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DOLLAR DROPPING?This week, I anticipate the DXY to retrace before continuing its recent bearish trend. Since reaching the weekly supply level, the price has consistently formed lower lows and lower highs. This bearish momentum aligns with the bullish trends seen in pairs like GBP/USD and EUR/USD, which I use as additional confluence. I’ll be watching for the price to retrace to around 106.400, a key area for potential sell opportunities on the dollar. This level aligns well with points of interest (POIs) in my other forex pairs, adding further confidence to this setup. Note: As we approach the final month of the quarter and year, market conditions may become less predictable due to lower volume. Stay alert, but manage expectations accordingly. Stay vigilant, and trade safe!
TVC:DXYShort
by Hassan_fx
What about DXY?I haven't updated my DXY analysis for a while. So let's dust it off. The last update was in September when the atmosphere was changing in a way that we couldn't predict the US Election clearly and for a short period, the market thought the results wouldn't be as it is today. That was why I was a bit bearish on DXY. By getting closer to Election Day the clouds were going away and it got easier for the market to see the outcome. So, it strengthened the dollar while weakening the Gold as we expected the geopolitical tensions to cool off. What's next? For now, I see the 10-year bond yield can show a bit more weakness to come just below 3.99%. Then after that, we should update our analysis and see what comes next. But I think ~4% is low for now and after that, I like to see a jump back up. In this short-term correction DXY would follow the 10-year bond yield and most probably come into the range of 104 to 105. That's also can be a small driver for Gold to go higher a bit.
TVC:DXYShort
by SamanFx0
GOLD consolidated all last week! Will we get a move this week?Waiting for price to break outside of value so that we can get a clear direction. Price did not much move waiting for NFP news for the week. And when the news finally happened it did nothing. So we will sit on our hands until price tells us what it would like to do. I am over all bullish and looking for bullish entries. But I also do not want to stick to firm to my bias so if it drops we will hold off and allow price to tell us what it wants to do.
OANDA:XAUUSDLong
by DWoodz
GOLD FURTHER SELL OFF?! (UPDATE)Even today's NFP data couldn't push enough volatility into Gold to invalidate our structure🦾 Today's positive NFP data should have pushed Gold down aggressively, but price is still ranging within a 'Flat Corrective' schematic in-between Wave A & Wave B. We will see push Gold down but ONLY AFTER a 'Flat Corrective' phase has finished playing out. The market will flush out & liquidate all the impatient traders first, then push us higher profits.
OANDA:XAUUSDShort
by BA_Investments
Gold: A Beacon in Economic UncertaintyGold: A Beacon in Economic Uncertainty Gold has long been a symbol of stability, value, and security. In today’s turbulent economic and political environment, its role as a safe-haven asset is more critical than ever. Global events, ranging from monetary policy shifts to geopolitical crises, are shaping the price of this precious metal. What does the future hold for gold, and what does it mean for investors? --- A Safe Haven in Chaotic Times During periods of global uncertainty, when financial markets grapple with volatility, gold remains one of the most sought-after assets. Recent events, such as the government crisis in France, fiscal policy uncertainties in the United States, and OPEC+ decisions to extend oil production cuts, have highlighted its enduring appeal. Gold is often viewed as a stabilizer amid market turmoil, especially when investors are concerned about rising inflation and economic slowdowns. In Europe, the European Central Bank’s plans for further interest rate cuts enhance the attractiveness of assets like gold, which serve as a hedge against currency devaluation. --- Macroeconomic Trends Supporting Gold Prices 1. Monetary Policy and Real Interest Rates Both the U.S. Federal Reserve and the European Central Bank are adopting dovish stances, which bodes well for gold prices. In an environment of low real interest rates—where inflation outpaces bond yields—investors increasingly turn to gold as a protective asset. 2. Growing Demand for Gold Central banks worldwide, particularly in China and India, are ramping up gold purchases, increasing global reserves. This reduced market supply acts as a catalyst for price growth. 3. Geopolitical Tensions Political crises, such as budget impasses in the U.S. and uncertainty in the European Union stemming from France’s leadership challenges, drive investors toward safe-haven assets, lifting gold's value. --- Gold in the Digital Age Modern technologies like blockchain are revolutionizing gold investment. Tokenization is making the gold market more accessible, blending the stability of traditional assets with the flexibility of digital solutions. Individual and institutional investors are increasingly leveraging these advancements, recognizing their potential to shape the future of the gold market. --- Forecast: Will Gold Hold Its Shine? Experts predict that gold will remain in the spotlight in the coming years. Anticipated developments include: - Further interest rate cuts in Europe and the United States. - Rising geopolitical and political tensions, increasing demand for protective assets. - Sustained high demand from central banks and financial institutions. In the long term, gold appears to be an excellent hedge against inflation and market volatility. --- Conclusion Gold, throughout history, has been synonymous with value and security. Amid today’s global economic and political challenges, its role is more crucial than ever. Investors should view gold not only as a means of capital preservation but also as a cornerstone of a well-diversified investment portfolio. Is gold part of your financial strategy? In times of uncertainty, it may be precisely what you need for stability and peace of mind.
