
all
transactions,
followed
by
EUR/JPY
(4%),
EUR/GBP
(3%)
and
EUR/AUD
(2%).
The
European
Central
Bank
(ECB)
in
Frankfurt,
Germany,
is
the
reserve
bank
for
the
Eurozone.
The
ECB
sets
interest
rates
and
manages
monetary
policy.
The
ECB’s
primary
mandate
is
to
maintain
price
stability,
which
means
either
controlling
inflation
or
stimulating
growth.
Its
primary
tool
is
the
raising
or
lowering
of
interest
rates.
Relatively
high
interest
rates
–
or
the
expectation
of
higher
rates
–
will
usually
benefit
the
Euro
and
vice
versa.
The
ECB
Governing
Council
makes
monetary
policy
decisions
at
meetings
held
eight
times
a
year.
Decisions
are
made
by
heads
of
the
Eurozone
national
banks
and
six
permanent
members,
including
the
President
of
the
ECB,
Christine
Lagarde.
Eurozone
inflation
data,
measured
by
the
Harmonized
Index
of
Consumer
Prices
(HICP),
is
an
important
econometric
for
the
Euro.
If
inflation
rises
more
than
expected,
especially
if
above
the
ECB’s
2%
target,
it
obliges
the
ECB
to
raise
interest
rates
to
bring
it
back
under
control.
Relatively
high
interest
rates
compared
to
its
counterparts
will
usually
benefit
the
Euro,
as
it
makes
the
region
more
attractive
as
a
place
for
global
investors
to
park
their
money.
Data
releases
gauge
the
health
of
the
economy
and
can
impact
on
the
Euro.
Indicators
such
as
GDP,
Manufacturing
and
Services
PMIs,
employment,
and
consumer
sentiment
surveys
can
all
influence
the
direction
of
the
single
currency.
A
strong
economy
is
good
for
the
Euro.
Not
only
does
it
attract
more
foreign
investment
but
it
may
encourage
the
ECB
to
put
up
interest
rates,
which
will
directly
strengthen
the
Euro.
Otherwise,
if
economic
data
is
weak,
the
Euro
is
likely
to
fall.
Economic
data
for
the
four
largest
economies
in
the
euro
area
(Germany,
France,
Italy
and
Spain)
are
especially
significant,
as
they
account
for
75%
of
the
Eurozone’s
economy.
Another
significant
data
release
for
the
Euro
is
the
Trade
Balance.
This
indicator
measures
the
difference
between
what
a
country
earns
from
its
exports
and
what
it
spends
on
imports
over
a
given
period.
If
a
country
produces
highly
sought
after
exports
then
its
currency
will
gain
in
value
purely
from
the
extra
demand
created
from
foreign
buyers
seeking
to
purchase
these
goods.
Therefore,
a
positive
net
Trade
Balance
strengthens
a
currency
and
vice
versa
for
a
negative
balance.
Fed’s Cook sees US data consistent with soft landing
401662 July 11, 2024 08:14 FXStreet Market News
Federal
Reserve
Board
Governor
Lisa
Cook
spoke
on
“Global
Inflation
and
Monetary
Policy
Challenges”
before
the
2024
Australian
Conference
of
Economists
on
late
Thursday.
Cook
said
that
inflation
in
the
US
should
continue
to
fall
without
a
significant
further
rise
in
the
unemployment
rate,
per
Reuters.
Key
quotes
My
baseline
forecast…is
that
inflation
will
continue
to
move
toward
target
over
time,
without
much
further
rise
in
unemployment,More
likely
when
policy
easing
began
with
inflation
already
close
to
target
and
when
there
was
a
relatively
firm
growth
backdrop.In
the
U.S.,
what
I
have
seen
so
far
appears
to
be
consistent
with
a
soft
landing:
Inflation
has
fallen
significantly
from
its
peak,
and
the
labor
market
has
gradually
cooled
but
remains
strong.
Market
reaction
The US
Dollar Index
(DXY)
is
trading
0.02%
lower
on
the
day
at
104.99,
as
of
writing.
Fed
FAQs
Monetary
policy
in
the
US
is
shaped
by
the
Federal
Reserve
(Fed).
The
Fed
has
two
mandates:
to
achieve
price
stability
and
foster
full
employment.
Its
primary
tool
to
achieve
these
goals
is
by
adjusting
interest
rates.
When
prices
are
rising
too
quickly
and
inflation
is
above
the
Fed’s
2%
target,
it
raises
interest
rates,
increasing
borrowing
costs
throughout
the
economy.
This
results
in
a
stronger
US
Dollar
(USD)
as
it
makes
the
US
a
more
attractive
place
for
international
investors
to
park
their
money.
