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Commoditytrading

Focus on the Fed's decision and the EU's energy problemsEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 USD/CHF 🔽 USD/JPY 🔼 XAU 🔽 WTI 🔼 In Tuesday's financial markets, risk aversion dominated, favoring the dollar most. Several factors affected the mood of the market. Gazprom, the Russian gas giant, is supplying Germany with approximately 20% of its usual supply of natural gas. For the upcoming winter, the EU countries have agreed to reduce gas consumption by 15% by the end of the six-month period. Despite the fact that Moscow reported that the missing turbine for the pipeline was on its way after maintenance, it has yet to be installed. Also of interest to speculators were the yields on US bonds. Since 2000, the yield curve has never been more inverted. The yield on 2-year Treasuries is 3.03 percent, while the yield on 10-year notes is 2.76 percent. An inverted curve typically predicts a recession. The International Monetary Fund (IMF) has reduced its global growth forecast for this year from 3.6 percent to 2.9 percent. The organization also issued a warning that the Ukraine conflict and high inflation could tip the world economy into a deep recession. The World Economic Outlook also said that a complete gas cutoff from Russia to Europe and a decline in the nation's oil exports would further impede development in 2023. With EUR/USD edging closer to 1.0100, the EUR was once more among the USD's weakest rivals. The GBP/USD exchange rate remained above 1.2000, while the AUD/USD closed at 0.6935. The USD/CAD pair increased as oil prices declined, trading close to 1.2890. There was no movement in safe-haven currencies, with the USD/CHF staying stable at 0.9620 and the USD/JPY currently trading at 136.75. Spot gold remained at a familiar level, though it was close to the bottom of its most recent range. The price of an ounce of the shiny metal is $1,717. The United States' decision to sell an additional 20 million barrels of oil from its Strategic Petroleum Reserve contributed to the slight decline in crude oil prices, which was also a result of the depressing mood. WTI's final trading price for the day was $94.90 a barrel. The US Federal Reserve is presently the center of attention. Although there is a probability of a 100 bps change, it is widely expected that the central bank would increase the funds rate by 75 basis points. Since the most recent Fed meeting, the latter has become less and less plausible as economic growth keeps declining. To control inflation, policymakers might not want to risk a recession. More information on Mitrade website.
by Mitrade_official
Major currencies retreat ahead of another Fed rate hikeEUR/USD 🔽 GBP/USD ▶️ AUD/USD 🔽 USD/CAD 🔼 XAU 🔼 WTI 🔽 After a week of rallying, greenback peers have weakened towards the US currency, mostly due to disappointing domestic economic data, recession fears, and the imminent 75 bps rate hike from the Federal Reserve, while some even predicted a full percentage increase. The S&P Global manufacturing PMI for the Eurozone, Germany, and France all missed market estimates, signaling a slowing economy, EUR/USD thus went on a continuous decline to 1.021. Despite trading with considerable fluctuations, GBP/USD closed at 1.1996 with negligible gains. Although the British Pound did breach the 1.2000 level against the US dollar, the currency pair soon lost support and went below it again. Meanwhile, AUD/USD fell to 0.6925, and USD/CAD was at 1.2914 last Friday, now edging towards 1.3000 level, with a high of 1.2944. Gold price climbed to $1,727 an ounce, WTI crude futures experienced an oscillation between $94 to $96, to a closing price of $94.7 a barrel. Other than the Fed interest rate decision, multiple GDP readings will be available from Canada, the Eurozone, Germany, and the US this week. In US stocks, Social media firm Snap (SNAP) was one of the worst performers, dipping over 39% as its recent results were less than satisfying. More information on the Mitrade website.
by Mitrade_official
ECB mildly surprises market with a 50 bps rate hikeEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔽 The European Central Bank finally increased its interest rate by 50 basis points, in order to drive inflation back to 2%. Though Europe has lagged behind other major central banks in terms of tightening monetary policy, the decision still exceeded the 25 bps forecast. Euro gained momentum against the greenback, EUR/USD briefly surged to 1.0275 before closing at 1.0228. While the UK top job has narrowed down to the final two candidates, GBP/USD fluctuated around the 1.2000 level and closed at 1.1993 with minor gains. Later tonight, domestic retail sales and price manager index related data will be available. AUD/USD had slumped to a low of 0.6861, but climbed to 0.6929, gaining over 30 pips. USD/CAD retreated from 1.2936 to 1.2867. The latest US economic figures were not encouraging, Initial Jobless Claims reached a six-month high of 251,000, as the Philadelphia Fed Manufacturing Index dropped to -12.3. Signs of a slowing economy may convince the Federal Reserve to stay away from a 100 bps rate hike next week. After sliding to $1,679, gold futures rebounded $1,713.4 an ounce. U.S. WTI crude futures fell to $96.35 a barrel, thanks to Libya resuming oil production, and recession fears still looming over the US and Europe. More information on Mitrade website.