OANDA:XAUUSDLong
by InvestMate
NASDAQ - Technology Leads Amid Challenges and OpportunitiesNASDAQ - Technology Leads Amid Challenges and Opportunities The NASDAQ index continues to capture investor interest, buoyed by the strength of technology and artificial intelligence (AI) stocks, while navigating regulatory, economic, and geopolitical hurdles. The latest macroeconomic updates and Federal Reserve signals add further dimensions to the narrative shaping the index’s performance. Here’s an expanded analysis, incorporating fresh data and insights. --- Key Macroeconomic Updates Influencing NASDAQ Inflation and Sentiment - University of Michigan 1-Year Inflation Expectations: Actual 2.9% (Forecast 2.7%, Previous 2.6%) This slight increase in inflation expectations signals that consumer inflation concerns remain elevated, despite Federal Reserve efforts. Persistent inflationary pressure could temper optimism around rate cuts. - University of Michigan Sentiment Index: Actual 74.0 (Forecast 73.2, Previous 71.8) The stronger-than-expected sentiment reading reflects consumer confidence in economic resilience, which could support continued spending on technology and digital services, bolstering the NASDAQ index. Labor Market Insights - US Unemployment Rate: Actual 4.2% (Forecast 4.1%, Previous 4.1%) A modest uptick in the unemployment rate suggests a cooling labor market, potentially reinforcing the case for monetary easing. - US Nonfarm Payrolls: Actual 227k (Forecast 220k, Previous 12k, Revised 36k) Strong job growth underscores economic stability but adds complexity to the Federal Reserve's inflation battle. - US Average Earnings YoY: Actual 4.0% (Forecast 3.9%, Previous 4.0%) Wage growth remains steady, indicating ongoing consumer spending power but also signaling potential inflationary pressures. Federal Reserve Dynamics - Fed's Bowman: Progress on inflation seems to have stalled. This commentary reinforces market expectations of a more accommodative monetary stance to counter economic headwinds. - Short-Term Interest Rate Futures: A sharp rise post-jobs report indicates an 85% chance of a rate cut in December, up from 67%. Lower borrowing costs would directly benefit the tech-heavy NASDAQ, as growth stocks typically outperform in low-rate environments. --- Seasonal and Sentiment Factors Historical Seasonality December has historically been favorable for the NASDAQ, driven by: - **Seasonal Consumer Spending:** Electronics and digital services see a surge, supporting revenue for tech companies. - **Portfolio Rebalancing:** Institutional investors often position portfolios for growth into the new year. - **Optimism Around Innovation:** End-of-year announcements and advancements in technology further fuel investor enthusiasm. Investor Sentiment - The **Fear & Greed Index** remains at 55, leaning toward greed, signaling potential for continued short-term market gains. --- Revised NASDAQ Outlook Positives: 1. **Tech Momentum:** The AI-driven rally continues, with companies like Microsoft and Meta capitalizing on innovation and demand. 2. **Federal Reserve Support:** Increasing odds of rate cuts and gradual disinflation expectations create a favorable macro backdrop. 3. **Resilient Economic Indicators:** Strong labor market and durable goods data point to economic stability. Risks: 1. **Regulatory Headwinds:** Scrutiny over AI and antitrust issues may weigh on tech giants like Microsoft and Meta. 2. **Inflation Uncertainty:** Stalled progress on disinflation could delay aggressive monetary easing. 3. **Geopolitical Tensions:** Ongoing global supply chain disruptions pose risks to the tech sector. Conclusion The NASDAQ index is well-positioned to close the year on a strong note, underpinned by robust demand for technology, favorable monetary conditions, and consumer confidence. However, vigilance is essential as regulatory, geopolitical, and inflation-related risks remain prevalent. Key developments, including Federal Reserve decisions and corporate earnings, will be pivotal in shaping the index's trajectory into 2024.
