Articles
NZD/USD Price Analysis: Breach of 20-day SMA support opens door to further declines
401648 July 11, 2024 06:14 FXStreet Market News
-
NZD/USD
faced
heav losses,
breaching
the
previously
held
20-day
SMA
support,
now
resistance. -
The
technical
outlook
transitions
towards
a
bearish
sentiment,
following
Wednesday’s
sharp
decline. -
Bears
broke
the
20-day
SMA
and
are
eyeing
the
strong
support
formed
by
the
convergence
of
the
100
and
200-day
SMAs
near
0.6070.
On
Wednesday,
the
NZD/USD
dropped,
losing
more
than
0.70%
to
0.6080,
obliterating
its
support
at
the
20-day
Simple
Moving
Average
(SMA),
which
was
regained
last
week
and
tainted
the
outlook
with
red.
As
for
the
daily
technical
indicators,
the
Relative
Strength
Index
(RSI)
is
currently
at
43,
showing
a
downward
trajectory,
indicating
a
considerable
decrease
in
buying
momentum
compared
to
Tuesday’s
close
at
52.
The
Moving
Average
Convergence
Divergence
(MACD)
printed
a
fresh
red
bar,
suggesting
an
increasing
bearish
momentum.
NZD/USD
daily
chart
In
terms
of
resistance
for
bulls
to
recover,
the
immediate
challenge
lies
at
the
0.6115
level
(20-day
SMA)
now
turned
into
resistance,
and
then
at
0.6150.
A
decisive
close
above
these
levels
will
be
crucial
to
negate
the
recent
bearish
momentum
and
might
assist
bulls
in
making
a
fresh
attempt
to
reclaim
control.
On
the
downside,
immediate
support
is
near
the
crucial
convergence
of
100
and
200-day
SMAs
at
0.6070.
A
conclusive
break
below
this
level
could
affirm
the
negative
outlook,
triggering
a
deeper
corrective
slide
towards
0.6050
and
then
the
0.6030
support
levels.
GBP/JPY continues to grind higher, sets fresh 16-year peak
401644 July 11, 2024 05:40 FXStreet Market News
-
GBP/JPY
gained
0.72%
on
Wednesday
as
Yen
continues
to
plummet. -
Thin
data
leaves
central
bank
talkers
as
the
driver
of
market
sentiment. -
BoE
remains
captive
to
inflation
data
looking
forward.
GBP/JPY
continues
to
grind
out
fresh
16-year
highs
in
unrelenting
Yen
pressure,
and
the
Guppy
found
a
new
peak
above
207.80
on
Wednesday.
A
lack
of
notable
data
from
Japan
leaves
the
Yen
at
the
bottom
of
a
very
deep
rate
differential
hole,
and
a
bounce
in
market
hopes
for
a
rate
cut
from
the
Bank
of
England
(BoE)
gave
the
Pound
Sterling
a
leg
up
across
the
board.
Despite
cautionary
statements
from
two
BoE
policymakers
on
Wednesday,
the
warning
tones
weren’t
cautious
enough,
and
markets
bolstered
the
GBP
on
expectations
of
a
BoE
rate
cut
in
August.
UK
inflation
has
made
plenty
of
progress
since
peaking
in
the
double
digits,
price
growth
remains
a
key
stumbling
block
for
the
UK’s
central
bank.
Coming
up
on
Thursday,
UK
Industrial
and
Manufacturing
Production
figures
for
May
will
either
help
or
hinder
rate
cut
hopes.
MoM
Industrial
Production
is
expected
to
rebound
to
0.2%
from
the
previous
-0.9%
contraction,
while
Manufacturing
Production
is
forecast
to
recover
to
0.4%
from
the
previous
-1.4%
decline.
Read
more
from
BoE:
BoE’s
Mann:
We
need
to
see
sustained
slower
service
inflation
BoE’s
Pill:
Open
question
whether
time
for
cutting
rates
is
now
upon
us
GBP/JPY
technical
outlook
The
Guppy
continues
to
break
into
fresh
highs
on
the
charts,
shattering
any
technical
resistance
before
it
even
gets
the
chance
to
finish
forming.
The
pair
is
already
on
pace
to
chalk
in
another
firmly
green
weekly
candle,
and
GBP/JPY
has
seen
a
week-on-week
gain
for
all
but
one
of
the
last
nine
consecutive
trading
weeks.
GBP/JPY
hourly
chart
GBP/JPY
daily
chart
Japanese
Yen
FAQs
The
Japanese
Yen
(JPY)
is
one
of
the
world’s
most
traded
currencies.
Its
value
is
broadly
determined
by
the
performance
of
the
Japanese
economy,
but
more
specifically
by
the
Bank
of
Japan’s
policy,
the
differential
between
Japanese
and
US
bond
yields,
or
risk
sentiment
among
traders,
among
other
factors.
