Contents Key trading levels: AUD Week Ahead: ECB, BOJ, UK CPI and earnings Key findings Gold price benefitted from modest USD weakness ECB Quick Analysis: EUR BOJ Preview: Will the BOJ adjust rates at its upcoming meeting? By Skerdian Meta, Lead AnalystEthereum, the second-largest cryptocurrency by market capitalization, rose 45 percent last week, outperforming most other beatable assets. Find out the facts behind forex market movement with DailyFX’s live newsfeed. Keep on top of volatility with instant updates on forex, commodities and indices. The data would drive the USD demand and provide a fresh impetus to spot prices. Given that the ECB has pre-committed to start the rate-hike cycle in July, a 25 bps increase is fully priced in the markets and might do little to provide a meaningful impetus to the shared currency. A bigger move, meanwhile, could trigger a sharp rise in the bond yields for highly indebted countries. The risk, however, could be mitigated if the ECB announces details of its new anti-fragmentation tool. Nevertheless, the event is likely to infuse some volatility around the euro cross and produce some meaningful trading opportunities around the EURUSD pair. Many short-term traders base their decisions solely on technical analysis and price charts, regardless of which markets they are trading. These events can all have an effect on market sentiment and cause major price swings within the financial markets. However, if a company releases a report with considerably lower financials than expected, this can cause a rally for traders to short the stock as its value is decreasing. Traders can perform company analysis before deciding whether to invest in a stock. This includes analysing its growth rate potential, as well as any potential legal, political or insolvency risks. Financial ratios such as price/earnings along with dividend yields can also indicate whether a stock is a healthy investment right now. In order to read news events, you should familiarise yourself with economic indicators, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices. Key trading levels: AUD You will have access to a demo account straight away to practise with virtual funds before depositing funds and placing live trades. US stocks rise as earnings continue to roll in and after US jobless claims rise by 251k, the highest icm capital review level this year. No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. For example, if the USD/JPY currency pair indicates an oversold position and that the Bank of Japan could intervene to weaken the yen, Japanese exports could be affected. However, a Japanese recovery is likely to be impaired without any weakening of the yen. That may or may not be the case, but the European Central Bank has undoubtedly delivered a massive package. In-depth Forex news from the FX Empire’s news desk, providing you with updated market news throughout the day, every day. Given the first RSI , not oversold, as well as the sustained trading inside the weekly bullish channel, the EUR/GBP prices are likely to remain firmer. Receding bets for more aggressive Fed rate hikes continued weighing on the buck. Recession fears took its toll on the global risk sentiment and benefitted the safe-haven buck. Week Ahead: ECB, BOJ, UK CPI and earnings The recent recovery in the equity markets ran out of steam rather quickly amid the worsening economic outlook. Investors remain concerned that rapidly rising borrowing costs, the Russia-Ukraine war and the latest COVID-19 outbreak in China would pose challenges to global growth. Apart from this, the nervousness ahead of the crucial European Central Bank decision led to an intraday turnaround in the risk sentiment. Do I have to report forex losses? FOREX. FOREX (Foreign Exchange Market) trades are not reported to the IRS the same as stocks and options, or futures. FOREX trades are considered by the IRS as simple interest and the gain or loss is reported as “other income” on Form 1040 (line 21). No special schedules or matched trade lists are necessary.Gold price staged a goodish intraday bounce from the $1,680 region, or its lowest level since March 2021 touched earlier this Thursday and shot to a fresh daily high in the last hour. The XAUUSD was last seen trading around the $1,710 region, up nearly 0.50% for the day, though any meaningful upside still seems elusive. Analysts at TD Securities said that they expect the European Central Bank to hike its policy rate by 50 basis points in September and by 25 bps thereafter until the repo rate reaches its terminal level of 1.5%. Sterling gained against a broadly weaker euro on Friday, making up some of the losses it sustained against the common currency as the new year began, though it was still on track to end the week in the red. Key findings News that suggests a more hawkish central bank tends to push forex pairs up in value relative to other currencies, while dovish news can cause a currency to depreciate. Market sentiment remains mixed during early Thursday morning in Europe as traders remain anxious ahead of the key European Central Bank monetary policy meeting. Also keeping the Asia-Pacific equity traders on their toes is the return of recession fears and escalating covid woes in the region. What apps do you need for forex? Best Forex Trading Apps: Best Forex Trading App for Beginners: FOREX.com. Best for Intermediate Traders: TD Ameritrade. Best for Advanced Traders: eToro. Best Technical Analysis Tools: Nadex.Our Market Research section is based on top economic news and global analysis providers. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Paying attention to when trading announcements are due can mean that you end up placing a carefully planned trade just before a major event happens, which instantly triggers your stop-loss. It may be more opportune to wait to open new positions after news events have taken place, and then see if the reason for the trade is still valid. These two types of analysis may be more effective when used together, rather than solely relying on one for all trading decisions. Gold price benefitted from modest USD weakness Gold price has printed a fresh 11-month low near $1,690.00 despite a weaker DXY. China’s Vice-Premier Sun Chunlan, the official leading the country’s COVID-19 response, said on Thursday, the latest covid control is not about relaxi… Even if the quote rises past 1.0365, a convergence of the 100-SMA and descending resistance line from June 09, close to 1.0385, appear the last defense of EURUSD bears before giving control to the bulls. The US economy may face the headwinds of lower job additions in the labor market. Elsewhere, the restoration of the gas flows from Russia’s Nord Stream 1 pipeline, even if gradual, appeared to have improved the market’s mood although Germany considers it as 30% of capacity. The asset has surpassed the 20-period Exponential Moving Average at 95.31 firmly in the Asian session. Action Forex aims to empower individual forex traders to professional trading. Here, you’ll find the latest market updates, live forex analysis, forex research, trade