Category: US/Midday Session Brief

US Session Forex Brief, June 12 – Headline Inflation Cools in US but Core CPI Remains Stable

Posted on by Skerdian Meta

The main event in financial markets today was the release of the US inflation report. The US economy has turned soft in recent months as the economic data has shown in the last couple of months. The US economy has been holding up well as the rest of the globe’s economies weakened considerably in 2018 and this year, hence the many rate hikes from the FED during this time. But eventually, the global weakness caught up with the US as well and now the US economy doesn’t look so upbeat either. After many really weak data releases recently, the inflation report held increased importance today.

Continue reading “US Session Forex Brief, June 12 – Headline Inflation Cools in US but Core CPI Remains Stable” →

US Session Forex Brief, June 11 – GBP is the Only Mover Today on the Back of Earnings Report

Posted on by Skerdian Meta

The GBP has been quite weak during May as the odds of Theresa May’s Brexit deal passing the British Parliament kept tumbling, which eventually led to the fourth and last rejection of the deal. Theresa May announced her resignation and now a race has begun for her successor. So, the politics have turned totally bearish for the GBP and fundamental have turned bearish as well. Yesterday we saw the GDP report post the second consecutive contraction in April of 0.4% after the first contraction in May, while manufacturing and industrial production, as well as construction output posted a major decline. As a result, market participants were expecting another soft report today for earnings.

Continue reading “US Session Forex Brief, June 11 – GBP is the Only Mover Today on the Back of Earnings Report” →

US Session Forex Brief, June 10 – The GBP Resumes the Bearish Trend as Economic Data Deteriorates

Posted on by Skerdian Meta

The USD has been on a bullish trend for more than a year, with the FED the only major central bank to be on a tightening cycle. But, last week we saw a sharp reversal in the USD as the economic data from different sectors of the US economy kept coming in pretty weak. The odds of the FED hiking interest rates again this week diminished, which sent the USD tumbling lower against most major currencies. Although, the rest of the globe is in a worse position than the US, so the USD has turned bullish again today. But we will see if this will last.

Continue reading “US Session Forex Brief, June 10 – The GBP Resumes the Bearish Trend as Economic Data Deteriorates” →

US Session Forex Brief, June 7 – US Employment Misses Again and the Dollar Resumes the Dive

Posted on by Skerdian Meta

The price action has been pretty quiet in forex today, with most currencies consolidating yesterday’s profits/losses. The reason for this is the US employment report which included the unemployment rate, average earnings and the non-farm employment change. Usually the earnings figures take the spotlight since they are a strong indication of near term inflation and retail sales. But today, the most important figure to watch was the employment number because ADP non-farm employment came really weak on Wednesday. Another weak figure would confirm the weak ADP number and the slowdown in the US economy.

Continue reading “US Session Forex Brief, June 7 – US Employment Misses Again and the Dollar Resumes the Dive” →

US Session Forex Brief, June 6 – The Euro Surges on A Not-So-Dovish ECB

Posted on by Skerdian Meta

The economic data has been pretty light today and the main theme in financial markets is the European Central Bank (ECB) meeting. The economy of the Eurozone, as well as the global economy have weakened considerably this year. Besides that, inflation is really weak in the Eurozone and the US has been threatening with auto tariffs on European car makers. As a result, we have heard some really dovish comments from ECB members in recent weeks regarding low inflation which turned even lower after the short lived jump in April which was due to the Easter holidays and especially about postponing the first rate hike. Continue reading “US Session Forex Brief, June 6 – The Euro Surges on A Not-So-Dovish ECB” →

US Session Forex Brief, June 5 – The USD Keeps Declining on Services Day

Posted on by Skerdian Meta

The day started with the Australian GDP report coming out early this morning and the economy in Q1 grew by 0.4% as expected. Although, the economy has slowed down since then, so I expect the GDP report for Q2 to be weaker. Monday was a manufacturing day with reports for this sector being released from major economies, while today is a day for services. We had a number of services report being released in the European session, while later the US ISM non-manufacturing report will be released.

Continue reading “US Session Forex Brief, June 5 – The USD Keeps Declining on Services Day” →

US Session Forex Brief, June 4 – RBA Cuts Rates, Inflation Dives in Europe, but the USD Weakness Continues

Posted on by Skerdian Meta

This morning the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points to 1.25%. They were expected to cut them in the last meeting but they didn’t and instead, slashed them today which was also anticipated by market participants, given the increasing trade conflict, the weakening Chinese and Australian economy as well as the fact that the Reserve bank of New Zealand cut interest rates last month. But as it is often the case, when markets anticipate a rate cut, the price action following it is pretty dull, like we saw this morning. The RBA would have liked the AUD to dive lower as chairman Lowe said later, but [[AUD/USD]] didn’t mind much as the USD weakness of the last two days is still prevalent in the markets.

Continue reading “US Session Forex Brief, June 4 – RBA Cuts Rates, Inflation Dives in Europe, but the USD Weakness Continues” →

US Session Forex Brief, May 30 – Risk Assets Try to Turn Bullish but the Increasing Trade Tensions Keep Them in Check

Posted on by Skerdian Meta

In the last few trading sessions, the risk sentiment improved for some reason. Crude Oil jumped higher late in the US session yesterday and continued like that during the Asian session, climbing nearly $3. [[USD/JPY]] has also been bullish since yesterday in the evening while European stock markets opened with a gap higher and tried to remain bullish in the first few hours of European trading this morning but they have turned bearish now, together with risk currencies such as commodity Dollars.

Continue reading “US Session Forex Brief, May 30 – Risk Assets Try to Turn Bullish but the Increasing Trade Tensions Keep Them in Check” →

US Session Forex Brief, May 29 – Risk Assets Turn Bearish Again As Sentiment Softens on Escalating Trade Conflict

Posted on by Skerdian Meta

The risk sentiment in financial markets has deteriorated in the last few months after the short lived improvement we saw in the major global economies at the start of this year. But, the global economy resumed the bearish trend in March as the European and Chinese manufacturing and services sectors fell deeper into contraction. The US economy was holding up well despite some weakness, but the services and the manufacturing reports released last Thursday showed that these sectors have fallen close to stagnation this month.

Continue reading “US Session Forex Brief, May 29 – Risk Assets Turn Bearish Again As Sentiment Softens on Escalating Trade Conflict” →

US Session Forex Brief, May 28 – Gold Finally Makes a Move Amid Quiet Markets

Posted on by Skerdian Meta

Today markets have been following on yesterday’s price action, with almost all assets being pretty quiet. Crude Oil is continuing the uptrend of the last few days and has been crawling higher during the European session, but the climb is really slow, which tells you that the larger bearish trend of this month will resume soon. Forex is pretty quiet with most major pairs trading in a range, although it can be observed that the USD is still feeling a bit weak after last Thursday’s soft US manufacturing and services reports.

Continue reading “US Session Forex Brief, May 28 – Gold Finally Makes a Move Amid Quiet Markets” →