- Monetary policy is not almighty
This article was written by Justin Low at www.forexlive.com.
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FOREX NEWS & BLOG
Pound Sterling gains as UK inflation rose faster than expected
The Pound Sterling (GBP) gains sharply against the majority of its peers on Wednesday as data from the United Kingdom (UK) Office for National Statistics (ONS) showed inflation accelerated more than expected in October.
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Xi calls on Scholz to reconcile issue of EU tariffs on Chinese EVs
It is said that the two discussed the matter on the sidelines of the G20 summit, with Xi stating that China is ready to “consolidate” a strategic partnership with Germany. That before raising the matter of the tariffs imposed by the EU on Chinese-made EVs.
Xinhua also reports that China is looking to “resolve the differences through dialogue and consultation”. Adding that “it is hoped Germany will continue to play an important role in this regard”.
With Trump tariffs now a threat for both the EU and China, the ongoing dispute here is something that both sides would probably like to resolve to avoid further escalation in trade conflict. That especially with both sides still quite reliant on one another considering their fragile economic states.
This article was written by Justin Low at www.forexlive.com.
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Dollar touches one-week low as safety bid, ‘Trump trade’ momentum ebb
Short-term Analysis for BTCUSD, XRPUSD, and ETHUSD for 20.11.2024
Dear readers, I’ve prepared a short-term forecast for Bitcoin, Ripple, and Ethereum based on the Elliott wave analysis. The three cryptocurrencies continue following the scenarios we have previously identified. Major Takeaways BTCUSD: Bullish momentum continues. Consider long positions from the current level with Take Profit at 96,000.00 XRPUSD: The price is expected to rise in impulse[C]. Consider long positions with Take Profit at a high of 1.250. ETHUSD: The price continues an ascending momentum movement. Consider buying from the current level with Take Profit at 3,534.34. Elliott Wave Analysis for Bitcoin BTCUSD has presumably formed correction [4] as a triple zigzag (W)-(X)-(Y). A… Read full author’s opinion and review in blog of #LiteFinance
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UK October CPI +2.3% vs +2.2% y/y expected
- Prior +1.7%
- Core CPI +3.3% vs +3.1% y/y expected
- Prior +3.2%
On the month itself, consumer prices were seen up 0.6% and core prices were seen up 0.4%. Both were seen just above estimates of 0.5% and 0.3% respectively. But the emphasis remains on core annual inflation, which came in higher than expected and also above the September reading.
This now reaffirms the BOE is most certainly going to keep the bank rate unchanged next month. GBP/USD is a touch higher on the day now, up 0.2% to 1.2705.
Looking at the details, services inflation remains a key sticking point. In core terms, services inflation was seen up slightly to 5.0% compared to 4.9% in the month before.
This article was written by Justin Low at www.forexlive.com.
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Breaking: UK CPI inflation rebounds to 2.3% YoY in October vs. 2.2% expected
United Kingdom’s Office for National Statistics is set to publish the CPI report on Wednesday.
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Lark Funding Prop Firm Now Allows TradingView Challenge Passes
Operating
for two years, the retail prop firm Lark Funding announced in November that it
now enables its clients and retail traders to complete challenges through the
TradingView platform.
Prop Firm Offers
TradingView on DXtrade
Lark
Funding states that introducing TradingView challenge capabilities was “one of our best launches in 2024.” This expansion became possible
through DXtrade’s integration with the popular charting platform.
“After
Devexperts contributed to multiple broker integrations with us through their
DXtrade trading backend and facilitated the process, we stand prepared to
welcome new brokerages into our mutually beneficial ecosystem,” said Rauan
Khassan, VP of International Growth at TradingView. While the integration
occurred earlier this year, Lark Funding is only now rolling out TradingView
trading capabilities.
“Traders
used to dream of using TradingView to pass their prop firm challenge,”
Lark Funding states enthusiastically on social media. “After years of
waiting, it’s now available. It’s a game-changer.”
Lark
Funding was among the first prop firms to suspend challenge purchases for US
clients in February due to regulatory crackdown in the industry. They quickly
implemented DXtrade as an alternative.
