Articles
Kiwi stays pressured in European morning trade
401518 July 10, 2024 16:39 Forexlive Latest News Market News
In
case
you
missed
the
decision
earlier:
RBNZ
leaves
it
cash
rate
on
hold
at
5.50%,
as
expected
NZD/USD
daily
chart
The
pressure
is
staying
on
the
New
Zealand
dollar
today,
as
it
is
holding
at
the
lows
for
the
day
currently.
NZD/USD
is
down
0.8%
to
near
0.6070
and
is
testing
key
support
levels
once
more.
The
confluence
of
the
100
(red
line)
and
200-day
(blue
line)
moving
averages
at
0.6067-71
is
in
focus
now.
That
has
been
a
key
region
in
holding
the
pair
from
falling
further
at
the
end
of
June
and
the
start
of
July.
With
the
RBNZ
now
teeing
up
rate
cuts
in
their
upcoming
final
three
meetings
this
year,
the
kiwi
might
find
it
hard
to
get
off
the
floor
now.
That
especially
as
other
major
central
banks
are
not
sending
out
a
message
that
is
as
dovish.
The
RBA
might
even
have
to
pivot
to
rate
hikes
while
the
Fed
is
maintaining
the
narrative
that
there
is
no
need
to
rush
to
rate
cuts
just
yet.
On
the
latter,
they
are
still
hoping
for
inflation
to
come
down
further
and
are
not
going
to
act
unless
the
economy
starts
to
signal
a
recession.
So,
the
kiwi
is
facing
strong
headwinds
in
two
key
currency
pairs
in
AUD/NZD
and
NZD/USD.
That
until
the
big
picture
narrative
changes
course
again.
While
NZD/USD
is
threatening
a
further
technical
breakdown
above,
AUD/NZD
is
already
breaking
out
to
its
highest
since
October
2022.
EUR/USD: Risk of breaking above 1.0850 increases – UOB Group
401517 July 10, 2024 16:39 FXStreet Market News
The
Euro
(EUR)
is
expected
to
continue
to
trade
in
a
range,
probably
between
1.0800
and
1.0840.
Risk
of
EUR
breaking
above
1.0850
has
increased,
albeit
moderately,
UOB
Group
FX
strategists
Quek
Ser
Leang
and
Peter
Chia
note.
Next
level
to
watch
above
1.0850
is
1.0915
24-HOUR
VIEW:
“Yesterday,
we
pointed
out
that
‘momentum
indicators
are
turning
flat,’
and
we
expected
EUR
to
trade
in
a
1.0795/1.0845
range.
EUR
then
traded
in
a
relatively
narrow
range
between
1.0804
and
1.0833,
closing
at
1.0812
(-0.09%).
The
quiet
price
action
provides
no
fresh
clues,
and
we
continue
to
expect
EUR
to
trade
in
a
range,
probably
between
1.0800
and
1.0840.”
1-3
WEEKS
VIEW:
“Last
Thursday
(04
Jul,
spot
at
1.0785),
we
indicated
that
‘while
the
increase
in
momentum
suggests
further
EUR
strength,
it
is
too
early
to
determine
if
it
can
reach
the
major
resistance
at
1.0850.’
After
EUR
rose,
we
indicated
on
Monday
(08
Jul,
spot
at
1.0825)
that
‘the
risk
of
EUR
breaking
above
1.0850
has
increased,
albeit
moderately.’
EUR
traded
in
a
quiet
manner
yesterday,
and
there
is
no
change
in
our
view.
Overall,
only
a
breach
of
1.0770
(no
change
in
‘strong
support’
level
from
yesterday)
would
indicate
that
the
current
upward
pressure
has
faded.
Looking
ahead,
the
next
level
to
watch
above
1.0850
is
1.0915.”
Gold recovers despite Powell’s shyness to name his date
401515 July 10, 2024 16:39 FXStreet Market News
-
Powell
makes
signs
that
the
Fed
is
weighing
a
rate
cut
but
is
too
shy
to
name
a
date. -
The
uncertainty
dampens
volatility
for
the
interest-rate-sensitive
precious
metal. -
Gold
edges
higher
as
global
central
bank
buying
remains
buoyant
despite
PBoC’s
absence.
