2023-06-08 • Updated
Let's dive into the recent debt ceiling saga in the US and its implications for the economy, deficit, and inflation. The good news is that a new debt deal is on the horizon, saving us from a potential default on June 5. Phew! This deal will impact the economy by providing stability and avoiding a financial catastrophe. It should also help keep the deficit in check, preventing further debt accumulation. As for inflation, the deal aims to address the budget outlook, which could impact inflation rates. However, we'll need to monitor future developments to see how things play out and ensure the US finds solid financial footing. Stay tuned for updates and keep your trading strategies adaptable. Happy trading!
The rejection from the trendline resistance has been clearly established, but we’re yet to see the price trade clear of the pivot zone. Looking at the scenario, my sentiment is bearish based on the following factors;
Analyst’s Expectations:
Direction: Bearish
Target: 103.252
Invalidation: 104.249
EURUSD has been rejected from the demand zone and the trendline support. Based on the additional confluence from the bullish moving average array, I will uphold my bullish sentiment on EURUSD until the US Dollar reverses its structure. As long as the US Dollar indicates a bearish price action, I will remain bullish on the EURUSD.
Analyst’s Expectations:
Direction: Bullish
Target: 1.08481
Invalidation: 1.06599
AUDUSD has not yet reached the major resistance zone I have in mind. However, pending the time, I will aim for a clear break of structure (BoS) in the 1Hour timeframe to consolidate my bearish sentiment. The confluences for this trade are;
Analyst’s Expectations:
Direction: Bearish
Target: 0.65435
Invalidation: 0.68251
GBPUSD is trading within a rising wedge and has recently seen a clear rejection from the rally-base-rally demand zone and the moving average support. The moving average array also looks clearly bullish, and the 100-Day moving average provided ample support to confirm bullish sentiment.
Analyst’s Expectations:
Direction: Bullish
Target: 1.25740
Invalidation: 1.23679
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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The European Central Bank (ECB) has raised interest rates by 25 basis points, marking its tenth consecutive rate hike since July 2022 and bringing the total increase to 450 basis points. The ECB is primarily concerned about high inflation levels, both current and projected, with concerns extending into the future.
The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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