FX

TD Securities analysts noted that a sufficiently weak growth context in late 2022 and early 2023 might be enough to keep the Bank of Canada (BOC) on hold in January. Analysts, however, added that the latest inflation data should ever so slightly ratchet up the pressure on the BOC. BOC will find cause for concern in inflation

US Dollar Index remains sidelined after snapping two-day downtrend. Firmer US data, challenges to sentiment underpin DXY rebound. Pullback in Treasury bond yields, holiday mood restrict immediate upside. Final readings of US Q3 GDP, PCE details eyed for clear directions. US Dollar Index (DXY) remains indecisive around 104.20, struggles to extend the previous day’s rebound

The NZD has firmed in the past couple of months. Economists at ANZ Bank analyze the Kiwi’s outlook for the next months. When global risks are high the NZD tends to be weaker “Looking ahead, we expect to see ongoing volatility in the NZD as opposing forces impact its value.” “If interest rates lift more

Gold price seesaws around weekly top after rising the most in three weeks. United States Treasury bond yields underpinned US Dollar’s biggest daily fall in a week and propelled XAU/USD. Gold buyers also cheered receding fears of recession, hopes for more stimulus from China. US data, risk catalysts will be crucial as Gold traders approach

EUR/GBP is back at Monday’s close. Economists at ING expect the pair to move to the upper half of the 0.87-0.88 band.  No domestic drivers “There is nothing to highlight in the UK calendar today, and the Pound should continue to be driven by Dollar dynamics.” “EUR/GBP initially had a positive reaction to the BoJ

EUR/USD bears are a test of 1.0580which opens the risk of a continuation towards 1.0500 at the extreme.  Bulls need to get above 1.0650 for a run into the 1.07s. As per the prior analysis, EUR/USD Price Analysis: Bulls under pressure as bears test commitments at 1.0600, and, EUR/USD Price Analysis: Bulls move and seek a test of key H4

Economists at ANZ Bank have downgraded their Australian GDP forecast to 1.5% year-on-year by end-2023. Notwithstanding the slower forecast growth trajectory, the the extent of RBA tightening is unchanged. Growth downgrade doesn’t change the policy outlook “We have downgraded our Australian GDP forecast to 1.5% YoY by end-2023 (prev: 1.8%) but expect Australia willavoid recession

“The (UK) health secretary, Steve Barclay, is expected to contact health unions to urge fresh talks aimed at averting further strikes, amid new warnings that more action could put patients in danger,” reported The Guardian during the weekend. Key quotes It comes as No 10 rejected a proposal to give nurses a one-off lump-sum payment in

Risk aversion weighed on high-beta currencies like the Australian Dollar. Global central banks hiking rates and eyeing additional increases sounded recession alarms, dampening investors’ mood. AUD/USD Price Analysis: Downward biased, after tumbling from weekly highs, heading to the 50-day EMA. The Australian Dollar (AUD) slides against the US Dollar (USD) amidst a dampened market sentiment

Silver prices bounce and cling to gains, despite a buoyant US Dollar. Near-term, XAG/USD might consolidate, as mixed signals between the RSI/RoC suggest caution is warranted. Silver is recovering some ground after falling to weekly lows during the New York session of $22.56. However, a late buying impulse keeps XAG/USD trading in the green with

The USD/JPY failed to gain traction despite rising US Treasury yields. USD/JPY Price Analysis: Remains upward biased, though a pullback toward 136.00 is on the cards. The USD/JPY fell after testing the 20-day Exponential Moving Average (EMA) around 137.88 and dropped below the 137.00 mark in the North American session amid a risk-off impulse. At

European Central Bank (ECB) Governing Council member Olli Rehn said on Friday, “50 basis points (bps) hikes are likely in February and March.” He added that there is “quite some way to go with rate hikes.” Market reaction EUR/USD is off the highs, trading around 1.0610 despite the hawkish comments from the ECB policymaker.

WTI bears are moving in again after a breach of resistance. $75.70 structure is important on the hourly chart.  As per the prior analysis, WTI Price Analysis: Bulls attempt to take on the daily trendline resistance, West Texas Intermediate WTI crude oil that climbed into resistance earlier this week on the back of restrictions on the flow between Canadian and

Economists at TD Securities discuss the Bank of England interest rate decision and its implications for the GBP/USD pair. Hawkish (15%): No Change to Guidance “The expected doves dissent, while Mann votes for 75 bps. Forward guidance remains unchanged and the MPC drops the reference to market pricing being too high. GBP/USD +0.25%.” Base Case

US Dollar is back on its backside following a mixed reaction to the Fed event. Two-way price action was the outcome in financial asset classes to the Fed and US Dollar prints fresh bear cycle low.  The US Dollar is tailing off from the highs that were made on the knee-jerk in what was perceived to

Visa says that Ryan McLenerney will become CEO effective from February 1, 2023, and the present CEO Alfred Kelly will become executive chairman. At the end of November, Visa said that US payments rose 9%y/y while it noted November credit grew 10% and debit increased 8%. Will these developments and news help lift Visa’s share

The S&P 500, the Nasdaq 100, and the Dow Jones remain positive. Softer than expected, US CPI data augmented speculations that the Fed will be less aggressive. Traders expect the Federal Reserve to hike to 5% and cut rates ahead of Q4 2023. US stocks remained volatile after the release of inflation data in the

EUR/USD failed to make a decisive move in either direction and closed the day flat. Economists at ING highlight two key technical levels to watch. 200-Day Moving Average is now at 1.0350 “If we were to pick out two levels, we would say the 1.0600/10610 area is key resistance. A close above that on a