CAPITALCOM:US100Long
by InvestMate
S&P 500: Riding the Wave of Optimism S&P 500: Riding the Wave of Optimism Amid Economic and Political Dynamics The S&P 500 continues its upward trajectory, buoyed by tech-driven gains and investor optimism, even as mixed economic data and geopolitical uncertainties loom. Here’s a deep dive into the current market landscape and what it means for the benchmark index. --- Economic and Market Drivers Tech-Led Rally and AI Optimism The S&P 500's performance has been significantly influenced by gains in the technology and AI sectors. Investors are betting on the transformative potential of AI, propelling stocks like Microsoft and Meta to the forefront. However, regulatory scrutiny, such as the FTC's probe into Microsoft's AI software sales, introduces a layer of uncertainty. Resilient Labor Market While the Challenger Layoffs report showed a slight uptick, JOLTS job openings rose to 7.744 million in October, indicating a stable labor market. This balance supports the Federal Reserve’s cautious approach to monetary policy, as Chair Jerome Powell reiterated the economy’s strength and gradual progress in reducing inflation. Mixed Economic Indicators - **ISM Services PMI** fell to 52.1, below expectations of 55.7, suggesting a slowdown in service sector growth. - **Durable goods orders** increased by 0.3%, meeting expectations and reinforcing the narrative of economic stability. - **Construction spending** rose 0.4%, signaling robust investment activity. - **University of Michigan 1-Year Inflation Prelim** came in at 2.9% (forecast: 2.7%, previous: 2.6%), showing slightly higher inflation expectations. - **University of Michigan Sentiment Prelim** reached 74 (forecast: 73.2, previous: 71.8), reflecting improved consumer confidence. These data points reflect a U.S. economy navigating challenges while avoiding a hard landing—a scenario that fuels investor confidence. --- Federal Reserve Policy: A Turning Point? Fed officials, including John Williams and Christopher Waller, have hinted at the potential for a December rate cut, with futures markets now pricing in an **85% likelihood of a 25-basis-point reduction**, up from **67%** before the recent jobs report. Inflation progress appears to have stalled, with Fed Governor Michelle Bowman cautioning that more robust measures may be necessary to meet the 2% target by 2025. The November jobs report further influenced expectations: - US Nonfarm Payrolls rose to 227k (forecast: 220k, previous: 12k, revised to 36k). - US Unemployment Rate ticked up to 4.2% (forecast: 4.1%, previous: 4.1%). - US Average Earnings YoY remained steady at 4% (forecast: 3.9%, previous: 4.0%). These figures reflect a labor market resilient enough to accommodate rate cuts, which could provide an additional boost to equity markets. --- Corporate Highlights - Salesforce reported Q3 revenue of $9.44 billion, exceeding estimates, but missed on adjusted EPS, reflecting mixed investor sentiment. - Meta (Facebook) is aligning its strategies with evolving political landscapes, as CEO Mark Zuckerberg seeks to navigate regulatory and policy shifts. - *Microsoft faces FTC scrutiny, underscoring increasing regulatory challenges in the tech sector. Despite these challenges, corporate earnings have largely supported market valuations, adding another layer of support for the S&P 500. --- Seasonality and Sentiment December has historically been a strong month for the S&P 500, driven by: - Holiday-driven consumer spending. - Portfolio rebalancing. - End-of-year tax considerations. The Fear & Greed Index, currently at 54, indicates a greed-driven sentiment. This optimism aligns with traders pricing in a higher likelihood of Fed rate cuts, reflecting a favorable market environment. --- Outlook: Optimism with Caution The S&P 500’s upward momentum is underpinned by strong tech-sector performance, resilient economic data, and seasonal tailwinds. However, challenges such as geopolitical risks, regulatory scrutiny, and uneven progress in disinflation could temper gains. The Fed's flexibility and potential rate cuts are positive signals for the market, bolstering growth-oriented sectors. Nonetheless, investors should remain vigilant, monitoring corporate earnings, economic releases, and geopolitical developments. In the near term, the S&P 500 appears poised to end the year on a strong note. However, with inflationary pressures, mixed economic indicators, and geopolitical uncertainties still in play, the path forward will require a delicate balance between economic stability and investor confidence.
