St. Louis Fed President James Bullard said on Thursday that there is tangible risk inflation could be even stronger than expected, as reported by Reuters. “Policymakers will need to account for new inflation risks in coming months,” Bullard added. “Full reopening in the US and globally could mean more tailwinds for the US Economy and faster
FX
USD/INR snaps two-day uptrend, steps back from intraday top. Doubts over India’s vaccination success join fears of Delta Plus covid variant to back buyers. Indecision over Fed’s next moves, US President Biden’s infrastructure spending passage tests immediate moves. US data, Fedspeak and macro relating to covid, stimulus become important for fresh impulse. USD/INR pares weekly
Silver jumps to $26.29, the highest since Friday, after breaking $26.00. During the American session, the recovery in metals lost strength. Silver (XAG/USD) broke above $26.00 and climbed to $26.29, reaching the highest level since last Friday. The move higher took place amid a rally in metals and also boosted by technical factors. However, during
FX Strategists at UOB Group noted a break above 1.1970 in EUR/USD would be indicative that the negative phase has ended. Key Quotes 24-hour view: “We highlighted yesterday that ‘downward pressure has dissipated, and the current movement is deemed as part of a consolidation phase’ and we expected EUR to ‘trade within a 1.1875/1.1935 range’.
Analysts at MUFG Bank, expect the USD/JPY pair to trade in the 107.00/114.00 range over the next weeks. They point out the actions of the Federal Reserve matter most given the limited scope for any meaningful change in the monetary policy stance of the Bank of Japan. Key Quotes: “While we remain sceptical of the
USD/INR steps back from intraday top after two-day downtrend. Mildly upbeat sentiment weighs on USD ahead of Powell’s testimony. US-China jitters, covid updates and second-tier data add filters to the moves. USD/INR defends the 74.00 threshold, snapping a two-day pullback from late-April top amid the initial Indian trading session on Tuesday. That said, the Indian
USD/CAD continues to push lower during the American session. US Dollar Index drops below 92.00 on Monday. Surging crude oil prices provide a boost to CAD. Following last week’s impressive upsurge, the USD/CAD pair started the new week on the back foot and staged a deep correction. As of writing, the pair was trading at
USD/INR reverses Friday’s pullback from late April lows. US dollar remains firmer amid Fed rate-hike, tapering concerns. RBI’s push for more reserves for trade exerts additional downside pressure. Fedspeak, Chicago Fed National Activity Index and Indian Balance of Payment eyed. USD/INR bulls keep reins around 74.25, up 0.16% intraday, amid the initial Indian trading session
What you need to know on Monday, June 21: The greenback kept rallying on Friday, posting its best weekly performance for this year. The advance was an extension of the post-Fed rally, as the US central bank catch investors off guard by bringing forward chances of rate hikes to 2023. Stocks fell in Europe and
Next week, the Bank of England will have its monetary policy meeting. Analysts at Wells Fargo, believe the central bank will signal another slowdown in asset purchases over the next few month. They see the next tapering taking place by the end of the summer. Key Quotes: “Over the past few months, the Bank of
Commenting on the market reaction to the FOMC’s hawkish shift this week, Rabobank analysts noted that the sharp rally in the USD on the back of this week’s Fed meeting suggests a sharp re-adjustment in positions has been taking place. Key quotes “It is possible that the Fed did too good a job in recent
GBP/USD Weekly Forecast: BOE may save sterling after massive Fed-induced 300-pip blow GBP/USD has tumbled down in response to a Fed decision, UK reopening delay. The BOE’s decision and a bulk of US figures are set to move the currency pair. Mid-June’s daily chart is showing bears are taking over. The FX Poll is pointing
The US economy is expected to grow by 3.7% and 4.4% in the second and the third quarter of 2021, respectively, the Federal Reserve Bank of New York’s latest Nowcasting Report showed on Friday. “News from this week’s data releases decreased the nowcast for 2021:Q2 by 0.5 percentage point and decreased the nowcast for 2021:Q3
The Bank of Japan (BOJ) kept its monetary policy settings unchanged following the conclusion of its two-day monetary policy review meeting on Friday. The central bank kept the benchmark policy rate on hold at -10bps while maintaining its pledge to buy J-REITS at an annual pace of up to JPY180 bln. The BOJ, as widely expected, extended a deadline
Loonie under pressure amid lower crude oil and a decline in Wall Street. US Dollar’s momentum remains in place, even as US yields pullback. The USD/CAD is rising for the fifth consecutive day in a row and is holding onto all gains. It is hovering around 1.2340, near the six-week high it reached on Thursday
Amidst the US Federal Reserve’s (Fed) hawkish turn on the monetary policy, analysts at Goldman Sachs continue to predict a weaker US dollar going forward. Key quotes “Forecast a weakening for the USD, citing that its valuation is high and ongoing global economic recovery.” “More hawkish Fed expectations and the ongoing tapering debate look likely
Inflation data from Canada released on Wednesday, showed larger-than-expected numbers. According to analysts at the National Bank of Canada, price pressures are mounting in Canada but they think is a transitory phenomenon. Key Quotes: “Canada’s consumer price index rose 0.5% in May (not seasonally adjusted), one tick above consensus expectations.” “Although less acute than south of
In order to rein in the country’s rampant housing market, the Reserve Bank of New Zealand (RBNZ) has added a debt-to-income instrument to its toolkit, the central bank Governor Adrian Orr said in a statement Wednesday in Wellington. Key quotes “We consider that a DTI limit would be a complementary tool to mortgage Loan-to-Value Ratio