KASB | KTrade

EU, UK PMIs Tumble: US PMI Data in Focus

The EU and UK release largely negative Purchasing Managers’ Indexes, which has sent both currencies declining. In addition to this, PMI reports will also influence popular indices such as the NASDAQ. As the Pound and the Euro decline, the US Dollar Index has risen 0.22% during this morning’s trading sessions. The US Dollar Index, as a result, rose to a new weekly high before retracing. US bullish traders will now be turning their attention to further breakouts as well as this afternoon’s US PMI data. The best-performing currency over the past 24 hours has been the US Dollar, while the worst has been the Pound, Yen and Swiss Franc. The dovish decisions of the regional central banks have triggered the poor performance of these three currencies.

The Bank of England and the Swiss National Bank unexpectedly kept interest rates unchanged. The Bank of Japan kept interest rates intact but unexpectedly gave a relatively dovish forward guidance. The pair depreciated most over the past month is the GBP/USD, which has declined 3.80%. The GBP/USD is trading at the lowest price since March 2023.

Top Economic Events To Watch | April 29 – May 3 – 2024

Investors are gearing up for a pivotal week as May begins. The Federal Reserve’s policy meeting takes center stage on Tuesday and Wednesday. Though the central bank is expected to maintain its current interest rate policy, market participants will be closely analyzing Chair Jerome Powell’s statements for hints about the timing of potential future rate cuts.

The week will wrap up with intense focus on the April US employment report. On either side of the rate decision will be Big Tech earnings, with Amazon ($AMZN) releasing its quarterly financials on Tuesday and Apple ($AAPL) following on Thursday.

NAGA Weekly Recap April 22 – 2024 – April 26 – 2024

As the week wraps up, markets grapple with mixed signals.

Expectations for a Federal Reserve rate cut are pushed back following a spike in inflation. Alphabet Inc. reports soaring earnings, propelling its market valuation past $2 trillion. Oil prices could surpass $100 per barrel if Middle East tensions worsen. Meanwhile, the Japanese yen weakens as the Bank of Japan maintains rates amidst slowing inflation.

Gold Volatility Wanes: Indicators Say Short

Past performance is not indicative of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.

XAGUSD 30-Min Timeframe, 25 April 2024

Top Economic Events To Watch | April 22 – April 26 – 2024

Get ready for an action-packed week ahead as a flurry of key economic indicators are set to be released, potentially impacting global markets and investor sentiment.

Keep a close eye on these important releases, including the S&P Global Composite PMI, US Core Durable Goods Orders, US Q/Q GDP, the BoJ Interest Rate Decision, and the US Core PCE Price Index.

Silver Triangle Breakout: Where Will It Go?

XAGUSD 4-Hour Timeframe, 18 April 2024

XAGUSD on the 4-hour timeframe had been moving in a range until a breakout occurred on the 4th of March. Since then, the bulls have been unstoppable, pushing prices to highs last seen in 2020 and 2021.

Top Economic Events To Watch | April 15 – April 19 – 2024

Stock markets ended a tumultuous week with a decline on Friday, dragged down by disappointing earnings from major US banks, escalating geopolitical tensions, and persistent worries about the Federal Reserve’s monetary policy direction.

In the coming week, investors will be keenly focused on new economic reports, such as retail sales and industrial production, to gather more insights that might influence the Federal Reserve’s policy decisions.

KASB KTrade Economic Insights – Future trend of the US Dollar and global currency flows – April 2024

The rise of the global South, the strengthening of platforms such as BRICS, and the record-high price of Gold, are manifestations of some of the longer-term changes in the global financial system. According to Ray Dalio, we are in a changing world order, where understanding some of these tectonic shifts is critical for our investment decisions.

While the US maintains a technological, economic and political dominance of the global world order, we think there is a steady rise of the global South. Favourable demographics, increase in intra-regional trade and economic growth momentum in countries such as India, Indonesia, Korea and Saudi Arabia, following the two decades of economic outperformance of China, are leading to a slight shift in the global economic center of gravity. Furthermore, we think the use of economic sanctions as a political tool by the US is accelerating this shift. 28% of the world economy is currently under US sanctions.
These changes support the case for a structural bull run in gold. The policy implication for countries like Pakistan is to strengthen regional trade ties. We think the recent focus on trade with Central Asia and the Middle East, along the CPEC trade route would be a beneficial strategy. Diversification of the foreign exchange reserves would also help hedge against any volatility in the US dollar. We think Africa will emerge as the key swing market over the next twenty years and will increasingly become the next focus area for developing trade routes and consumer markets.

For more details on our views, please read the attached report written by Mohsin Ali and S.M. Abbas from KTrade team.

Download the Report

NAGA Weekly Recap April 1 – 2024 – April 5 – 2024

This week in the markets, we’ve seen a whirlwind of activity that’s sure to catch the attention of traders and investors alike. From a significant drop in the Dow to unexpected movements in the tech sector, and even a surge in oil prices amidst Middle East tensions, the landscape is brimming with developments that could have long-lasting impacts. Not to mention, the forex markets are reacting to key comments from the US Federal Reserve, signaling potentially pivotal shifts.

Dive into our latest roundup to get the full scoop on these pivotal market movements and what they could mean for your portfolio!

Top Economic Events To Watch | April 1 – April 5 – 2024

As we embark upon a new quarter in 2024, all eyes are on the upcoming releases of the week. Among the key events on the radar are the Nonfarm Payrolls report from the United States, European CPI figures, and the ISM Manufacturing PMI.

With expectations running high and uncertainties lingering, the week promises to be a pivotal one for financial markets worldwide.

NAGA Weekly Recap March 25 – 2024 – March 29 – 2024

This week, we have some exciting updates to share with you. The US stock market has hit new records, while many traders felt the aftermath of the Reddit IPO. A piece of good news for market participants is gold reaching a new record high, but the decline in the EUR/USD carries an uncertain reputation. Learn more about these developments in our weekly recap.

S&P 500’s latest record closes out best first quarter since 2019