Gold
(XAU/USD)
is
edging
higher
on
Wednesday,
continuing
to
recover
after
the
PBoC-related
sell-off
on
Monday.
This
comes
after
data
emerged
showing
that
worldwide
central
bank
demand
for
Gold
remains
buoyant.
This
has
balanced
out
the
negative
impact
of
the
news
that
the
largest
consumer
of
Gold,
the
People’s
Bank
of
China
(PBoC),
stopped
buying
the
precious
metal
in
June
–
extending
its
parsimony
for
another
month
after
it
also
closed
its
wallet
in
May
–
following
an
18-month
buying
spree.
Gold
rises
despite
Powell’s
reluctance
to
name
a
date
Gold
shrugged
off
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
to
the
Senate
Banking
Committee
on
Tuesday,
in
which
he
refused
to
give
a
date
for
a
first
interest-rate
cut,
saying
instead
that
the
Fed
would
adopt
a
data-dependent
approach
to
interest
rates.
Investors
had
been
hoping
for
more
concrete
details
of
when
the
Fed
would
cut
interest
rates,
and
Powell’s
mute
retrenchment
ought
to
have
weakened
Gold
more
than
it
did.
The
reason
for
this
is
that
delays
in
cutting
rates
might
mean
borrowing
costs
stay
elevated
for
longer
–
a
negative
for
Gold
as
it
keeps
the
opportunity
cost
of
holding
the
precious
metal
high.
Gold
is
a
non-interest-bearing
asset,
which
becomes
less
attractive
to
investors
if
they
can
earn
higher
interest
elsewhere.
At
the
same
time,
Powell
did
make
some
statements
that
acted
as
an
antidote.
For
example,
he
acknowledged
progress
had
been
made
on
inflation
and
discounted
the
possibility
of
rate
hikes.
He
also
said
there
was
a
balance
of
risks
to
waiting
too
long
(to
cut
interest
rates)
or
acting
too
soon,
suggesting
a
finely
balanced
situation.
Gold
stays
bid
on
news
other
central
banks
are
buying
Gold
keeps
its
shine
on
Wednesday,
trading
in
the
$2,370s.
The
yellow
metal
finds
upside
momentum
after
it
emerged
that,
despite
the
PBoC
ceasing
to
increase
its
reserves,
other
major
central
banks
were
still
buying
substantial
amounts
of
Gold.
“Other
central
banks
continue
to
participate,
with
India’s
central
bank
buying
more
than
nine
tons
of
Gold
in
June,
the
National
Bank
of
Poland
increasing
its
Gold
reserves
by
four
tons
and
the
Czech
National
Bank
showing
that
its
Gold
reserves
rose
by
some
two
tons
in
June.
With
these
central
banks
continuing
to
build
Gold
positions,
it
is
quite
evident
that
the
official
sector
is
much
broader
than
just
the
PBoC,”
said
Bert
Melek,
Head
of
Commodity
Strategy
at
TD
Securities.
To
sum
up,
it
is
unlikely
China’s
absence
from
the
market
will
prevent
the
commodity
from
rising
to
TD’s
target
of
$2,475
in
Q1
of
2025,
according
to
TD’s
Malek.
Technical
Analysis:
Gold
continues
slow
recovery
Gold
is
recovering
for
the
second
day
in
a
row
after
it
formed
a
bearish
two-bar
reversal
pattern
(green-shaded
rectangle
in
the
chart
below)
at
the
top
of
the
early-July
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.
XAU/USD
Daily
Chart
The
outlook
is
unclear.
There
is
a
risk
Gold
could
pull
back
to
the
50-day
Simple
Moving
Average
(SMA)
at
$2,343.
That
said,
the
break
above
the
downward
trendline
on
June
27
turned
the
tables
for
the
precious
metal,
establishing
a
more
bullish
outlook.
