Don’t overprice a September Fed rate cut. Despite market bets on easing, the US Dollar remains supported by resilient labor data, sticky inflation, and cautious Fed guidance. Mixed economic signals suggest that premature dovish expectations risk reversal—trade the USD with discipline ahead. #Forex #USD #Fed
German inflation in May 2024 slightly exceeded forecasts, with CPI rising 2.4 percent year-over-year, signaling persistent price pressures. Despite this, the EURUSD showed limited movement as markets await broader eurozone inflation data and ECB guidance before adjusting positions. More from XTB Research Team.
https://www.xtb.com/int/market-analysis/news-and-research/breaking-german-inflation-higher-than-expected-eurusd-muted
Dow Jones fell nearly 150 points after August PCE inflation data showed persistent pressures. Core PCE rose 0.1% MoM and 3.9% YoY, above the Fed’s 2% target. Markets price in another rate hike as Treasury yields and the US Dollar gained. #Inflation #DowJones
(Original article by Haresh Menghani, FXStreet)
USD/CAD has shifted from a liquidity grab triggered by a stop hunt above key levels to a clear bearish market structure break. Institutional order blocks and fair value gaps confirm selling pressure, signaling a potential downtrend as bullish momentum weakens. Watch resistance near 1.3670–1.3690 for confirmations and key support zones for possible targets. Informed entries hinge on understanding these technical and institutional dynamics.
#Forex #USDCAD #TradingAnalysis
Dow Jones falls sharply after PCE inflation data surprises to the upside, fueling concerns the Fed may keep interest rates higher for longer. Elevated core inflation measures and persistent price pressures weigh on equities and push Treasury yields to multi-week highs. Investors brace for a more cautious monetary policy outlook.
As mid-2024 unfolds, the US Dollar stays firm amid strong economic data and Fed caution. Investors should be wary of overpricing a September rate cut, as inflation and labor markets remain robust. The Fed signals patience, keeping the dollar supported near multi-week highs.
US dollar edges higher in early Friday trading, pressuring EUR/USD near the 1.07 support and keeping USD/JPY steady amid yield spreads. AUD/USD shows cautious moves as markets await key inflation data that could steer near-term trends. Analysis by Christopher Lewis via FX Empire highlights these dynamics shaping currency pairs today.
Key Forex themes this week: US jobs report could redefine Fed’s rate hike path. Strong payrolls may delay cuts, boosting USD; weak data could spur easing, lifting risk currencies. FOMC meeting insights crucial for traders navigating shifting market tides. #Forex #USD
Canada’s economy contracted by 1.6% annualized in Q2 2024, defying forecasts of growth and highlighting risks from higher interest rates, weakening consumer spending, and a cooling housing market. This downturn puts pressure on the Bank of Canada’s next monetary policy moves as trade and investment also faltered. More detailed analysis reveals slowing durable goods purchases, declining housing investment, shrinking exports, and a modest rise in government spending. The outlook for Canadian growth now faces heightened uncertainty.
Weekly Forex Analysis: EUR/USD, GBP/USD, AUD/USD, and more
The dollar remains supported as US inflation surprises to the upside, fueling expectations of a sustained Fed tightening cycle. EUR/USD struggles amid softer Eurozone data and ECB’s cautious stance, testing support near 1.0650. GBP/USD contends with persistent UK inflation and BoE’s tightening pause, eyeing the 1.2200 zone. AUD/USD benefits from resilient commodity prices but faces RBA’s balanced outlook, hovering around 0.6650. Traders should watch central bank signals and economic releases closely this week to identify potential breakout opportunities. Stay tuned for detailed trade setups and risk management strategies. #Forex #TradingAnalysis #EURUSD #GBPUSD #AUDUSD
