The German economy ministry was out with some comments in the last hour, saying that the GDP growth is likely to pick up significantly in Q3 following a 1.6% QoQ rise in the previous quarter. The ministry further added that the GDP growth is expected to normalize in the fourth quarter. Market reaction The comments
FX
AUD/USD pressured as the US dollar picks up a safe haven bid. Wall Street’s benchmarks soured on concerns for global growth and coronavirus. US CPI and Australia Employment data will be the week’s focus on the calendar. AUD/USD was ending Friday offered, losing nearly 0.2% after falling from a high of 0.7409 and reaching a
Gold breaks beneath $1,800, bears target $1,700. US 10-year Treasury yields rise, underpinning demand for the US dollar. Fed speakers in the week agree on prospects of bond tapering this year. Gold edges lower during the New York session, trading at $1,789.08 down 0.30% at the time of writing. Meanwhile, the US 10-year Treasury yields, which
GBP/USD Weekly Forecast: Range bound with an eye on the BOE Weak July GDP data restrains sterling and rate hike expectations. GBP/USD finishes the week on par and at the middle of three-month range. Sterling’s recovery on Thursday and Friday ended, temporarily, the threat of the GBP/USD breaking below 1.3765 support and entering the lowest
EUR/USD adds to recent gains above the 1.18 yardstick. The pair’s leg lower seems to have met support around 1.1800. German final CPI came in flat MoM and rose 3.9% YoY. The optimism around the European currency stays well and sound in the second half of the week and underpins the EUR/USD move to 2-day
USD/JPY bulls stepping back in and price corrects bearish daily impulse. The dollar index ended Wall Street down nearly 0.2% as measured by DXY. USD/JPY is moving back in on the 108 figure following a firmer performance in the greenback for the first part of the North American session. At the time of writing, USD/JPY
The airline sector has been at the forefront of the pandemics impact over the last 18 months, and at the end of H1 reported a loss of £701m in May. In July the company said the outlook for Q3 wasn’t expected to look much better with the airline saying it only expected to fly around
In a Wall Street Journal publication on Wednesday, entitled, ”Democrat’s Split Over Powell Fed Reappointment”, markets are again contemplating his replacement next year. Progressive Democrats have been urging US president Joe Biden to replace the Federal Reserve’s chairman, Jerome Powell. Such reps as New York Rep. Alexandria Ocasio-Cortez are looking for a sweeping makeover at the Fed so that
UOB Group’s Economist Lee Sue Ann comments on the upcoming ECB meeting. Key Quotes “The revised forward guidance from the July meeting shows the ECB can tolerate above-target inflation that is transitory.” “As such, the ECB will accept any temporary overshoots of its new symmetric 2% inflation target, particularly when monetary policy is at the
Gold trades at two-week lows, below $1,800. XAU/USD daily close below the 200-DMA could accelerate the fall. An ascending wedge in the 4-hour chart, its suggests next target could be at $1,750. The yellow metal is falling for the second day in a row and it is trading around $1,794.41, down 1.58%, at the time of writing.
UOB Group’s FX Strategists noted NZD/USD’s upside is predicted to meet a solid resistance above the 0.7200 mark. Key Quotes 24-hour view: “After the strong surge in NZD last Friday (03 Sep), we highlighted yesterday (06 Sep) that ‘the sharp and rapid rise appears to be overdone and NZD is unlikely to strengthen further’. We
NYSE:BABA futures edged higher in quiet start to the week Investors seem to be suspicious of the Common Prosperity donations from big tech firms. Ride-hailing firm Didi Global gains on news that Beijing may take over operations. Update: NYSE:BABA heads into the Asian opening trading at $170.75 per share, marginally up on futures, as Wall
AUD/USD met its initial target at the 0.7427 4th August high on Friday. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the aussie to drop towards the 0.7305 area in the near-term. AUD/USD to head higher towards 0.7699 on a close above 0.7481 “We would allow for some near-term consolidation below the 0.7481 three-month
The bulls were charged on the NFP miss and central bank convergences. AUD/USD bulls are up against a wall of resistance on RBA week. The doves are swooping down on the Federal Reserve and hawks are gathering pace elsewhere, such as at the European Central Bank. Convergence between central banks is knocking the air out
GBP/USD prints fresh two-week highs above 1.3870 as the US dollar remains weak Pound prints fresh highs across the board during the American session. US dollar consolidates post NFP losses, even as US yields rise sharply. GBP/USD up for the third day in a row, gains a hundred pips from a week ago. The GBP/USD
Recent data showed inflation in Turkey rose up to 19.25% in August. According to the Research Department at BBVA, consumer inflation will remain near 19% till November, leaving almost no room for an easing form the Central Bank of the Republic of Turkey (CBRT). Key Quotes: “Consumer prices increased by 1.12% in August, again being
The NZD/USD pair has broken back above 0.71. Economists at ANZ Bank expect the kiwi to see another leg higher with the next resistance seen at the 0.7170 mark. Markets look ahead to US NFP “Generalised USD weakness ahead of key US jobs data (which has the potential to shift sentiment on surprises) played a
USD/CAD broke below its weekly range on Thursday. US Dollar Index slumps below 92.30 in the American session. Crude oil stages decisive rebound, trades above $70. The USD/CAD pair came under strong bearish pressure in the second half of the day on Thursday and dropped to its lowest level since August 16 1.2549. As of