If
Gold
breaks
above
Friday’s
peak
of
$2,393,
it
will
continue
the
sequence
of
higher
highs
and
probably
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.
Gold
FAQs
Gold
has
played
a
key
role
in
human’s
history
as
it
has
been
widely
used
as
a
store
of
value
and
medium
of
exchange.
Currently,
apart
from
its
shine
and
usage
for
jewelry,
the
precious
metal
is
widely
seen
as
a
safe-haven
asset,
meaning
that
it
is
considered
a
good
investment
during
turbulent
times.
Gold
is
also
widely
seen
as
a
hedge
against
inflation
and
against
depreciating
currencies
as
it
doesn’t
rely
on
any
specific
issuer
or
government.
Central
banks
are
the
biggest
Gold
holders.
In
their
aim
to
support
their
currencies
in
turbulent
times,
central
banks
tend
to
diversify
their
reserves
and
buy
Gold
to
improve
the
perceived
strength
of
the
economy
and
the
currency.
High
Gold
reserves
can
be
a
source
of
trust
for
a
country’s
solvency.
Central
banks
added
1,136
tonnes
of
Gold
worth
around
$70
billion
to
their
reserves
in
2022,
according
to
data
from
the
World
Gold
Council.
This
is
the
highest
yearly
purchase
since
records
began.
Central
banks
from
emerging
economies
such
as
China,
India
and
Turkey
are
quickly
increasing
their
Gold
reserves.
Gold
has
an
inverse
correlation
with
the
US
Dollar
and
US
Treasuries,
which
are
both
major
reserve
and
safe-haven
assets.
When
the
Dollar
depreciates,
Gold
tends
to
rise,
enabling
investors
and
central
banks
to
diversify
their
assets
in
turbulent
times.
Gold
is
also
inversely
correlated
with
risk
assets.
A
rally
in
the
stock
market
tends
to
weaken
Gold
price,
while
sell-offs
in
riskier
markets
tend
to
favor
the
precious
metal.
The
price
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
quickly
make
Gold
price
escalate
due
to
its
safe-haven
status.
As
a
yield-less
asset,
Gold
tends
to
rise
with
lower
interest
rates,
while
higher
cost
of
money
usually
weighs
down
on
the
yellow
metal.
Still,
most
moves
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAU/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Gold
controlled,
whereas
a
weaker
Dollar
is
likely
to
push
Gold
prices
up.
Italy Industrial Output s.a. (MoM) came in at 0.5%, above expectations (0.1%) in May
401514 July 10, 2024 16:15 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
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personalized
recommendations.
The
author
makes
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representations
as
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the
accuracy,
completeness,
or
suitability
of
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information.
FXStreet
and
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author
will
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injuries
or
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arising
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and
its
display
or
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Errors
and
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excepted.
The
author
and
FXStreet
are
not
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investment
advisors
and
nothing
in
this
article
is
intended
to
be
investment
advice.
Italy Industrial Output w.d.a (YoY) dipped from previous -2.9% to -3.3% in May
401513 July 10, 2024 16:14 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.
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
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representations
as
to
the
accuracy,
completeness,
or
suitability
of
this
information.
FXStreet
and
the
author
will
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liable
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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.
Wednesday 10th July 2024: Asian Markets Mixed Amid Fed’s Dovish Stance and Inflation Data
401512 July 10, 2024 15:40 ICMarkets Market News
Global Markets:
- Asian Stock Markets : Nikkei up 0.50%, Shanghai Composite down 0.67%, Hang Seng down 0.28% ASX down 0.16%
- Commodities : Gold at $2379.5 (0.47%), Silver at $31.28 (0.34%), Brent Oil at $84.23 (-0.47%), WTI Oil at $80.91 (-0.57%)
- Rates : US 10-year yield at 4.281, UK 10-year yield at 4.159, Germany 10-year yield at 2.541
News & Data:
- (JPY) PPI y/y 2.9% vs 2.9% expected
Markets Update:
Asia-Pacific markets were mixed on Wednesday, despite key Wall Street benchmarks rising following dovish comments from U.S. Federal Reserve Chairman Jerome Powell. Powell expressed caution about maintaining high interest rates, stating that “reducing policy restraint too late or too little could unduly weaken economic activity and employment.” In Asia, investors are focused on inflation data from China and Japan. China’s consumer price index rose 0.2% in June, below the expected 0.4% and down from May’s 0.3%, while the producer price index fell 0.8% year-on-year, matching expectations and showing a softer decline than May’s 1.4%.
