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.
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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 latest Personal Consumer Expenditures (PCE) figures came out today and showed that inflation continued to moderate in November
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 daily gold chart has charted a series of higher troughs followed by higher peaks (green zig-zags). We regard this as an uptrend. The precious metal may look to chart its next daily impulse up (daily +ve impulse scenario). We consider the hourly chart. Following the BoJ’s announcement that it will defend the 50bps level, up from the 25bps level, the precious metal’s trend-following EMAs and the momentum based stochastic…
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
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