FX

Data released on Friday showed an increase in November retail sales in Canada of 0.7%, below the 1.2% of market consensus. Analysts at CIBC, point out the advance was modest in November, and warn that all of that ground and more appears to have been given back in December. Key Quotes:  “Canadian retail sales posted

“I won’t touch sales tax for time being,” said Japan Prime Minister (PM) Fumio Kishida crossed wires, via Reuters, during early Friday. Additional comments See no need to tweak budget balancing target now. Expects BOJ to make efforts to achieve 2% inflation target. Specific monetary policy is left up to BOJ to decide. Exit strategy

EUR/USD remains on the backfoot as DXY tracks the uptick in the yields. ECB minutes showed a divided outlook on inflation, the risk tone remains upbeat. Yields and the dollar lead way, as US economic data fail to impress. EUR/USD is holding the lower ground below 1.1350, as the US dollar attempts a bounce in tandem

Asian equities part ways from Wall Street as China cuts 5-year LPR. Australia jobs report, talks over US BBB also favor buyers. Omicron woes, Biden’s speech and firmer oil prices test bulls ahead of next week’s key FOMC. Asian equities grind higher despite the downbeat performance of their US and European counterparts. The reason could

At this week meeting, the Central Bank of the Republic of Turkey (CBRT) is expected to maintain the key interest rate at 14.00% following a 500bp cut since September 2021. Analysts at MUFG Bank, expect the CBRT to reluctantly reverse course and hike rates by 600bp in 2022. Key Quotes: “The Central Bank of Turkey (CBRT)

Indonesian Finance Minister Sri Mulyani Indrawati said on Wednesday, “the risks to the economy in 2022 and 2023 include tapering in us and EU, China economic policy, supply disruption.” Additional comments “High commodity prices have begun to affect Indonesia’s inflation, but inflation now still mild.” “Indonesia consumption and production have returned to pre-pandemic levels.” “Indonesia

Analysts at MUFG Bank expect the EUR/USD pair to trade in the 1.100-1.1650 range during the next weeks. They see the pair moving to the downside, before staging a gradual rebound after the first quarter.  Key Quotes: “The pair has found more support closer to the 1.1000-level similar to between 2015 and early 2017, and

“China’s economy to grow by 4.8% in 2022,” forecasts the global rating giant Fitch during early Tuesday morning in Asia, per Reuters. Additional quotes China’s growth should improve during the second half of 2022, as policy support in mainland China takes effect. Growth across greater China will slow in 2022 following its strong economic recovery

WTI is trading in the $84.00 per barrel area having dipped back from two-month highs printed earlier in the session. China reserve release chatter and Libya output recovery news hasn’t dented optimism, with WTI still up nearly $9.0 in 2022. Focus on Monday has been on tight conditions in the physical market. Amid holiday-thinned trading

Japanese Prime Minister Fumio Kishida said on Monday that the coronavirus response is the government’s highest priority, as reported by Reuters. “Serious shortage of hospital beds needs to be avoided at all cost,” Kishida added and noted that they will bring forward COVID-19 vaccination booster shots for the elderly and the general public by up

The shared currency edges lower during the New York session by 0.14%. EUR/GBP Technical Outlook: Downward biased, but a break under the 0.8300 figure, would push the pair towards lower prices. The EUR/GBP slide for the second time of the week, though, remains trapped in the 0.8320-65 range for the sixth consecutive day. The EUR/GBP

GBP/USD bulls unable to break above the 200-DMA and defend the 1.3700 figure On Friday, a pack of solid UK macroeconomic data failed to underpin the British pound, which struggled to cling to the 1.3700 figure, falling during the New York session. At press time, the GBP/USD is trading at 1.3670. It is worth noting

The USD/CHF fall ended after three consecutive days amid a risk-off market mood. The rise of the 10-year US Treasury yield underpins the greenback. USD/CHF is neutral biased, but a bullish-engulfing candle pattern may open the door for an upside move; otherwise, it could challenge August 2021 monthly lows. The USD/CHF snaps three straight days

EUR/USD has stabilised just above 1.1400, having dropped back from earlier session highs in the 1.1480s. Technicians will be eyeing a key level of support in the 1.1380 area. EUR/USD selling has continued into the US trading session, though the bearish intra-day momentum has for the moment eased with the pair finding support above the

NZD/USD has slipped back from the 0.6850 area to the 0.6820s and is down about 0.5% on the day. Weak US data was largely ignored, with the dollar staging a tentative rebound, whilst choppy equity markets hurt NZD. NZD/USD’s positive mid-week momentum has faded on Friday, with the pair falling back below the key 0.6850

GBP/USD bulls moved in on the 1.3730s but has stalled At 1.3729, GBP/USD is higher on the day so far, trading up 0.16% after climbing from a low of 1.3705. The price is stalling here but the US dollar has been on the backfoot and the pound is lapping it up. The Bank of England

Fed Vice Chair nominee Lael Brainard, speaking at a hearing before the Senate Banking Committee on Thursday, said that the Fed would be in a position to start lifting interest rates as soon as its bond purchase programme had ended (in March). As we go forward to end bond purchases, raise interest rates and shrink the

EUR/USD seesaws around two-month high, pares heaviest daily jump since early December. US inflation matched forecasts in December, favoring chatters of less fuel for Fed hawks. ECB policymakers stay hopeful despite virus woes, citing mixed concerns over inflation. A slew of ECB, Fed members up for speaking today, US PPI, Jobless Claims are important too.