The mainland Chinese CSI 300 fell 0.4% following the CPI announcement. Reuters reported that Ping An Insurance, China’s largest insurer, is considering issuing up to $5 billion in convertible bonds. Japan’s corporate goods price index (CGPI) increased by 2.9% in June from a year earlier, higher than the revised 2.6% in May. The Nikkei 225 saw marginal gains, while the broad-based Topix dropped by 0.21%.
South Korea’s Kospi gained 0.13%, whereas the small-cap Kosdaq decreased by 0.2%. The National Samsung Electronics Union announced an indefinite strike starting Wednesday, causing Samsung Electronics shares to fall by 0.22%. Meanwhile, Hanwha Aerospace, a South Korean defense manufacturer, announced a 1.38 trillion won ($1 billion) order from Romania to supply K9 howitzers. Australia’s S&P/ASX 200 declined by 0.18%.
In the U.S., the S&P 500 reached a new record high on Tuesday after Powell’s remarks, rising by 0.07% to 5,576.98, marking its 36th record close of the year. The Nasdaq Composite increased by 0.14% to close at 18,429.29, also ending at a record high. The Dow Jones Industrial Average slightly decreased by 0.13%.
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The post Wednesday 10th July 2024: Asian Markets Mixed Amid Fed’s Dovish Stance and Inflation Data first appeared on IC Markets | Official Blog.
Forex Today: Eyes on second round of Powell testimony, Fedspeak
401511 July 10, 2024 15:39 FXStreet Market News
Here
is
what
you
need
to
know
on
Wednesday,
July
10:
Major
currency
pairs
continue
to
trade
in
familiar
ranges
midweek
as
investors’
search
for
the
next
catalyst
continues.
Later
in
the
day,
Federal
Reserve
(Fed)
Chairman
Jerome
Powell
will
deliver
the
Semi-Annual
Monetary
Policy
Report
and
respond
to
questions
before
the
House
Financial
Services
Committee
in
the
second
day
of
his
Congressional
testimony.
Several
other
Fed
policymakers
will
also
be
delivering
speeches
during
the
American
trading
hours.
US
Dollar
PRICE
This
week
The
table
below
shows
the
percentage
change
of
US
Dollar
(USD)
against
listed
major
currencies
this
week.
US
Dollar
was
the
strongest
against
the
New
Zealand
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.14% | 0.39% | -0.10% | 0.04% | 0.74% | 0.12% | |
| EUR | -0.17% | 0.18% | 0.54% | 0.05% | 0.03% | 0.92% | 0.30% | |
| GBP | -0.14% | -0.18% | 0.33% | -0.11% | -0.15% | 0.74% | 0.11% | |
| JPY | -0.39% | -0.54% | -0.33% | -0.49% | -0.34% | 0.50% | -0.22% | |
| CAD | 0.10% | -0.05% | 0.11% | 0.49% | 0.09% | 0.84% | 0.23% | |
| AUD | -0.04% | -0.03% | 0.15% | 0.34% | -0.09% | 0.89% | 0.25% | |
| NZD | -0.74% | -0.92% | -0.74% | -0.50% | -0.84% | -0.89% | -0.63% | |
| CHF | -0.12% | -0.30% | -0.11% | 0.22% | -0.23% | -0.25% | 0.63% |
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
US
Dollar
from
the
left
column
and
move
along
the
horizontal
line
to
the
Japanese
Yen,
the
percentage
change
displayed
in
the
box
will
represent
USD
(base)/JPY
(quote).