When
inflation
falls
below
2%
or
the
Unemployment
Rate
is
too
high,
the
Fed
may
lower
interest
rates
to
encourage
borrowing,
which
weighs
on
the
Greenback.
The
Federal
Reserve
(Fed)
holds
eight
policy
meetings
a
year,
where
the
Federal
Open
Market
Committee
(FOMC)
assesses
economic
conditions
and
makes
monetary
policy
decisions.
The
FOMC
is
attended
by
twelve
Fed
officials
–
the
seven
members
of
the
Board
of
Governors,
the
president
of
the
Federal
Reserve
Bank
of
New
York,
and
four
of
the
remaining
eleven
regional
Reserve
Bank
presidents,
who
serve
one-year
terms
on
a
rotating
basis.
In
extreme
situations,
the
Federal
Reserve
may
resort
to
a
policy
named
Quantitative
Easing
(QE).
QE
is
the
process
by
which
the
Fed
substantially
increases
the
flow
of
credit
in
a
stuck
financial
system.
It
is
a
non-standard
policy
measure
used
during
crises
or
when
inflation
is
extremely
low.
It
was
the
Fed’s
weapon
of
choice
during
the
Great
Financial
Crisis
in
2008.
It
involves
the
Fed
printing
more
Dollars
and
using
them
to
buy
high
grade
bonds
from
financial
institutions.
QE
usually
weakens
the
US
Dollar.
Quantitative
tightening
(QT)
is
the
reverse
process
of
QE,
whereby
the
Federal
Reserve
stops
buying
bonds
from
financial
institutions
and
does
not
reinvest
the
principal
from
the
bonds
it
holds
maturing,
to
purchase
new
bonds.
It
is
usually
positive
for
the
value
of
the
US
Dollar.
GBP/USD rallies on resurgence of Fed rate cut hopes
401658 July 11, 2024 07:39 FXStreet Market News
-
GBP/USD
pushed
back
into
the
high
end
after
Fed
nods
at
inflation
progress. -
BoE
rate
cut
expectations
also
tick
higher. -
Key
US
inflation
data
looms
ahead.
GBP/USD
rallied
on
Wednesday,
clipping
into
a
four-week
peak
after
broad-market
expectations
of
future
rate
cuts
reignited
following
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
wrap-up
of
the
two-day
Semi-Annual
Monetary
Policy
Report.
UK
data
is
limited
to
mid-tier
Industrial
Production
figures
on
Thursday,
but
looming
US
Consumer
Price
Index
(CPI)
inflation
will
draw
plenty
of
investor
eyes
during
Thursday’s
American
market
session.
Forex
Today:
Gearing
up
for
US
CPI
Rate-cut-hungry
markets
decided
that
Fed
Chair
Powell’s
appearances
before
Congressional
committees
was
close
enough
to
dovish
this
week,
with
Powell
giving
a
cautious
nod
to
recent
progress
on
inflation.
Risk
appetite
has
recovered
as
investors
lean
back
into
hopes
for
a
September
rate
cut,
and
investors
will
be
looking
for
an
undershoot
of
US
CPI
inflation
on
Thursday,
with
median
market
forecasts
expecting
annualized
core
CPI
inflation
in
June
to
hold
steady
at
3.4%.
Powell
speech:
We
see
current
Fed
policy
as
restrictive
GBP
traders
are
leaning
into
bets
of
an
August
rate
cut
from
the
Bank
of
England
(BoE)
despite
cautious
tones
from
several
BoE
policymakers
on
Wednesday,
and
UK
Industrial
Production
figures
earlier
Thursday
will
be
a
key
bellwether
for
rate
cut
hopes.
UK
Industrial
Production
is
expected
to
recover
to
0.2%
MoM
from
the
previous
decline
of
-0.9%.
BoE’s
Mann:
We
need
to
see
sustained
slower
service
inflation
Further
US
inflation
data
is
due
on
Friday,
with
core
US
Producer
Price
Index
(PPI)
wholesale
inflation
expected
to
tick
upwards
to
2.5%
YoY
from
the
previous
2.3%,
which
could
pose
a
stumbling
block
to
broad-market
rate
cut
hopes.
British
Pound
PRICE
Today
The
table
below
shows
the
percentage
change
of
British
Pound
(GBP)
against
listed
major
currencies
today.
