Image Source: Unsplash  The price of a troy ounce of gold climbed to 2330.00 USD on Friday. This surge was driven by investors’ ongoing evaluation of the potential direction of the US Federal Reserve’s monetary policy following mixed macroeconomic data.The US GDP for Q1 did not meet expectations, marking the slowest recovery in two years. The economy expanded by only 1.6%, significantly lower than the forecasted 2.5%. In contrast, GDP growth in Q4 2023 reached 3.4%. The Fed’s consensus forecast for 2024 expects economic growth of 2.1%.The underwhelming economic performance might prompt the Fed to consider a reduction in in...
USD/CAD trades sideways ahead of the US core PCE Inflation that will influence Fed rate cut expectations. The US Dollar remains on backfoot as weak US Q1 GDP raise concerns over the economic outlook. Investors see the BoC pivoting to interest rate cuts from June. The USD/CAD pair is stuck in a tight range near 1.3650 in Friday’s European session. The Loonie asset struggles for a direction as the US Dollar consolidates ahead of the United States core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published at 12:30 GMT.On a monthly basis, the underlying inflation data is estimated to have increased steadil...
USDJPY’s price action suggests continued strength. This analysis examines the technical situation and explores potential scenarios for the currency pair. USDJPY Maintains Uptrend: Rising Trend Line Support: A key technical indicator for USDJPY is the rising trend line on the 4-hour chart. As long as the price remains above this trend line, the uptrend that began at 150.80 is likely to continue. Upside Move Gains Traction: USDJPY has already reached a high of 156.86, highlighting the ongoing bullish momentum.  Upside Targets in Focus: Further Appreciation Likely: If the uptrend persists, the next potential target zone to watch could be...
Image Source: Unsplash  Chevron Corporation (NYSE: CVX) reported its first-quarter earnings for 2024, showcasing a robust performance despite a slight dip in earnings compared to the previous year.The company announced earnings of $5.5 billion, or $2.97 per share (diluted), a decrease from the $6.6 billion, or $3.46 per share, reported in the first quarter of 2023. Adjusted earnings were slightly lower at $5.4 billion, or $2.93 per share, compared to $6.7 billion, or $3.55 per share in the same period last year.Despite the decrease, Chevron’s worldwide production increased significantly by 12 percent from a year ago, with a notable upti...
Image Source: Pexels  The European Central Bank is on the verge of starting rate cuts and monetary developments are proving no hurdle to doing so. March data shows a subdued recovery in bank lending and money growth. With inflation expectations falling further, today’s data is in line with a start to cautious rate cutsThe worst impact of rate hikes on bank lending is behind us. Financial conditions already eased somewhat in anticipation of possible future rate cuts, which has helped bank lending growth to turn slightly positive again in recent months. This is the case for both households and businesses. Still, the current pace of lend...
 Image Source: Unsplash  ExxonMobil left much to be desired in its earnings report today, on April 26th. The company suffered declining earnings and EPS. This comes in spite of alaready negative Q4 financial results earlier this year. Today, on April 26th, energy company ExxonMobil (NYSE: XOM) reported its Q1 2024 financial results before US markets opened.Exxon follows fellow big oil stock TotalEnergies, which reported its earnings earlier this morning and is soon to be followed by Chevron Corp and Philips 66 in what is easily the biggest day for oil this earnings season.The company reported earnings of $8.2 billion in Q1, up from Q4â...
Image Source: Pixabay  JPY VolatilityTraders are questioning whether we’re seeing the first signs of intervention today by Japanese authorities after USDJPY suddenly plunged around 1.2% before reversing the losses immediately. Overnight, the BOJ held policy unchanged, defying those expecting a policy response on the back of recent JPY deterioration. The bank reaffirmed its message that it does not target FX rates directly with monetary policy but will continue to monitor markets. Governor Ueda warned that rapid JPY depreciation is not desirable and the bank will intervene if necessary but so far, sees no need to.  Flash CrashUSDJPY has r...
EURUSD has displayed renewed buying pressure, breaking above key resistance. This analysis examines the technical situation and explores potential scenarios for the currency pair. EURUSD Stages Rally: Upside Move Gains Momentum: EURUSD has built on its upward momentum, reaching a high of 1.0752. This move extends the rally that began at 1.0600.  Uptrend or Correction? Price Channel in Focus: Rising Price Channel as Indicator: The key factor to consider is the rising price channel on the 4-hour chart. As long as the price remains within this channel, the upside move could be expected to continue. Upside Targets: The next potential target...
The latest retail sales data suggests a robust consumer, leading economists to become even more optimistic about more robust economic growth this year. To wit: “It has been two years since forecasters felt this good about the economic outlook. In the latest quarterly survey by The Wall Street Journal, business and academic economists lowered the chances of a recession within the next year to 29% from 39% in the January survey. That was the lowest probability since April 2022, when the chances of a recession were set at 28%. Economists don’t think the economy will get even close to a recession. In January, they, on average, forecast...
Image Source: Unsplash  Linked here is a detailed quantitative analysis of Emerson Electric Co. (EMR). Below are some highlights from the above-linked analysis:Company Description: Emerson Electric Co. designs and supplies product technology, and delivers engineering services and solutions to a wide range of industrial, commercial, and consumer markets around the world.Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number...