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USDJPY DAILY CHART – What is AT showing
Damage not yet fatal: Watch 145.92
Break of 145.08 exposes the key 145.92 … a break here would put the DAILY trendline and 148.27 on the radar, a level that if broken would put the nail in the coffin of the downtrend.
Keeps a bid while above 145.00-08.
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Weekly Perspective on NZDUSD
Kiwi couldn’t reach even close to Downtrend Resistance line dating back from 2021. waiting at 0.62050
This is not going to be a jolly close of the week for it, and if below 0.58850 and possibly 0.58450, would turn Bearish.
Only close above 0.59400 would give it another weekly chance.
XAUUSD – GOLD -1 HOUR CHART – What is AT showing?
Failure to get back and stay above 3360 (high 3369) keeps XAUUSD on the defensive.
Supports: 3320 (intra-day double bottom) and 3305 (more important) , below that a void to 3222.
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Wall Street opens with gains as US-UK finalize trade deal, tech stocks rally
Wall Street saw optimism in early trade on Thursday, May 8, after U.S. President Donald Trump announced that the U.S. and U.K. have agreed on a trade deal.
At 7.20 pm IST or 9.50 am ET, the Dow Jones index was higher by 185 points or 0.45 percent, the tech-heavy Nasdaq index gained 100 points or 0.55 percent, while the broader S&P 500 index ticked up 25 points or 0.45 percent.
“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” said President Trump, in a post on Truth Social.
The U.S. President will reveal further details at 10 am ET. Trump also added that there are more deals, which are in serious stages of negotiation.
Tech stocks gained on Wednesday following reports that the Trump administration plans to roll back upcoming AI chip restrictions introduced under the Biden administration. The controls were set to take effect later this month.
Chipmakers led the rally, with Intel jumping 3.3 percent, AMD rising over 3 percent, and Nvidia edging up 0.5 percent. Among megacaps, Meta and Amazon gained more than 1 percent, while Tesla surged more than 3 percent.
Nasdaq Chart
As noted, UK is low hanging fruit for a trade deal… EU will be a tougher negotiation
GBP
Sterling Rises After BOE Repeats Guidance For Gradual Rate Cuts
Sterling rises after the Bank of England delivered a widely-expected 25 basis points interest-rate cut but maintained its guidance for gradual policy easing. The BOE voted 5-4 to cut rates to 4.25%. Two members preferred to cut rates by 50bp while two favoured leaving rates unchanged. The BOE reiterated that a “gradual and careful approach” to further rate cuts remains appropriate. Many analysts had expected an 8-1 vote for a 25bp cut with one backing a 50bp move. There was also speculation the BOE could drop its reference to gradual cuts. Sterling rises to $1.3325 after the decision from $1.3251 beforehand. The euro falls to 0.8479 pounds from 0.8514.
BOE rate cut as expected… GBP firms despite 2 voting for a larget rate cut
ING Comments on Euro & Sterling
EURUSD has drifted lower and is testing support at 1.1300 on Thursday, said ING.
The bank has been saying that the US dollar bounce has been lackluster, but positioning probably means that a move under 1.1250/1260 Thursday could do some damage.
Thursday’s Bank of England policy meeting should be a market mover, stated ING. With a 25bps rate cut to 4.25% widely expected, probably the most important development Thursday will be what the BoE does with this sentence: “Based on the Committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.” Those more dovish in the market are looking for “gradual and careful” to be dropped/amended to signal a sharper set of BoE rate cuts. ING isn’t so sure the BoE is ready to drop that phrase just yet.
Given that the market is now pricing four 25bps rate cuts this year and ING expects three — in May, August and November — if BoE easing remains “gradual and careful,” sterling could rally, wrote the bank in a note. For reference, the foreign exchange options market prices an 80 USD pip break-even range for GBPUSD over the next day.
For EURGBP, that break-even is 39 GBP pips.
GBPUSD could get distorted by global risk sentiment on Thursday, but the bank would say a less dovish than expected BoE Thursday could drive EURGBP to the 0.8435/40 area.
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