Traders are closely watching the USD/CAD pair as labor market data from both the United States and Canada are set to be released today. Forecasts suggest a decline in Canadian employment change from 59k to 24.9k, accompanied by a rise in the unemployment rate from 6.8% to 6.9%. In contrast, U.S. non-farm payroll data is expected to show a decrease in job creation...
The US Dollar Index started 2025 with an increase of about 0.79%, which drove several currencies to decline to their lowest levels, including the British Pound, which continued its downward trend and touched 1.23527, its lowest level since April 2024.
The decline of the GBP/USD pair and the formation of a new low below 1.24774 confirm the bearish momentum of the...
The GBP/JPY pair is trading in an overall upward trend on the medium and long-term, forming higher highs confirming the bullish momentum and higher lows that maintain the bullish trend.
The pullback occurring in this pair is considered corrective for the upward trend, and the level of 195.114 is considered as a potential bullish point for a renewed rise to...
Following the recent Federal Reserve meeting, where expectations for 2025 interest rate cuts were adjusted from three to two, the US Dollar Index surged by approximately 1.28%. But what are the technical scenarios shaping its next moves?
On the daily chart, the US Dollar Index remains in an overall uptrend, recently hitting a higher peak at 108.071. The daily...
What’s next for Bitcoin? On December 17th, just about a week before Christmas, BTC reached an all-time high of $108,364, coinciding with the election of former President and President-elect Donald Trump. However, it seems Bitcoin might be surrendering last week’s gains as bearish momentum takes center stage during this festive period.
Several fundamental factors...
FUNDAMENTAL VIEW
It’s a quiet week on the economic calendar as the holiday spirit takes center stage, but gold remains in focus. What moves lie ahead for the precious metal?
From a fundamental perspective, the FED’s recent 25bps rate cut, paired with a cautious stance on future rate changes, has influenced gold prices. Furthermore, softer U.S inflation data for...
FUNDAMENTAL VIEW
Later today, markets will focus on U.S. PMIs, with manufacturing PMI forecast at 49.4 and services PMI at 55.7. On Tuesday, at 5:30 PM GMT+4, key data releases include USD core retail sales and retail sales, expected at 0.4% and 0.6%, respectively.
On Wednesday, December 18, the spotlight will be on the Fed funds rate decision, with markets...
FUNDAMENTAL VIEW
On Monday, December 16, 2024, Eurozone data showed mixed results. French manufacturing PMI fell short of expectations, recording 41.9 compared to a forecast of 43.2, while service PMI improved to 48.2, surpassing the 46.9 forecast. Similarly, Germany reported manufacturing PMI at 42.1 against an expected 43.1, while service PMI outperformed,...
Markets Await Q1 US GDP Data: Insights and Implications
Q1 GDP data is set for release on Thursday in the US, providing a crucial measure of the economy’s performance. Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific period. As a broad measure of overall...
Bank of Japan is expected to Keep Interest Rates Steady
The Bank of Japan is expected to keep interest rates steady this week and consider whether to offer clearer guidance on how it plans to reduce its huge balance sheet, in a slow but steady retreat from its massive monetary stimulus.
At the end of its two-day meeting on Friday, the BOJ is expected to keep its...
After the Bank of Canada and the European Central Bank reduced interest rates by 25 basis points, the markets are now awaiting the reaction of the US Federal Reserve. The Fed is set to announce its decision on interest rates today at 10:00 pm Dubai time. Currently, US interest rates are at their highest level in 23 years, at 5.5%.
Recent job data, which showed an...
ECB Expected to Cut Rates for the First Time Since 2019
Two years ago, the European Central Bank (ECB) was criticized for being late to the party when the world’s major central banks began raising interest rates to combat the fiercest inflation surge in a generation. But it looks like the central bank won’t be late when it comes to cutting them.
The European...
US Copper Futures Soar to Record Highs
• Copper futures hit a new all-time high
• Renewable energy, electric cars, and AI bolster copper’s demand outlook
• The outlook for copper looks promising
Copper futures hit a new all-time high
Copper soared to a new record high, continuing a months-long rally fueled by financial investors who have entered the market...
Investors await the Fed’s meeting minutes tonight at 22:00 (Dubai time). The minutes are expected to indicate the Fed’s reasoning for its higher-for-longer stance on interest rates, which are currently at a 20-year high within the range of 5.25%-5.50%.
Markets will also be searching for signals that may clarify when the Fed will begin rate-cutting, especially...
• Japan’s Q1 GDP falls faster than expected
• Data raises questions about when the BOJ will lift interest rates.
• Yen's weakness complicates picture for BoJ
• Japan's real wages fell for a 24th consecutive month
Japan's economy fell faster than expected in the first quarter. Preliminary gross domestic product data from the Cabinet Office on Thursday showed...
Today, investors are looking forward to the CPI data since we used to see fluctuations in the markets every time the data was released; the CPI in the previous year ranged between 3.7% at the highest and 3% at the lowest.
If it remains within the same range, we would expect no significant changes; nevertheless, any number above 3.7% or below 3% will cause...
The Bank of England announces its latest interest rate decision on May 9th. While the central bank is not expected to alter interest rates, investors will be focusing on two key questions that they hope the accompanying report and press conference will answer:
• When will interest rates start to fall in 2024?
• Where does the Bank see inflation going this...
- The U.S. Dollar Index witnesses 1% decline
- RBA expected to maintain rates for longer
- BOE likelihood of rate cuts rises
- Release of key inflation indicators in China: CPI and PPI
Last Week's Major Events
Last week, the U.S. Dollar witnessed a decline of approximately 1%. The move came as a result of multiple factors explained below.
On Wednesday, May...
