Trading the News Forex News Trading Strategy

Post a significant decline in inflation figures in the United States, the returns on the United States government bonds have been a major victim. The 10-year United States Treasury yields have dropped sharply from a high of 4.34% to a low near 3.76%. The alpha on long-term United States bonds has rebounded to 3.80% after Federal Reserve policymakers sounded solid for further policy tightening by the United States central bank. Moving on, Canada’s Consumer Price Index and the US Retail Sales will be crucial to watch for the USDCAD traders and can provide a corrective bounce from the key DMA support in case of matching market forecasts. Also important to watch is the weekly print of the EIA Crude Oil Stocks Change. CME Group’s flash data for gold futures markets noted open interest shrank for the second session in a row on Tuesday, this time by around 14.8K contracts. Volume, instead, increased by around 150.5K contracts after two consecutive daily drops.

The shared currency’s relative underperformance comes on the back of reports that the missile that hit Poland may have been fired by Ukraine forces at an incoming Russian missile. This, along with fresh US Dollar selling, boosts the Euro and assists the EURGBP cross to regain positive traction. The British Pound, on the other hand, draws support from hotter-than-expected UK consumer inflation figures, which adds to pressure on the Bank of England to continue raising borrowing costs. The repricing of the pace of the Fed’s rate-hiking cycle, meanwhile, keeps the US Treasury bond yields depressed. In fact, the yield on the benchmark 10-year US government bond languishes near its lowest level for the yield since October 5. This is seen as another factor undermining the USD and leading additional support to the non-yielding yellow metal. This, in turn, makes it prudent to wait for some follow-through buying before traders start positioning for any extension of a two-week-old strong uptrend.

US Mortgage Rates Return to 7% Following the October CPI Report

Late on Tuesday, the news that two Russian-made rockets were fired at Poland and killed two people triggered the risk-off mood. The same triggered emergency meetings of the North Atlantic Treaty Organization and the Group of Seven , which in turn favored the US Dollar due to its safe-haven appeal. Open interest in natural gas futures Dotbig is a success markets dropped for the third session in a row on Tuesday, now by around 3.2K contracts according to preliminary results from CME Group. Volume followed suit and went down for the second straight session, this time by around 76.6K contracts. The UK annualized Consumer Prices Index came in at 11.1% in October when compare…

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Gold attracts some dip-buying near the $1,770 area on Wednesday and steadily climbs back closer to its highest level since mid-August touched the previous day. The XAUUSD holds steady above the $1,780 level through the early North American session, though a slight recovery in the risk sentiment keeps a lid on any further gains. The USJPY is hovering around Forex news 139.40, marginally higher for the day, following the release of US economic data, on a relatively quiet session. The US Dollar has fallen since last week’s milder-than-expected inflation data. Nonetheless, economists at UBS expect the greenback to stay on a solid foot for the time being, dragging EURUSD and GBPUSD down to 1.00 and 1.10, respectively.

Market reaction

FXStreet has the best real-time graphs to follow stocks and the best Forex analysis. Our market calendar can be customised by date, market impact and country, so you can filter these to be more relevant for the asset or market that you are interested in trading. You can also set alerts for individual events that you wish to DotBig overview monitor. A live account will give you access to Morningstar equity research reports and Reuters news headlines, which provide a wealth of information for all asset classes.. Before Joe Biden sat face-to-face with Xi Jinping on Monday night at a seaside resort in Bali, US officials played down hopes for tangible progress.

  • Treasury sources told Sky News the financial “black hole” could be as large as £60bn – which may require up to £35bn of spending cuts and an extra £25bn to be raised through taxation.
  • Binance walks away from the FTX deal today, leaving the crypto market down at sub-$800bn and FTX on the brink of bankruptcy.
  • On Tuesday, US Producer Price Index for October eased to 8.0% YoY versus market forecasts of 8.3% and the downwardly revised prior of 8.4%.
  • In the view of economists at Commerzbank, even a strong figure could not be enough to lift the US Dollar.
  • The USD/JPY is an especially good pair to watch when the Tokyo market is the only one open, because of the heavy influence the Bank of Japan (Japan’s central bank) has over the market.

US Treasury Secretary Janet Yellen said on Wednesday, that she wants to acknowledge the wave of Russian missile attacks in the last day. Retail Sales in the US are expected to rise by 1% following a stagnant September.

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