RBA Minutes Less Hawkish Than Expected, For Now
RBA Minutes Less Hawkish Than Expected, For Now The Board sees increased inflation risks while recognizing prospect of weakening economy. And rising unemployment rate. The Minutes from the Reserve Bank Board’s meeting in June provide a more balanced approach to the outlook for rates than we saw in the Governor’s statement following the decision to […]
Dollar in demand as modest China rate cut hits sentiment
Dollar in demand as modest China rate cut hits sentiment The U.S. dollar gained in early European trade Tuesday, with this safe haven in demand as a rate cut by China’s central bank failed to assuage investor concerns over slowing economic growth. At 01:55 ET (05:55 GMT), the Dollar Index, which tracks the greenback against […]
US Markets Closed for Juneteenth Holiday
US Markets Closed for Juneteenth Holiday The consumer confidence of the University of Michigan was he only market relevant data release on Friday, but it brought somewhat of a mixed message, especially for bond investors. Consumers’ assessment, both on current conditions (63.9 from 59.2) and on expectations (68.0 from 64.9) printed stronger than expected but […]
US Dollar holds steady to start week, eyes on central bank speak
US Dollar holds steady to start week, eyes on central bank speak The US Dollar (USD) holds steady early Monday after having suffered large losses against its major rivals last week. Stock and bond markets in the US will be closed in observance of the Juneteenth holiday. The European economic docket will not be featuring […]
Dollar surges after Fed signals more rate hikes ahead
Dollar surges after Fed signals more rate hikes ahead The U.S. dollar rallied in early European trade Thursday, boosted by the Federal Reserve’s hawkish projection of more tightening this year, while the euro weakened ahead of the latest European Central Bank policy meeting. At 02:05 ET (06:05 GMT), the Dollar Index, which tracks the greenback […]
GBP/USD struggles to surpass 1.2450, upside seems favored despite hawkish Fed bets improve
GBP/USD struggles to surpass 1.2450, upside seems favored despite hawkish Fed bets improve The GBP/USD pair has witnessed delicate barricades after climbing to near 1.2450 in the early European session. The Cable is expected to remain on tenterhooks as the USD Dollar Index (DXY) has attempted a recovery after dropping to near 103.81. More downside […]
Fed Minutes Depict Uncertainty Surrounding Future Rate Hikes
Fed Minutes Depict Uncertainty Surrounding Future Rate Hikes The minutes from the May 2-3 Federal Open Market Committee (FOMC) meeting reiterated that curtailing inflation remains the principal objective of the Fed. On the current state of the economy, the Committee members noted that “economic activity had expanded at a modest pace in the first quarter. […]
JPY Bearish Positioning is Getting Overstretched
JPY Bearish Positioning is Getting Overstretched Better than expected US non-farm payrolls for April have failed to ignite US dollar bulls. Two outliers; the safe haven currencies, CHF and JPY underperformed against the US dollar due to the resurgence of risk-on behavior in the US stock market. JPY future’s bearish positioning has highlighted a risk […]
Will Nonfarm Payrolls Hint at a Fed Pause in June?
Will Nonfarm Payrolls Hint at a Fed Pause in June? The Federal Reserve delivered its tenth consecutive rate hike on Wednesday, as expected, but reset its guidance to indicate increased emphasis on incoming data. Hence, Friday’s nonfarm payrolls will be the next test for the US dollar at 12:30 GMT, with forecasts pointing to a […]
RBA Board Hikes the Cash Rate by 0.25%
RBA Board Hikes the Cash Rate by 0.25% Choosing to raise is the better policy option, even if it is not consistent with our interpretation of the implicit guidelines. The Reserve Bank Board raised the policy rate by another 0.25% at its May meeting, bringing the policy rate to 3.85%. The decision came as a […]
Fed Minutes Showed Recent Banking Turmoil May Result in Lower
Fed Minutes Showed Recent Banking Turmoil May Result in Lower The minutes of the March 21-22, 2023, Federal Open Market Committee (FOMC) meeting reaffirmed that price and financial stability are of paramount importance to the Fed. Regarding the economy, Committee members noted that “recent indicators point to modest growth in spending and output. At the […]
EUR/USD struggles to reach yearly high ahead of NFP report
EUR/USD struggles to reach yearly high ahead of NFP report EUR/USD is struggling to test the yearly high (1.1033) as it fails to continue the series of higher highs and lows from the beginning of the week, and the U.S. labour market data (NFP) report may weigh on the exchange rate as employment is expected […]
Australian Dollar Dips After RBA Leave Rates Unchanged
Australian Dollar Dips After RBA Leave Rates Unchanged The Australian Dollar slipped slightly in the aftermath of the RBA standing still on rates for the first time since May 2022. The RBA maintained some flexibility and didn’t rule out future hikes. In the accompanying statement on monetary policy, they said, “The Board expects that some […]
Gold Price Vulnerable to Persistent US Inflation
Gold Price Vulnerable to Persistent US Inflation The cost of gold might organize further endeavors to test the 2022 high ($2071) as it moves to a new week-after-week high ($1984), however new information print emerging from the US might prompt a pullback in bullion as the Individual Utilization Use (PCE) cost file is supposed to […]
Australia February Monthly CPI Indicator
Australia February Monthly CPI Indicator The Monthly CPI indicator rose 6.8% in the year to February, compared with the Westpac forecast of 7.4% year-on-year and the market forecast of 7.2% year-on-year. This represents a significant downside risk to our March forecast CPI forecast of 1.5% per quarter. Specifically, the index rose only 0.2% in February […]
GBP/USD Eyes Sustained Increase Above
GBP/USD Eyes Sustained Increase Above GBP/USD is showing positive signs above the 1.2220 level. A connecting bullish trend line is forming with support at 1.2240 on the 4-hours chart. EUR/USD is well supported above the 1.0720 support zone. USD/JPY might attempt a recovery wave if it clears the 132.00 resistance. GBP/USD The British Pound gained […]
RBA Board opens the door to a pause in April
RBA Board opens the door to a pause in April The Minutes emphasize a high degree of uncertainty; do not take into account the global banking disruptions; and point to a pause in April. The Minutes of the Reserve Bank Board meeting on March 7 highlight that unlike recent meetings when several policy options were […]
AUD/USD Rate Outlook Mired By Failure To Test
AUD/USD Rate Outlook Mired By Failure To Test AUD/USD appears to be reversing course ahead of the 200-Day SMA as it fails to clear the week high, but data prints coming out of Australia may prop up the exchange rate as job growth is expected to rebound in February. AUD/USD largely mirrors the weakness across […]