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Slowing Chinese economy sends US dollar higherEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔽 WTI 🔽 Yesterday, the latest Chinese Industrial Production readings recorded a 3.8% growth - falling short of the 4.6% forecast, and raised concerns of a possible recession. On the same day, the Chinese central bank lowered its interest rate from 3.70% to 2.75%, in order to stimulate the economy while dealing with the pandemic. As such, a weakened global demand saw WTI oil futures fall to $89.41 a barrel. Meanwhile, safe-haven demand is increased with growing recession signs, the US dollar gained much momentum, USD/CAD rose and stabilized at 1.2904, gaining over 100 pips. The Reserve Bank of Australia has released its meeting minutes this morning, expecting to raise rates even further to “normalize monetary conditions over the months ahead”. The Aussie almost dropped a full 1% against the greenback, declining and slowing at 0.7020, to a closing price of 0.7022. Euro and Pound both suffered noticeable losses, EUR/USD slid to 1.016, and the GBP/USD pair closed at 1.2054. Gold futures went below the $1,800 level to $1,798.1 an ounce. More information on Mitrade website.
by Mitrade_official
Has Gold a found a stopping point?Welcome to Monday’s market update. The focus of today’s update video is on Gold. We are currently watching the selling that continues to develop today after buyers failed to carry on with Friday’s rally. Buyers made a good attempt at clearing supply on Friday, but today’s has seen a reversal after USD strength and selling pressure came back into the market. In today’s video, we break down levels we are watching at a possible new level of resistance that has started to present. We are asking if buyers are out of juice and if these points could become a new short-term turning point, or could buyers come back into the market and make a new push at breaking supply and the new resistance level? Thanks for stopping by and watching our latest update. We hope you are all enjoying your Monday. Good trading.
EIGHTCAP:XAUUSDShort
by Eightcap
Market continues betting on another US 50 bps rate hikeEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔼 USD/CAD 🔼 XAU 🔼 WTI 🔽 A tight labor market and slowed inflation have increased market anticipation for another 50 bps interest rate increase from the US Federal Reserve, thus strengthening the greenback against its peers. EUR/USD declined and stabilized at 1.0260, finally closing at 1.0258. GBP/USD fell to 1.213, with forecasts of lower Average Earnings on Tuesday. The latest meeting minutes from the Reserve Bank of Australia will be available tomorrow morning, given the gradual economic recovery in China and Australia being less impacted by inflation, the Aussie was slightly cheered to 0.7121 with minor gains. The USD/CAD pair was relatively stable at 1.2773. WTI oil futures went further down to $92.09 a barrel, as investors received reports from Iran about a possible thawing of diplomatic relations, while Saudi Arabia’s leading oil producer is ready to boost production. Gold prices reached $1,815.5 an ounce, thanks to a strong dollar. Bitcoin just surged over $600 to $24,822.8. More information on Mitrade website.
