Forex

This Week: Hotter-than-expected US CPI could further boost USD

US inflation numbers this week should certainly provide more thrills and spills for traders. This is especially likely after Friday’s July US employment data was a blowout across the board.

8 August 11:03

USD finds a bid on hawkish Fed rhetoric

Several Fed officials have signalled that the US central bank was committed to its aggressive fight against soaring prices, despite their supposed “pivot” last week to end of the tightening cycle and jumbo-sized rate hikes as perceived by the markets.

3 August 12:10

Dollar perks up ahead of jumbo Fed rate hike

We are accustomed to fairly subdued trading sessions ahead of key risk events. But yesterday saw the greenback gain a bid and advance against most of its major peers.

27 July 10:42

Dollar further softens while euro gains

The benchmark dollar index, DXY, is falling for a fourth consecutive session, as the retreat from a jumbo 100bp rate hike by the Fed next week continued to play out.

20 July 09:01

This Week: EURUSD to be dragged below parity amid ECB hike, gas pipeline shutoff risks?

Rising price pressures and the response by central banks to bring them back under control continue to remain key for markets and price action. Against such a backdrop, the European Central Bank’s first rate hike in over a decade is set to dominate the market’s collective attention amid these economic data releases and events, as well as 2Q US earnings releases.

18 July 09:30

Markets await US CPI data and the Bank of Canada decision

The dollar posted another fresh cycle high yesterday at 108.41 before easing off in the US session. This saw EUR/USD briefly touch parity and below before pulling back while GBP/USD fell to 1.1808 before also rebounding to close largely unchanged on the day. All eyes are on the latest inflation data out of the US which is released this afternoon.

13 July 11:35

This Week: Dollar to remain in charge with elevated CPI expected

Just when you think you might have a handle on these markets, along comes some price action which blows a lot of thinking (and positions) out of the water.

11 July 06:44

EURUSD sinks to 20-year low

EURUSD has been slammed by reduced bets surrounding the European Central Bank’s intended rate hikes, amid a souring economic outlook for the Eurozone. The world’s most-traded currency pair sank below 1.03 for the first time since December 2002, and is still languishing around that two-decade low at the time of writing.

6 July 12:32

This Week: AUDUSD may fall as RBA hike, US NFP, FOMC minutes await

Markets continue to struggle as price pressures remain elevated and central bankers are keen to assert their inflation fighting credibility. These themes look set to remain even in a holiday shortened week in which the US celebrate Independence Day on Monday.

4 July 10:00

EURUSD still capped by 50-day SMA

Today, we’ll witness the ECB equivalent of Jackson Hole taking place in the mountains in Sintra, Portugal. Recession fears have been boiling over in the eurozone and elsewhere and have cast a long shadow on policy tightening forecasts. The Sintra forum promised to be a place where officials could try to regain control of the narrative and inject some much-needed confidence into markets.

29 June 12:50

This Week: Dollar Index (DXY) set to cool further?

Volatility remains high with risky assets subject to the ongoing push-pull between the aggressive pace of tightening adopted by many global central banks to rein in inflationary pressures, and whether this comes at the expense of economic growth.

27 June 10:52

USD/JPY makes another multi-year high

The Japanese yen hit a fresh 24-year low of 136.706 against the dollar as it was pushed down by bets that the Bank of Japan will remain reluctant to follow other major policymakers into lifting borrowing costs and tightening monetary policy.

22 June 11:13

Dollar eases ahead of crucial Fed meeting

It’s all about the FOMC meeting today and whether the world’s most powerful central bank backs up market pricing after several recent media articles pointed to policymakers wanting to move rates by the largest amount since 1994. Another U-turn tonight by not actually hiking by this size will be a dovish surprise to traders keen to see what the Fed has in store to battle rampant inflation. The Fed typically delivers what is discounted in markets and doesn’t generally like to disappoint.

15 June 11:56

This Week: Brace for more aggressive Fed

Last Friday’s hotter than expected US inflation data scotched hopes that price pressures were easing. The aftershocks from that key data release is still reverberating across markets at the onset of this new trading week, especially in the leadup to this week’s pivotal Fed policy meeting, nestled among these other scheduled economic data releases and scheduled events …

13 June 10:16

Yen continues to tank

The major story in FX space is the continuing collapse of the Japanese yen. USD/JPY has surged from 127 to 133 in the matter of a few weeks. JPY is currently down over 13.7% against the dollar this year.

8 June 11:41

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