CAPITALCOM:US500Long
by InvestMate
DXY - Make or Break ScenarioSupport has been holding Dollar for past few days and MA200 was touched. High probabilities that Dollar break the trendline and aim for upper levels however a break of support will open lower levels. For entries, please wait for at least two candle reversals at the specified level and apply appropriate risk management. If you found this analysis helpful, please consider boosting and following for more updates. Disclaimer: This content is for educational purposes only and should not be considered financial advice.
TVC:DXY
by MarketsPOV
Dollar Index Alert: Reversal Pattern Emerging – Learn MoreLuckily, I spotted a classic reversal pattern right on the edge of triggering. The combination of three peaks, with the tallest in the middle, has formed a Head & Shoulders chart pattern on the Dollar Index futures daily chart. The right shoulder is almost complete, and the bearish trigger will be activated if the price breaks below the Neckline (the line connecting the valleys of the Head), which sits under 105.30. The target is calculated by subtracting the height of the Head from the Neckline breakdown point, giving us a target around 103.10. The RSI indicator is also on the edge. Watch for a breakdown here as additional confirmation.
ICEUS:DX1!
by aibek
4
Fundamental Market Analysis for December 06, 2024 EURUSDEUR/USD is declining to 1.0575 at the start of the European session on Friday. Concerns over US tariffs on European goods and rising bets on interest rate cuts by the European Central Bank (ECB) are weighing on the Euro against the US Dollar. This Friday, the US Non-Farm Payrolls (NFP) data will take center stage. The single currency remains on the defensive as traders are concerned about potential tariff policies on all goods imported into the US, which could undermine the Eurozone economy. In addition, the ECB is widely expected to cut the interest rate at its last monetary policy meeting of the year. All but two of the 75 economists surveyed believe the ECB will cut the deposit rate by 25 basis points (bps) on Dec. 12. On Thursday, French President Emmanuel Macron said he would appoint a new prime minister in the coming days, with the top priority being parliament's passage of the 2025 budget. Any signs of political uncertainty in France could contribute to the euro's decline. Abroad, the expectation that the Federal Reserve (Fed) will reduce borrowing costs at its December meeting could put pressure on the dollar and limit EUR/USD's decline. Markets now estimate the probability that the central bank will cut rates by a quarter point at its December 17-18 meeting at 70.1%. Trade recommendation: Watch the level of 1.0570, when fixing below consider Sell positions, when rebounding consider Buy positions.
by Fresh-Forexcast2004
DXY - Double Bottom Hints For A ReversalWe previously highlighted that Dollar broke previous support and was heading to below levels. It has tapped below level and now formed a Double Bottom. With the year end profit taking and Trump coming in power next year, we may see a continuous Bull Run. EMA 50 is also nearing a cross above MA 200 which should confirm this move. A break of support will void the double bottom and open lower levels. For entries, please wait for at least two candle reversals at the specified level and apply appropriate risk management. If you found this analysis helpful, please consider boosting and following for more updates. Disclaimer: This content is for educational purposes only and should not be considered financial advice.