British
Pound
was
the
strongest
against
the
US
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.04% | -0.06% | -0.03% | -0.07% | -0.12% | -0.04% | |
| EUR | 0.04% | 0.02% | -0.04% | 0.02% | -0.02% | -0.07% | 0.00% | |
| GBP | 0.04% | -0.02% | -0.02% | 0.00% | -0.03% | -0.08% | 0.01% | |
| JPY | 0.06% | 0.04% | 0.02% | 0.03% | -0.00% | -0.09% | 0.03% | |
| CAD | 0.03% | -0.02% | -0.01% | -0.03% | -0.06% | -0.10% | -0.01% | |
| AUD | 0.07% | 0.02% | 0.03% | 0.00% | 0.06% | -0.06% | 0.04% | |
| NZD | 0.12% | 0.07% | 0.08% | 0.09% | 0.10% | 0.06% | 0.10% | |
| CHF | 0.04% | -0.01% | -0.01% | -0.03% | 0.00% | -0.04% | -0.10% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
British
Pound
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
GBP
(base)/USD
(quote).
GBP/USD
technical
outlook
Cable’s
bullish
resurgence
on
Wednesday
has
left
bids
buried
deep
in
a
supply
zone
priced
in
above
the
1.2800
handle,
and
price
action
is
stretched
thin
on
the
high
side.
A
downside
recovery
could
send
price
back
to
the
200-day
Exponential
Moving
Average
(EMA)
near
1.2600,
and
the
burden
of
preventing
a
swing
low
into
familiar
technical
levels
will
see
bulls
working
double
duty
to
try
and
chalk
in
a
meaningful
higher
low
on
daily
candlesticks.
GBP/USD
hourly
chart
GBP/USD
daily
chart
Pound
Sterling
FAQs
The
Pound
Sterling
(GBP)
is
the
oldest
currency
in
the
world
(886
AD)
and
the
official
currency
of
the
United
Kingdom.
It
is
the
fourth
most
traded
unit
for
foreign
exchange
(FX)
in
the
world,
accounting
for
12%
of
all
transactions,
averaging
$630
billion
a
day,
according
to
2022
data.
Its
key
trading
pairs
are
GBP/USD,
aka
‘Cable’,
which
accounts
for
11%
of
FX,
GBP/JPY,
or
the
‘Dragon’
as
it
is
known
by
traders
(3%),
and
EUR/GBP
(2%).
The
Pound
Sterling
is
issued
by
the
Bank
of
England
(BoE).
The
single
most
important
factor
influencing
the
value
of
the
Pound
Sterling
is
monetary
policy
decided
by
the
Bank
of
England.
The
BoE
bases
its
decisions
on
whether
it
has
achieved
its
primary
goal
of
“price
stability”
–
a
steady
inflation
rate
of
around
2%.
Its
primary
tool
for
achieving
this
is
the
adjustment
of
interest
rates.
When
inflation
is
too
high,
the
BoE
will
try
to
rein
it
in
by
raising
interest
rates,
making
it
more
expensive
for
people
and
businesses
to
access
credit.
This
is
generally
positive
for
GBP,
as
higher
interest
rates
make
the
UK
a
more
attractive
place
for
global
investors
to
park
their
money.
When
inflation
falls
too
low
it
is
a
sign
economic
growth
is
slowing.
In
this
scenario,
the
BoE
will
consider
lowering
interest
rates
to
cheapen
credit
so
businesses
will
borrow
more
to
invest
in
growth-generating
projects.
Data
releases
gauge
the
health
of
the
economy
and
can
impact
the
value
of
the
Pound
Sterling.
Indicators
such
as
GDP,
Manufacturing
and
Services
PMIs,
and
employment
can
all
influence
the
direction
of
the
GBP.
A
strong
economy
is
good
for
Sterling.
Not
only
does
it
attract
more
foreign
investment
but
it
may
encourage
the
BoE
to
put
up
interest
rates,
which
will
directly
strengthen
GBP.
Otherwise,
if
economic
data
is
weak,
the
Pound
Sterling
is
likely
to
fall.
Another
significant
data
release
for
the
Pound
Sterling
is
the
Trade
Balance.
This
indicator
measures
the
difference
between
what
a
country
earns
from
its
exports
and
what
it
spends
on
imports
over
a
given
period.
If
a
country
produces
highly
sought-after
exports,
its
currency
will
benefit
purely
from
the
extra
demand
created
from
foreign
buyers
seeking
to
purchase
these
goods.
Therefore,
a
positive
net
Trade
Balance
strengthens
a
currency
and
vice
versa
for
a
negative
balance.
United Kingdom RICS Housing Price Balance came in at -17%, below expectations (-15%) in June
401656 July 11, 2024 07:14 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.
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views
and
opinions
expressed
in
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are
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authors
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of
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nor
its
advertisers.
