While some hint at a slowdown in the pace of rate hiking, others suggest that the tightening cycle is far from over. Judging by the performance of the dollar so far this month, falling around 8% in relation to its peers, the market’s main takeaway from the latest events is that peak inflation is behind…
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On the technical analysis point of view the price is currently trading around the 1.17 price area which is a very strong point of resistance since it consists of the 78.6% of the Fibonacci retracement level and the upper band of the Bollinger bands (even trading above the bands a couple of days ago indicating…
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With inflation finally under control many now expect a less assertive Fed in December, with many betting on a 50 basis points rate hike, instead of the previously expected 75 basis points. This shift in expectations, as well as the increase in investor risk appetite, are likely to create scope for further dollar weakness over…
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On the other hand, should October inflation come up above expectations, the dollar is likely to quickly claim back the losses of the previous week. In that scenario we can expect the index that measures the greenback’s performance versus a basket of other major currencies to return to levels above the 112 mark. Ricardo Evangelista…
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The latest US inflation figures, to be released tomorrow, will either intensify or dissipate hopes of a change of paradigm by the American central bank. In the meantime, the mid-term election results remain unclear, with the likely scenario of a Republican dominated congress also contributing to the dollar weakness, as it may translate into lower…
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From the technical analysis perspective the price is currently trading around the 0.99900 price area just above the 61.8% of the fibonacci retracement level. The US inflation rate is expected to affect the fiber chart with the market expecting a decrease on the figure (8%). This publication will possibly create volatility and might give the…
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European Shares Shares drifted moderately lower in Europe on Tuesday, alongside US Futures and following a mixed Asian trading session. Market sentiment remains uncertain this week as traders brace for another batch of macro developments such as today’s US mid-term elections and EIA Short-term Energy Outlook, while the crucial CPI report looms on Thursday. In…
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Meanwhile, a stronger US dollar combined with drops in bond and oil markets usually doesn’t provide a good set-up for stocks, increasing the risk of a market correction today. Pierre Veyret– Technical analyst, ActivTrades Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
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Those who expected the Fed to pivot any time soon would have been disappointed by Powell’s message. On the other hand, dollar bulls will be celebrating the prospect of further monetary tightening as it generates strong tailwinds for the greenback, creating scope for more gains in the foreseeable future. Ricardo Evangelista – Senior Analyst, ActivTrades…
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The FOMC press conference will be closely scrutinized by investors anxious for hints over the beginning of the end for the current cycle of monetary tightening. The relative dollar weakness of the last 24 hours could be a sign that some traders have already started to price-in a Fed pivot. Ricardo Evangelista – Senior Analyst,…
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