FXStreet

Asian equities recover on reduced EU political tensions and fresh US index highs ========== Asian equities recover on reduced EU political tensions and fresh US index highs. After a risk-off day yesterday, Asian markets took comfort today in EU markets settling down somewhat from worries related to France's political turmoil that engulfed trading last week. US broad-based gains in Nasdaq and S&P500 overnight also provided a boost. The Reserve Bank of Australia (RBA) kept rates on hold, reiterating not to rule anything 'in or out'. Australian weekly consumer confidence rebounded as tax cuts and wage hikes come into view for consumers. However, New Zealand's Q2 Consumer Confidence fell back to its lowest level since Q3 2023. US equity futures were flat during Asian trading, following large rises in Nasdaq and S&P500 overnight. Looking ahead, the focus will be on US May advanced Retail Sales and May Industrial Production. Holidays in Asia this week include India, Indonesia, Malaysia, Philippines, and Singapore on Monday, and Indonesia on Tuesday. The Nikkei 225 opened +0.9%, ASX 200 +0.9%, Hang Seng -0.3%, Shanghai Composite +0.3%, and Kospi +1.0%. The EUR/USD is trading between 1.0719-1.0741, USD/JPY between 157.51-157.74, AUD/USD between 0.6585-0.6622, and NZD/USD between 0.6114-0.6140. Gold is up 0.2% at $2,334/oz, and crude oil is down 0.2% at $79.57/barrel. #AsianEquities #EuPoliticalTensions #UsIndexHighs #Rba #ConsumerConfidence #UsRetailSales #UsIndustrialProduction #Nikkei225 #Asx200 #HangSeng #ShanghaiComposite #Kospi #Eur/usd #Usd/jpy #Aud/usd #Nzd/usd #Gold #CrudeOil https://www.fxstreet.com/analysis/asian-equities-recover-on-reduced-eu-political-tensions-and-fresh-us-index-highs-202406180541

Gold price remains confined in a familiar trading range above $2,300 mark ========== Gold price (XAU/USD) struggles to gain traction and remains in a narrow trading range around $2,320. The Federal Reserve's hawkish outlook supports elevated US Treasury bond yields and attracts dip-buyers for the US Dollar, capping the upside for gold. The US macro data indicates easing inflationary pressures and speculation of two rate cuts by the Fed in September and December. Gold price remains within a familiar range and below the 50-day Simple Moving Average (SMA). The USD strength and risk sentiment will play a role in determining the direction of gold. Technical analysis suggests immediate resistance at $2,333-2,336 and support at $2,300. Central banks are the biggest buyers of gold, with emerging economies like China, India, and Turkey increasing their reserves. Gold has an inverse correlation with the US Dollar and US Treasuries, and its price depends on factors such as geopolitical instability, recession fears, interest rates, and the strength of the US Dollar. The article provides a disclaimer that the information is for informational purposes only and should not be considered as investment advice. #GoldPrice #FederalReserve #UsDollar #UsTreasuryBondYields #Inflation #RateCuts #MacroData #RiskSentiment #TechnicalAnalysis #CentralBanks https://www.fxstreet.com/news/gold-price-remains-confined-in-a-familiar-trading-range-above-2-300-mark-202406180216

Australian Dollar extends decline following mixed China’s economic data ========== The Australian Dollar (AUD) extends downside for the third consecutive day on Monday on the back of the stronger US Dollar (USD) broadly. The Greenback remains well-supported by the expectation that US interest rates will stay higher for longer, with the median projection from Federal Reserve (Fed) officials calling for one interest rate cut this year. Furthermore, the latest mixed Chinese economic data and some challenges in China's economic operations might exert some selling pressure on the Aussie as China accounts for one-third of Australian exports. Investors will closely watch the Reserve Bank of Australia (RBA) interest rate decision on Tuesday, along with the Governor Michele Bullock press conference. The hawkish hold from the RBA could boost the AUD and cap the downside for AUD/USD in the near term. On the US docket, the Retail Sales for May will be released, which is expected to improve to 0.3% from 0% in April. #AustralianDollar #UsDollar #China #EconomicData #InterestRates #ReserveBankOfAustralia #RetailSales https://www.fxstreet.com/news/australian-dollar-extends-decline-following-mixed-chinas-economic-data-202406170320