by Mitrade_official
Market expects ECB rate hike will be outshined by the FedEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔽 WTI 🔽 Later tonight, the European Central Bank will announce its first rate hike in six years. While most expected a 25 bps rate hike, some still believed the ECB would double the amount to combat inflation. Still, it pales compared to the 75 bps rate hike forecast from the Federal Reserve, and the greenback recovered against its peers; EUR/USD closed at 1.0177, with a low of 1.0157. According to the UK Office for National Statistics, Consumer Price Index (CPI) readings in June recorded a 9.4% - a four-decade high, almost reaching double-digit inflation earlier warned by Governor Bailey of the Bank of England. The British Pound was weakened, with GBP/USD declining to 1.1969. Canada’s inflation slowed last month, and core CPI increased by 0.3%. USD/CAD rose to 1.2884, with a high of 1.2904. Meanwhile, AUD/USD closed at 0.6885, losing 13 pips. By the end of yesterday’s trading session, gold futures lost support and went below $1,700 to close at $1,695, currently sliding to 1,689.75 an ounce. US Crude Oil Inventories decreased by 446,000 barrels over an anticipated addition of 1.36 million barrels, but recession fears proved to be a more significant market force. WTI oil futures fluctuated between $98 and $100 a barrel, finally settling on $99.88. More information on Mitrade website.
by Mitrade_official
Strong earning reports cheer US stock pricesEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU ▶️ WTI 🔼 So far, most earning reports this week have exceeded market forecasts, e.g. Johnson & Johnson and IBM, allowing major US indices to rally, Nasdaq led with a 3.13% surge to 12,249. Despite a stream of leaving subscribers, Netflix managed to grow 5.5% past the $200 level, currently at 201.63. Meanwhile, major currencies extended their recovery runs as well. The Eurozone Consumer Price Index (CPI) recorded a 8.6% rise in price levels that met estimates, and bets on a 50 bps rate hike from the European Central Bank further boosted the Euro, EUR/USD rose 82 pips to close at 1.0224. The GBP/USD pair briefly went above 1.2000 and closed at 1.1995, reflecting a couple of fairly optimistic employment data. Last month's unemployment rate in the UK was at 3.8% as expected, though investors projected the CPI reading in June to go up by 9.3%, adding more inflationary pressure. AUD/USD has a closing price of 0.6895, after gaining over 80 pips and trading flat at 0.6900. USD/CAD fell over 100 pips to 1.2869. Gold futures experienced minor oscillation, but remained little changed at $1,710.7 an ounce. Oil bulls slowed down as they met resistance at $100 level, finally closing at $100.74 a barrel. More information on Mitrade website.
by Mitrade_official
Greenback softens from cooled 100 bps Fed rate hike betsEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔼 Previous comments from Federal Reserve officials have shifted market bets from a 100 bps rate hike to 75, pushing the US dollar to retreat against its peers, with the British Pound gaining 99 pips to 1.1954 towards the greenback as the leading currency pair. Later today, the UK Unemployment Rate and Average Earnings will be announced, and investors expect the latest readings to have little to no change from last month. Forecasts for the Eurozone Consumer Price Index also stayed the same at 8.6%, still high enough to prompt a possible 25 bps interest rate increase from the European Central Bank on Thursday. Meanwhile, EUR/USD rose to 1.0141 with a week-high of 1.0193, as Bitcoin rallied over 7% to $22,300. Fresh meeting minutes for July revealed the Reserve Bank of Australia's perspective for the 50 bps rate hike, the document addressed increased savings, a tight labor market, and overall resilience as key components for its economy to combat inflation. AUD/USD closed with minor gains at 0.6811, USD/CAD slumped to 1.2902 and rebounded to 1.2978. Gold futures retreated from a high of $1,721.0 to $1,710.2, now trading at $1,704.8 an ounce. Though the annual maintenance is still underway, Gazprom has warned Europe that the Nord Stream 1 gas supply may not resume on time. As a result, oil prices climbed and met resistance at $99 level, finally closing at $99.42 a barrel. More information on Mitrade website.