In
his
prepared
remarks,
Powell
told
the
Senate
Banking
Committee
on
Tuesday
that
more
good
data
would
strengthen
their
confidence
on
inflation,
repeating
that
it
will
not
be
appropriate
to
reduce
the
policy
rate
until
they
have
more
confidence.
Commenting
on
the
latest
jobs
report, “the
most
recent
labor
market
data
sent
a
pretty
clear
signal
that
the
labor
market
has
cooled
considerably,”
he
noted.
These
remarks
failed
to
trigger
a
noticeable
market
reaction.
The
US
Dollar
Index
closed
with
marginal
gains,
while
major
equity
indexes
in
the
US
ended
the
day
little
changed.
During
the
Asian
trading
hours,
the
data
from
China
showed
that
the
Consumer
Price
Index
declined
by
0.2%
on
a
monthly
basis
in
June,
bringing
the
annual
CPI
inflation
rate
down
to
0.2%
from
0.3%
in
May.
In
the
meantime,
the
Reserve
Bank
of
New
Zealand
announced
that
it
left
the
policy
rate
unchanged
at
5.5%
as
widely
expected.
The
RBNZ
said
in
its
policy
statement
that
there
are
signs
suggesting
that
inflation
persistence
will
ease
in
line
with
the
fall
in
capacity
pressures
and
business
pricing
intentions.
NZD/USD
turned
south
following
this
event
and
was
last
seen
trading
below
0.6100,
where
it
was
down
more
than
0.5%
on
a
daily
basis.
EUR/USD
registered
small
losses
on
Tuesday
but
managed
to
hold
comfortably
above
1.0800.
Early
Wednesday,
the
pair
trades
marginally
higher
on
the
day
at
around
1.0820.
GBP/USD
edged
lower
on
Tuesday
and
ended
the
day
below
1.2800.
The
pair
clings
to
small
gains
near
this
level
in
the
European
morning.
Following
Monday’s
sharp
decline,
Gold
staged
a
technical
correction
and
posted
small
gains
on
Tuesday.
XAU/USD
struggles
to
gather
bullish
momentum
on
Wednesday
but
remains
afloat
above
$2,370.
USD/JPY
edged
higher
after
finding
support
near
161.00
and
closed
in
positive
territory
on
Tuesday.
The
pair
holds
its
ground
to
start
the
European
session
and
trades
at
around
161.50.
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.
Australian Dollar recovers as Fed Powell worries about easing US job market strength
401509 July 10, 2024 15:39 FXStreet Market News
-
The
Australian
Dollar
recovers
losses
as
the
US
Dollar
edges
lower
on
Wednesday. -
China’s
CPI
declined
by
0.2%
in
June,
compared
to
a
0.1%
decline
in
May. -
Powell
emphasized
that
a
rate
cut
is
not
appropriate
until
the
Fed
gains
confidence
that
inflation
is
moving
toward
2%.
The
Australian
Dollar
(AUD)
recovers
its
daily
losses
and
returns
in
its
sideways
auction
below
0.6750 in Wednesday’s
early
European
session.
However,
the
AUD/USD
pair
faced
challenges
following
Federal
Reserve
(Fed)
Chairman
Jerome
Powell’s
testimony
before
the
US
Congress
on
Tuesday.
Despite
acknowledging
improving
inflation
figures,
the
Fed
remains
firmly
cautious.
The
AUD
may
struggle
as
the
Consumer
Price
Index
(CPI)
in
Australia’s
close
trade
partner
China, rose
at
an
annual
rate
of
0.2%
in
June,
down
from
a
0.3%
rise
in
May.
The
market
had
forecasted
a
0.4%
increase
for
the
period.
On
a
monthly
basis,
Chinese
CPI
inflation
declined
by
0.2%
in
June,
compared
to
a
0.1%
decline
in
May,
which
came
in
below
the
expected
decline
of
0.1%.