TVC:DXYLong
by MarketsPOV
Gold: A Beacon in Economic UncertaintyGold: A Beacon in Economic Uncertainty Gold has long been a symbol of stability, value, and security. In today’s turbulent economic and political environment, its role as a safe-haven asset is more critical than ever. Global events, ranging from monetary policy shifts to geopolitical crises, are shaping the price of this precious metal. What does the future hold for gold, and what does it mean for investors? --- A Safe Haven in Chaotic Times During periods of global uncertainty, when financial markets grapple with volatility, gold remains one of the most sought-after assets. Recent events, such as the government crisis in France, fiscal policy uncertainties in the United States, and OPEC+ decisions to extend oil production cuts, have highlighted its enduring appeal. Gold is often viewed as a stabilizer amid market turmoil, especially when investors are concerned about rising inflation and economic slowdowns. In Europe, the European Central Bank’s plans for further interest rate cuts enhance the attractiveness of assets like gold, which serve as a hedge against currency devaluation. --- Macroeconomic Trends Supporting Gold Prices 1. Monetary Policy and Real Interest Rates Both the U.S. Federal Reserve and the European Central Bank are adopting dovish stances, which bodes well for gold prices. In an environment of low real interest rates—where inflation outpaces bond yields—investors increasingly turn to gold as a protective asset. 2. Growing Demand for Gold Central banks worldwide, particularly in China and India, are ramping up gold purchases, increasing global reserves. This reduced market supply acts as a catalyst for price growth. 3. Geopolitical Tensions Political crises, such as budget impasses in the U.S. and uncertainty in the European Union stemming from France’s leadership challenges, drive investors toward safe-haven assets, lifting gold's value. --- Gold in the Digital Age Modern technologies like blockchain are revolutionizing gold investment. Tokenization is making the gold market more accessible, blending the stability of traditional assets with the flexibility of digital solutions. Individual and institutional investors are increasingly leveraging these advancements, recognizing their potential to shape the future of the gold market. --- Forecast: Will Gold Hold Its Shine? Experts predict that gold will remain in the spotlight in the coming years. Anticipated developments include: - Further interest rate cuts in Europe and the United States. - Rising geopolitical and political tensions, increasing demand for protective assets. - Sustained high demand from central banks and financial institutions. In the long term, gold appears to be an excellent hedge against inflation and market volatility. --- Conclusion Gold, throughout history, has been synonymous with value and security. Amid today’s global economic and political challenges, its role is more crucial than ever. Investors should view gold not only as a means of capital preservation but also as a cornerstone of a well-diversified investment portfolio. Is gold part of your financial strategy? In times of uncertainty, it may be precisely what you need for stability and peace of mind.
OANDA:XAUUSDLong
by InvestMate
1
NASDAQ: Technology Leads Amid Challenges and OpportunitiesNASDAQ: Technology Leads Amid Challenges and Opportunities The NASDAQ index remains a focal point for investors, driven by the strength of technology and artificial intelligence (AI) stocks, while navigating regulatory hurdles and mixed economic data. Here's a closer look at the factors shaping the index's performance and its outlook for the coming weeks. --- Key Factors Driving NASDAQ Tech Rally and AI Optimism NASDAQ has seen robust gains, fueled by the dominance of tech stocks. Investors continue to bet on the long-term potential of AI, boosting companies like Microsoft and Meta. However, Microsoft faces regulatory scrutiny from the FTC over its AI software sales, which could weigh on short-term performance. Meanwhile, Meta, led by Mark Zuckerberg, is adapting its strategies to align with the evolving political landscape, including engagement with the Trump administration's policies. Strong Corporate Performance - Salesforce reported Q3 revenue of $9.44 billion, exceeding expectations, though adjusted EPS disappointed. - Microsoft and other tech giants continue to invest heavily in AI, supporting long-term investor optimism. Despite some challenges, the technology sector remains a key growth driver for NASDAQ, supported by innovation and strong