In an interview with the Guardian, Bank of England (BoE) Governor Andrew Bailey echoed a marked shift in tone today and underlined that the BoE could become more aggressive regarding policy easing if inflationary pressures continued to subside. This follows Bailey calling for a ‘gradual approach’ in September after the central bank held the Bank Rate steady at...
According to Israel, military forces have mounted a ground incursion across local communities around Southern Lebanon, in what it has described as a ‘limited operation’ against Hezbollah.
The Israel Défense Forces (IDF) described the attack as ‘limited, localised, and targeted ground raids based on precise intelligence against Hezbollah terrorist targets and...
Versus the Japanese yen (JPY), the British pound (GBP) is seen rebounding from its Ichimoku Cloud Support on the H4 chart. Made up of the Leading Span A (light green at ¥192.77) and the Leading Span B (light orange at ¥190.90), the Ichimoku Cloud Support is seen sharing chart space with traditional support at ¥189.94 and a 50.0% retracement ratio at ¥189.86....
‘Easy does it’ was today's primary message from the Bank of England (BoE).
Unlike the US Federal Reserve cutting rates by an outsized 50 basis points (bps) yesterday, the BoE is clearly in no rush to ease policy, with most policymakers backing a slow and steady approach.
In an 8-1 majority vote, the BoE left the Bank Rate on hold at 5.0% (external member Swati...
Inflationary pressures in Canada continued to subside in August, underpinning the possibility of more policy easing this year.
According to a report released by Statistics Canada (StatCan) earlier today, headline CPI inflation (Consumer Price Index) cooled to +2.0% in August (YoY), down from +2.5% in July and south of economists’ expectations of +2.1%.
This...
On track to end the week up +3.0%, spot gold (ticker: XAU/USD) has outperformed versus the US dollar (USD), underpinned by lower moves in US Treasury yields and the deterioration of the USD ahead of next week’s rate announcement from the US Federal Reserve.
Breakout Higher
In the latest edition of The Pattern Pulse, the FP Markets Research Team noted the...
Following economic activity in July stagnating for a second consecutive month, the focus was on the GBP/USD currency pair (British pound versus the US dollar).
Monthly Resistance
Technically, the trend remains to the upside for the pairing and recently reached a year-to-date high of US$1.3267.
Longer-term price action on the monthly timeframe is struggling...
The US dollar (USD) remains on the back foot versus the Japanese yen (JPY), poised to retest the August 2024 lows around ¥141.69.
Active Conversion Line/Base Line Resistance
While downside momentum has noticeably slowed for the USD/JPY currency pair, sellers are still in control. You will probably see that since the Conversion Line (blue at ¥144.49) crossed...
The S&P 500 fell sharply on Tuesday, shedding more than -2.0%. This completed a double-top pattern at 5,651 (just shy of all-time highs of 5,669) and positioned the Index within striking distance of the pattern’s take-profit objective at 5,472, which could serve as support. Complementing this level is the 50-day simple moving average at 5,505 and support at 5,488....
Looking at GBP/USD from a technical point of view, it is clear the pairing is higher in the long term, recently forging a fresh YTD high at US$1.3267.
Monthly Chart: Scope for Further Buying
Based on the monthly timeframe, the fresh high positioned price north of resistance coming in at US$1.3111, which could now deliver support to the market. The next port...
From a technical perspective, according to Moderna's weekly chart, sentiment is clearly to the downside in the long term. Following a test of support-turned-resistance at US$87.35, follow-through selling has emerged over the past few weeks. This has led price action within a stone’s throw of support consisting of US$74.46 and a trendline resistance-turned-support...
Europe’s single currency is poised to end the week on the back foot versus its US counterpart and snap a two-week bullish phase. As of writing, the currency pair is down by -0.9%.
50-Month SMA Resistance
Starting from the monthly chart, the 50-month simple moving average (SMA) at US$1.1109 currently offers dynamic resistance, a line situated just south of...
The Research Team briefly touched on the AUD/NZD in an earlier release, but given the underperformance in the cross today, it deserves another look.
Daily Support Giving Way
The pair continues to echo a bearish vibe following Australia’s July CPI inflation (Consumer Price Index) report, which displayed price pressures had eased across all key measures. This is...
Upcoming Earnings
Salesforce, Inc. (ticker: CRM) is scheduled to report earnings after the market closes on 28 August. The consensus earnings per share (EPS) estimate for the fiscal quarter ending July 2024 is $1.73. The reported EPS for the same quarter a year prior was $1.63.
Vulnerable Resistance?
Resistance is currently being tested at US$263.42 but...
Upside Momentum Slowing on the Monthly Chart
Despite the yellow metal working with a clear uptrend and shaking hands with fresh record highs, momentum to the upside has noticeably decelerated. This can be observed through price action and the Relative Strength Index (RSI) on the monthly scale, which tests overbought conditions and exhibits the possibility of...
Tomorrow marks the opening of a three-day annual event in Jackson Hole, Wyoming, a gathering of key central bankers that the world and financial markets will monitor closely. This year’s event is titled: ‘Reassessing the Effectiveness and Transmission of Monetary Policy’.
Ahead of this week’s annual meeting, Minneapolis Fed President Neel Kashkari made the...
Active 50-Month SMA
Europe’s single currency (EUR) has been on a tear versus the US dollar (USD), up +2.7% month to date. The monthly chart shows buyers and sellers are now squaring off around the 50-month simple moving average (SMA) at US$1.1110, which, alongside neighbouring resistance at US$1.1233, could prove a difficult headwind for bulls to overcome....
Baidu Approaching Ichimoku Cloud Resistance
Upcoming Earnings:
Baidu, Inc. (ticker: BIDU) is scheduled to report earnings before the market opens on 22 August. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is US$2.24. The reported EPS for the same quarter a year prior was US$2.51.
Sell On-Rally Scenario at Ichimoku...