Traders
are
anticipating
the
second
semi-annual
testimony
by
Fed
Chair
Jerome
Powell,
as
well
as
speeches
by
the
Fed’s
Michelle
Bowman
and
Austan
Goolsbee.
Additionally,
attention
will
be
on
the
US
Consumer
Price
Index
(CPI)
data,
set
to
be
released
on
Thursday.
Market
forecasts
generally
predict
that
the
annualized
US
core
CPI
for
the
year
ending
in
June
will
remain
steady
at
3.4%,
while
headline
CPI
inflation
is
expected
to
increase
to
0.1%
month-over-month
in
June,
compared
to
the
previous
flat
reading
of
0.0%.
Daily
Digest
Market
Movers:
Australian
Dollar
consolidates
as
Fed
Powell
reiterates
need
for
more
good
inflation
data
-
Fed
Chair
Jerome
Powell
answered
questions
before
the
Senate
Banking
Committee
on
the
first
day
of
his
Congressional
testimony
on
Tuesday.
Powell
stated,
“More
good
data
would
strengthen
our
confidence
in
inflation.”
He
emphasized
that
a
“policy
rate
cut
is
not
appropriate
until
the
Fed
gains
greater
confidence
that
inflation
is
headed
sustainably
toward
2%.”
He
also
noted
that
“first-quarter
data
did
not
support
the
greater
confidence
in
the
inflation
path
that
the
Fed
needs
to
cut
rates.” -
Australia’s
10-year
government
bond
yield
hold
steady
at
around
4.4%
as
investors
digest
mixed
domestic
data.
Consumer
sentiment
fell
in
July
following
a
rise
in
June,
reflecting
household
concerns
over
persistent
inflation
and
the
potential
for
further
interest
rate
increases
by
the
Reserve
Bank
of
Australia
(RBA).
Meanwhile,
business
confidence
rose
to
its
highest
level
since
January
2023. -
Australia’s
Westpac
Consumer
Confidence
dropped
by
1.1%
in
July,
reversing
the
1.7%
increase
seen
in
June.
This
marks
the
fifth
decline
in
2024,
driven
by
ongoing
worries
about
high
inflation,
elevated
interest
rates,
and
a
sluggish
economy. -
US
Nonfarm
Payrolls
(NFP)
increased
by
206,000
in
June,
following
a
rise
of
218,000
in
May.
This
figure
surpassed
the
market
expectation
of
190,000. -
The
US
Unemployment
Rate
edged
up
to
4.1%
in
June
from
4.0%
in
May.
Meanwhile,
Average
Hourly
Earnings
decreased
to
3.9%
year-over-year
in
June
from
the
previous
reading
of
4.1%,
aligning
with
market
expectations.
Technical
Analysis:
Australian
Dollar
trades
sideways
near 0.6750
The
Australian
Dollar
trades
around
0.6740
on
Wednesday.
The
analysis
of
the
daily
chart
shows
that
the
AUD/USD
pair
consolidates
within
an
ascending
channel,
indicating
a
bullish
bias.
Additionally,
the
14-day
Relative
Strength
Index
(RSI)
remains
above
the
50
level,
confirming
the
bullish
momentum.
The
AUD/USD
pair
may
test
the
upper
boundary
of
the
ascending
channel
at
approximately
0.6775.
If
it
breaks
through
this
level,
the
pair
could
aim
for
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
0.6670,
with
additional
support
near
the
50-day
Exponential
Moving
Average
(EMA)
at
0.6642.
A
break
below
this
level
could
push
the
pair
toward
throwback
support
around
0.6590.
AUD/USD:
Daily
Chart
Australian
Dollar
PRICE
Today
The
table
below
shows
the
percentage
change
of
Australian
Dollar
(AUD)
against
listed
major
currencies
today.