Economic discontent and presidential solutions ========== The article discusses the nature of economic discontent and the potential solutions offered by presidential candidates. The author argues that complaints about the state of the economy and high inflation are misdirected, as objective measures show a reasonably healthy economy and improving inflation. The main source of dissatisfaction is affordability, with prices on goods like housing and food still higher than pre-pandemic levels. The author criticizes the idea that any candidate can quickly solve the affordability problem and evaluates the policy proposals of Donald Trump and Joe Biden. Trump's policies, such as tax cuts, immigration reductions, and tariffs, are unlikely to address affordability and may raise prices. Biden's policies, including raising taxes on high earners and corporations, expanding protection for undocumented immigrants, and advocating for tariffs on certain products, may have a deflationary effect on prices. The author concludes that while Biden's policies may not necessarily mitigate frustration with affordability, Trump's policies are more likely to worsen the problem. https://www.fxstreet.com/analysis/economic-discontent-and-presidential-solutions-202406170040

Economic discontent and presidential solutions ========== The article discusses the nature of economic discontent and the potential solutions offered by presidential candidates. The author argues that complaints about the state of the economy and high inflation are misdirected, as objective measures show a reasonably healthy economy and improving inflation. The main source of dissatisfaction is affordability, with prices on goods like housing and food still higher than pre-pandemic levels. The author criticizes the idea that any candidate can quickly solve the affordability problem and evaluates the policy proposals of Donald Trump and Joe Biden. Trump's policies, such as tax cuts, immigration reductions, and tariffs, are unlikely to address affordability and may raise prices. Biden's policies, including raising taxes on high earners and corporations, expanding protection for undocumented immigrants, and advocating for tariffs on certain products, may have a deflationary effect on prices. The author concludes that while Biden's policies may not necessarily mitigate frustration with affordability, Trump's policies are more likely to worsen the problem. https://www.fxstreet.com/analysis/economic-discontent-and-presidential-solutions-202406170040

Canadian Dollar struggles to recover ground as market sentiment pulls into the middle ========== The Canadian Dollar (CAD) found a thin recovery on Friday, gaining ground against most of its major currency peers and clawing back a scant tenth of a percent against the US Dollar (USD). Market sentiment has continued to drag throughout Friday's US session, pulling the CAD into middling bids against the Greenback. A missed in Canadian Manufacturing Sales was broadly brushed off, and an unexpected backslide in the University of Michigan’s (UoM) Consumer Sentiment is throwing a cautionary wrench in market sentiment to wrap up the trading week. Manufacturing and Wholesale Sales in Canada saw a milder recovery from recent contractions than expected, but market sentiment is largely focused elsewhere after the UoM Consumer Sentiment Index fell to a six-month low, and 5-year Consumer Inflation Expectations ticked higher in June. #CanadianDollar #MarketSentiment #Manufacturing #Wholesale #UsConsumerSentiment https://www.fxstreet.com/news/canadian-dollar-brushes-off-low-tier-data-misses-to-find-mild-recovery-on-friday-202406141803

Asia open: Ahead of FOMC, investors ride the hi-tech AI sugar rush ========== Asian markets are optimistic following Friday's tech-driven rally on Wall Street. The Japanese yen reached a new 34-year low of 158.40 per dollar after the Bank of Japan's decision to keep interest rates unchanged. Global equity markets received a boost from strong corporate earnings, fueled by optimistic forecasts for Alphabet and Microsoft. The Fed's preferred inflation metric, the March personal consumption expenditures price index, showed a 2.8% year-over-year increase. Real consumer spending remained robust in March, but real disposable personal income growth has slowed and the personal savings rate has dropped to 3.2%. The Fed Beige Book highlighted weak consumer discretionary spending and increasing price sensitivity among consumers. More U.S. borrowers are struggling to keep up with credit card and motor vehicle payments. The FOMC meeting is anticipated with a more restrained approach. The USD has struggled to sustain its upward trajectory against most G10 currencies. Crude oil prices have eased, but remain volatile due to uncertainty surrounding global oil demand growth and OPEC+'s future production strategy. The Reserve Bank of Australia's hawkish stance has bolstered AUD/USD. EUR/USD trades on a stronger note. Gold price trades on a softer note. Ethereum fees have dropped to the lowest level since October. The week ahead includes the Fed meeting, US jobs report, Eurozone flash GDP and CPI numbers. #AsianMarkets #TechdrivenRally #JapaneseYen #InterestRates #CorporateEarnings #Inflation #ConsumerSpending #CreditCardDebt #MotorVehiclePayments #FomcMeeting #Usd #CrudeOilPrices #Aud/usd #Eur/usd #GoldPrice #EthereumFees #FedMeeting #UsJobsReport #EurozoneGdp #EurozoneCpi https://www.fxstreet.com/analysis/asia-open-ahead-of-fomc-investors-ride-the-hi-tech-ai-sugar-rush-202404290041

