Pre-FOMC hesitation or more

Monica Kingsley Monicakingsley

S&P 500 bulls came back from the premarket correction Monday, will they repeat it Tuesday too? No data today really, but Bessent and Canada PM are ahead while India is saying talks are going extremely well. Yesterday‘s key development had been USD returning back below 100 (implications for gold, silver and oil talked already), yet today‘s USDX setup dialed back any sour USDX taste of yesterday (provided it lasts into the close, that is).

Equities yesterday were fine for quick daytrading gains, and today‘s video dives into bonds, volatility (is it calming down?) and again USD together with specifying the nearest ES support, so make sure to review it alongside the extensive weekend video. China and EU deal is „nice“, and US needs to announce and conclude some framework soon so that the market can get some love.

Author

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

AUD/USD drops toward 0.6900 amid USD uptick, ahead of US NFP

AUD/USD meets fresh supply and drifts toward 0.6900 in the Asian session on Friday, near its lowest level since early July. The US Dollar regains traction near 17-month highs as oil-driven inflationary concerns counter reduced bets on an October Fed rate hike and the overnight pullback in US bond yields, weighing on the pair. Focus is now on the US jobs data.

USD/JPY holds steady above 158.00 after hot Tokyo CPI; US NFP awaited

USD/JPY consolidates above 158.00, the top end of its weekly range in the Asian session on Friday, moving little after hotter-than-expected Tokyo CPI, which backs the case for more BoJ rate hikes. Meanwhile, the US Dollar retains a bullish undertone near a one-and-a-half-year top amid oil-driven inflation fears and geopolitical uncertainties, supporting the pair ahead of US Nonfarm Payrolls.

Gold returns to the red and tests $4,150, with eyes on US NFP

Gold edges lower in a multi-day-old range near $4,150 in the Asian session on Friday as traders await the US NFP report for more cues about the Fed's policy path. The outlook will drive the US Dollar and the non-yielding bullion. Meanwhile, oil-driven inflation fears offset the overnight pullback in US bond yields, helping the USD to stand firm near a one-and-a-half-year high amid the US-Iran standoff.

WTI holds steady near $92.00 as US weighs sending more troops to Middle East

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $91.75 during the early Asian trading hours on Friday. WTI flatlines after a two-day gain as the United States (US) mulled sending another aircraft carrier group to the Middle East.

Why speculators slashed Yen longs by the most since August — and what that signals about risk

For much of the past month, the Japanese Yen (JPY) had become one of the market's preferred defensive trades. Hedge funds accumulated more than 170K net long contracts over four weeks as investors positioned for tighter Bank of Japan (BoJ) policy, persistent geopolitical uncertainty and a more cautious outlook for global growth.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Federal Reserve (Fed). Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario. Yet beneath that dramatic repricing, the US economy is sending a considerably less dovish message.