Jobs data reconnects USDOLLAR with real rate
Friday’s job report showed a slowdown in job growth and a moderation in wage inflation. In response, the US 10-year real rate declined, with the greenback following.
Page 19 of 73
Friday’s job report showed a slowdown in job growth and a moderation in wage inflation. In response, the US 10-year real rate declined, with the greenback following.
Yesterday, the USDOLLAR pushed into its bullish channel between its upper blue and red bands (blue rectangle). The RSI also crossed into its bullish area above 50 (green rectangle). The greenback rallied on the strong ADP data, which pushed the US 2-year yields up around 11bps
The pair rebounds from Tuesday’s slump, as markets gear up for a series of economic data and the accounts of the Fed’s last monetary policy decision
The pair shows resilience as the UK economy contracted in Q3, but remains in tough spot after the recent central bank blitz, awaiting key releases from the US
The pair is looking for direction around key technical levels after last week’s central bank blitz, as markets await Friday’s US PCE inflation update
The pair finds some support after Tuesday’s nearly 4% slump, due to the surprise policy tweak by the Bank of Japan
The BoJ surprised markets by shifting their JGB defense from 0.25% to the 0.5% level. In response, the USDJPY declined by 2.6% to 133.27 as the JGB yield rose to a high of 0.432%. The central bank has used yield curve control since 2016 to manage interest rates at relatively low levels. The JPN225 also dropped as markets pondered the higher rates that companies would now pay on their debt,…
Chair Powell pointed to a higher-for-longer approach last week, which led to the end of the pair’s eight-week profitable streak, but shows resilience, as the RBNZ is also very hawkish
The pair treads water as markets digest this week’s rate hikes and hawkish commentary by the US Fed and the ECB
The ECB has followed the Fed and the BoE with its own 50bps hike. It also announced quantitative tightening from March 2023. Tone was hawkish, with the statement saying, “interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target.”
Risk Warning: Trading Margin FX/CFDs carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. By trading, you could sustain a total loss of your deposited funds but wholesale clients could sustain losses in excess of deposits.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.