One
of
the
Bank
of
Japan’s
mandates
is
currency
control,
so
its
moves
are
key
for
the
Yen.
The
BoJ
has
directly
intervened
in
currency
markets
sometimes,
generally
to
lower
the
value
of
the
Yen,
although
it
refrains
from
doing
it
often
due
to
political
concerns
of
its
main
trading
partners.
The
current
BoJ
ultra-loose
monetary
policy,
based
on
massive
stimulus
to
the
economy,
has
caused
the
Yen
to
depreciate
against
its
main
currency
peers.
This
process
has
exacerbated
more
recently
due
to
an
increasing
policy
divergence
between
the
Bank
of
Japan
and
other
main
central
banks,
which
have
opted
to
increase
interest
rates
sharply
to
fight
decades-high
levels
of
inflation.
The
BoJ’s
stance
of
sticking
to
ultra-loose
monetary
policy
has
led
to
a
widening
policy
divergence
with
other
central
banks,
particularly
with
the
US
Federal
Reserve.
This
supports
a
widening
of
the
differential
between
the
10-year
US
and
Japanese
bonds,
which
favors
the
US
Dollar
against
the
Japanese
Yen.
The
Japanese
Yen
is
often
seen
as
a
safe-haven
investment.
This
means
that
in
times
of
market
stress,
investors
are
more
likely
to
put
their
money
in
the
Japanese
currency
due
to
its
supposed
reliability
and
stability.
Turbulent
times
are
likely
to
strengthen
the
Yen’s
value
against
other
currencies
seen
as
more
risky
to
invest
in.
XRP could reach $17 by 2025 per analyst, SEC vs. Ripple lawsuit ruling awaited
401639 July 11, 2024 05:39 FXStreet Market News
-
Ripple
could
see
the
end
of
its
lawsuit
with
the
Securities
and
Exchange
Commission
soon,
per
recent
reports. -
An
analyst
predicts
XRP
rally
to
$17
through
the
Bent
Fork
chart,
a
bullish
thesis
for
the
altcoin. -
XRP
traders
at
$0.44
on
Wednesday,
adding
nearly
2%
value
on
the
day.
Ripple
(XRP)
traders
are
awaiting
the
final
ruling
in
the
US
Securities
and
Exchange
Commission
(SEC)
lawsuit
against
the
payment
remittance
firm.
A
pro-crypto
attorney,
Fred
Rispoli,
informed
market
participants
that
a
ruling
is
likely
by
July
31
2024,
through
a
tweet
on
X.
XRP
traders
are
awaiting
the
ruling,
a
key
market
mover
for
the
altcoin,
in
July
2024.
Additionally,
a
crypto
analyst
behind
the
X
handle
@egragcrypto
has
analyzed
XRP
price
trend
and
set
a
$17
target
for
2025.
While
XRP
trades
at
$0.44
on
Wednesday,
July
10,
the
analyst
presents
a
Bent
Fork
chart
as
a
thesis
backing
his
prediction
for
the
altcoin.
Daily
digest
market
movers:
Ripple
traders
await
ruling
in
lawsuit,
RLUSD
launch
-
The
SEC
alleges
that
Ripple
sold
unregistered
securities
(XRP
tokens)
to
institutional
investors
and
asked
the
court
for
over
$2
billion
in
penalties.
In
a
development
in
May
2024,
the
SEC
quoted
$102.6
million. -
Ripple
filed
a
letter
of
supplemental
authority,
citing
the
Binance
lawsuit,
where
Judge
Analisa
Torres’
ruling
was
considered
as
precedent.
The
ruling
of
Judge
Amy
Berman
Jackson
cemented
the
status
of
XRP
as
not
a
security
in
secondary
market
sales,
meaning
sales
on
exchange
platforms. -
SEC
filed
its
response
to
the
supplemental
authority
letter.
With
both
filings
in,
Ripple
traders
are
awaiting
a
ruling
in
the
lawsuit. -
Pro-crypto
attorney
Fred
Rispoli
says
the
ruling
is
expected
as
early
as
Saturday,
July
13,
or
by
July
31,
2024. -
The
lawsuit
has
been
a
key
market
mover
for
the
altcoin
since
the
legal
battle
commenced. -
Alongside
lawsuit
developments,
on-chain
metrics
have
influenced
XRP
traders’
sentiment
and
the
asset’s
price
in
the
past. -
Santiment
data
shows
a
large
spike
in
active
addresses
in
XRP
on
July
10;
over
27,000
addresses
were
active
on
the
XRP
Ledger.
This
supports
a
bullish
thesis
for
the
altcoin,
signaling
rising
demand
and
relevance
among
market
participants.
XRP
Active
addresses
and
price
-
After
consistently
realizing
losses
on
their
XRP
holdings
since
May
30,
traders
realized
$4.42
million
in
gains
on
July
10.
The
long
period
of
negative
spikes
on
the
Network
Realized
Profit/Loss
metric
is
consistent
with
capitulation
among
investors.
