Julia Goh, Senior Economist, and Economist Loke Siew Ting at UOB Group assess the latest BSP event. Key Quotes “Bangko Sentral ng Pilipinas (BSP), as expected, maintained its accommodative monetary policy stance for the fourth straight meeting today (12 May). The overnight reverse repurchase (RRP) rate was left unchanged at 2.00%, the overnight deposit rate
FX
What you need to know on Monday, May 17: The greenback fell on Friday, following worse-than-expected US data. Retail Sales showed no growth in April, down from 10.7% in the previous month, while the core reading fell 1.5%. Also, the preliminary estimate of the Michigan Consumer Sentiment Index resulted in 82.8 in May, down from
GBP/USD Forecast: Virus variant concerns and the American shopper may push cable below 1.40 GBP/USD has been attempting recovery as markets swing back to positive ground. The danger from variants to Britain’s reopening and US consumption data could push the pair lower. Friday’s four-hour chart is showing that 1.40 is a critical separator of ranges.
Dallas Federal Reserve Bank President Robert Kaplan said on Friday that he is worried about excesses and imbalances in the economy and the housing market, as reported by Reuters. Additional takeaways “It’s going to take a while to resolve supply-demand imbalances in labor market.” “Watching carefully if supply-demand imbalances feed into higher inflation.” “Committed to anchoring inflation
USD/CHF witnessed some follow-through selling for the second straight session on Friday. Dovish Fed expectations, sliding US bond yields undermined the USD and exerted pressure. Investors look forward to the US Retail Sales figures for some meaningful trading impetus. The intraday USD selling picked up pace during the early European session and dragged the USD/CHF
St. Louis Federal Reserve’s James Bullard has stated that the US is to move from “recovery” to “expansion” by end of June and surpass pre-pandemic level of output. “The ‘keep households whole’ fiscal strategy has been successful well beyond initial hopes,” Bullard told the Greater Memphis Chamber, with national income “as high as it ever was and…poised to
AMC just cannot stop going up, nearly 3% on Wednesday. AMC shares trade through $10, for four straight days of gains. AMC outperforms the broader market by 6% on Wednesday. Update: Another day of gains for AMC as it notches for straight days of gains now. While everything else comes crashing down AMC rises nearly
Silver prices have been dented on US dollar strength. Bears looking for downside extension from resistances. XAG/USD is trading down nearly 2% on the day after falling from a high of $27.69 to a low of $27.01. The US dollar is back on form with US Treasury yields that climbed on Wednesday. The DXY index is
Commodity prices hit all-time highs – What’s next? [Video] [embedded content] Update: Gold price is dragged down, trading around $1,830. However, a big miss on US CPI may drive XAU/USD above the 200-day moving average (DMA) at $1850, FXStreet’s Dhwani Mehta informs. See – Gold Price Analysis: XAU/USD bulls come out of the shadows to mull
What you need to know on Wednesday, May 12: Tensions mounted as the focus is on US inflation data to be out on Wednesday. Higher commodities prices send the Chinese Producer Price Index sharply up in April, spurring concerns about rising inflationary pressures in the US. The US Federal Reserve has maintained an ultra-loose monetary
EUR/JPY is in new highs for the year and has the highs from April 2018 and September 2018 at 133.13/48 in its sights, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, briefs. Bullish above uptrend is at 130.30 “EUR/JPY continues to inch higher and is poised to reach 133.13/48, these are the highs
WTI bulls are back in town taking on the 10 and 20 hourly EMAs. The US dollar is in the dumps, supporting commodity prices. The price of oil is flat on the day after trading between a low of $63.97 and a high of $65.72. The main news stays with the ransomware attack that had forced
EUR/USD last week saw a strong recovery off the 1.1994/89 band of support (mid March highs and the 22nd April low). In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the pair is set to retest the 1.2243 February high. EUR/USD to alleviate upside pressure below 1.1943 “We suspect that
AUD/USD bulls seeking an upside continuation may need to be patient. The daily chart is offering a bearish formation and eyes are on the prior resistance. AUD/USD is on the front foot as the US dollar takes a knock on the Nonfarm Payrolls disappointment. However, the technical outlook argues the case for a correction according
Gold bulls have eyes on a 61.8% Fibo monthly target of $1,850. Shorter-term, the bears can target at least a drift to a 38.2% Fibo at 1.807 or the daily support, near $1,800. Will NFP be the catalyst to test the commitments at $1,820/25 on a soft US dollar? Update: Gold retreated from fresh three-month highs
In another encouraging vaccine development from the Old Continent, European Commission President Ursula von der Leyen announced on Saturday that the EU has struck a deal with BioNTech/Pfizer for up to 1.8 billion extra doses of their Covid-19 vaccine. “Happy to announce that the EU Commission has just approved a contract for guaranteed 900 million
GBP/USD spikes to over one-week tops, around 1.3970 on weaker NFP report The GBP/USD pair caught some aggressive bets during the early North American session and shot to over one-week tops, around the 1.3970 region in reaction to the dismal US jobs report. The headline NFP showed that the US economy added only 266K new
US Treasury Secretary Janet Yellen said on Friday that the April jobs report underscores the long climb back to the US economic recovery, as reported by Reuters. Additional takeaways “Bright economic spots in service industries, expanding labor market.” “There has been remarkable economic progress.” “I believe we will reach full economic employment next year.” “It’s still