Forex News Roundup for 02 June, 2023

My FX List
June 2, 2023
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  • Market expectations point towards the Federal Reserve raising interest rates by 0.25% at its upcoming June meeting. However, there is a growing belief that the Fed might deviate from this path and choose to temporarily halt the rate hikes. However, recently, Fed member Harker made remarks about the economy being steadily progressing.
  • Having successfully cleared the House of Congress, the US debt limit deal is now set to undergo the ratification process in the Senate. The prevailing consensus suggests a high level of confidence that the final passage will occur without encountering any significant hurdles or complications.
  • Having successfully cleared the House of Congress, the US debt limit deal is now set to undergo the ratification process in the Senate. The prevailing consensus suggests a high level of confidence that the final passage will occur without encountering any significant hurdles or complications.
  • Yesterday’s publication of German Preliminary CPI data defied expectations by showcasing a 0.1% decrease on a monthly basis, surpassing the anticipated 0.2% increase. This unforeseen decline has the potential to weaken the Euro even more, as it undermines the prospects for upcoming interest rate hikes.
  • Asian stock markets experienced their most promising day in a month as a result of the surprising release of robust Chinese factory data.
  • Yesterday’s release of Canadian GDP data brought a modestly positive outcome, as it revealed no change on a monthly basis, contrary to the anticipated 0.1% decline. This outcome, slightly better than expected, offers a ray of hope for the Canadian economy.
  • The US Dollar is staging a resurgence, counteracting its established bearish trajectory. The current market landscape is characterized by the notable weakness of the New Zealand Dollar juxtaposed against the robust performance of the Australian Dollar.
  • Traders who prioritize trend analysis are expected to seek opportunities for long positions in the USD/JPY currency pair, which has recently achieved a fresh six-month high. Simultaneously, short positions in NZD/USD hold appeal, as the New Zealand Dollar continues to exhibit weakness following the unexpected statement from the RBNZ last week.
  • The release of US JOLTS Job Openings data revealed a stronger-than-expected figure of 10.1 million job openings compared to the consensus estimate of 9.41 million.
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