Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The US dollar has further benefited from the recession-linked woes. Early Tuesday, the dollar received a further push from better-than-expected US data, on the contrary, Wall Street exhibited poor performance amid sour market sentiment.
US bond yields started the day retreating from multi-year highs, picking up after the US session’s opening bell. Hawkish comments from US policymakers pushed yields higher; the yield on the 10-year Treasury note extended to 3.99% on Tuesday. The 2-year note currently yields 4.30%, slightly below its previous close.
The GBP/USD pair stabilized on Tuesday, around 1.0700. BoE Chief Economist Huw Pill said that November will bring about significant monetary policy response and improvements.
Economic Data
US Durable Goods Orders declined by 0.2%, or by $0.6 billion, monthly in August to $272.7 billion, the monthly data published by the US Census Bureau revealed on Tuesday. This reading are better than the market expectation for a decrease of 0.4%.
Other Developments
Bitcoin price attempted to recapture $20,000 as support failed, the most famous cryptocurrency traded at $19,045, namely below $19,100.
The EUR/USD pair finished the day right the 0.9600 mark, trading not far from the multi-year low posted at 0.9549. A steeper EU energy crisis adds pressure as early in the day, several leaks were detected in the Nord Stream pipelines, interrupting gas transportation from Russia to the EU. The Bloc has warned of the response to any sabotage against active infrastructure
During the European morning, ECB’s Christine Lagarde and US Federal Reserve chief Jerome Powell attended an event about the opportunities and challenges of the crypto assets on finance. There was little reference to monetary policy, and they passed unnoticed. Both are scheduled to participate in different events on Wednesday, none of these events will be directly on monetary policies.
Fed’s officials defended the pace of Fed’s measures to attain the dollar’s recent strength. Fed’s Charles Evans said he was getting concerned about going too far, too fast with rate hikes but added that his outlook is in line with the Fed’s median assessment of rates at 4.25-4.50% at the end of 2022 and at 4.6% end of next year. Neel Kashkari said the central bank is moving “very aggressively,” and there is a high risk of “overdoing it.” Finally, James Bullard noted that inflation is a “serious” problem in the US.
AUD/USD finished the day in the 0.6420 price zone, while USD/CAD settled at 1.3725. The dollar advanced against safe-haven currencies, with USD/CHF now trading at around 0.9920 and USD/JPY at 144.85.
Gold eased and trades just below $1,630 a troy ounce. Crude oil prices ticked higher, and WTI now changes hands at $78.50 a barrel.
Also Read
EUR/USD around 20 year lows
EU warns of suspected Nord Stream sabotage
Bitcoin fails to hold $20K after Powell’s remarks
Gold intraday gains challenge remarks by Fed
Could taming inflation cost millions of US lost jobs?
USD/CAD fluctuates amid negative market sentiment
US shares abandon earlier gains on Fed official’s remarks
Fed’s Bullard downplays recession risk on US level
