USD/JPY Overbought Signal Persists Ahead of Fed Chairman Testimony...

Japanese Yen Talking Points USD/JPY climbs to a fresh monthly-high (112.80) ahead of the semi-annual Humphrey-Hawkins testimony, with the dollar-yen exchange now at risk of making a run at the 2018-high (113.39) as it extends the series of higher highs lows from earlier this week. USD/JPY Overbought Signal Persists Ahead of Fed Chairman Testimony Despite the growing threat of a trade war, recent comments from Chairman Powell suggest the Federal Open Market Committee (FOMC) will stay on course to further normalize monetary policy as the U.S. economy is in a ‘good place.’ In turn, Chairman Powell may continue to strike a upbeat tone in front of U.S. lawmakers as the central bank head pledges to ‘work in a strictly nonpolitical way, based on detailed analysis,’ and a batch of hawkish comments is likely to boost the appeal of the greenback as the Fed appears to be on track to implement four rate-hikes in 2018. Keep in mind, the IG Client Sentiment report shows the retailArticle source:...

Weekly Trading Forecast: Fed Testimony, China GDP and Earnings Compete with Trade Wars...

US Dollar Forecast – USD: Trade Wars vs Strong Economic Fundamentals – The Battle Continues The US dollar should be powering ahead based purely on economic fundamentals but the over-arching threat of global trade wars is reining in the greenback’s performance. British Pound Forecast – GBP: Strong UK Data may Boost GBP, However, Brexit Overhang Remains The overhang of Brexit continues to provide an uncertain outlook for the Pound. However, strong UK data could potentially see GBP post marginal gains. Australian Dollar Forecast – Australian Dollar Could Be Stuck Between RBA Minutes, Jobs Data The Australian Dollar ‘s overall backdrop remains pretty bleak for bulls, but AUD/USD seems to have hit durable support and may have suffered enough for the moment. Canadian Dollar Forecast –CAD Undermined by US Auto Tariff Threat. Hawkish BoC, So What? The Canadian Dollar was unable to capitalize on a hawkish BoC amidst trade war concerns. Ahead, the US might impose auto import tariffs and local CPI could miss, undermining CAD. Japanese Yen Forecast – USD/JPY Forecast: Dollar Strength to Persist on Hawkish Fed Testimony The Humphrey-HawkinsArticle source:...

USD May Gain on Trade Fears, MYR May Brush off CPI – ASEAN Weekly...

ASEAN Outlook Talking Points: USD may gain versus PHP, SGD if US advances on more Chinese tariff threats MYR may brush off expected disinflation, IDR looks to an interest rate decision Will US pursue auto import tariffs? Lawmakers to question Fed Chair Powell Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along. ASEAN bloc currencies such as the Philippine Peso and Malaysian Ringgit face another week that could bring with it more on the developments of the global trading environment. In the previous week, US President Donald Trump refreshed additional threats of $200b in Chinese import tariffs which sent global stock markets tumbling while the US Dollar rose. Since then, those fears have died down as reports crossed the wires that the two countries could be open to more negotiations in the meantime. However, the risk that things don’t go as planned still remains and could come back to hurt PHP, MYR, SGD and IDR. In addition,Article source:...

Gold Prices Flirt with Disaster- Key Support in Focus Ahead of Powell...

Fundamental Forecast for Gold: Neutral Gold prices hold key support – All eyes on Fed testimony next week What’s driving gold prices? Review DailyFX’s 2018 Gold Projections Join Michael for Live Weekly Strategy Webinars on Monday’s at 12:30GMTto discuss this setup and more! Gold prices moved lower this week with the precious metal down 1.3% to trade at 1239 ahead of the New York close on Friday. The decline comes amid renewed strength in the greenback with the US Dollar Index (DXY) rallying more than 1% on the week. Concerns over the looming global trade war seem to have abated in the near-term with headlines out of the UK regarding the ongoing Brexit negotiations and Presidents Trump’s European tour taking center stage. Broader risk appetite has remained positive with all three major US equity indices closing higher on the week. All Eyes on Powell Traders will be lending a keen ear to comments made by Federal Reserve Chairman Jerome Powell next week at the semi-annual Humphrey Hawkins testimony before congress. This week’s release of the U.S. Consumer Price Index (CPI) showed an up-tick inArticle source:...

NZD/USD Rate Eyes July-Low Ahead of New Zealand Inflation Report...

New Zealand Dollar Talking Points NZD/USD gives back the rebound from the monthly-low (0.6688) as the threat of a trade war dampens the outlook for the Asia/Pacific region, but fresh developments coming out of the New Zealand economy may shore up the kiwi-dollar exchange rate as the headline reading for inflation is expected to pick up in the second-quarter of 2018. NZD/USD Rate Eyes July-Low Ahead of New Zealand Inflation Report Updates to New Zealand’s Consumer Price Index (CPI) is anticipated to show the gauge increasing 1.6% per annum versus the 1.1% print for the first three-months of 2018, and signs of stronger price growth may heighten the appeal of the New Zealand dollar as it puts pressure on the Reserve Bank of New Zealand (RBNZ) to lift the official cash rate (OCR) off of the record-low. However, a batch of lackluster data prints may encourage the RBNZ to buy more time as ‘consumer price inflation remains below the 2 percent mid-point of our target,’ and Governor Adrian OrrArticle source:...

USD/JPY Forecast: Dollar Strength to Persist on Hawkish Fed Testimony...

Fundamental Forecast for Japanese Yen: Bearish Japanese Yen Talking Points The semi-annual Humphrey-Hawkins testimony may influence the near-term outlook for USD/JPY as Fed Chairman Jerome Powell appears before Congress, and the fresh rhetoric may ultimately fuel the recent rally in the dollar-yen exchange rate should the central bank head show a greater willingness to deliver four rate-hikes in 2018. Recent comments from Chairman Powell suggest the Federal Open Market Committee (FOMC) will stick to its current course as the U.S. economy is in a ‘good place,’ and the central bank head may reiterate that the monetary policy will remain ‘independent of all political concerns’ as the board gets a step closer in achieving their dual mandate for full-employment and price stability. Even though the FOMC wants‘inflation to be symmetrically around 2 percent,’ Chairman Powell may strike a hawkish tone in front of U.S. lawmakers as he pledges to ‘work in a strictly nonpolitical way, based on detailed analysis,’ and Fed officials may continue to prepare U.S. households and businesses for higher borrowing-costs as ‘the Committee expects thatArticle source:...