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That said, the Fed Rate Statement highlighted the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. Recent examples include the Greek debt crisis and China market turmoil. Many short-term traders base their decisions solely on technical analysis and price charts, regardless of which markets they are trading. It’s common for traders to completely ignore fundamental factors and instead follow price trends, analyse support and resistance levels and weigh https://www.forextime.com/education/forex-trading-for-beginners up various signals from technical indicators. Hedge funds, asset managers, and banks bought CHF as it appreciated sharply in the minutes after the minimum exchange rate policy was removed, leaving market makers as the only market participants selling CHF during this critical period. In contrast, the active investor sectors had a mixed reaction after Brexit, as their net flows reflected both buying and selling of GBP. Election event, these three investor sectors were buying MXN as it depreciated, trading against the prevailing direction of the exchange rate.

  • USD/JPY remains on the backside of the counter-trendline on the hourly chart which leaves a bearish bias on the charts for the days ahead.
  • However, an upward-sloping support line from Friday, near 7.2840, joins the ascending support line on RSI to challenge the pair bears afterward.
  • A rate hike of 75 bps by the BOE could be followed by dovish guidance to scrap recession fears.
  • A Florida resident has been charged by the CFTC for raising $1.6 million through a fraudulent cryptocurrency and forex trading scam.
  • USD/CNH renews intraday low, stays defensive after reversing from short-term key resistance line.

However, holiday in Japan and a light calendar elsewhere restricts the market moves of late. Copper price remains directionless while struggling around the weekly lows during early Thursday. That said, the demand-supply matrix and softer US dollar favor the metal buyers but fears of higher rates and lesser demand from China, the world’s biggest metal buyer, seem to challenge the commodity prices. Check our economic calendar Forex news in real-time and get all details on how macroeconomic data releases and other important fundamental events impact the Forex markets. Drama, global inflation updates and central bank commentary were all in play, and likely why intermarket price action was mixed this week. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day.

China October Services Pmi 48 4 Prior 49

The 10-year US Treasury yields are stabilized around 4.12% as a bigger rate hike by the Federal Reserve was followed by hawkish guidance. Despite pushing the interest rates to the highest at 3.75-4% since 2008, ceasing of more policy tightening seems far as Fed chair Jerome Powell has announced that pausing tightening measures is very premature at this stage. Economists at Goldman Sachs came forward with a projection of 75 basis points as price growth has reclaimed a double-digit inflation rate. On Wednesday, the US Automatic Data Processing reported that the US economy has added 239k fresh jobs in the labor market. And, the consensus for US Nonfarm Payrolls indicates that the labor market has been filled with 200k jobs vs. the prior release of 263k. A wide divergence in ADP and NFP data could bring volatility in gold prices. The USD/INR pair has surrendered its opening gains recorded due to a bigger rate hike announcement by the Federal Reserve on Wednesday.

Go to finding 1 FX trading volumes for hedge funds, asset managers, and banks spiked during the three events. In contrast, volumes for the corporate, pension/insurance, and public/other investor sectors barely increased. A bigger rate hike by the Fed has widened the divergence in the Reserve Bank of Australia -Fed policy. The Australian central bank DotBig company accelerated its interest rates too this week. RBA Governor Philip Lowe continued with a 25 bps rate hike structure, keeping in mind, economic prospects should remain firmer along with the agenda of bringing price stability. As with other asset classes, forex trading news can become particularly active before and following major economic events.

Asian Markets Tracks Global Markets Lower

A continuation of policy tightening will force the corporate to postpone its expansion plans due to higher interest obligations. Also, the real estate market will be the biggest victim due to expensive mortgages. The risk-sensitive currencies are facing a sell-off on Fed’s interest rate hike. Each morning, the People’s Bank of China sets a so-called daily midpoint fix, based on the yuan’s previous day’s closing level and quotations taken from the inter-bank dealer. In doing so, the offshore Chinese currency pair consolidates the Fed-inspired gains but struggles to extend the late Wednesday’s pullback from a one-week-old descending resistance line. USD/CNH renews intraday low, stays defensive after reversing from short-term key resistance line.

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Oil prices have reclaimed $89.00 on a decline in oil stockpiles reported by the EIA. Elsewhere, the US 10-year bond coupons ease to 4.096% while its two-year counterpart snaps a four-day uptrend as it drops to 4.611% at the latest. Overall, the bond yields remain inactive due to Japan’s absence from the Treasury markets. That said, the Asia-Pacific equities Forex are down but the S&P 500 Futures print mild gains amid a lackluster session ahead of the European open. Silver price (XAG/USD) remains firmer around $19.30 while paring the post-Fed losses during early Thursday in Europe. In doing so, the bright metal rebounds from the 50-DMA to stay inside a three-week-old rising wedge bearish chart pattern.

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