Dollar eases after US CPI; US stocks still up The selling interest in the US dollar is continuing, with its index against a basket of currencies flirting with the fourth consecutive red day after the release of the US CPI data. The annual inflation rate remained unchanged at 1.4% for January, the same as in December and marginally below expectations of 1.5%. Month-on-month, consumer prices went up 0.3%, in line with forecasts from 0.2% before. Powell and other policymakers at the Fed have suggested that [..]
USDJPY bulls got exhausted near the 200-day simple moving average (SMA), letting the price to slump back into the 104.00 area on Tuesday. The pair, however, has not violated the short upturn from the 102.58 bottom yet, leaving the door open for a potential trend continuation as long as the price holds above the swing high of 104.39 and the 20-day SMA. Notably, the bullish cross between the 20- and 50-day SMAs is still endorsing a trend improvement. The momentum indicators, although [..]
Dollar eases as reflation trade returns The dollar is tumbling over the last couple of sessions as the reflation trade strengthened. President Joe Biden will probably push his aid proposal forward without Republican support. Some comments from government suggest that the stimulus negotiations act as a cautionary tale. The Republican Congress did the same thing to push through President Trump’s tax cuts back in 2017. The relief package is likely to be closer to $2 trillion rather than $1 trillion. The dollar index is registering the third straight day of [..]
With so much talk of inflation lately, the monthly print of the consumer price index (CPI) out of the United States on Wednesday (13:30 GMT) might attract a bit more attention than usual. After the NFP disappointment, stronger-than-expected CPI data could be what the dollar needs to resume its uptrend. President Biden’s $1.9 trillion stimulus proposal has sparked fears that the colossal-sized package may stoke inflationary pressures. Former colleagues Treasury Secretary Janet Yellen and Fed Chair Jerome Powell have both [..]
Dollar eases as reflation trade returns The dollar is tumbling over the last couple of sessions as the reflation trade strengthened. President Joe Biden will probably push his aid proposal forward without Republican support. Some comments from government suggest that the stimulus negotiations act as a cautionary tale. The Republican Congress did the same thing to push through President Trump’s tax cuts back in 2017. The relief package is likely to be closer to $2 trillion rather than $1 trillion. The dollar index is registering the third straight day of [..]
Dollar records some gains; US stocks at record highs In a quiet day, the major theme is the inflation expectations in the US that continue to rise. Treasury Secretary Yellen is asking for a larger stimulus package to bring the economy back to full employment. The dollar seems ready to resume its recovery. The US dollar index is moving marginally up, while dollar/yen is approaching the 105.70 level again, hitting the 200-day simple moving average (SMA). In the stock market, an index tracking global bourses met another all-time [..]
USDJPY in the early hours of today’s trading session found footing on the mid-Bollinger band around 105.27, resuscitating the positive climb. The short-term oscillators are reflecting the latest rebound in price, while the rising simple moving averages (SMAs) are protecting the rally off 103.32. Although the MACD has dipped below its red trigger line, it remains far above the zero mark, while the RSI is gradually improving in bullish territory. Furthermore, with the %K line having rebounded off the 20 [..]
Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]
USDJPY continues to build its positive trajectory above the broken descending trendline, registering an almost three-month high of 105.33 on Thursday. There is no key obstacle in sight until the 105.45 – 105.65 region; therefore, expectations are for the rally to see further extension in the near-term as the momentum indicators in the four-hour chart keep promoting the bullish appetite in the market. The RSI has resumed its positive slope, and the MACD is regaining ground below its red signal [..]
Pound return to gains after BoE decision; Eurozone retail sales come up The key driver of the day is the Bank of England (BoE) interest rate decision. The pound jumped higher, returning above 1.3650 versus the US dollar, as the BoE left its bank rate unchanged at a record low of 0.1% and its bond-buying program unaltered during its meeting. The crucial point is that the BoE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back [..]
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