Euro gains against the Dollar amid mixed economic signals ========== The EUR/USD pair rose to 1.0707 on Wednesday, driven by increased local and the belief that the currency was significantly oversold against the US dollar. Sales of new homes in March showed a robust increase of 8.8% month-on-month, climbing to 693,000 from February’s 637,000, surpassing expectations. The year-on-year comparison also reflected strength with an 8.3% increase. The weighted average price of a sold house in the US rose to USD 524.8 thousand from USD 488.6 thousand in February, pointing to a market that is still vibrant despite elevated interest rates. Continued activity in the housing market is likely to sustain inflationary pressures in the US for an extended period. As long as the Fed keeps interest rates at the current peak of 5.5% per annum, the EUR/USD will likely retain its strength. Any current weakening of the dollar is seen as a temporary adjustment rather than a trend reversal. #Eur/usd #ForexMarket #EconomicSignals #UsDollar #InterestRates #Inflation #HousingMarket https://www.fxstreet.com/analysis/euro-gains-against-the-dollar-amid-mixed-economic-signals-202404241230

Euro gains against the Dollar amid mixed economic signals ========== The EUR/USD pair rose to 1.0707 on Wednesday, driven by increased local and the belief that the currency was significantly oversold against the US dollar. Sales of new homes in March showed a robust increase of 8.8% month-on-month, climbing to 693,000 from February’s 637,000, surpassing expectations. The year-on-year comparison also reflected strength with an 8.3% increase. The weighted average price of a sold house in the US rose to USD 524.8 thousand from USD 488.6 thousand in February, pointing to a market that is still vibrant despite elevated interest rates. Continued activity in the housing market is likely to sustain inflationary pressures in the US for an extended period. As long as the Fed keeps interest rates at the current peak of 5.5% per annum, the EUR/USD will likely retain its strength. Any current weakening of the dollar is seen as a temporary adjustment rather than a trend reversal. #Eur/usd #ForexMarket #EconomicSignals #UsDollar #InterestRates #Inflation #HousingMarket https://www.fxstreet.com/analysis/euro-gains-against-the-dollar-amid-mixed-economic-signals-202404241230

EUR/USD: New YTD lows for Euro as dust from hot US inflation hasn't settled ========== The Euro has reached new year-to-date lows against the US dollar as the dust from the hot US inflation announcement has not settled. The European Central Bank (ECB) meeting did not bring any surprises, with President Christine Lagarde avoiding questions about interest rate cuts. Bets on a possible June rate cut remain high. The US dollar maintains an advantage in relation to key interest rates, which could widen the gap if the ECB reduces rates in June without the Fed doing the same. International stock markets have reacted surprisingly and pared down some recent losses, but concerns about high inflation, high interest rates, and geopolitical issues create a dangerous cocktail for the global economy. The University of Michigan's index of consumer sentiment is the only notable event on today's agenda. The author remains loyal to their view of buying the Euro near 1.06 levels, expecting signs of fatigue in the US dollar's bullish trend and a reactionary behavior from the Euro. #Eur/usd #Euro #UsDollar #Inflation #EuropeanCentralBank #InterestRates #UsEconomy #InternationalStockMarkets https://www.fxstreet.com/analysis/eur-usd-new-ytd-lows-for-euro-as-dust-from-hot-us-inflation-hasnt-settled-202404120812