XRP
Network
realized
profit/loss
Technical
analysis:
XRP
analyst
predicts
rally
to
$17
by
2025,
altcoin
extends
gains
Analyst
behind
the
X
handle
@egragcrypto
has
predicted
a
$17
target
for
XRP
by
2025
based
on
his
Bent
Fork
chart.
This
is
a
long-term
target
for
the
altcoin
that
currently
trades
at
$0.44
on
Binance.
The
analyst
introduced
the
chart
with
key
resistances
at
$1,
a
psychological
hurdle,
and
$3.5,
the
asset’s
all-time
high.
The
analyst
introduced
the
target
for
the
first
time
in
2023
with
four
tracks,
A)
Major
Historical
Support
B)
Ranging
Zone
C)
Mid-Cycle
Top
D)
Cycle
Top
The
analyst
considers
the
track
D
is
the
one
that
the
altcoin
is
most
likely
to
reach,
with
a
slight
variation.
The
target
has
been
increased
from
$15
in
2023
to
$17
in
the
latest
update.
XRP/USD
chart
On
the
XRP/USDT
daily
chart,
it
is
clear
that
XRP
is
recovering
from
its
recent
downward
correction.
If
Ripple
extends
its
gains,
the
altcoin
could
add
8.45%
to
its
value
and
hit
resistance
at
$0.4760,
the
July
2
low
and
the
upper
boundary
of
the
Fair
Value
Gap
(FVG),
as
seen
in
the
chart
below.
The
Relative
Strength
Index
(RSI)
reads
39.58,
showing
Ripple’s
price
trend
has
underlying
positive
momentum.
XRP/USDT
daily
chart
Ripple
could
find
support
at
$0.4032,
the
July
8
low.
In
the
event
of
further
correction,
XRP
could
sweep
liquidity
at
the
July
5
low
of
$0.3823.
SEC
vs
Ripple
lawsuit
FAQs
It
depends
on
the
transaction,
according
to
a
court
ruling
released
on
July
14:
For
institutional
investors
or
over-the-counter
sales,
XRP
is
a
security.
For
retail
investors
who
bought
the
token
via
programmatic
sales
on
exchanges,
on-demand
liquidity
services
and
other
platforms,
XRP
is
not
a
security.
The
United
States
Securities
&
Exchange
Commission
(SEC)
accused
Ripple
and
its
executives
of
raising
more
than
$1.3
billion
through
an
unregistered
asset
offering
of
the
XRP
token.
While
the
judge
ruled
that
programmatic
sales
aren’t
considered
securities,
sales
of
XRP
tokens
to
institutional
investors
are
indeed
investment
contracts.
In
this
last
case,
Ripple
did
breach
the
US
securities
law
and
will
need
to
keep
litigating
over
the
around
$729
million
it
received
under
written
contracts.
The
ruling
offers
a
partial
win
for
both
Ripple
and
the
SEC,
depending
on
what
one
looks
at.
Ripple
gets
a
big
win
over
the
fact
that
programmatic
sales
aren’t
considered
securities,
and
this
could
bode
well
for
the
broader
crypto
sector
as
most
of
the
assets
eyed
by
the
SEC’s
crackdown
are
handled
by
decentralized
entities
that
sold
their
tokens
mostly
to
retail
investors
via
exchange
platforms,
experts
say.
Still,
the
ruling
doesn’t
help
much
to
answer
the
key
question
of
what
makes
a
digital
asset
a
security,
so
it
isn’t
clear
yet
if
this
lawsuit
will
set
precedent
for
other
open
cases
that
affect
dozens
of
digital
assets.
Topics
such
as
which
is
the
right
degree
of
decentralization
to
avoid
the
“security”
label
or
where
to
draw
the
line
between
institutional
and
programmatic
sales
are
likely
to
persist.
The
SEC
has
stepped
up
its
enforcement
actions
toward
the
blockchain
and
digital
assets
industry,
filing
charges
against
platforms
such
as
Coinbase
or
Binance
for
allegedly
violating
the
US
Securities
law.
The
SEC
claims
that
the
majority
of
crypto
assets
are
securities
and
thus
subject
to
strict
regulation.
While
defendants
can
use
parts
of
Ripple’s
ruling
in
their
favor,
the
SEC
can
also
find
reasons
in
it
to
keep
its
current
strategy
of
regulation
by
enforcement.
The
court
decision
is
a
partial
summary
judgment.
The
ruling
can
be
appealed
once
a
final
judgment
is
issued
or
if
the
judge
allows
it
before
then.
The
case
is
in
a
pretrial
phase,
in
which
both
Ripple
and
the
SEC
still
have
the
chance
to
settle.
