EUR/USD built on the overnight post-FOMC recovery from the monthly low. The risk-on mood undermined the safe-haven USD and remained supportive. Mixed Eurozone PMIs did little to influence ahead of the ECB policy decision. The EUR/USD pair maintained its bid tone through the first half of the European session and was last seen trading around
FX
Despite the hawkish Fed, USD/CAD drops into the abyss. Commodities turning around and FX follows the weaker US dollar. Despite a seismic shift in the Federal Reserve’s dot plot and language with regards to inflation, the US dollar was unable to capitalise on the hawkish outcome. Instead, the greenback is worse off since the release
USD/JPY prolonged its range-bound price move witnessed over the past one week or so. Investors seem to have moved on the sidelines ahead of the FOMC/BoJ policy meetings. The Fed will announce its decision this Wednesday and the BoJ is scheduled on Friday. The USD/JPY pair lacked any firm directional bias and remained confined in
EUR/JPY has reversed lower again from a test of the 128.50 level and is back to the 128.00 area. The pair is tentative ahead of ECB and BoJ rate decisions as well Eurozone flash PMIs and Japan Industrial Production. EUR/JPY has reversed lower again from a test of the 128.50 level earlier in the session
Where is gold price headed? Markets are eagerly looking forward to the Fed decision, as the two-day FOMC meeting kicks off on Tuesday. Ahead of the Fed verdict, the Omicron covid variant fears have gripped the market, putting a fresh bid under the safe-haven US dollar at gold’s expense. Meanwhile, the Treasury yields hold steady
AUD/NZD pushed back above 1.0550 on Monday to challenge last week’s highs on Monday. External central bank events will dictate FX action this week, but Australia and New Zealand data will be of note. AUD/NZD pushed back towards last week’s highs above 1.0550 on Monday, up about 0.1% on the day, as the Aussie dollar
USD/CAD gained some positive traction on Monday amid a modest pickup in the USD demand. Bullish crude oil prices might underpin the loonie and keep a lid on any further gains for the pair. Investors might also refrain from placing aggressive bets ahead of the key FOMC policy decision. The USD/CAD pair edged higher through
AUD/JPY strengthened a tad on Friday amid a more upbeat tone to markets. AUD/JPY appears to be forming a pennant and could break higher towards its 21DMA near 82.00. AUD/JPY strengthened a tad on Friday amid a more upbeat tone to markets. US inflation data didn’t come in quite as high as some had feared
A risk-on market mood boosts risk-sensitive currencies like the British pound, the JPY falls. Traders’ mood turned negative when the US inflation crossed the wires, thought later improved. GBP/JPY Price Forecast: Has a neutral-bullish bias, though downside risks remain. The British pound pares some Thursday’s losses during the New York session gains 0.31%, trading at
USD/JPY continues to trade close to the 113.50 level after seeing some post-US inflation data choppiness. The pair continues to track moves in the US 10-year yield and as long as that remains subdued, USD/JPY will struggle to recover. USD/JPY was subdued on Friday, for the most part sticking within recent ranges and not deviating
The US Dollar Index ended the week above the 96.00 threshold. The US 10-year Treasury yield finished flat, at 1.482%. DXY Technical outlook: An upside break above an ascending triangle target 98.00. The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, slides 0.19%, sitting at
UK Brexit Minister Lord David Frost said on Twitter on Friday that the UK and EU had made further limited progress on medicines but we have not reached agreement. 1. @MarosSefcovic and I met by video today to wrap up this week’s talks process about the Northern Ireland Protocol. We have made further limited progress on
The EUR/USD pair stalled at 1.1350 first and now marginally below 1.1300 again. In the view of economists at ING, we would need to see a clear hawkish twist by the European Central bank (ECB) to turn the tide for the slightly overvalued and not clearly oversold euro. Hard to turn the tide “EUR/USD may
Bank of Canada Deputy Governor Toni Gravelle said on Thursday that concerns about upside inflation risks are heightened much more than usual. We are likely to react a little bit more readily to the upside risk given it’s already above our inflation-control range, Gravelle added. For reference, the bank’s inflation-control range is 1.0%-3.0%. Market Reaction
Norway’s krone extended early-week gains yesterday, with EUR/NOK breaking below the 10.10 level and now trading around 10.06. In the view of economists at ING, NOK gains could pause today, but resume next week. Markets may have started to position for a hawkish tone by the Norges Bank “The improvement in Omicron-related sentiment is indeed
USD/JPY bulls moving in and eye a restest towards 115.20. On the downside, 112.50 is an important level worth noting. USD/JPY has corrected to into hourly support which gives rise to bullish prospects for the sessions ahead. The following illustrates, in a top-down analysis, the potential for a restest of the 114 area towards 115.20.
AUD/USD struggled to preserve/capitalize on its early move to a one-week high. Rising geopolitical tensions acted as a headwind for the perceived riskier aussie. Retreating US bond yields undermined the USD and could help limit the downside. The AUD/USD pair surrendered its intraday gains to a one-week high and was last seen hovering near the
GBP{/USD trapped within the 1.32’s, eyes on a significant upside correction. The central bank divergences are laying into the hands of the GBP/USD bears. GBP/USD is under pressure but remains within a 50 pip range with support within the 1.3200 vicinities. At the time of writing, cable is down some 0.25% trading between 1.3208 and