by Mitrade_official
Major currencies recover from multi-year lowEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔽 WTI 🔽 This week, investors expect a 25 basis point rate hike from the European Central Bank (ECB) on Thursday, which remains the most dovish despite being most affected by the Russian invasion of Ukraine. Uncertainties also surrounded the scheduled resumption of Nord Stream 1's gas supply from Russia, still EUR/USD managed to lose some pressure and climbed back to 1.0087, currently at 1.0114. Other peers also reclaimed losses from the greenback last week, GBP/USD increased to 1.1852 and AUD/USD with a closing price of 0.6792. On Tuesday, the latest meeting minutes from the Reserve Bank of Australia outline the following monetary policies. The USD/CAD pair had lost over 90 pips to 1.303, with US Building Permits readings available tomorrow night. Recession fears did not give gold futures a significant edge, the yellow metal slipped $5 to $1,703.6 an ounce. However, WTI crude oil futures declined to $94.57 a barrel, with a low of 91.84. President Biden's effort to convince Saudi Arabia to increase oil production substantially proved fruitless, though he claimed further steps are in motion to boost supply. In the stock market, Citigroup's Q2 earnings exceed forecasts to gain 13.23%, leading the rally in the banking sector. Meanwhile, bitcoin just bounced back from 20,757 to 21,316.9. More information on Mitrade website.
by Mitrade_official
Fears of a 100 bps US rate hike cool downEUR/USD ▶️ GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 USD/JPY 🔼 XAU 🔽 WTI ▶️ Assuring Federal Reserve officials' comments have calmed investors' concerns for a historical 100 basis points (bps) interest rate increase, as the 9.1% headline inflation could persuade the Fed for more aggressive measures. The latest initial jobless claims rose to 244,000 over a 238,000 forecast. The Retail Sales and Consumer Sentiment readings tonight are expected to indicate a slightly contracted economy as inflation rages on. Meanwhile, the greenback retained its strength against other major currencies. USD/CAD reached 1.3223 before closing at 1.3117. USD/JPY even surged 154 pips to 138.93, a 24-year high. The EUR/USD pair broke parity levels to a two-decade low, after recovering from 0.9950, it closed at 1.0016 with little change. The British Pound lost 66 pips to 1.1822. AUD/USD slid to 0.6745, giving up 15 pips. Gold prices also took a hit from the dominant US dollar, gold futures briefly broke $1,700 support, managing to return to 1,705.8 with a $30 deficit. Recession fear still haunts the oil market, crude oil futures traded flat at 95.78 as they recouped from a low of 91.03. More information on Mitrade website.
by Mitrade_official
Uptrend holds despite dollar fallEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔼 USD/CAD 🔼 XAU 🔽 WTI 🔼 Following the release of the US Consumer Price Index, which showed that prices rose by a significantly worse 9.1% YoY in June than anticipated (8.8%), the US dollar ended the day slightly weaker. The core figure came in at 5.9 percent, down the previous 6 percent but higher than the projected 5.8 percent, indicating that pricing pressures are still very much present. The data first sparked risk aversion, causing stocks to plummet and government bond costs to skyrocket amid speculation that the US Federal Reserve may consider more significant rate hikes, raising the possibility of a recession. Germany also released its CPI data, which showed that it was indeed 7.6 percent YoY as previously predicted. Due to central bank imbalances, the EUR/USD pair is presently trading at about 1.0055 after reaching a peak of 1.0121. The US Federal Reserve has increased rates several times, and this month they will probably increase them by another 75 basis points. On the other hand, the European Central Bank will increase rates by 25 basis points to begin its gradual tightening in July. Positive UK data helped the pound during European trading hours as the monthly GDP increased to 0.5 percent in May, a significant improvement from the previous -0.3 percent. Additionally, Manufacturing Production expanded by 2.3 percent YoY in the same month, above expectations, while Industrial Production increased by 1.4 percent YoY. The pair lost ground during the day, finishing at roughly 1.1890. In July, the Bank of Canada increased its policy rate by 100 basis points to 2.5 percent, versus the market’s forecast for a rate increase of 75 basis points. The BOC recognized in its policy statement that, since the spring of last year, it has largely underestimated inflation due to external factors. Due to the dismal state of US equities, USD/CAD dropped to 1.2933 and is currently trading around 1.2980. Prior to the announcement of Australian employment data, the AUD/USD pair maintained slight gains near 0.6760. The nation will release June employment data during the upcoming Asian session. After adding 60.6K new jobs in May, it is anticipated that the nation will have added just modestly 25K new jobs in June. The nation’s unemployment rate is also anticipated to decrease to 3.8 percent from 3.9 percent. Australia will also release July Consumer Inflation Expectations before the statistics, with analysts anticipating a decrease from the previous estimate of 6.7 percent to 5.9 percent. While there was minimal movement in crude oil prices, WTI is currently trading at $95.80 per barrel. The gold price settled at $1,733 per troy ounce. More information on Mitrade website.