Full Article
Forexlive Americas FX news wrap: The good times roll into Thursday’s CPI report
401638 July 11, 2024 05:15 Forexlive Latest News Market News
Markets:
-
WTI
crude
oil
up
$0.93
to
$82.35 -
US
10-year
yields
down
1.8
bps
to
4.28% -
Gold
up
$8
to
$2371 -
GBP
leads,
NZD
lags -
S&P
500
up
1.0%
to
record
5633
In
some
ways
the
market
makes
sense
and
in
other
ways
it
doesn’t.
The
New
Zealand
dollar
was
the
laggard
today
and
that
was
a
straightforward
decline
on
a
dovish
RBNZ.
The
market
had
priced
in
something
that
aligned
more-closely
with
the
RBA
but
it
looks
like
they’re
willing
to
cut
sooner,
with
October
now
priced
at
71%
even
as
RBA
pricing
is
40%
for
a
hike
in
November.
Another
move
that
was
totally
sensible
was
in
the
pound
as
it
rose
on
some
hawkish
comments
from
the
Bank
of
England
chief
economist.
Again,
he
highlighted
that
the
UK
is
facing
some
unique
issues
around
wage
growth
and
sticky
inflation.
The
market
has
fallen
in-and-out
of
that
mode
in
the
past
few
months
but
ultimately
it
will
go
where
the
decision-makers
take
it.
Today
that
was
a
60
pip
rally
in
GBP
that
helped
to
drag
the
euro
along
with
it.
USD/JPY
bids
may
have
fuelled
by
risk
sentiment
as
that
pair
rose
43
pips
to
161.73
but
otherwise
there
wasn’t
a
strong
sense
in
FX
that
equities
were
up
strongly.
That’s
where
this
market
gets
more-difficult.
The
1%
move
in
the
S&P
500
was
the
first
one
(in
either
direction)
in
six
weeks
and
it
comes
despite
the
week’s
headline
risk
tomorrow
with
CPI.
The
day
didn’t
start
out
with
much
and
futures
were
flat
but
the
steady
buying
in
stocks
began
to
add
up,
including
a
7
day
rally
in
Apple
shares
and
a
fresh
jump
in
Nvidia.
Time
will
tell
whether
that
was
a
foolish
move
ahead
of
CPI
but
it
may
also
speak
to
a
market
that’s
moved
beyond
worries
about
inflation.
A
notable
divergence
those
was
in
fixed
income
where
the
Treasury
auction
was
strong
and
yields
have
fallen
in
5
of
the
past
6
days.
The
VIX
also
rose
2.8%
today
in
a
sign
that
someone
out
there
is
looking
for
protection.
NZD/JPY Price Analysis: Momentum declined, bulls defend the 20-day SMA
401636 July 11, 2024 05:14 FXStreet Market News
-
NZD/JPY
saw
a
moderate
decline,
but
buyers
successfully
kept
the
20-day
SMA
of
97.80. -
Bears
got
momentum
from
RBNZ’s
dovish
decision. -
Indicators
are
scaping
overbought
conditions
so
the
pair
might
enter
in
a
consolidation
phase.
During
Wednesday’s
trading
session,
the
NZD/JPY
pair
experienced
a
0.40%
decline
to
land
at
98.30.
Although
it
grappled
with
sellers’
pressure,
the
bulls
managed
to
defend
the
key
20-day
Simple
Moving
Average
(SMA)
of
97.80.
On
the
daily
chart,
the
Relative
Strength
Index
(RSI)
value
now
stands
at
61.
Compared
with
Tuesday’s
overbought
reading
of
72,
the
RSI
is
noticeably
lower,
signaling
potential
relief
from
overbought
conditions.
This
drop
indicates
a
shift
from
the
previous
bullish
momentum
and
may
suggest
a
pullback.
The
Moving
Average
Convergence
Divergence
(MACD)
now
displays
a
fresh
red
bar,
indicating
lesser
buying
momentum,
which
aligns
with
the
possible
pullback
scenario.
NZD/JPY
daily
chart
Gearing
towards
a
possible
downward
correction,
immediate
support
is
seen
around
the
97.70
(20-day
SMA)
and
97.00
markers.
Canadian Dollar eases higher as markets look elsewhere
401633 July 11, 2024 05:14 FXStreet Market News
-
The
Canadian
Dollar
found
thin
gains
on
Wednesday. -
Canada
market
flows
remain
thin,
and
no
meaningful
CAD
data
is
on
the
docket. -
US
inflation
figures
due
later
in
the
week
remain
the
key
risk
event.
The
Canadian
Dollar
(CAD)
edged
higher
on
Wednesday,
bolstered
more
by
a
general
uptick
in
broad-market
risk
appetite
and
a
bullish
reversal
in
Crude
Oil
than
anything
related
to
a
shift
in
CAD
sentiment.
Federal
Reserve
(Fed)
Chairman
Jerome
Powell
made
his
second
of
two
appearances
in
as
many
days
before
US
Congressional
financial
committees,
delivering
the
Fed’s
latest
Semi-Annual
Monetary
Policy
Report.