demand for digital products and services. --- Macroeconomic Data and NASDAQ Mixed Signals from the U.S. Economy - ISM Services PMI fell to 52.1, below expectations of 55.7, indicating slower growth in the service sector, a key driver of consumer demand for technology. - Durable goods orders rose 0.3%, meeting expectations and signaling economic stability. - Construction spending increased by 0.4%, reflecting robust investment activity. While these figures present a mixed picture, stability in other areas, such as the labor market (JOLTS job openings at 7.744 million in October), provides a solid foundation for the market. Federal Reserve Policy and Its Impact on Technology The Federal Reserve is slowly pivoting toward a more dovish stance. An anticipated rate cut in December, currently priced at a 74% likelihood, could benefit technology stocks, which are sensitive to borrowing costs. The Fed forecasts gradual disinflation toward a 2% target by 2025, potentially creating favorable conditions for the tech sector in the long term. --- Seasonality and NASDAQ December has historically been a strong month for tech-heavy indices like NASDAQ, driven by: - Seasonal consumer spending, particularly on electronics and digital services. - End-of-year portfolio rebalancing by investors. - Optimism surrounding technological advancements and innovations. The **Fear & Greed Index**, currently at 56, indicates a sentiment skewed toward greed, often a precursor to further short-term market gains. --- NASDAQ Outlook: Technology at the Forefront As a leader in the technology space, NASDAQ has strong fundamentals to end the year on a high note. Robust demand for AI-related technologies, stable economic data, and Federal Reserve support create a positive backdrop for the index. However, investors must remain cautious about potential risks, including: - Regulatory challenges for tech giants. - Geopolitical tensions impacting global supply chains. - Uneven progress in disinflation, which could prolong restrictive monetary policies. With optimism surrounding technology and potential monetary easing, NASDAQ remains an attractive choice for long-term investors. However, key events such as quarterly earnings and further Federal Reserve decisions will significantly influence the index's trajectory. For now, the tech rally seems well-supported, but vigilance is essential.
CAPITALCOM:US100Long
by InvestMate
S&P 500: Riding the Wave of OptimismS&P 500: Riding the Wave of Optimism Amid Economic and Political Dynamics The S&P 500 continues its upward trajectory, buoyed by tech-driven gains and investor optimism, even as mixed economic data and geopolitical uncertainties loom. Here’s a deep dive into the current market landscape and what it means for the benchmark index. --- Economic and Market Drivers Tech-Led Rally and AI Optimism The S&P 500's performance has been significantly influenced by gains in the technology and AI sectors. Investors are betting on the transformative potential of AI, propelling stocks like Microsoft and Meta to the forefront. However, regulatory scrutiny, such as the FTC's probe into Microsoft's AI software sales, introduces a layer of uncertainty. Resilient Labor Market While the Challenger Layoffs report showed a slight uptick, JOLTS job openings rose to 7.744 million in October, indicating a stable labor market. This balance supports the Federal Reserve’s cautious approach to monetary policy, as Chair Jerome Powell reiterated the economy’s strength and gradual progress in reducing inflation. Mixed Economic Indicators - ISM Services PMI** fell to 52.1, below expectations of 55.7, suggesting a slowdown in service sector growth. - Durable goods orders increased by 0.3%, meeting expectations and reinforcing the narrative of economic stability. - Construction spending rose 0.4%, signaling robust investment activity. These data points reflect a U.S. economy navigating challenges while avoiding a hard landing—a scenario that fuels investor confidence. --- Federal Reserve Policy: A Turning Point? Fed officials, including John Williams and Christopher Waller, have hinted at the potential for a December rate cut, with futures markets pricing in a 74% likelihood of a 25-basis-point reduction. Inflation is expected to ease gradually, targeting 2% by 2025, but progress remains uneven. The Fed’s Beige Book also reported modest price increases and slightly higher economic activity, aligning with the central bank’s cautious optimism. This pivot towards monetary easing, coupled with balanced labor market conditions, is a positive signal for equities, particularly