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author
will
not
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held
responsible
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that
is
found
at
the
end
of
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posted
on
this
page.
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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
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this
article,
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than
from
FXStreet.
FXStreet
and
the
author
do
not
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recommendations.
The
author
makes
no
representations
as
to
the
accuracy,
completeness,
or
suitability
of
this
information.
FXStreet
and
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author
will
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any
errors,
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or
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losses,
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or
use.
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author
and
FXStreet
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article
is
intended
to
be
investment
advice.
USD/CAD remains on the defensive near 1.3600 ahead of US CPI data
401655 July 11, 2024 07:14 FXStreet Market News
-
USD/CAD
trades
on
a
weaker
note
around
1.3615
in
Thursday’s
early
Asian
session. -
Fed’s
Powell
said
the
central
bank
will
cut
rates
when
ready,
regardless
of
the
political
calendar. -
A
rise
in
Canada’s
Unemployment
Rate
has
prompted
the
BoC
to
consider
cutting
interest
rates
in
July,
ING
analyst
said.
The
USD/CAD
pair
remains
under
selling
pressure
near
1.3615
during
the
early
Asian
session
on
Thursday.
Meanwhile,
the
USD
Index
(DXY)
extends
its
consolidation
above
the
105.00
hurdle
as
traders
await
the
key
US
inflation
report.
The
US
Consumer
Price
Index
(CPI)
data
for
June
is
due
on
Thursday,
along
with
the
weekly
Initial
Jobless
Claims
and
speeches
by
the
Federal
Reserve’s
(Fed)
Raphael
Bostic.
Fed
Chair
Jerome
Powell
responded
to
questions
before
the
House
Financial
Services
Committee
on
Wednesday.
Powell
said
that
the
central
bank
will
make
interest
rate
decisions
based
on
the
data,
the
incoming
data,
the
evolving
outlook,
and
the
balance
of
risks,
and
not
in
consideration
of
political
factors.
He
further
stated
that
the
Fed
won’t
wait
until
US
inflation
slows
to
its
2%
target
before
it
cuts
interest
rates.
The
probability
of
the
Fed
leaving
the
policy
rate
unchanged
in
September
stood
at
nearly
25%
following
this
event,
according
to
the
CME
FedWatch
Tool.
On
the
Loonie
front,
the
decline
of
crude
oil
prices
might
undermine
the
commodity-linked Canadian
Dollar
(CAD)
as
Canada
is
the
major
crude
oil
exporter
to
the United
States.
Furthermore,
ING’s
FX
analyst
Francesco
Pesole
said
that
a
rise
in
the
Canadian
Unemployment
rate
has
put
a
July
Bank
of
Canada
(BoC)
rate
cut
on
the
table.
The
financial
markets
have
priced
in
16
basis
points
(bps)
of
easing
for
July.
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
Canada’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
Canada’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.
BoE’s Pill: Open question whether time for cutting rates is now upon us
401653 July 11, 2024 06:39 FXStreet Market News
Bank
of
England
(BoE)
Chief
Economist
Huw
Pill
said
on
Wednesday
that
it’s
an
open
question
whether
the
time
for
cutting
the
interest
rate
is
upon
them,
per
Reuters.
Additional
takeaways
“Some
work
to
do
before
domestic
persistent
component
of
inflation
is
gone.”
“I’m
reluctant
to
be
drawn
on
whether
I’m
cautious
or
not
about
cutting
rates,
important
to
get
balance
right.”
“Uncertainty
about
wage
behaviour
in
UK
unlikely
to
disappear
soon,
policy
decisions
need
to
be
robust
to
this.”
Market
reaction
GBP/USD
edged
higher
following
these
comments
and
was
last
seen
gaining
0.4%
on
the
day
at
1.2835.
Bill Hwang joins the list of famous Wall Street figures who have been sentenced to prison
401652 July 11, 2024 06:14 Forexlive Latest News Market News
Archegos
Capital
Management
founder
Sung
Kook
“Bill”
Hwang
was
convicted
of
fraud
and
other
charges.
The
charges
have
the
potential
to
see
him
sent
to
prison
for
up
to
20
years.
Hwang’s
misdeeds
are
estimated
to
have
cost
banks
around
US$10bn.
So,
if
the
sentencing
judge
is
a
retail
FX
trader
Hwang
will
probably
get
off
with
a
warning
😉
Getting
on
with
the
post
….
Reuters
have
a
summary
take
up
with
a
list
of
famous
Wall
Street
folks
sent
to
prison:
-
FTX
founder
Sam
Bankman-Fried -
Jordan
Belfort
-
Benie
Madoff
and
more.