by Mitrade_official
Market participants are alert ahead of US inflation statisticsEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔽 WTI 🔽 On a weekly basis, the American dollar continued to lose ground throughout the early part of the day, but gained some ground during the US session. The volatility of the market was rather low, despite persistent US inflation figures. According to the US Consumer Pricing Index, investors are expecting that the price pressures started to ease in July. However, the core annual reading is expected to increase from 5.9% to 6.1%. In the end, the Federal Reserve's monetary policy will be priced into the market rapidly by speculative interest. The Chinese and German inflation data will be released prior to the US inflation data. The EUR/USD pair came close to touching the 1.0250 level but lost about 50 pip before the closure. The news that Russia has stopped shipping oil through the southern Druzhba pipeline due to problems with transit payments weighed on the common currency. The UK government is preparing for organized electricity outages for businesses and homes this winter as a worst-case scenario due to the energy crisis plaguing Europe. Prior to the start of Asian trading, GBP/USD is trading at about 1.2060. By day's conclusion, commodity-linked currencies had depreciated against the dollar, though losses are small. While USD/CAD is centered at 1.2890, AUD/USD trades around 0.6950. One of the top performers was gold, which reached an intraday high of $1,800.49 per troy ounce. It was $1,795 at day's end. Although the day started with higher crude oil prices, it ended with only slight increases. The price of WTI is $90.70 per barrel. Following in the footsteps of its European counterparts, Wall Street dipped, albeit losses were restrained. On the other side, the 10-year note's yield, which is currently 2.79%, increased a fraction. #market #AUD #GBP #USD #DOLLARS #CAD #INVESTING #INVESTMENT #MITRADE #TRADING #PRICING #INDEX #INFLATION
by Mitrade_official
Wednesday’s Inflation data to determine Fed rate hike policyEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔼 Without any major economic data announced just yet, the market slows down as it awaits the latest US CPI data. The strong labor market gave a confidence boost to the Federal Reserve, if US inflation managed to decline to 8.7% as expected, the string of mega rate hikes is likely to continue. On the other hand, the greenback slightly retreats against its peers, EUR/USD and GBP/USD closed at 1.0195 and 1.2076 respectively with minor gains. The Australian currency was cheered by increasing Chinese export figures, AUD/USD rose and met resistance at 0.700, finally closing at 0.6988. USD/CAD slid and stabilized at the 1.2860 level, last traded at 1.2854. Recession fears once again send gold futures surging, adding over $10 to $1,805.2 an ounce. Mixed sentiment stalled WTI oil futures, reaching $90.76 a barrel after recovering from $89.45. More information on Mitrade website.
by Mitrade_official
Strong nonfarm payrolls send greenback flyingEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/JPY 🔼 USD/CAD 🔼 XAU 🔽 WTI ▶️ US nonfarm payrolls in July added 528,000 jobs, shattering the original estimate of 290,000 and reaching a five-month high. The strong employment readings seemingly dispelled recession fears, and would likely extend the string of aggressive rate hikes from the Federal Reserve. The surprise boost for the greenback sent its peers to a sharp decline, GBP/USD recovered from 1.2025 to a closing price of 1.2071. EUR/USD closed lower at 1.0181, despite optimistic industrial production data from Germany and France. Mixed Chinese economic data didn’t stop the Aussie from falling to 0.6909 against the US dollar. Meanwhile, the USD/JPY pair gained over 210 pips to 134.97 as the notable performer, and USD/CAD rose to a high of 1.2977 then stabilized and closed at 1.293. Gold futures were also spooked to $1,781, then rebounded to 1,791.2 an ounce. WTI oil futures experienced minor fluctuations, mostly traded flat at $89.01 a barrel. More information on Mitrade website.
by Mitrade_official
Oil futures return to pre-war levelsEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔼 XAU 🔼 WTI 🔽 Months of almost unstoppable oil bulls have returned to the starting line, and both Brent and WTI oil futures prices have returned to levels not seen since the Russian invasion of Ukraine, with WTI oil futures closing at $88.54 a barrel. Recession fears have weakened manufacturing data, and as the US summer driving season will end by September, lackluster global oil demand sends prices downward. The loonie was dragged by the falling oil prices, USD/CAD got to 1.2864 and kept climbing, currently trading at 1.2875. New American and Canadian employment data will be available tonight, forecasts set the US unemployment to remain at 3.6%, while the benchmark nonfarm payrolls in July added 290,000 jobs - dropping from 372,000 in June. As another central bank that has announced a 50 bps rate hike, the Bank of England also aligned with market estimates. Although the decision was the most aggressive since 1995, the central bank claims further actions are required to address the soaring inflation. The GBP/USD pair briefly went below 1.2070, but soon recovered to a closing price of 1.2157 with minor gains. AUD/USD rose above the fluctuations, gaining over 20 pips to 0.6968. After slowing at the 1.0250 level, EUR/USD was last traded at 1.0243. Gold futures reached a monthly high at $1,806.9 an ounce. More information on Mitrade website.