by Mitrade_official
Oil prices declined to a three-month low, EUR/USD reached parityEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔼 USD/CAD 🔼 XAU 🔽 WTI 🔽 WTI Oil futures have returned below $100 to a three-month low of $95.84 a barrel, thanks to recession fears and hopes for a production boost among major OPEC members. Tonight's US consumer price index is predicted to reach a 41-year high of 8.8% for June, paving the way for another 75 basis point hike to combat inflation. On Thursday, the US Crude Oil Inventories are expected to decrease by 154,000 barrels, possibly cheering oil prices. A contracting economy has strengthened the greenback, with the Euro briefly reaching parity towards the US dollar to close at 1.0003, then recovered to 1.0036. The German ZEW Economic Sentiment has recorded a reading of -53.8 against a forecast of -38.3, the negative sentiment is shared among predictions of various CPI data, which will be available this afternoon. GBP/USD bounced back from 1.1818 to a closing price of 1.1885 with negligible losses, while a series of GDP data will be provided by the UK Office for National Statistics tonight. Despite investors anticipating a slowed growth in yearly and quarterly terms, the forecast for a 0.1% month-on-month bump still showed certain optimism. The AUD/USD pair rose 25 pips to 0.6776, and the USD/CAD climbed 14 pips to 1.3021. Later today, The Bank of Canada will likely follow the Federal Reserve with a 75 basis points rate hike to 2.25%. Meanwhile, gold futures fluctuated on a downward trajectory to 1,724.8 an ounce. More information on Mitrade website.
by Mitrade_official
EUR/USD edges towards parityEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 USD/CHF 🔼 USD/JPY 🔼 XAU 🔽 WTI 🔽 The Euro has been steadily declining to a two-decade low against the US dollar at 1.0039, barely floating above parity. On the one hand, last week, the US nonfarm payroll readings led investors to anticipate further rate hikes from the Federal Reserve. Meanwhile, Russia's Nord Stream 1 gas pipeline began its annual maintenance, which will cease its gas supply to Germany for ten days - a significant impact on the European economy. The British Pound and Aussie slipped to two-year lows, and GBP/USD just slid below 1.185, after stabilizing at 1.1900 and closing at 1.1889. Governor Bailey of the Bank of England will give a speech tomorrow, the first time after Boris Johnson announced his scheduled resignation as Prime Minister. New pandemic restrictions in China have brought the Australian dollar down to 0.673, mostly trading flat afterwards. Greenback gained from its competitors' losses, USD/CAD rose by 57 pips to 1.3005, with a high of 1.3034, as USD/CHF closed with noticeable gains at 0.9829, and USD/JPY also gained 132 pips to 137.42. A stronger dollar held back gold futures, slipping $10 to $1,731.7 an ounce and just plunged to $1,725.5. US oil futures briefly fluctuated to $101.10, soon returning to $103.43 a barrel. As Elon Musk backs out of the 44 billion Twitter deal, Twitter (TWTR) has doubled its losses, plunging over 11%, but the platform is ready to use legal means to make the Tesla CEO see it through. More information on Mitrade website.