Canada
has
had
a
quiet
week
on
the
economic
calendar,
and
the
trend
of
data-less
CAD
trading
is
set
to
continue
until
next
week’s
Canadian
inflation
print
set
for
next
Tuesday,
with
Canadian
Retail
Sales
far-flung
to
next
Friday.
In
the
meantime,
a
key
print
in
US
inflation
figures
will
dominate
market
flows
this
week,
with
US
Consumer
Price
Index
(CPI)
inflation
and
Producer
Price
Index
(PPI)
wholesale
inflation
slated
for
this
Thursday
and
Friday,
respectively.
Daily
digest
market
movers:
Canadian
Dollar
softly
bolstered
by
step-up
in
market
risk
appetite
-
CAD
traders
are
settled
in
for
the
long
wait
for
Canadian
CPI
inflation
numbers
due
next
week. -
Data-light
CAD
finds
support
from
rising
Crude
Oil
bids
on
Wednesday
plus
a
general
improvement
in
investor
sentiment
during
the
midweek
market
session. -
Fed
Chair
Powell
stuck
close
to
his
familiar
script
during
his
two-day
testimony
before
US
Congressional
committees
while
delivering
the
Fed’s
latest
Monetary
Policy
Report. -
Fed
Chair
Powell
noted
that
while
the
Fed
still
wants
more
confidence
that
inflation
will
ease
to
the
US
central
bank’s
2%
annual
inflation
target,
that
doesn’t
necessarily
mean
the
Fed
will
wait
until
inflation
has
hit
2%
to
begin
easing
rates. -
However,
Fed
Chair
Powell
warned
that
despite
easing
inflation
and
a
softening
labor
market,
housing
and
shelter
inflation
remains
a
concern. -
According
to
the
CME’s
FedWatch
Tool,
rate
traders
are
still
leaning
fully
into
a
September
rate
cut,
with
markets
pricing
in
at
least
a
25
basis
point
trim
to
the
fed
funds
rate
on
September
18. -
Jerome
Powell
Speech:
Chairman
testifies
before
House
Financial
Services
Committee
Canadian
Dollar
PRICE
Today
The
table
below
shows
the
percentage
change
of
Canadian
Dollar
(CAD)
against
listed
major
currencies
today.
Canadian
Dollar
was
the
strongest
against
the
New
Zealand
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.47% | 0.21% | -0.17% | -0.09% | 0.71% | 0.17% | |
| EUR | 0.12% | -0.33% | 0.35% | -0.04% | 0.01% | 0.81% | 0.28% | |
| GBP | 0.47% | 0.33% | 0.71% | 0.31% | 0.34% | 1.15% | 0.60% | |
| JPY | -0.21% | -0.35% | -0.71% | -0.37% | -0.32% | 0.45% | -0.08% | |
| CAD | 0.17% | 0.04% | -0.31% | 0.37% | 0.07% | 0.87% | 0.31% | |
| AUD | 0.09% | -0.01% | -0.34% | 0.32% | -0.07% | 0.79% | 0.24% | |
| NZD | -0.71% | -0.81% | -1.15% | -0.45% | -0.87% | -0.79% | -0.54% | |
| CHF | -0.17% | -0.28% | -0.60% | 0.08% | -0.31% | -0.24% | 0.54% |
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
Canadian
Dollar
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
CAD
(base)/USD
(quote).
Technical
analysis:
Canadian
Dollar
dragged
slightly
higher
by
broader
market
forces
The
Canadian
Dollar
(CAD)
traded
a
step
higher
than
the
US
Dollar
(USD)
on
Wednesday,
up
a
thin
sixth
of
a
percent
against
the
Greenback.
The
CAD
softened
around
three-tenths
of
one
percent
against
the
bullish
Pound
Sterling
(GBP),
and
the
Canadian
Dollar
benefits
from
broad-market
selling
pressure
forcing
the
New
Zealand
Dollar
(NZD)
lower.
The
CAD
is
up
nearly
nine-tenths
of
one
percent
against
the
NZD
on
Wednesday.
USD/CAD
continues
to
churn
just
above
1.3600,
but
near-term
short
pressure
has
pushed
the
USD
lower
against
the
CAD,
sending
the
pair
down
from
intraday
consolidation
near
1.3640.
Daily
candlesticks
continue
to
drift
down
toward
the
200-day
Exponential
Moving
Average
(EMA)
at
1.3590
as
bids
get
squeezed
between
the
long-term
moving
average
and
a
supply
zone
priced
in
above
1.3750.
USD/CAD
hourly
chart
USD/CAD
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
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.
Fed Powell helps the stocks reach a record close once again for the S&P and Nasdaq
401632 July 11, 2024 04:40 Forexlive Latest News Market News
Fed
Powell
reiterated
the
dual
risks.
That
is
it’s
not
just
inflation
as
chair
Powell
feels
it
is
starting
to
decelerate
again.