by Mitrade_official
Surprise data strengthens the greenback and weakens oil pricesEUR/USD ▶️ GBP/USD 🔽 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔽 Yesterday's US economic data indicated an increase in industrial production and crude oil inventories, cheering the greenback while sending WTI oil futures to slide from $96.23 to $90.66 and stabilize. The addition of 4.467 million barrels of crude oil and OPEC slightly boosting production have relieved oil prices to a six-month low. Oil bears have also sent the loonie on a downwards trajectory, USD/CAD closed at 1.2838 with a high of 1.2883. Later tonight, the US Initial Jobless Claims readings will update the US labor market later tonight. Meanwhile, economic data in Europe slightly missed market estimates, after rebounding from 1.0127, EUR/USD reached a closing price of 1.0169 with negligible gains. The Bank of England is likely to announce another rate hike, market bets mostly spread between 25 and 50 bps, noticeably lower than those of the Federal Reserve. The British Pound last traded at 1.2143 against the US dollar, and the AUD/USD increased slowly to 0.6943. Gold futures experienced some oscillations, and rose to $1,776.4 an ounce. More information on Mitrade website
by Mitrade_official
Oil back at key support who will win this battle?Hi all, thanks for checking in for Wednesday's video analysis on oil. Once again, we find ourselves back at key support. This level has stood since March, and till today sellers haven't been able to break through this level. For the last two sessions, sellers have tried and failed at breaking $95.20 support, but the question now is, do buyers still have the numbers to defend a new assault? Monday saw a strong move down by sellers, but they continue to be blocked at support. Things above are not much clearer as resistance continues to look firm from $101-$102. Our question today is will we see a new break lower or will support hold, and with price now starting to be squeezed, could this become a defining point that continues the current downtrend or sprouts a new reversal? One thing I didn't cover in today's video is the danger of breakout selling at this point. The current point looks as good as any for a bear trap after a false breakout out lower, as we have already seen one in July. Regardless of the breakout direction, we see it might be a good idea to wait for a new LH or HL to gauge that the move is valid and won't get sucked back into the range. Thanks for watching and reading. We hope you enjoy the rest of your day. Good trading
EIGHTCAP:USOUSD
by Eightcap
1
Risk aversion sentiment intensified from US-China tensionsEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/JPY 🔼 USD/CAD 🔼 XAU 🔼 WTI ▶️ Investors flocked to safe-haven assets due to building tensions between the US and China, the greenback and gold had their prices recovered, when US stocks and indices took a hit. Gold futures closed at $1,789.7 an ounce, then slid from $1,804.8 to $1772.5. A stronger dollar rebounded against other major currencies, and EUR/USD declined to 1.0164, currently trading flat. USD/JPY rose sharply to 133.16, almost gaining 150 pips. The loonie had a choppy trading session, USD/CAD eventually gained 31 pips to 1.2875. Meanwhile, several Federal Reserve officials have implied further rate hikes to control soaring inflation. The comments have overshadowed an imminent interest rate increase from the Bank of England on Thursday, GBP/USD was weakened to 1.2172. Despite raising rates on Tuesday, Governor Lowe of the Reserve Bank of Australia claimed “normalizing monetary conditions… is not on a pre-set path”, the relatively dovish comment led the AUD/USD pair to fall below the 0.700 level to 0.6919, losing over 100 pips in the process. Market estimates have the US Crude Oil Inventories decreasing by 629,000 barrels, and WTI oil futures reached a high of $96.26 a barrel before closing at $94.42 with little change. More information on Mitrade website.