by Mitrade_official
Positive US-Nonfarm Payrolls may bring more rate hikesEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU ▶️ WTI 🔼 Amidst political shockwaves from Japan and the U.K., the Nonfarm Payrolls readings for June have increased by 372,000, significantly outperforming the market forecast of 268,000. Since this result does not align with market fears for a recession, the Federal Reserve will likely implement further mega rate hikes to combat inflation. Meanwhile, Elon Musk opted to terminate the Twitter deal, as he claimed the lack of information provided by Twitter itself hindered his goal of removing all spam and fake accounts on the platform. As a result, the stock price (TWTR) decreased by 5.10%, losing over two U.S. dollars over the weekend. EUR/USD closed at 1.0183, after recovering from a low of 1.0100, and the German ZEW Economic Sentiment index will be available tomorrow. As the British Parliament awaited the next political leader, GBP/USD recovered from 1.1933, then closed at 1.2027 with minor gains. AUD/USD had a choppy trading session to 0.6856, and just declined to 0.6828. Gold futures markets were mostly quiet, and little change was recorded at $1,741 an ounce. Although U.S. oil futures settled at 104.79, they were climbing slowly. The U.S. 10-year Treasury yield bonds advanced a further 8.8bps to 3.082%. More information on Mitrade website.
by Mitrade_official
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Recession concerns dominate the headlinesEUR/USD 🔼 GBP/USD 🔽 AUD/USD 🔼 USD/CAD 🔼 USD/JPY 🔽 USD/CHF 🔽 XAU 🔽 WTI 🔽 As the dollar remained strong, EUR/USD reached a 20-year low of 1.0160 on Wednesday. Amidst predictions of a local recession and an impending energy crisis, the shared currency is among the weakest. The GBP/USD exchange rate fluctuates about 1.1930, under pressure as the UK government crisis intensifies. Over thirty officials resigned, and many others begged Boris Johnson to quit. The 1922 Committee, comprised of Conservative backbenchers, sought to alter the rules that shield PM Johnson from the second vote of no confidence. The FOMC issued the Minutes of its most recent meeting. The memo demonstrated that Federal Reserve officials concurred that rising inflation necessitated restrictive interest rates and are willing to become even more stringent if inflation persists. In addition, most respondents perceived an adverse risk to growth and a "substantial danger" that rising inflation may stay entrenched. The US Federal Reserve opened the door for another 75 basis point rate rise. Wall Street struggled to register gains throughout the day, but significant indices ended higher. Although the FOMC Minutes' hawkish tone, policymakers refrained from discussing a 100 basis point (bps) rate rise, despite committing to do everything necessary to combat inflation. In addition, policymakers abstained from discussing the recession. The yield curve for US Treasuries remains inverted. Currently, the 10-year note yields 2.93 percent, while the 2-year note yields 2.97 percent. Typically, an inverted curve is viewed as an early indicator of a recession. Against the U.S. dollar, commodity-based currencies exhibited minimal movement. The AUD/USD exchange rate is around 0.6780, while the USD/CAD exchange rate is approximately 1.3040. The USD/CHF exchange rate touched a new monthly high of 0.9743, while the USD/JPY pair finished at 135.85. Gold reached a new 2022 low of $1,732.19 per troy ounce before the end of the trading day. The current price of a barrel of WTI crude oil is $98.40. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Recession fears see Euro plunging to a 20-year lowEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔽 WTI 🔽 Without an official announcement, the market has reacted as if the recession is here, turning to the greenback as a safe haven option. The Euro and British Pound took the biggest hit, EUR/USD plunged to a 20-year low of 1.0266, losing off 150 pips in the process. GBP/USD also declined more than 1.3% to 1.1957, as the resignations of two major cabinet members further destabilized the Johnson administration. The Reserve Bank of Australia increased interest rate by 50 basis points to 1.35%, aligning with its forecasts, while preparing more rate hikes to control inflation. AUD/USD had dropped modestly to 0.6802. On Thursday, the Australian Bureau of Statistics will provide the trade balance figures for May. The US dollar received a huge boost, USD/CAD spiked to 1.3036 with a high of 1.3075. A strong greenback dissuaded investors from buying the yellow metal, gold futures dropped to the lowest level in over six months at 1,763.9 an ounce. Recession fears also lowered the anticipated demand for crude oil, WTI crude futures retreated below the $100 level, to a closing price of $99.5 a barrel. