Consumer prices in New Zealand were up 0.9 percent on quarter in the third quarter of 2018, Statistics New Zealand said on Tuesday. That exceeded expectations for an increase of 0.7 percent and was up from 0.4 percent in the three months prior.
As easing of tensions in the U.S. stock market and higher U.S. Treasury yields helped the Dollar/Yen close higher last week. The previous week’s stock market volatility led to the dumping of risky assets and the buying of the safe haven Japanese Yen. This week, stock market volatility eased somewhat, allowing Treasury yields to challenge multi-year highs once again. This encouraged investors to take profits in Japanese Yen positions they had bought the previous week.
The Fed minutes showed policymakers were confident in the current path of interest rate hikes, saying that a series of gradual rate hikes was the correct strategy in helping to maintain a stable economy. The minutes also showed central bankers were wary of “excesses” in financial markets.
Bitcoin (BTC) is down a little under percent on the day, and is trading at $6,470 as of press time. With one notable exception Oct. 15 – a brief spike correlated with Tether’s slight untethering from its dollar peg – the top coin has been trading sideways between $6,500-$6,500 for the past few days, before slipping below the $6,500 today, still above where it started the week, close to $6,300. On the week, Bitcoin is 2.7 percent in the green, and is also up just about 2 percent on the month.
Gold markets rallied a bit for the week, as we have cleared the recent consolidation and it now looks like the rally is going to continue. The $1250 level above looks to be rather resistive and perhaps a nice target for the time being.
The US dollar has found significant support at the 61.8% Fibonacci retracement level, near the ¥111.50 level. This is a market that has been in a strong uptrend for some time, and it now looks as if that is trying to continue.
The British pound continues to be very messy overall, forming a bit of a shooting star during the week, but quite frankly we are just simply bouncing around between the 1.30 level and the bottom, and the 1.3250 level in the top. This makes perfect sense considering everything that’s going on though.
It’s been a wild week, but it looks like we are going to close the GBP/JPY pair relatively flat which of course is a victory after the massive selloff last week.
The Euro is looking for a bottom on the longer-term charts, and as you can see on the accompanying chart, I have a yellow circle around the massive hammer underneath the 1.1450 level. That’s an area that I think continues to hold this market up, so this point I would expect a bit of a bounce.
The Australian dollar shows signs of trying to form a bit of a bottom down here, as the 0.70 level of course would attract a lot of attention due to it being a large, round, psychologically significant figure.
Gold markets were rather quiet on Friday as traders start to look towards the weekend. We have recently seen a significant move to the upside on the chart, and at this higher-level it looks like we are simply trying to digest some of the recent explosive gains.
The US dollar continues to grind around against the Japanese yen, as it looks like we are trying to form a base for longer-term move. There has been a lot of technical damage, but at this point it looks as if the buyers are starting to flex their muscles again.
The British pound bounced during the day on Friday after significant selling this week. However, the one thing that I find most interesting about this is that the bounce is from the 1.30 level, an area that is crucial from a technical standpoint.
The British pound bounced a bit against the Japanese yen to end the week, and as I record this we are testing the one ¥46.50 level. This is an area that was a significant resistance months ago, and support recently. It’ll be interesting to see what happens next.
The Euro fell over the last several days, but Friday looks like it is offering a glimmer of hope. Perhaps the pair is starting to find a bottom near the 1.1450 handle.
The Australian dollar rallied significantly during the day on Friday but continues to see a significant amount of resistance near the 0.7150 level. Because of this, the upside I think is still a bit, and I am a bit hesitant to get overly excited about going long of this pair, even though I could potentially see this market going all the way to the 0.72 handle above.
Investing.com - Gold prices settled a touch lower on Friday on profit-taking from recent gains, but a weaker dollar and geopolitical worries still helped bullion coast to a third weekly gain.
Foreign exchange markets reflect an improvement in risk sentiment after sluggish data on Chinese economic growth was offset by words of support Chinese authorities on Friday. Meanwhile, a European Union official sought to ease tensions with Italy over the country’s budget plans.
Major digital currency prices are trading at or near Thursday’s closing levels, continuing a trend that’s held most coins inside tight ranges over the last four sessions. Bitcoin, the world’s largest digital currency, was last changing hands at $6,436.28, down 0.2% since Thursday’s level at 5 p.m. Eastern Time on the Kraken exchange. After rising more than 10% earlier in the week, bitcoin (BTCUSD) has gone back and forth between $6,300 and $6,500 lacking any real direction.
The U.K.’s main equity index finish higher for the day and week on Friday, pushing aside weakness across global markets and tensions surrounding the Italian budget.
Investing.com - The U.S. dollar was lower on Friday as bond yields continued to hold near a one-week high, while the euro was higher.The U.S. dollar index, which tracks the greenback against a basket of other currencies, fell 0.13% to 95.60 as of 10:57 AM ET (14:57 GMT).Treasury yields were higher, with the United States 10-Year note at 3.192%, not far from a one-week high of 3.211% on Thursday. Bond yields rose after hawkish Fed minutes on Wednesday showed the central bank's conviction in gradually increasing interest rates in December and beyond. ...
Investing.com - The Dow rebounded on Friday as Procter & Gamble posted stronger-than-expected earnings results, ending a week of volatile trading on Wall Street.The S&P 500 rose 13 points, or 0.47%, to 2,781.88 as of 9:38 AM ET (13:38 GMT), while the Dow increased 102 points, or 0.41%, to 25,482.37 and the tech-heavy Nasdaq Composite was up 53 points, or 0.72%, to 7,538.93.P&G (NYSE:PG) was up 6.24% after the consumer goods giant reported diluted earnings per share of $1.22.PayPal (NASDAQ:PYPL) was among other gainers, surging 9. ...
The Italian government bond market rebounded, pulling down yields, after Pierre Moscovici, European commissioner for economic and financial affairs, appeared to soften criticism of Italy's draft budget, giving some relief to concerns of a standoff between Rome and Brussels. The 10-year Italian government bond yield fell 9.5 basis points to 3.575%, narrowing the yield spread against the German 10-year bond to around 314 basis points, or 3.14 percentage points. Bond prices move in the opposite direction of yields. The euro extended modest gains after the comments. The euro bought $1.1483, up from $1.1453 late Thursday. Moscovici said the EU would not interfere in Italy's economic policies, according to Bloomberg News. He also said he was willing to accept different views on the current budget proposal. Moscovici appeared to backtrack from a preliminary letter responding to the budget proposal on Thursday, which said Italy's draft budget law in its present form did not comply with the EU's fiscal rules.
The formation of Italy's anti-establishment government and its intensifying row with European Union authorities have lifted correlations between the country's bonds and the euro to the highest since 2013.