This
time
employment
is
also
a
concern.
Bad
news
is
still
good
news.
That
may
change
going
forward,
but
for
now
the
broader
S&P
and
NASDAQ
once
again
closed
at
record
levels.
For
the
S&P
index
it’s
the
6th
consecutive
record
close.
The
index
rose
above
5600
for
the
first
time
today.
The
NASDAQ
index
closed
at
a
new
record
level
for
the
7th
consecutive
day
(the
new
high
was
on
July
2)
Apple
closed
higher
for
the
seventh
consecutive
day.
Tesla
closed
higher
for
the
11
consecutive
day.
The
final
numbers
are
showing:
-
Dow
Industrial
Average
average
searched
429.39
points
or
1.09%
at
39721.37 -
S&P
index
rose
56.95
points
or
1.02%
at
5633.92. -
NASDAQ
index
rose
218.16
points
or
1.18%
at
18647.45
The
small-cap
Russell
2000
rose
22.28
points
or
1.10%
at
2051.75.
Some
of
the
big-name
gainers
today
included:
-
Apple,
up
$4.30
or
1.88% -
Nvidia
rose
$3.55
or
2.7%.
Remember
Nvidia
is
coming
off
of
a
10:1
stock
split. -
AMD
rose
3.85%.
Its
shares
are
up
16.66%
since
July
1 -
Micron
rose
$5.25
or
4.0% -
Intel
has
seen
its
price
raise
13.07%
over
the
last
six
trading
days,
but
is
still
down
some
28%
on
the
year.
Some
newer
risers
in
the
market
are:
-
Palantir
rose
$1.03
or
3.76%.
Since
June
21
(12
trading
days),
shares
are
up
19.21% -
Corning
continues
its
three-day
run
to
the
upside
which
has
seen
the
price
move
from
$38.44
to
$45.48
(up
18.31%).
Today
the
shares
rose
1.81%
After
the
close,
Costco
has
announced
that
it
would
raise
membership
prices
by
five
dollars.
Shares
are
up
$36
or
4.10%
at
$920.
USD/JPY Price Analysis: Trends upward for third-straight day, buyers eye 162.00
401630 July 11, 2024 04:39 FXStreet Market News
-
USD/JPY
gains
over
0.30%,
buoyed
by
Powell’s
stance
against
rate
cuts
without
clear
disinflation. -
Technicals
hint
at
resistance
near
the
162.00
mark;
RSI
approaches
overbought
territory. -
Support
levels
to
monitor:
161.10
(Tenkan-Sen),
160.73
(July
9
low),
160.26
(July
8
low)
if
bears
take
over.
The
USD/JPY
stretched
its
advance
to
three
consecutive
days
and
registered
gains
of
more
than
0.30%
due
to
Fed
Chair
Jerome
Powell
sticking
to
the
script.
He
said
that
lowering
the
fed
funds
rate
is
not
an
option
unless
there
is
progress
in
the
disinflation
process.
The
pair
trades
at
161.77,
approaching
the
year-to-date
(YTD)
high
of
161.95.
USD/JPY
Price
Analysis:
Technical
outlook
From
a
technical
standpoint,
the
USD/JPY
uptrend
remains
intact,
though
sellers
could
emerge
at
around
the
psychological
162.00
resistance
level.
The
momentum
indicates
a
buyer-dominated
market;
the
Relative
Strength
Index
(RSI)
hovers
near
overbought
conditions.
This
could
hinder
the
bulls’
drive
to
lift
the
USD/JPY
exchange
rate
or
pave
the
way
for
consolidation.
If
USD/JPY
decisively
clears
162.00,
the
next
resistance
would
be
163.00,
and
the
November
1986
high
of
164.87.
Conversely,
if
bears
stepped
in
and
dragged
prices
below
the
Tekan-Sen
at
161.10,
it
could
exacerbate
a
deeper
pullback.
The
next
support
would
be
the
July
9
low
of
160.73,
followed
by
the
latest
cycle
low
of
July
8
low
of
160.26.
If
those
two
levels
are
surpassed,
the
USD/JPY
could
be
set
for
a
drop
to
160.00
and
below.
USD/JPY
Price
Action
–
Daily
Chart
Japanese
Yen
FAQs
The
Japanese
Yen
(JPY)
is
one
of
the
world’s
most
traded
currencies.
Its
value
is
broadly
determined
by
the
performance
of
the
Japanese
economy,
but
more
specifically
by
the
Bank
of
Japan’s
policy,
the
differential
between
Japanese
and
US
bond
yields,
or
risk
sentiment
among
traders,
among
other
factors.
One
of
the
Bank
of
Japan’s
mandates
is
currency
control,
so
its
moves
are
key
for
the
Yen.
The
BoJ
has
directly
intervened
in
currency
markets
sometimes,
generally
to
lower
the
value
of
the
Yen,
although
it
refrains
from
doing
it
often
due
to
political
concerns
of
its
main
trading
partners.
