USD/JPY Regains Strength
USD/JPY Regains Strength USD/JPY climbed higher above the 132.50 resistance zone. A connecting bullish trend line is forming with support near 134.50 on the 4-hour chart. EUR/USD slowly moved below the 1.0620 support zone. The US GDP grew 2.7% in Q4 2022, less than the 2.9% forecast. The US Dollar gained strength for a steady […]
FOMC Minutes Instant Insight
FOMC Minutes Instant Insight In their January meeting, Fed officials agreed to continue rate hikes until high inflation is controlled. The Fed is still attuned to the risk they may have to do more to keep inflation falling, a hawkish tilt that may come into more precise view when policymakers issue new interest rate and […]
RBNZ Monetary Policy Statement Feb 2023
RBNZ Monetary Policy Statement Feb 2023 The Reserve Bank raised the official Cash Rate by 50 basis points to 4.75%, and maintained its projection of a 5.5% peak in the coming months. There was almost no change to the projected OCR track compared to the November policy statement. The OCR is still expected to peak […]
European Flash PMI’s and Canada Inflation Report
European Flash PMI’s and Canada Inflation Report Australia’s ASX 200 index fell by -12.7 points and currently trades at 7,338.80 Japan’s Nikkei 225 index has fallen by -37.31 points and currently trades at 27,494.63 Hong Kong’s Hang Seng index has fallen by -207.23 points and currently trades at 20,679.73 China’s A50 Index has fallen by […]
EUR/USD Recovery Attempt Could Face Hurdles
EUR/USD Recovery Attempt Could Face Hurdles EUR/USD traded as low as 1.0612 and is currently correcting losses. A key bearish trend line is forming with resistance near 1.0685. GBP/USD is struggling below the 1.2120 resistance zone. Gold price is attempting an upside break above the $1,840 resistance. The Euro remained in a bearish zone below […]
NZD/USD Fails to Push Back Above 50-Day SMA
NZD/USD Fails to Push Back Above 50-Day SMA NZD/USD appears to be stuck in a narrow range as it holds above the weekly low, but the exchange rate may struggle to retain the advance from the January low as it fails to trade back above the 50-day SMA. Unlike the price action in January, NZD/USD […]
25bp Hawkish Hike from the RBA
25bp Hawkish Hike from the RBA The RBA hiked the cash rate target by 25 basis points to 3.35% Underlying inflation was above expectations to 6.9% Strong domestic demand is adding to the inflationary pressures CPI is expected to decline this year due to global factors and slower growth in domestic demand Medium-term inflation expectations […]
RBA Expected to Hike by 25bps
RBA Expected to Hike by 25bps The RBA are expected to rise interest rates by 25 bp to 3.35% tomorrow, which would take rates to their highest level since September 2012. If so, it would be their fourth consecutive 25bp hike and ninth back-to-back hike this cycle – which is their most aggressive in history. […]
USD/CNH, China’s Economy Expanding
USD/CNH, China’s Economy Expanding The National Bureau of Statistics China released PMI data this week which shows both the manufacturing and services sector are expanding. Appetite for risk has enjoyed a great to start to the year, mostly thanks to China reopening and abandoning their covid-zero policy. It was a key reason as to why […]
FOMC Hikes Rates and Signals More to Come
FOMC Hikes Rates and Signals More to Come As universally expected, the FOMC raised its target range for the federal funds rate by 25 bps at the conclusion of its policy meeting today. But the tightening cycle likely is not over yet as the FOMC noted that it “anticipates that ongoing increases in the target […]
The Bank Of England Preview
The Bank Of England Preview The Bank of England has a decision to make tomorrow. It is not “to hike or not to hie”. It is to hike by 25 or 50bps, that’s the question. As well as the rate decision itself, the BoE’s comments on the economic outlook and future tightening, as well as […]
Currency Pair of the Week: EUR/USD
Currency Pair of the Week: EUR/USD The pair started on a positive note thanks for Spain’s Harmonized CPI, which came in at +5.8 YoY vs 4.7% YoY expected and +5.5% YoY last. Today, Markets will get a look at CPI from France and Germany, ahead of the Eurozone January Preliminary CPI tomorrow. Expectations are for […]
Upcoming Market Updates: EUR, CNY
Upcoming Market Updates: EUR, CNY EUR: Spanish Flash CPI y/y, it measures Change in the price of goods and services purchased by consumers. CNY: CB Leading Index m/m, it measures Change in the level of a composite index based on 8 economic indicators.
USD/JPY expected slide
USD/JPY expected slide Last year was tough for Japanese yen. USD/JPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of […]
Upcoming Market Updates: JPY, EUR, GBP, USD, NZD, AUD
Upcoming Market Updates: JPY, EUR, GBP, USD, NZD, AUD JPY: Tokyo Core CPI y/y, it measures Change in the price of goods and services purchased by consumers in Tokyo, excluding fresh food. NZD: TANZ Business Confidence, it measures Level of a diffusion index based on surveyed manufacturers, builders, retailers, agricultural firms, and service providers. AUD: […]
Upcoming Market Updates: JPY, EUR, GBP, USD
Upcoming Market Updates: JPY, EUR, GBP, USD JPY: BOJ Summary of Opinions, It’s the primary tool the BOJ uses to communicate their economic and monetary projections to investors. JPY: SPPI y/y, it measures Change in the price of services purchased by corporations. EUR: Spanish Unemployment Rate, it measures Percentage of total work force that is […]
Gold Steady and Dollar Undermined
Gold Steady and Dollar Undermined: After silver’s big plunge on Monday, both precious metals have managed to steady the ship, suggesting the move at the start of the week was probably a bear trap. The US Dollar has come back against the Canadian dollar thanks to a 25- basis point rate hike from the […]
Australia CPI:
Australia CPI: Headline CPI 1.9%qtr/7.8%yr; Trimmed Mean 1.7%qtr6.9%yr; Weighted Median 1.6%qtr5.8%yr. Hospitality services most important factor in the upside surprise in the December quarter but with the Trimmed Mean coming in broadly as expected this suggests the pace of core inflation is generally unfolding as we expected. The CPI lifted 1.9% in the December quarter […]