Australian
Dollar
was
the
strongest
against
the
New
Zealand
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.05% | 0.11% | -0.02% | -0.02% | 0.60% | -0.03% | |
| EUR | 0.04% | 0.01% | 0.17% | 0.04% | 0.00% | 0.62% | -0.01% | |
| GBP | 0.05% | -0.01% | 0.17% | 0.03% | -0.01% | 0.61% | -0.03% | |
| JPY | -0.11% | -0.17% | -0.17% | -0.10% | -0.14% | 0.44% | -0.17% | |
| CAD | 0.02% | -0.04% | -0.03% | 0.10% | -0.01% | 0.60% | -0.05% | |
| AUD | 0.02% | -0.01% | 0.00% | 0.14% | 0.00% | 0.61% | -0.04% | |
| NZD | -0.60% | -0.62% | -0.61% | -0.44% | -0.60% | -0.61% | -0.64% | |
| CHF | 0.03% | 0.00% | 0.03% | 0.17% | 0.05% | 0.04% | 0.64% |
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
Australian
Dollar
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
AUD
(base)/USD
(quote).
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.
Austria Industrial Production (YoY) dipped from previous -0.5% to -4.1% in May
401507 July 10, 2024 15:15 FXStreet Market News
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on
these
pages
contains
forward-looking
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and
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USD/CHF weakens below 0.9000 ahead of Powell and Fedspeak
401506 July 10, 2024 15:14 FXStreet Market News
-
USD/CHF
loses
ground,
snapping
the
three-day
winning
streak
around
0.8970
on
Wednesday. -
Fed’s
Powell
noted
that
the
central
bank
is
moving
closer
to
feeling
comfortable
about
interest
rate
cuts. -
Political
uncertainties
and
geopolitical
risks
might
boost
the
safe-haven
asset
like
the
CHF.
The
USD/CHF
pair
trims
gains
near
0.8970
during
the
early
European
session
on
Wednesday.
The
downward
momentum
of
the
pair
is
supported
by
the
softer
Greenback
after
Jerome
Powell’s
Semiannual
Monetary
Policy
Report
on
Wednesday.
The
US
Federal
Reserve
Chair
Jerome
Powell
indicated
the
central
bank
is
moving
closer
to
feeling
comfortable
about
interest
rate
cuts.
He
further
stated
that
evidence
of
cooler
inflation
and
that
more
“good
data”
could
open
the
door
to
interest
rate
cuts.
The
financial
market
is
now
pricing
in
74%
odds
of
a
Fed
rate
cut
in
September,
up
from
71%
last
Friday, according
to
data
from
the
CME
FedWatch
Tool.
However,
the
Federal
Open
Market
Committee
(FOMC)
members
at
their
June
meeting indicated
just
one
cut
this
year.
The
expectation
of
a
Fed
rate
cut
might
exert
some
selling
pressure
on
the
US
Dollar
(USD)
in
the
near
term.
Traders
will
focus
on
the
weaker
Greenback
ahead
of
the
US
Consumer
Price
Index
(CPI)
inflation
data
on
Thursday
will
be
the
highlights
this
week.
The
US
CPI
is
estimated
to
show
a
rise
of
3.1%
YoY
in
June,
compared
to
a
3.3%
rise
in
May.
Core
inflation
is
projected
to
remain
steady
at
3.4%
YoY
in
June. Any
signs
of
further
consolidation
f
Grold
On
the
Swiss
front,
the
signs
of
cooler
inflationary
pressures
in
Switzerland
might
fuel
the
Swiss
National
Bank
(SNB)
to
continue
cutting
interest
rates
further,
which
is
likely
to
exert
some
selling
pressure
on
the
Swiss
Franc
(CHF).
Nonetheless,
the
downside
of
CHF
might
be
limited
amid
political
uncertainties
in
France
and
geopolitical
tensions
in
the
Middle
East.
Swiss
economy
FAQs
Switzerland
is
the
ninth-largest
economy
measured
by
nominal
Gross
Domestic
Product
(GDP)
in
the
European
continent.
Measured
by
GDP
per
capita
–
a
broad
measure
of
average
living
standards
–,
the
country
ranks
among
the
highest
in
the
world,
meaning
that
it
is
one
the
richest
countries
globally.