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Germany trade recorded the first deficit since 1991EUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU ▶️ WTI 🔼 With inflation casting a shadow over the global economy, higher goods prices have led to a trade deficit of one billion euros in Germany, the first since 1991. The reading surprised investors since they were expecting a trade surplus of 2.7 billion euros in May. Despite the news, the euro managed to close with minor gains against the US dollar at 1.0424, with a high of 1.0461. Yet another reminder that the Reserve Bank of Australia will announce its key interest rate this afternoon, with a 50 basis point rate hike forecast. Meanwhile, Australia Retail Sales has increased by 0.9%, same as last month. After retreating from 0.6886, the AUD/USD pair closed at 0.6864. As the US goes on holiday, USD/CAD recovered from a low of 1.2838, then closed with a loss at 1.2859. GBP/USD slightly moved up to 1.2105, with a high of 1.2164. Gold futures had a quiet trading session, currently at $1,812.10 an ounce. WTI crude futures returned to $110 level, since the strike among Norwegian offshore workers is likely to reduce daily crude oil output by 89,000 barrels, a tightened supply has firmly held oil prices at 110.25 with little change. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Risk off mood pushes greenback to near 20-year highsEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔼 WTI 🔼 US investors will take a day off to celebrate their Independence Day holiday, market uncertainties and supply shocks send the US Dollar Index Futures from twice over 105.1 - near 20-year highs to 104.8. Meanwhile, the United States 10-Year Bond Yield went below 3.000%, currently trading at 2.889%, and USD/CAD briefly went past 1.2950 to 1.2883. The pursuit for safety also extended the weakened run for major currencies, EUR/USD fell to 1.0428 with a low of 1.0375. The Eurozone had an 8.6% increase in consumer prices in June against an 8.4% forecast, furthering the inflation reading record. The GBP/USD pair slumped below 1.2000, then recovered to a closing price of 1.2094. Tomorrow night, the UK Composite and Services Purchasing Managers Indices will be available, with the market expecting the same level as the previous month. Major news will be announced from the Reserve Bank of Australia, the latest Interest Rate Decision and Statement are to be provided by the central bank, projections have anticipated a 50-basis point rate hike to 1.35%. AUD/USD dropped to 0.6814. Storms brewing in the Atlantic may further tighten the oil supply, U.S oil futures added over $2.5 to $108.43 a barrel. Gold price rebounded from a low of 1,785 to 1,801.5, now trading at 1,810.15 an ounce. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
US GDP diminished by 1.6% in the first quarter this yearEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU ▶️ WTI 🔽 The US GDP was the first to release this week, the -1.6% contraction in the first quarter over the -1.5% forecast indicates a possible recession. Federal Reserve Chairman Powell acknowledges the risks of recession brought by aggressive rate hikes, but maintained controlling inflation would be his primary objective. As a result, recession fears weakened major currencies against greenback, EUR/USD declined to 1.0439 and GBP/USD to 1.2125. As weathervanes for the European economy, Germany’s Retail Sales and Unemployment Change figures will be released tonight. The UK and Canada also have their GDP readings about to be announced, investors anticipated a 0.8% growth for the UK in the first quarter, and Canada’s GDP in April to increase by 0.3%. Meanwhile, the USD/CAD pair closed at 1.2891 with modest gains, and AUD/USD reached 0.6881 with minor oscillations. Other than a brief spike to 1,833, gold futures were less eventful to close at 1,817.5 an ounce. US Gasoline Inventories has mildly surprised the market by increasing its stockpile by over 2.6 million barrels, which eased the oil prices from 113.5 to 109.78 a barrel. