FX

EURUSD price has displayed recovery signs and is likely to recapture 1.0200 on ECB’s rate hike expectations. The DXY has made a confident pullback after sensing lower selling pressure around 106.40. Political turmoil in Italy and renewed obscurity over gas supply from Nord Stream1 have soured market mood. EURUSD price shifted into a correction mode
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Heading towards Thursday’s European Central Bank (ECB) interest rate decision, economists at ABN Amro believe that the bank will stick to its pre-commitment of a 25 bps rate hike. Key quotes “The ECB will almost certainly raise its key policy rates by 25bp this week. The Governing Council’s communication has not given it much flexibility
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GBP/JPY rose close to 190 pips but retraced almost 100 pips, on market mood turning soar. The cross-currency pair tumbled below substantial resistance, exposing the 165.00 mark to selling pressure. GBP/JPY Price Analysis: Neutral-upwards, but downside risks remain if sellers drag prices below 165.00. The GBP/JPY finished Monday’s trading session in positive territory, up 0.45%,
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FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang see USD/CNH advancing further with the next target at 6.8000 in the short-term. Key Quotes 24-hour view: “Our expectations for USD to ‘trade in a choppy manner between 6.7130 and 6.7430’ turned out to be incorrect as USD surged to high of 6.7910
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GBP/JPY extends the week-start pullback amid risk-aversion. UK’s political leaders step forward for President’s chair after Boris Johnson’s departure. Treasury yields remain pressured, portray recession fears as inflation expectations soar. The second round of BOE Governor Bailey, risk catalysts will be important to watch for fresh impulse. GBP/JPY holds lower ground near the intraday bottom
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The white metal remains downward biased but appears to have found a base around $19.00. Safe-haven flows toward the greenback, and US Treasuries keep the precious metals complex under pressure. The US 2s-10s yield curve is still inverted, flagging recession fears. Silver (XAGUSD) is subdued during the North American session, seesawing for the fourth consecutive
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