3 Events to Watch: CrowdStrike, 25th Amendment, & US weather
CrowdStrike Oversold?
A widespread outage on Friday left computer screens blue, grounded flights, halted hotel check-ins, and disrupted freight deliveries, forcing businesses to revert to paper and pen.
The incident, allegedly triggered by an update from CrowdStrike (down ~12%), also affected...
Trade Alerts: SA Rates and BoC Decision
South African Inflation
South Africa is expected to maintain its key interest rates at 8.25% and 27.25% on Thursday, citing persistent inflationary pressures. Central bank Governor Lesetja Kganyago has emphasized that rate reductions are unlikely until inflation sustainably returns to the 4.5% midpoint of the target...
Political uncertainty in the U.S. could significantly impact the EUR/USD as markets brace for tomorrow’s ECB decision. The major political factor may not if President Biden steps down, but who steps up to take his place. Who will the markets like and who will they dislike? This could play out in the EUR/USD.
Biden has said he will reevaluate his candidacy if...
Trump, Fed Speculation Drive Gold to New Heights
Gold price cleared the May 20 high of $2450 on Tuesday, as expectations intensify that the U.S. Federal Reserve will commence an easing cycle in September. Fed Chair Jerome Powell addressed the Economic Club of Washington this week, noting the economy's solid performance and signaling potential rate cuts once...
Earnings season kicks off: Key reports to watch
Earnings season kicks into high gear as Novartis, Goldman Sachs, BlackRock, UnitedHealth, Bank of America, Morgan Stanley, Charles Schwab, Progressive, Johnson & Johnson, Netflix, Abbott, Blackstone, Reliance, and American Express, prepare to report their financial results.
Recent weeks have seen a rally in...
GBPUSD – technical overview
Signs have emerged of the market wanting to put in a longer-term base after collapsing to a record low in September 2022. The door is now open for the next major upside extension towards the 2023 high at 1.3143. Any setbacks should be well supported ahead of 1.2000.
R2 1.2894 – 8 March/2024 high – Strong
R1 1.2861 – 12 June high...
As Indian Prime Minister Narendra Modi engages with Russian President Vladimir Putin in Moscow, the focus back home will shift to the latest inflation figures.
India has faced significant pressure from Western nations to distance itself from Russia following the invasion of Ukraine. However, New Delhi has maintained its ties with Moscow. A key factor in this...
NZDUSD – technical overview
Overall pressure remains on the downside with the market continuing to stall out on runs up into the 0.6500 area. At the same time, there are some signs of the market wanting to put in a longer-term base. Ultimately, a break back above 0.6500 would be required to take the medium-term pressure off the downside and encourage this...
This week's economic calendar is dominated by US inflation data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) set for release.
Expectations are for a further decline in inflation, potentially strengthening the case for multiple Federal Reserve interest rate cuts this year. Economists polled by Reuters forecast annual consumer price...
The euro held steady at $1.0825 on Monday, recovering from a dip to $1.0815 as traders absorbed the surprising French election results, which saw a leftist alliance lead both the centrists and the right in the number of sets gained.
Key drivers for the EURUSD's next moves include Biden's potential resignation, upcoming bank earnings, Powell's testimony in...
France is on the brink of a hung parliament, with the left-wing coalition capturing the most seats in a stunning upset over Marine Le Pen’s National Rally.
Obviously, the forex markets are closed on the weekend. So will be interesting to see the reaction to these shock election results in France on the EUR/USD and EUR/GBP when the market opens. Regardless of...
Euro eyes French vote after pound's rally
The British pound surged above $1.276 on Thursday, reaching its highest level in three weeks, as voters across the United Kingdon headed to the polls for parliamentary elections.
The Labour Party, currently leading in the polls, appears poised to unseat Prime Minister Rishi Sunak's Conservative Party. Some projections...
USDCAD – technical overview
Above 1.3000 signals an end to a period of longer-term bearish consolidation and suggests the market is in the process of carving out a more significant longer-term base. Next key resistance now comes in up into the 1.4000 area. Setbacks should be very well supported down into the 1.3000 area.
R2 1.3847 – 16 April/2024 high –...
Bloomberg reports that dozens of U.S. House Democratic lawmakers are considering sending President Biden a letter urging him to withdraw from the race. The New York Times confirms this, citing a key Biden ally who reveals that the president understands the fragility of his candidacy following a lackluster debate performance last week.
Despite the speculation,...
This week is set to be a pivotal one for global markets, with significant economic and political events on both sides of the Atlantic.
In the United States, the spotlight will be on nonfarm payrolls at the end of the week, with the economy expected to have added 180,000 jobs in June. This would mark a slowdown from the 272,000 jobs added in May and signal a...
NZDUSD – technical overview
Overall pressure remains on the downside with the market continuing to stall out on runs up into the 0.6500 area. At the same time, there are some signs of the market wanting to put in a longer-term base. Ultimately, a break back above 0.6500 would be required to take the medium-term pressure off the downside and encourage this...
The Japanese yen tumbled beyond 160 per USD, marking its weakest level since 1986. This is a critical threshold that previously prompted intervention by Japanese authorities. In May, Japan depleted a record ¥9.8 trillion to bolster the yen.
Masato Kanda, Tokyo's top currency diplomat, attempted to mitigate the surge above 160.00 with strong verbal interventions,...
EURUSD – technical overview
The Euro has been in a multi-month consolidation since bottoming out in 2022. Setbacks have since been exceptionally well supported on dips below 1.0500, with a higher platform sought out ahead of the next major upside extension. Look for a push through the 2023 high at 1.1276 to strengthen the constructive outlook and extend the...