Since then,
the platform has gained significant recognition among prop firms and their
clients, adding over 40 proprietary trading companies to the DXtrade XT
platform in the past year.
One of our best launches in 2024. Use TradingView to pass your challenge. pic.twitter.com/3g8R7X0e5t
— larkfunding (@larkfunding) November 19, 2024
This week’s
newest partner announcement was YourPropFirm.
YourPropFirm Partners with
Devexperts for Multi-Platform Trading
YourPropFirm,
a technology company helping brokers and entrepreneurs launch their own prop
businesses within 10 days, has now added Devexperts’ solution to their platform
offerings.
“Adding
DXtrade to our platform lineup means prop firms have real choices and
flexibility,” said Markus Sichler, Co-Founder and Strategic Advisor at
YourPropFirm. “Our clients can rely on us to provide alternative platforms
whenever they need, so they’re prepared for any platform-specific challenges
and can focus on growing their business.”
The prop
trading industry continues to evolve rapidly. Just yesterday (Tuesday), Finance
Magnates exclusively reported that former AAAFx Business Development Head
launched his own prop firm. Somesh Kapuria has left AAAFx to become CEO of Hola
Prime.
This move
isn’t surprising, especially considering a recent survey of 3,500 respondents
showed that 60% of prop traders view broker-backed props as more trustworthy.
This article was written by Damian Chmiel at www.financemagnates.com.
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Forex Today: Pound Sterling benefits from UK inflation data, markets await central bank speak
Here is what you need to know on Wednesday, November 20: Pound Sterling gathers strength against its peers early Wednesday, supported by the stronger-than-forecast inflation readings for October.
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UK inflation data in focus for the session ahead
The September report here was encouraging but all it did was help to reaffirm a 25 bps rate cut earlier this month. The BOE will next meet on 19 December and there will be two inflation reports between now and then. The first of which will be today and the second will be just a day before the policy meeting itself on 18 December.
Following the rate cut two weeks ago, BOE policymakers have been emphasising on a “gradualism” approach to cutting rates as the job is not done yet in the battle against inflation. That hints at a potential and arguably likely pause in December. However, said narrative will have to be driven by what we see in the data.
That makes today’s report the first big and real test of the above narrative.
The expectation is for headline annual inflation to come in higher at 2.2% in October, up from 1.7% in the month before. But core annual inflation is estimated to ease a little to 3.1%, down from 3.2% previously. The latter is of course the most important detail when it comes to the data release here.
As much as a further easing in core prices is a good thing for the BOE, it still being at around 3% is not quite a comfortable level to be cutting rates that aggressively. If you consider the level of services inflation, it’s definitely bothersome with that being closer to 5% in core terms still.
So, the BOE definitely has to manage policy accordingly and balance that out against the still ongoing inflation risks.
Looking to market pricing, traders are seeing ~81% odds of no change to policy in December. Therein lies the balance of risks for the pound going into the data release later.
Barring any surprises though, I would argue that it is a high bar to get the BOE to lean towards cutting rates again in December. It would require a considerable set of lower readings today and also for the November readings next month.
That is not to say that such a scenario won’t happen. But we will definitely need to see all the remaining data between now and the final policy decision next year to vindicate the BOE to cut rates further and get off their “gradualism” horse. Knowing central bankers, it’s tough to get them to change their minds. However, if need be, they will still spin the narrative to however they see fit to justify themselves being “right”.
This article was written by Justin Low at www.forexlive.com.
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EUR/JPY Price Forecast: Resumes its uptrend above 164.00
The EUR/JPY cross resumes the upside to near 164.30 during the early European session on Wednesday.
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Germany October PPI +0.2% vs +0.2% m/m expected
- Prior -0.5%
Producer prices were seen up compared to the previous month but year-on-year, remain down by 1.1%. Looking at the details, there were increases in the price for capital goods (+0.2%), consumer goods (+0.2%), and durable goods (+0.2%). This is offset slightly by a decline in prices for intermediate goods (-0.3%).
This article was written by Justin Low at www.forexlive.com.
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