DNP-FX

DNP-FX

Investors tend to be side-lined ahead of the minutes of the US central bank's (The Fed) FOMC meeting and the thanksgiving holiday. The weakening of the dollar was supported by the return of risk on sentiment. USDZAR breakout daily support from bullish channel pattern. A bearish trend has the potential to occur in the next few days.

DNP-FX

(1) This week started with USD weakness due to bad news from the US labor data released last week. The NFP data showed a decline compared to the previous data, from 315K to 261K although up from the forecast at 200K. In addition, the unemployment rate data showed an increase from 3.5% to 3.7%, exceeding market participants' estimates of 3.6%. (2) While global...

DNP-FX

The employment gain was especially impressive as it was spread across the economy and was made up entirely of full-time jobs. The Bank of Canada, which hiked rates to 3.75% after a 50 basis point increase in late October is likely to respond with additional oversize hikes. This will certainly foster positive sentiment for the Canadian dollar to strengthen in...

DNP-FX

Despite crypto's gains this week, both Bitcoin and Ethereum are still experiencing significant declines since the beginning of the year. On a year to date (YTD) basis, the market capitalization value of Bitcoin and Ethereum has dropped by more than 50%. US monetary policy impact strengthens USD 15.41%. Federal Open Market Committee (FOMC) meeting which will take...

DNP-FX

Federal Open Market Committee (FOMC) meeting which will take place November 2, 2022, US time. decided the benchmark interest rate range of the Fed Funds Rate 75 basis points to 3.75 – 4%. With this decision, the Fed has raised its benchmark interest rate by 75 bp at the fourth consecutive meeting. This is also the highest interest rate level since 2008. In a...

DNP-FX

US President Joe Biden will ask oil and gas companies to invest some of their record profits in lowering the cost of living in the country. Biden will ask Congress to consider requiring oil companies to pay a tax penalty. Biden has previously encouraged oil companies to increase production rather than use profits for share buybacks and dividends. The government is...

DNP-FX

The President of the European Central Bank, Christine Lagarde, just gave a negative outlook for the European economy going forward, stating that the risk of a recession is increasing as the economy continues to slow and inflation continues to be stuck at high levels. Lagarde statement resulted in a strong sell-off for the EUR currency in trading and it is...

DNP-FX

The pressure on China's economic growth is feared to have an impact on other countries that are struggling to recover their economies. One of the countries threatened is New Zealand. The offshore yuan depreciated toward 7.3 per dollar, at risk of weakening further to new record lows as downbeat Chinese PMI data added to an already dim outlook for the world’s...

DNP-FX

Concerns about recession resurfaced among investors as the Fed continued to follow a hawkish path lined with interest rate hikes. This led some companies in the US to change their earnings projections again, with several companies and analysts revising their outlook downward for the coming quarter. The market also expects the Fed to raise its benchmark...

DNP-FX

USD should have strengthened as high CPI will ensure the FED moves aggressively to raise interest rates and will push USD higher. But instead, USD fell sharply in recent days, market participants took profit taking action from the USD index and moved to the Dow Jones (United States stock exchange) to cover the losses incurred due to the sharp decline in the Dow...

DNP-FX

UK GDP fell sharply, from showing growth to showing weakness. The following GDP data will determine whether the UK can be said to be in recession or not. The BoE Governor, Andrew Bailey, has been saying for several months that the UK will go into recession in the 4th quarter of this year. Will his prediction come true or can the UK change its fate? Here are...

DNP-FX Updated 

The current market sentiment perspective tends to be mixed, gold tends to be bearish because the fed's hawkish policy continues to be carried out, big players are starting to take profits for long contracts and add short contracts, with more short contracts in total. But bullish sentiment also occurred when North Korea launched ballistic missiles in northeast...

DNP-FX

The yen's recent sharp fall, which has pushed up the cost of living for households as fuel, food and drink prices rise, was partly driven by the widening gap between the US Federal Reserve's aggressive monetary tightening and the BOJ's ultra-loose monetary policy. BOJ Governor Haruhiko Kuroda echoed Suzuki's warning that a rapid yen move was undesirable, but...

DNP-FX

USOIL Combination strategy with a Trendline, Unfilled Order (UFO) and Psychological level. Trend is a movement that shows where the market is moving. The term "trend" in everyday life is often used to express a situation, where something is in vogue or is gaining public attention. As you know, a trendline is a tool that can be used to recognize the direction of...

DNP-FX

Wall Street is increasingly concerned that the Fed's six-month inflation fight will push the economy into recession. The recent selloff seems to be the catalyst, including the US central bank (Federal Reserve/The Fed) being aggressive to raise interest rates. Finally shaking up the currency market. With the dollar overvalued in recent weeks, market participants...

DNP-FX

Early October will be a lot of high impact data that will be released. it's possible that until Friday (September 30th) USD will correct/bearish as market participants do profit taking and reduce risk to commodities that are currently needed such as gold and oil. Nevertheless, the macro trend of USD still tends to be bullish

DNP-FX

Market has fully priced in the fed 75 basis point (bp) rate hike, with a 19% chance of a 100 basis point hike and an estimate that rates will peak at around 4.5% in March 2023. US dollar strengthened after the Federal Open Market Committee (FOMC) meeting where the Fed gave a more hawkish statement to the market

DNP-FX

Oil prices slipped below the US$85 per barrel level after the US central bank, the Fed, announced an interest rate hike. U.S. oil demand over the past four weeks fell to 8.5 million barrels per day (bpd), the lowest since February, according to the Energy Information Administration (EIA). On the other hand, there was a 1.1 million barrel increase in crude oil...