growth-oriented sectors. --- Corporate Highlights - Salesforce reported Q3 revenue of $9.44 billion, exceeding estimates, but missed on adjusted EPS, reflecting mixed investor sentiment. - Meta (Facebook) is aligning its strategies with evolving political landscapes, as CEO Mark Zuckerberg seeks to navigate regulatory and policy shifts. - Microsoft faces FTC scrutiny, a development that underscores the increasing regulatory challenges in the tech sector. Despite these challenges, corporate earnings have largely supported market valuations, adding another layer of support for the S&P 500. --- Seasonality and Sentiment December has historically been a strong month for the S&P 500, driven by: - Holiday-driven consumer spending. - Portfolio rebalancing. - End-of-year tax considerations. This seasonal strength aligns with the **Fear & Greed Index**, which currently stands at 56, indicating a greed-driven sentiment. Such sentiment often paves the way for further market upside, as investors are inclined to take on more risk in anticipation of future gains. --- Outlook: Optimism with Caution The S&P 500’s upward momentum is underpinned by strong tech-sector performance, resilient economic data, and seasonal tailwinds. However, challenges such as geopolitical risks, regulatory scrutiny, and uneven progress in disinflation could temper gains. With the Federal Reserve signaling flexibility and potential rate cuts, the market sentiment remains favorable. However, investors should remain vigilant, monitoring corporate earnings, economic releases, and geopolitical developments. In the near term, the S&P 500 appears poised to end the year on a strong note, but the path forward will depend on a delicate balance of economic stability and investor confidence.
CAPITALCOM:US500Long
by InvestMate
Fundamental Market Analysis for December 05, 2024 USDJPYThe Japanese yen is attracting some buyers on Thursday, albeit without bullish conviction. Rising US bond yields are supporting the US dollar and lending support to the USD/JPY pair. Traders seem reluctant to make aggressive bets ahead of the release of the US NFP report on Friday. The Japanese Yen (JPY) rises against its US counterpart during the Asian session on Thursday and moves away from the weekly low reached the previous day. Signs that Japan's core inflation is picking up continue to fuel expectations that the Bank of Japan (BoJ) will raise interest rates again in December. In addition, persistent geopolitical risks, trade war fears and an overnight decline in US Treasury yields are contributing to the yen's gains. Meanwhile, Wednesday's remarks from a number of influential FOMC members, including Federal Reserve (Fed) Chairman Jerome Powell, served as a tailwind for US bond yields and the US dollar (USD). This, along with the prevalence of risk sentiment, may curb significant strength in the safe-haven Yen and provide some support to the USD/JPY pair. Traders may also refrain from aggressive directional bets ahead of the release of the US Non-Farm Payrolls (NFP) report on Friday. Trade recommendation: Watch the level of 150.00, when fixing above consider Buy positions, when rebounding consider Sell positions.
by Fresh-Forexcast2004
Markets Slowing Down Ahead of NFP, What To Lookout ForHey There, The dollar has been in demand so far this week, boosted by it being seen as a safe-haven amid political turmoil in both South Korea and Europe as well as ongoing conflicts in the Middle East and Ukraine. With France’s government facing “No Confidence votes” that could spell the end of the short-lived administration of Prime Minister Michael Barnier, pushing the country into uncharted waters of political chaos. Gold Prices rose marginally as political turmoil in South Korea spurred some safe haven demand along with fears of a collaps in the Israel-Hezbollah ceasefire. However, trades continue to remain on the sidelines amid anticipation for more cues on U.S interest rates. But any gains in gold were largely limited by a spike in the dollar as it soared on uncertainty over the long term outlook for U.S rates.
by DeanMuller
4
DXY - Make or Break ScenarioDollar has recovered to MA200 and seems to be losing momentum. Unless we see a break above, we can expect a bearish move to lower levels. For entries, please wait for at least two candle reversals at the specified level and apply appropriate risk management. If you found this analysis helpful, please consider boosting and following for more updates. Disclaimer: This content is for educational purposes only and should not be considered financial advice.
TVC:DXYShort
by MarketsPOV