Tag - usd

As is the custom, every new month in the financial market often presents long-term, swing trading opportunities for traders like you and me. Even better, FBS is usually there to provide insights into the expected trading opportunities through such analytical pieces as this.

Kazuo Ueda, the Bank of Japan's Governor, effectively adjusted the yield curve control policy, but caution is still needed as inflation remains a challenge. The BoJ expects inflation to hit its target next year, but external inflationary pressures may abate.

Recently, gold prices settled by -0.41% at 59309 as the dollar and bond yields rose. However, hopes for a pause in US rate hikes limited the decline after the July meeting of the Federal Reserve. The unexpected drop in new claims for unemployment benefits in the US also contributed to the market sentiment.

Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.

According to EY, profit warnings among UK-listed companies have reached levels last seen during the financial crisis, excluding the pandemic. More than one in six firms issued profit warnings in the past year due to rising borrowing costs and tightened consumer spending, impacting their margins. Insolvencies in June were 27% higher than the previous year and above pre-pandemic levels, with consumer industries like retail and hospitality being hit the hardest.

According to Japanese Finance Minister Shunichi Suzuki, there was "no discussion" about exchange rates during the recent meeting of Group of Seven (G7) finance ministers and central bank chiefs in India. This news comes as the yen weakened to around ¥145 per dollar last month, prompting concerns that the Japanese government may intervene in the currency market to support the yen.

Today's focus is on the US CPI data, which experts believe will be better than expected. The forecasted US CPI m/m is 0.3%, and y/y is 3.1%, a positive sign for the market as the Fed's inflation target is 2%. Even a strong inflation reading may lead to one more interest rate hike, keeping traders somewhat worried. The reaction of the 2-year Treasury yield and the dollar index will indicate the Fed's next move. With inflation slowing down, the path of least resistance for the US equity market is skewed to the upside.

Here’s the scoop: Businesses employ various strategies to soften economic conditions before resorting to mass layoffs. These measures include reducing job postings, hiring less, cutting temporary help, and reducing hours worked. Average weekly hours have decreased, potentially indicating a return to normal or a slackening labor market depending on future trends.

When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.

Saudi Arabia and Russia, two of the world's largest oil producers, have decided to extend cuts to their oil production to support oil prices and boost income. This move comes despite weakened demand due to the sluggish economy.

Here's the latest news from Federal Reserve Chair Jerome Powell. While speaking at a conference in Portugal, Powell expressed optimism about the US economy and decreased the possibility of a recession, stating that the economy has shown resilience and is still growing, albeit at a modest pace. He acknowledged the possibility of a recession but emphasized that it is not the most likely scenario.

Here's the scoop on China's gold demand. According to Bloomberg, the country's economic slowdown is beginning to affect the sector, resulting in a cooling off of gold sales. While jewelry sales experienced rapid growth earlier this year, they only expanded by 24% in May, indicating a slowdown. China, alongside India, is a leading consumer of physical gold, including bars, jewelry, and coins