What you need to take care of on Friday, May 20: Despite persistent risk-aversion, the American currency changed course on Thursday and fell across the FX board. Fears gyrated around inflationary pressures and slowing economic growth. Stocks markets remained under pressure, with most Asian and European indexes closing in the red, although off their intraday
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The last 12 months have seen the Royal Mail share price halve from the June 2021 peaks of 614p, with the losses accelerating after the company cut its operating profit forecast in January, due to a £70m restructuring charge, when it announced its Q3 numbers. Now trading near one year lows today’s full year numbers
What you need to take care of on Thursday, May 19: The greenback edged higher against its high-yielding rivals but eased against safe-haven currencies, reflecting the dismal market mood. Inflation was the primary catalyst of the latest bout of risk aversion. The EU Consumer Price Index was confirmed at 7.4% YoY in April, while the
The CAD is showing signs of life after the USD pushed above 1.30 last week to reach its highest point since Nov 2020. A hot Consumer Price Index (CPI) data from Canada could drag the USD/CAD pair down to the 1.27 zone, economists at Scotiabank report. CAD rebound may extend on High CPI “Canadian CPI
UK CPI Preview: Inflation “apocalypse” priced in, GBP/USD has room to fall Economists expect the headline UK Consumer Price Index (CPI) to have jumped from 7% YoY in March to 9.1% in April. I will argue that this leap is already baked into cable, leading to a ‘buy the rumor sell the fact’ effect, in
USD/TRY clinches fresh 2022 highs near 15.90 on Tuesday. The lira already depreciates more than 7% so far in May. Markets’ focus now shifts to the CBRT event next week. Another day, another low in the Turkish lira. Indeed, price action in USD/TRY appears to have returned to the normality and resumes the uptrend, recording
What you need to take care of on Tuesday, May 17: The American dollar appreciated at the beginning of the week but ended the day with modest losses against most rivals as stocks markets changed curse. European indexes closed mixed, but Wall Street managed to post gains. The EUR/USD pair ended the day at around
Commenting on the policy outlook, European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau said on Monday that he expects a decisive policy meeting in June and an active summer, as reported by Reuters. Additional takeaways “Pace of the further steps will take into account actual activity and inflation data with some optionality
The uspide potential of the US dollar versus the Japanse yen is becoming more limited, warned analysts at MUFG Bank. They noted the USD/JPY pair is reverting to a traditional risk-on/risk-off patterns amid financial instability. Key Quotes: “The fact that US yields have been more sensitive to asset price declines than to higher than expected
Gold’s recovery capped by the $1,820 area, stays under pressure. Improvement in risk sentiment offers limited help to the yellow metal. On a weekly basis, XAU/USD is down almost 4%. Gold bottomed at $1,799 on Friday, the lowest level since February. A recovery followed later that found resistance quickly at $1,820. The yellow metal remains
The slide in CAD in recent weeks reflects a broadly stronger greenback. Economists at CIBC Capital Markets think the loonie will follow broad USD sentiment and is likely to depreciate a touch in the near-term before retracing that ground over the balance of the year. CAD a bit weaker again in 2023 “With inflation at
The deterioration in the growth outlook in the United Kingdom has been negative for the pound, explained analysts at CIBC. They forecast the GBP/USD pair will remain around 1.22 during the next months. Key Quotes: “The updated BoE macro outlook now reflects a negative GDP trajectory in 2023, the bank now assumes -0.25% rather than
Commodity prices broadly remain clearly above pre-covid levels. In the opinion of economists at Danske Bank, persistent supply challenges will likely maintain metal prices clearly above pre-covid lows for the time being. Metals supply has declined broadly, not just in Russia “Tight supply still points towards metal prices remaining at elevated levels, while Chinese infrastructure
US dollar jumps and then makes a full pullback. Mexican peso gains on risk appetite. Banxico’s decision due on Thursday. USD/MXN upside capped by 20.45, testing the 20-day SMA. The USD/MXN made a run to 20.46 after the release of US inflation data, reaching the highest level in a week. Then, amid a general reversal
USD/JPY is expected to keep its consolidation unchanged within the 128.40-131.00 range in the next weeks, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang. Key Quotes 24-hour view: “Yesterday, we expected the sharp pullback in USD to ‘extend to 129.60’. Our expectations did not materialize as USD dropped to 129.79
Governor Christopher J. Waller is making comments and traders are looking for anything additional to his ‘Reflections on Monetary Policy 2021‘ speech from last week that can give more clarity on the path ahead for 2022. Waller has been an advocate of rate hikes, but famously said, ”we are not in a Volcker kind of
GBP/USD is marching towards 1.2400 as the risk-on mood has underpinned risk-sensitive assets. The underperformance of BRC Like-for-Like Retail Sales did a negligible impact on pound. A higher US inflation print may bring more uncertainty in the FX domain. The GBP/USD pair is oscillating in a broad range of 1.2260-1.2406 since Thursday. A tad longer
US dollar losses strength as US yields drop from multi-year highs. DXY hits fresh lows on American hours, backs away from the fresh multi-year high. The USD/JPY rose earlier on Monday to 131.34, reaching the highest level since 2002 and then lost strength. During the American session, it turned to the downside and recently accelerated