Switzerland
tends
to
be
in
the
top
spots
in
global
rankings
about
living
standards,
development
indexes,
competitiveness
or
innovation.
Switzerland
is
an
open,
free-market
economy
mainly
based
on
the
services
sector.
The
Swiss
economy
has
a
strong
export
sector,
and
the
neighboring
European
Union
(EU)
is
its
main
trading
partner.
Switzerland
is
a
leading
exporter
of
watches
and
clocks,
and
hosts
leading
firms
in
the
food,
chemicals
and
pharmaceutical
industries.
The
country
is
considered
to
be
an
international
tax
haven,
with
significantly
low
corporate
and
income
tax
rates
compared
with
its
European
neighbors.
As
a
high-income
country,
the
growth
rate
of
the
Swiss
economy
has
diminished
over
the
last
decades.
Still,
its
political
and
economic
stability,
its
high
education
levels,
top-tier
firms
in
several
industries
and
its
tax-haven
status
have
made
it
a
preferred
destination
for
foreign
investment.
This
has
generally
benefited
the
Swiss
Franc
(CHF),
which
has
historically
kept
relatively
strong
against
its
main
currency
peers.
Generally,
a
good
performance
of
the
Swiss
economy
–
based
on
high
growth,
low
unemployment
and
stable
prices
–
tends
to
appreciate
CHF.
Conversely,
if
economic
data
points
to
weakening
momentum,
CHF
is
likely
to
depreciate.
Switzerland
isn’t
a
commodity
exporter,
so
in
general
commodity
prices
aren’t
a
key
driver
of
the
Swiss
Franc
(CHF).
However,
there
is
a
slight
correlation
with
both
Gold
and
Oil
prices.
With
Gold,
CHF’s
status
as
a
safe-haven
and
the
fact
that
the
currency
used
to
be
backed
by
the
precious
metal
means
that
both
assets
tend
to
move
in
the
same
direction.
With
Oil,
a
paper
released
by
the
Swiss
National
Bank
(SNB)
suggests
that
the
rise
in
Oil
prices
could
negatively
influence
CHF
valuation,
as
Switzerland
is
a
net
importer
of
fuel.
Ex-Dividend 11/07/2024
401503 July 10, 2024 14:40 ICMarkets Market News
|
1
|
Ex-Dividends | ||
|---|---|---|---|
|
2
|
11/7/2024 | ||
|
3
|
Indices | Name |
Index Adjustment Points
|
|
4
|
Australia 200 CFD
|
AUS200 | |
|
5
|
IBEX-35 Index | ES35 | |
|
6
|
France 40 CFD | F40 | |
|
7
|
Hong Kong 50 CFD
|
HK50 | 40.55 |
|
8
|
Italy 40 CFD | IT40 | |
|
9
|
Japan 225 CFD
|
JP225 | |
|
10
|
EU Stocks 50 CFD
|
STOXX50 | |
|
11
|
UK 100 CFD | UK100 | 0.2 |
|
12
|
US SP 500 CFD
|
US500 | 0.21 |
|
13
|
Wall Street CFD
|
US30 | |
|
14
|
US Tech 100 CFD
|
USTEC | |
|
15
|
FTSE CHINA 50
|
CHINA50 | |
|
16
|
Canada 60 CFD
|
CA60 | |
|
17
|
Germany Tech 40 CFD
|
TecDE30 | |
|
18
|
Germany Mid 50 CFD
|
MidDE50 | |
|
19
|
Netherlands 25 CFD
|
NETH25 | |
|
20
|
Switzerland 20 CFD
|
SWI20 | |
|
21
|
Hong Kong China H-shares CFD
|
CHINAH | |
|
22
|
Norway 25 CFD
|
NOR25 | |
|
23
|
South Africa 40 CFD
|
SA40 | |
|
24
|
Sweden 30 CFD
|
SE30 | |
|
25
|
US 2000 CFD | US2000 | 0.08 |
The post Ex-Dividend 11/07/2024 first appeared on IC Markets | Official Blog.