U.S. debt ceiling

Low Volatility

May 29, 2023/in General News & Updates /by MaimarFX

Happy Pentecost everyone!

In terms of a U.S. debt deal, traders will focus on how talks progress as the June 5 deadline approaches. Meanwhile, stronger than-expected U.S. inflation led to a repricing in rate hike expectations, bringing back the possibility of a Federal Reserve rate hike in June. An anticipated pause in the Fed’s rate hike cycle could thus be a close call.

On Friday we will have the U.S. NFP jobs report scheduled for release. Further signs that the job market is robust will cool rate-cut bets and thus, support the greenback.

DAX: The index holds above its crucial support zone between 15650 and 15700. As long as that zone remains intact, we could imagine another bullish run for 16300.

EUR/USD: We expect the pair to trade between 1.08 and 1.06 for the time being.

Markets are shut today for the Pentecost or Memorial Day holiday (U.S.). Volatility could thus be at muted levels.

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U.S. Dollar Strengthen On Higher Treasury Yields

May 24, 2023/in General News & Updates /by MaimarFX

The U.S. dollar traded higher on firm treasury yields despite U.S. debt ceiling talks that appeared to have stalled on Tuesday. If the congress fails to reach an agreement to lift the country’s borrowing capacity, volatility could increase dramatically. Furthermore, the U.S. dollar’s safe haven status may come under questioning in case of a possible U.S. default.

The euro fell back towards 1.0760 on the back of the greenback’s recovery while sterling slid below 1.24.

EUR/USD: Below 1.0740, a next target is at 1.07. On the upside, a current resistance is seen at 1.0870.

As expected, also the DAX corrected recent gains and fell towards the crucial 16000-handle. We expect the recent support area to range from 16000 to 15950 where bulls may take the opportunity to jump back in.

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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

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U.S. Debt Ceiling Talks

May 22, 2023/in General News & Updates /by MaimarFX

Welcome to a new trading week.

Hopes of a deal in Washington to raise the debt ceiling to avoid a catastrophic default have buoyed the U.S. dollar. However, while everyone knows that raising the debt ceiling once again is not the solution of the U.S.’s fiscal problems, the country faces a significant risk of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase.

Thus, U.S. debt ceiling talks are likely to dominate the market sentiment in this week. Furthermore, interesting data releases could be U.K. inflation data (Wednesday), U.S. Q1 GDP (Thursday) and the U.S. core PCE price index (Friday).

EUR/USD: The euro found a short-term support at around 1.0750. If 1.0760 breaks, a next target will be at 1.0715. In the meantime, and remaining above 1.08, most traders expect a correction towards 1.09.

GBP/USD: Sterling has slowed its sell-off and was able to hold above 1.24. As long as this handle holds, we anticipate a rebound towards at least 1.2550.

DAX: Recharging batteries before a renewed bull run

The index slightly corrected after hitting a fresh high at 16334. While bulls seem to be in the starting holes for another leg up, the index is currently in overbought territory, increasing the chances for a correction towards 16000. However, bulls need more strength to break the 16350-handle significantly which is why we expect some kind of consolidation before bullish momentum increases again.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

Any and all liability of the author is excluded.

www.maimar.co

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