The
current
BoJ
ultra-loose
monetary
policy,
based
on
massive
stimulus
to
the
economy,
has
caused
the
Yen
to
depreciate
against
its
main
currency
peers.
This
process
has
exacerbated
more
recently
due
to
an
increasing
policy
divergence
between
the
Bank
of
Japan
and
other
main
central
banks,
which
have
opted
to
increase
interest
rates
sharply
to
fight
decades-high
levels
of
inflation.
The
BoJ’s
stance
of
sticking
to
ultra-loose
monetary
policy
has
led
to
a
widening
policy
divergence
with
other
central
banks,
particularly
with
the
US
Federal
Reserve.
This
supports
a
widening
of
the
differential
between
the
10-year
US
and
Japanese
bonds,
which
favors
the
US
Dollar
against
the
Japanese
Yen.
The
Japanese
Yen
is
often
seen
as
a
safe-haven
investment.
This
means
that
in
times
of
market
stress,
investors
are
more
likely
to
put
their
money
in
the
Japanese
currency
due
to
its
supposed
reliability
and
stability.
Turbulent
times
are
likely
to
strengthen
the
Yen’s
value
against
other
currencies
seen
as
more
risky
to
invest
in.
Forex Today: Gearing up for US CPI
401629 July 11, 2024 04:39 FXStreet Market News
A
vacillating
session
saw
the
Greenback
extend
its
weekly
consolidation
amidst
erratic
performance
in
the
risk
complex,
as
investors
evaluated
another
congressional
testimony
by
Chair
Powell
prior
to
the
publication
of
US
CPI
data.
Here
is
what
you
need
to
know
on
Thursday,
July
11:
The
USD
Index
(DXY)
kept
the
vacillating
mood
just
above
the
105.00
hurdle
amidst
muted
US
yields.
The
release
of
US
Inflation
Rate
takes
centre
stage
on
July
11
seconded
by
weekly
Initial
Jobless
Claims
and
speeches
by
the
Fed’s
Cook
and
Bostic.
EUR/USD
improved
marginally
and
left
behind
a
negative
first
half
of
the
week,
revisiting
the
1.0830
region
on
Wednesday.
The
final
Inflation
Rate
in
Germany
is
expected
on
July
11.
GBP/USD
maintained
its
bullish
bias
past
the
1.2800
level
on
the
back
of
hawkish
comments
from
BoE
officials
and
some
mild
selling
pressure
in
the
Greenback.
A
busy
UK
docket
on
July
11
features
GDP
readings,
Construction
Output,
Balance
of
Trade,
Industrial
Production,
Manufacturing
Production,
and
the
NIESR
Monthly
GDP
Tracker.
USD/JPY
extended
its
weekly
recovery
further,
opening
the
door
to
an
imminent
test
of
the
2024
high
near
162.
Weekly
Foreign
Bond
Investment
figures
and
Machinery
Orders
will
be
in
the
limelight
in
Japan
on
July
11.
AUD/USD
showed
some
lack
of
confidence
to
advance
further,
moving
into
a
consolidative
phase
always
above
0.6700
instead.
The
Consumer
Inflation
Expectations
tracked
by
the
Melbourne
Institute
are
due
on
July
11.
WTI
prices
set
aside
three
sessions
in
a
row
of
losses
and
staged
a
mild
comeback
above
the
$82.00
mark
per
barrel.
Gold
prices
added
to
Tuesday’s
gains
and
flirted
with
the
$2,390
mark
per
ounce
troy
on
the
back
of
the
lack
of
direction
in
the
US
Dollar
and
muted
yields.
Silver
prices
navigated
a
tight
range
near
the
$31.00
region
per
ounce.
Economic calendar in Asia Thursday, 11 July 2024 – awaiting US inflation data
401628 July 11, 2024 04:15 Forexlive Latest News Market News
There
are
only
lower-ier
data
on
the
calendar
today.
None
of
these
are
likely
to
move
major
FX
much
upon
release.
This
snapshot
from
the
ForexLive
economic
data
calendar,
access
it
here.
The
times
in
the
left-most
column
are
GMT.
The
numbers
in
the
right-most
column
are
the
‘prior’
(previous
month/quarter
as
the
case
may
be)
result.
The
number
in
the
column
next
to
that,
where
there
is
a
number,
is
the
consensus
median
expected.
Gold shines as US yields tumble ahead of US inflation report
401626 July 11, 2024 04:14 FXStreet Market News
-
Gold
surges
amid
growing
expectations
of
Fed
rate
cuts
in
September. -
US
10-year
Treasury
yield
drops
to
4.288%,
while
US
Dollar
Index
falls
below
105.00. -
Inflows
into
Gold
ETFs
support
the
metal,
with
eyes
now
on
US
June
inflation
data
and
economic
indicators.