by Mitrade_official
Aussie rises in advance of RBA rate hikeEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔼 XAU 🔼 WTI 🔽 The Reserve Bank of Australia is expected to bring another 50 bps rate hike later today, and AUD/USD rose to 0.7023 with minor oscillation while its economy is dealing with the aftermath of the Sydney flood and Chinese lockdowns. As the Bank of England is preparing to increase interest rates on Thursday, GBP/USD climbed to 1.2254 and stabilized at the 1.2250 level, gaining over 80 pips. The latest reading for US ISM Manufacturing PMI is 52.8, slightly higher than market estimates, but projections for US JOLTs Job Openings in June anticipated a minor drop to 11 million new job openings. Nonetheless, USD/CAD closed at 1.2845 and reached a high of 1.2855. Compared to previous figures, Germany's retail sales in June decreased by 1.6%, against market bets for a 0.2% minimal growth, the EUR/USD pair was last traded at 1.0261 with a high of 1.029. Crude oil demands were cut by recession sentiment, falling to $93.89 a barrel, losing almost $5 in the process. Gold futures closed higher at 1,787.7, then went to 1,796.6 an ounce. More information on Mitrade website.
by Mitrade_official
Oil price swayed by OPEC meeting and weak Chinese PMIEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔼 Last week saw WTI crude oil futures climbing to $101.58 a barrel, but a disappointing Chinese PMI reading and a possible OPEC production boost brought prices down to $98.62, now dwelling at $97 territory. US dollar and treasury yields both dropped as recession sentiment was intensified by another negative US GDP growth, USD/CAD slipped to 1.2793. Gold futures rode upon a weakened greenback to $1,781.8 an ounce, settling on the $1,780 level. Greenback’s loss became stock’s gain, major indices have all gone up. Amazon surged 10.40% thanks to a stellar sales report, but Roku lost 23.07% of its stock value due to lackluster earnings that fell short of market estimates. Meanwhile, major currencies rallied against the US dollar, and the GBP/USD pair further recovered to 1.2189. Aussie met resistance at 0.700, AUD/USD slightly moved up to 0.6985, and both central banks in Australia and Eurozone will announce their interest rate decision this week. Cheered by optimistic Eurozone and Germany GDP results, EUR/USD closed at 1.0226 with a 29-pip gain. More information on Mitrade website.
by Mitrade_official
Fed hints at slowing down after a 75 bps rate hikeEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔼 Earlier today, the Federal Reserve continued its path of aggressive rate hikes by increasing it by 75 basis points to 2.50%. Meanwhile, Chairman Powell claimed it would be appropriate to slow down the tightening eventually, providing some breathing space for other major currencies, USD/CAD dropped from 1.2895 to 1.2821. Regarding concerns over a recession, the US GDP data for the second quarter will be available tonight, and the market estimated a 0.5% growth - which could avoid meeting the technical definition of a recession. As the dollar retreated, the British Pound became the bigger winner, GBP/USD rose and stabilized at the 1.2170 level, gaining over 130 pips to close at 1.2151, and the EUR/USD also maintained a foothold at the 1.0200 level before closing at 1.0202. Australia’s Retail Sales reading in June missed market projections at 0.2%, but AUD/USD nonetheless reached 0.6993, edging towards 0.700. Gold futures took advantage of a weakened greenback and sluggish bond yields and climbed to $1,719.1, currently trading at $1,743.0 an ounce. US crude oil inventories further went down by 4.523 million barrels, and since Russia reduced gas supplies to Europe, WTI oil futures increased $3 to $98.17 a barrel. More information on Mitrade website.
