News

United States 4-Week Bill Auction: 4.03% vs previous 4.06%

The US dollar is continuing higher as the market is getting its head around the idea that the US consumer — and the economy in general — are strong. I really want to highlight the comments from Delta’s CEO following Q3 earnings and I expect we’re going to get much more of that in the weeks ahead. He emphasized increasing consumer spending, particularly from high end consumers.

See: Consumers are flush: Airline stocks rise as Delta sees strong demand

The US dollar is broadly stronger today and CAD is a slight underperformer. I don’t see a good reason for CAD selling but we’re carefully watching trade negotiations. It looks like there is some kind of larger deal being worked out but the Canadian auto industry looks like it could be in for some bad news.

Domestically, Canada isn’t doing as well as the US but there are signs the housing rout is ending as inventory numbers start to sag and sales pick up in the Toronto area. I worry about a heavy wave of listings next Spring though. Gold is certainly a tailwind for Canada but to really get some loonie strength, we need broader commodity strength, including in oil. If we get some increasing optimism on consumers, that could come quickly.

This article was written by Adam Button at investinglive.com.

The USDCAD had been trading within a 40 trading range going back to last Friday. That range was from 1.3931 to 1.3971. That is just too narrow and wrote about it in this post today.

“….when ranges get this tight, the market is primed for a break. Right now, the 5-day high sits near 1.3971 and the low is anchored at 1.3931. A decisive move beyond either of those boundaries could trigger momentum and a directional run.”

The break occurred, and the price has run to a new high for the day and week up to 1.4011.

For buyers, the close risk level is the high from last week at 1.3985. A more conservative risk marker sits just below, at the old high from this week and last Friday near 1.3970. Holding above those keeps the bullish case alive. The buyers are making their push — the question is, how far can it extend?

On the daily chart, a key upside target looms at the 38.2% retracement of the 2025 decline, coming in at 1.4018 (see daily chart below). A break above that zone would add conviction to the bullish bias and open the path for further momentum.

This article was written by Greg Michalowski at investinglive.com.

Gold (XAU/USD) is under modest pressure on Thursday after smashing through the $4,000 psychological mark and setting a fresh all-time high of $4,059 on the previous day.

Despite the government shutdown, student loan borrowers are receiving emails from the Education Department that their debt will soon be discharged.

Macao is the gambling capital of the world, but the non-gaming amenities draw the crowds. Can the investments in entertainment pay off when it comes to profits?

Sora reached 1 million downloads even faster than ChatGPT, OpenAI’s popular AI chatbot that supports 800 million weekly active users.

The Euro (EUR) remains under broad selling pressure against the US Dollar (USD) on Thursday, extending losses below the 1.1600 mark as the abrupt resignation of French Prime Minister Sébastien Lecornu sparks caution among investors and dampens appetite for the common currency.

Lawmakers on both sides remain dug in, showing no indication that they are open to yielding on their demands.

New York Fed President John Williams said in an interview with The New York Times that he still expects interest rates to be lower by year-end, but emphasized that the pace and extent of easing will depend on incoming data. When asked about the possibility of two additional 25bps reductions, Williams said that would depend […]

The post Fed’s Williams sees lower rates this year, tariff impact on inflation as limited appeared first on Action Forex.