Gold
price
escalated
on
Wednesday
for
back-to-back
days
amid
growing
speculation
that
the
Federal
Reserve
(Fed)
could
begin
to
slash
higher
interest
rates
at
the
September
meeting.
Consequently,
US
Treasury
bond
yields
and
the
Greenback
fell,
a
tailwind
for
the
golden
metal.
The
XAU/USD
trades
at
$2,372,
up
by
more
than
0.30%.
Falling
US
Treasury
bond
yields
and
a
soft
US
Dollar
bolstered
the
non-yielding
metal.
The
US
10-year
benchmark
note
coupon
dropped
one-and-a-half
basis
points
(bps)
to
4.288%,
while
the
US
Dollar
Index
(DXY)
trended
below
the
105.00
mark,
losing
0.06%.
In
his
appearance
at
the
US
House
of
Representatives,
Fed
Chair
Jerome
Powell
repeated
most
of
his
remarks
revealed
at
a
US
Senate
committee
on
Tuesday.
He
acknowledged
the
progress
on
inflation,
yet
Powell
stated
the
board
is
not
confident
that
lowering
rates
will
help
prices
reach
the
2%
goal.
Despite
ongoing
pullbacks,
Gold
remains
underpinned
by
a
second
consecutive
month
of
inflows
into
Gold
exchange-traded
funds
(EFTs)
in
June,
driven
by
additions
to
holdings
by
Europe
and
Asia-listed
funds.
With
Fed
Chair
Powell’s
semi-annual
testimony
in
the
rearview
mirror,
investors
eye
the
release
of
US
June
inflation
figures
on
Thursday.
That,
Initial
Jobless
Claims
and
the
University
of
Michigan
Consumer
Sentiment
data
will
set
Gold’s
direction.
Daily
digest
market
movers:
Gold
price
escalates
on
Fed
rate
cut
hopes
-
US
CPI
is
expected
to
decrease
from
3.3%
to
3.1%
annually
in
June,
while
core
inflation
is
projected
to
remain
steady
at
3.4%
YoY. -
According
to
the
consensus,
Initial
Jobless
Claims
for
the
week
ending
July
6
are
expected
to
increase
from
238K
to
240K. -
July
Consumer
Sentiment
is
forecast
to
improve
to
68.5,
up
from
68.2
in
June,
according
to
the
consensus. -
Bullion
prices
retreated
somewhat
due
to
the
People’s
Bank
of
China’s
(PBoC)
decision
to
halt
Gold
purchases
in
June
as
it
did
in
May.
China
held
72.80
million
troy
ounces
of
the
precious
metal
at
the
end
of
June. -
According
to
data
from
the
CME
FedWatch
Tool,
investors
are
pricing
in
71%
odds
of
a
Fed
rate
cut
in
September,
up
from
70%
on
Tuesday. -
December
2024
fed
funds
rate
futures
contract
implies
that
the
Fed
will
ease
policy
by
39
basis
points
(bps)
toward
the
end
of
the
year.
Technical
analysis:
Gold
price
consolidates
around
$2,370
Despite
forming
a
bearish
Harami
candlestick
pattern
after
breaching
the
Head-and-Shoulders
neckline,
Gold
has
resumed
its
ongoing
uptrend
yet
remains
shy
of
hitting
weekly
highs
set
on
Monday
at
$2,391
a
troy
ounce.
Momentum
shifted
in
favor
of
buyers
as
shown
by
the
Relative
Strength
Index
(RSI),
which
remains
bullish
above
the
50-neutral
line
and
aims
upward.
Hence,
the
path
of
least
resistance
is
to
the
upside.
The
XAU/USD
first
resistance
would
be
the
July
5
high
at
$2,392,
followed
by
the
$2,400
figure.
A
further
upside
is
seen,
with
the
next
resistance
lying
at
the
year-to-date
high
of
$2,450,
ahead
of
the
$2,500
mark.
Conversely,
if
XAU/USD
slumps
below
$2,350,
the
golden
metal
might
decline
to
the
$2,300
level.
If
this
support
fails,
the
next
demand
zone
would
be
the
May
3
low
of
$2,277,
followed
by
the
March
21
high
of
$2,222.
Economic
Indicator
Consumer
Price
Index
(YoY)
Inflationary
or
deflationary
tendencies
are
measured
by
periodically
summing
the
prices
of
a
basket
of
representative
goods
and
services
and
presenting
the
data
as
The
Consumer
Price
Index
(CPI).
CPI
data
is
compiled
on
a
monthly
basis
and
released
by
the
US
Department
of
Labor
Statistics.
The
YoY
reading
compares
the
prices
of
goods
in
the
reference
month
to
the
same
month
a
year
earlier.The
CPI
is
a
key
indicator
to
measure
inflation
and
changes
in
purchasing
trends.
Generally
speaking,
a
high
reading
is
seen
as
bullish
for
the
US
Dollar
(USD),
while
a
low
reading
is
seen
as
bearish.