ideas, various tools, currency rates, technical forecast, fundamental news, and trading signals. They are the leading source for the latest news on cryptocurrency along with technical analysis on the foreign currency, commodities, and trading strategies. They are also the go-to source for you to get breaking news stories and in-depth market updates from around the world. Forex analysis is how traders assess the next moves a currency pair is about to take, providing insights for taking a position. For this reason it is an essential tool for traders to make the best decisions in their daily trading routine, based on the fundamental and technical aspects forex brokers of an asset. Fundamental analysis is based on the countries’ economic situation, future prospects, and primarily what central banks plan to do with interest rates. Technical analysis focuses on previous price action, the repeat of well-known chart patterns, and other factors. This print followed the previous week’s print of 244,000 and came in worse than the market expectation of 240,000. On the JPY side of the story, EUR/JPY continues to find support from the BOJ’s dovish rhetoric, as it stuck to its ultra-loose monetary policy stance. The BOJ stood pat on its monetary policy settings while leaving the policy guidance unchanged. BOJ Governor Haruhiko Kuroda, however, did acknowledge the negative effects of the rapid weakening of the yen in his post-policy meeting press conference. The pound was among the risk assets hurt by the recovering dollar on Monday, falling below $1.35 for the first time in 2021, while investors weighed up the risk of the Bank of England introducing negative rates. However, the core CPI has shown some exhaustion signals, which may trim bumper rate hike expectations. Thursday’s US economic docket features the release of the Philly Fed Manufacturing Index and the usual Weekly Initial Jobless Claims later during the early North American session. This, along with the US bond yields, might influence the USD price dynamics and provide some impetus to the NZD/USD pair. Apart from this, traders will take cues from the broader market risk sentiment to grab short-term opportunities. ECB Quick Analysis: EUR Traders should be aware that demand for many commodities – and therefore the commodity’s price – rises and falls with the seasons. Seasonal forex trading news and impacts tend to be seen in energy and agricultural commodities, but less so for precious metals. The table below shows some of the main resource currencies and the commodities that affect them. These can be used by traders as a sort of forex news trading signal, as it can help to predict where the price of the currency is headed. The DailyFX app features all the best parts of DailyFX.com, natively designed for your iOS device. The recent recovery in the global risk sentiment was seen as another factor that undermined the gold price. Investors have been scaling back bets on a 100 bps Fed rate hike move in July. Apart from this, the resumption of Russian gas supply via the Nord Stream 1 pipeline helped ease fears about a possible recession and boosted investors’ confidence. This was evident from a generally positive tone around the equity markets, which tends to dent demand for traditional safe-haven assets. That said, the prospects for further interest rate hikes by major central banks to curb inflation might continue to act as a headwind for the non-yielding gold. State Street added $39.7 billion to its book, reaching a total of approximately $96 billion in notional amounts. The Boston-based dealer owed a good share of its growth to Vanguard, having secured some of the manager’s largest trades. A live account will give you access to Morningstar equity research reports and Reuters news headlines, which provide a wealth of information for all asset classes.. BOJ Preview: Will the BOJ adjust rates at its upcoming meeting? Bank of Japan Chief Haruhiko Kuroda maintained its pledge to ease the monetary policy further if required while addressing the post-monetary policy decisionpress conference. On the contrary, firmer US Treasury yields seem to favor the pair buyers as the US 10-year benchmark rise 1.3 basis points to 3.05% to refresh its one-week high. US dollar remains pressured ahead of ECB, risk appetite dwindles even as yields rebound. From a technical perspective, the XAG/USD on Wednesday struggled to find acceptance above the 50-period SMA on the 4-hour chart. The subsequent slide below the $18.55 intermediate support could be seen as a fresh trigger for bearish traders and supports prospects for an extension of over a one-month-old downward trajectory. ECB Decision: What you need to know S&P 500 Futures retreat from monthly high, US 10-year Treasury yields extend previous day’s pullback. It’s worth noting that the People’s Bank of China left benchmark policy rates unchanged during Wednesday’s policy announcement and Chinese Premier Li Keqiang signaled flexibility on the economic growth rate. Following the conclusion of its two-day policy review meeting on Thursday, the Bank of Japan board members decided to leave its monetary policy … Must be vigilant to financial, currency market moves and their impact on Japan’s economy, prices. In its quarterly outlook report, the Bank of Japan noted that “risks to price outlook skewed to the upside for time being, roughly balanced ther… It’s worth noting, however, that the quarterly release of the BOJ Outlook report does cite the inflation fears and weighs on the yen. The next directional move in EUR/USD may depend on the outcome of the central bank meetings later in July. Gold remains silent as inflation surges ahead Safe-haven assets bytecoin price prediction such as gold are highly sought-after during times of inflation as they tend to hol… The ability to read between the lines is a big part of being a successful trader. On the other hand, if the bears stay committed, the $1,677 pivot area could be hit sooner than later. If it does change course, analysts say Treasury yields could jump higher — if only temporarily — by signaling an official end to the easy money era globally. “For investors trying to figure out how to play the US Treasury market, the Bank of Japan is one of the big unknowns,” mentioned Bloomberg ahead of Th… Italian President Sergio Mattarella has dissolved the Italian parliament, opening the door for a snap election, Reuters reported on Thursday, citing I… However, in view of currently applicable restrictions in Belgium, the contents of this website are not addressed to the Belgian public. In respect of the UK, AKFX Financial Services Limited is deemed authorised and regulated by the UK Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. U.S. President Joe Biden said on Wednesday that climate change is an emergency but stopped short of a formal declaration, announcing a modest package of executive actions and promising more aggressive efforts. Our market calendar can be customised by date, market impact and country, so you can filter these to be more relevant for the asset or market that you are interested in trading.