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Oil price rises as OPEC edges towards max production capacityEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD ▶️ XAU 🔽 WTI 🔼 Oil prices continue to recover from last week's weak run, with Saudi Arabia and the United Arab Emirates almost reaching their production limits, being the few OPEC members who still can increase capacities. The market saw oil futures went up to $111.76 a barrel, then briefly climbed above $112. The market mood was dampened as the European Central Bank (ECB) will increase its interest rate on Friday (1 July), for the first time in 11 years. ECB President Christine Lagarde further suggested more rate hikes will follow if inflation fails to slow down. EUR/USD has a noticeable fall to 1.0518, stabilizing at 1.0525 afterwards. The GBP/USD pair dropped to a closing price of 1.2182. Later tonight, Governor Bailey of the Bank of England will give speeches on the latest economic updates for the UK. Australia Retail Sales in May recorded a 0.9% growth over a forecasted decline of 0.4%. Still, AUD/USD closed with minor losses at 0.6906. Oil bulls did not cheer the loonie, USD/CAD mostly traded flat at 1.2871, after recovering from a two-week low of 1.2825. Gold futures were also relatively cool, the yellow metal lost less than $3 to $1,821.2 an ounce. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
G7 proposed price cap to limit Russian oil incomeEUR/USD 🔼 GBP/USD ▶️ AUD/USD 🔽 USD/CAD 🔽 XAU 🔽 WTI 🔼 Apart from a unilateral default on Russian bonds by western creditors, the Group of Seven nations proposed a price cap that would sharply limit its oil revenue. The sanction is aimed at lowering oil prices as well, but with China and India being the largest customers, it would be difficult to implement the price ceiling. On Tuesday, WTI oil futures closed at $109.57 a barrel, now returning to the $110 level. GBP/USD traded flat at 1.2264, but briefly went to a week high of 1.2330. EUR/USD rose to 1.0583, with a high of 1.0613, as the Germany Harmonized Index of Consumer Prices will be released tonight. AUD/USD seesaw its way to a loss of 0.6923, and tomorrow's Australia Retail Sales figures for May is expected to decrease from 0.9% to 0.4%. The USD/CAD pair had a closing price of 1.2878, losing 13 pips in the process. Gold Futures lost momentum and declined to 1,824.8 then stabilized at 1,825. Last month's US Pending Home Sales beat market forecasts, with a 0.7% growth against a projected loss of -3.7%. Meanwhile, the market anticipated negative readings for Consumer Confidence and Gross Domestic Product, which will be announced tomorrow. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Friday rally bring US indices half way back to pre-June levelsEUR/USD 🔼 GBP/USD 🔼 AUD/USD 🔼 USD/CAD 🔽 XAU 🔼 WTI 🔼 Last Friday, US stocks managed to halve the losses from early June, major stock indices gained between 2.68 to 3.49%. For individual performances, Meta Platforms rose by 7.19%, and Royal Caribbean Cruises (RCL) had a 15.77% spike as the travel sector outperformed the market. The risk on mood also encouraged investors to prefer major currencies other than the US dollar. Despite the German IFO business climate index and UK retail sales readings not meeting market projections, EUR/USD and GBP/USD climbed to 1.0554 and 1.2262 respectively with oscillations. AUD/USD closed at 0.6948, and just dropped to 0.6913. USD/CAD sharply declined over the weekend with a closing price of 1.2893, losing more than 100 pips. Later tonight, the US Census Bureau will provide the latest figures on Durable and Capital Goods Orders. Gold futures recovered from last week's low of $1,823.5 to $1,830.3 an ounce, now reaching $1,838.4. U.S. WTI crude futures had a choppy trading session, concluding at $107.62 a barrel. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official
Recession fears rekindle greenback appealEUR/USD 🔽 GBP/USD 🔽 AUD/USD 🔽 USD/CAD 🔼 XAU 🔽 WTI 🔽 Yesterday (23 June), as Federal Reserve Chair Jerome Powell said his team is "acutely aware that high inflation imposes significant hardship". Meanwhile, he also acknowledges "our actions affect communities, families, and businesses across the country" - admitting their monetary decisions could bring the economy to a recession. As a result, investors flocked to the US dollar to get shelter from possible economic turbulences. EUR/USD fell from 1.0575 to 1.0494, then closed at 1.0523. Germany's Manufacturing PMI in June underperformed with a 52.0 reading against a 54.0 forecast. The latest PMI figures for the UK were a mixed bag of results, while the Composite and Services PMI were slightly better than market projections, Manufacturing PMI fell short of expectations at 53.4. GBP/USD recovered from 1.2170 to a closing price of 1.2261. Later tonight, the UK Retail Sales will be available. The AUD/USD pair dropped 28 pips to 0.6899, and USD/CAD closed at 1.2994, while just retreating from 1.3013 today. The results of yesterday's Federal Reserve annual bank stress test show banks continue to have strong capital levels, maintaining their lending capacity. Gold futures briefly went to 1,846.6 a troy ounce then cooled off to close at 1,829.8. Oil prices experienced minor fluctuations, finally closing with a loss at 104.27 a barrel. More information on Mitrade website.
NASDAQ:XAU
by Mitrade_official