Silver Price Analysis: XAG/USD consolidates around below $31.00 despite falling US yields
401650 July 11, 2024 06:14 FXStreet Market News
-
Silver
consolidates
within
$30.50-$31.00
range,
trades
at
$30.80,
up
0.11%. -
RSI
indicates
bullish
momentum,
but
flat
slope
suggests
buyers
are
cautious. -
Key
resistance
at
$31.00,
July
5
high
of
$31.49;
support
at
$30.50
and
$30.18,
with
critical
level
around
$29.78/74.
The
grey
metal
registered
minimal
gains
on
Wednesday
as
Silver
has
been
consolidating
within
the
$30.50-$31.00
range
since
Tuesday.
Even
though
US
Treasury
yields
edged
lower
along
with
the
US
Dollar,
XAG/USD
was
unable
to
capitalize
on
it
and
traded
at
$30.80,
up
0.11%.
XAG/USD
Price
Analysis:
Technical
outlook
The
XAG/USD
trades
subdued
as
shown
by
the
daily
chart,
fully
confirmed
by
momentum
as
depicted
by
the
Relative
Strength
Index
(RSI).
Even
though
RSI
is
bullish,
the
slope
turned
flat,
an
indication
that
buyers
remain
at
bay.
That
said,
Silver’s
spot
price
remains
above
the
‘double
bottom’
chart
pattern
neckline,
hinting
that
an
uptrend
continuation
is
on
the
cards.
If
XAG/USD
clears
the
$31.00
psychological
level,
the
first
resistance
would
be
the
July
5
high
at
$31.49,
followed
by
the
May
29
high
at
$32.29.
Once
surpassed,
the
year-to-date
(YTD)
high
at
$32.51
would
be
up
for
grabs.
On
the
other
hand,
if
sellers
stepped
in
and
dragged
prices
below
$30.50,
the
first
support
would
be
the
July
5
low
of
$30.18.
If
cleared,
the
next
stop
would
be
the
confluence
of
the
April
12
peak
turned
support
and
the
50-day
moving
average
(DMA)
at
around
$29.78/74.
XAG/USD
Price
Action
–
Daily
Chart
Silver
FAQs
Silver
is
a
precious
metal
highly
traded
among
investors.
It
has
been
historically
used
as
a
store
of
value
and
a
medium
of
exchange.
Although
less
popular
than
Gold,
traders
may
turn
to
Silver
to
diversify
their
investment
portfolio,
for
its
intrinsic
value
or
as
a
potential
hedge
during
high-inflation
periods.
Investors
can
buy
physical
Silver,
in
coins
or
in
bars,
or
trade
it
through
vehicles
such
as
Exchange
Traded
Funds,
which
track
its
price
on
international
markets.
Silver
prices
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
make
Silver
price
escalate
due
to
its
safe-haven
status,
although
to
a
lesser
extent
than
Gold’s.
As
a
yieldless
asset,
Silver
tends
to
rise
with
lower
interest
rates.
Its
moves
also
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAG/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Silver
at
bay,
whereas
a
weaker
Dollar
is
likely
to
propel
prices
up.
Other
factors
such
as
investment
demand,
mining
supply
–
Silver
is
much
more
abundant
than
Gold
–
and
recycling
rates
can
also
affect
prices.
Silver
is
widely
used
in
industry,
particularly
in
sectors
such
as
electronics
or
solar
energy,
as
it
has
one
of
the
highest
electric
conductivity
of
all
metals
–
more
than
Copper
and
Gold.
A
surge
in
demand
can
increase
prices,
while
a
decline
tends
to
lower
them.
Dynamics
in
the
US,
Chinese
and
Indian
economies
can
also
contribute
to
price
swings:
for
the
US
and
particularly
China,
their
big
industrial
sectors
use
Silver
in
various
processes;
in
India,
consumers’
demand
for
the
precious
metal
for
jewellery
also
plays
a
key
role
in
setting
prices.
Silver
prices
tend
to
follow
Gold’s
moves.
When
Gold
prices
rise,
Silver
typically
follows
suit,
as
their
status
as
safe-haven
assets
is
similar.
The
Gold/Silver
ratio,
which
shows
the
number
of
ounces
of
Silver
needed
to
equal
the
value
of
one
ounce
of
Gold,
may
help
to
determine
the
relative
valuation
between
both
metals.
Some
investors
may
consider
a
high
ratio
as
an
indicator
that
Silver
is
undervalued,
or
Gold
is
overvalued.
On
the
contrary,
a
low
ratio
might
suggest
that
Gold
is
undervalued
relative
to
Silver.