by Mitrade_official
Focus on the Fed's decision and the EU's energy problemsEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 USD/CHF 🔽 USD/JPY 🔼 XAU 🔽 WTI 🔼 In Tuesday's financial markets, risk aversion dominated, favoring the dollar most. Several factors affected the mood of the market. Gazprom, the Russian gas giant, is supplying Germany with approximately 20% of its usual supply of natural gas. For the upcoming winter, the EU countries have agreed to reduce gas consumption by 15% by the end of the six-month period. Despite the fact that Moscow reported that the missing turbine for the pipeline was on its way after maintenance, it has yet to be installed. Also of interest to speculators were the yields on US bonds. Since 2000, the yield curve has never been more inverted. The yield on 2-year Treasuries is 3.03 percent, while the yield on 10-year notes is 2.76 percent. An inverted curve typically predicts a recession. The International Monetary Fund (IMF) has reduced its global growth forecast for this year from 3.6 percent to 2.9 percent. The organization also issued a warning that the Ukraine conflict and high inflation could tip the world economy into a deep recession. The World Economic Outlook also said that a complete gas cutoff from Russia to Europe and a decline in the nation's oil exports would further impede development in 2023. With EUR/USD edging closer to 1.0100, the EUR was once more among the USD's weakest rivals. The GBP/USD exchange rate remained above 1.2000, while the AUD/USD closed at 0.6935. The USD/CAD pair increased as oil prices declined, trading close to 1.2890. There was no movement in safe-haven currencies, with the USD/CHF staying stable at 0.9620 and the USD/JPY currently trading at 136.75. Spot gold remained at a familiar level, though it was close to the bottom of its most recent range. The price of an ounce of the shiny metal is $1,717. The United States' decision to sell an additional 20 million barrels of oil from its Strategic Petroleum Reserve contributed to the slight decline in crude oil prices, which was also a result of the depressing mood. WTI's final trading price for the day was $94.90 a barrel. The US Federal Reserve is presently the center of attention. Although there is a probability of a 100 bps change, it is widely expected that the central bank would increase the funds rate by 75 basis points. Since the most recent Fed meeting, the latter has become less and less plausible as economic growth keeps declining. To control inflation, policymakers might not want to risk a recession. More information on Mitrade website.
by Mitrade_official
Major currencies retreat ahead of another Fed rate hikeEUR/USD 🔽 GBP/USD ▶️ AUD/USD 🔽 USD/CAD 🔼 XAU 🔼 WTI 🔽 After a week of rallying, greenback peers have weakened towards the US currency, mostly due to disappointing domestic economic data, recession fears, and the imminent 75 bps rate hike from the Federal Reserve, while some even predicted a full percentage increase. The S&P Global manufacturing PMI for the Eurozone, Germany, and France all missed market estimates, signaling a slowing economy, EUR/USD thus went on a continuous decline to 1.021. Despite trading with considerable fluctuations, GBP/USD closed at 1.1996 with negligible gains. Although the British Pound did breach the 1.2000 level against the US dollar, the currency pair soon lost support and went below it again. Meanwhile, AUD/USD fell to 0.6925, and USD/CAD was at 1.2914 last Friday, now edging towards 1.3000 level, with a high of 1.2944. Gold price climbed to $1,727 an ounce, WTI crude futures experienced an oscillation between $94 to $96, to a closing price of $94.7 a barrel. Other than the Fed interest rate decision, multiple GDP readings will be available from Canada, the Eurozone, Germany, and the US this week. In US stocks, Social media firm Snap (SNAP) was one of the worst performers, dipping over 39% as its recent results were less than satisfying. More information on the Mitrade website.
by Mitrade_official
ECB mildly surprises market with a 50 bps rate hikeEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔽 The European Central Bank finally increased its interest rate by 50 basis points, in order to drive inflation back to 2%. Though Europe has lagged behind other major central banks in terms of tightening monetary policy, the decision still exceeded the 25 bps forecast. Euro gained momentum against the greenback, EUR/USD briefly surged to 1.0275 before closing at 1.0228. While the UK top job has narrowed down to the final two candidates, GBP/USD fluctuated around the 1.2000 level and closed at 1.1993 with minor gains. Later tonight, domestic retail sales and price manager index related data will be available. AUD/USD had slumped to a low of 0.6861, but climbed to 0.6929, gaining over 30 pips. USD/CAD retreated from 1.2936 to 1.2867. The latest US economic figures were not encouraging, Initial Jobless Claims reached a six-month high of 251,000, as the Philadelphia Fed Manufacturing Index dropped to -12.3. Signs of a slowing economy may convince the Federal Reserve to stay away from a 100 bps rate hike next week. After sliding to $1,679, gold futures rebounded $1,713.4 an ounce. U.S. WTI crude futures fell to $96.35 a barrel, thanks to Libya resuming oil production, and recession fears still looming over the US and Europe. More information on Mitrade website.
by Mitrade_official