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Forex Today: Cocoa futures hit new highs

Forex Today: Cocoa futures hit new highs

The quiet week on the market has so far been dominated by a sharp rise in cocoa futures prices towards new long-term highs.

➡️ Cocoa futures  have risen very strongly in recent days, reaching a new multi-year high price yesterday, which will keep trend traders interested in this commodity on the Long side. It has shown a powerful bullish trend for over a year. Cocoa futures have risen more than 25% since the start of 2024.

➡️ US stock markets still appear bullish despite more aggressive rhetoric from central banks, with major US stock indexes as  the S&P 500 and the NASDAQ 100  close to historical highs. However, the short-term price action has become more consolidated.

➡️ In the Forex market, the New Zealand dollar has been the strongest major currency since Tokyo opened today. The Japanese yen was the weakest. However, the numbers are so low as to be effectively meaningless: the Forex market has been quiet this week. Increased volatility has recently been observed in the currency pair USD/JPY  .

➡️ Federal Reserve member Harker said yesterday that he sees the US economy on track for a soft landing and that real progress has been made in reducing inflation. This isn't a surprise to him though, so it has little effect on the US dollar.

➡️ Some analysts believe the Bank of Japan could start raising rates soon, perhaps next March, abandoning negative rates and an ultra-expansionary monetary policy in place for years.

➡️ New Zealand unemployment data released yesterday showed employment rose slightly more than expected. However, the unemployment rate increased slightly to 4.0%.

➡️ The EUR/USD currency pair  may have reached a double bottom at $ 1.0725.

➡️ New Zealand unemployment data will be released today.

 

Credit by DailyForex.com

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