Asian markets remain track their global counterparts as Treasury yields remain firmer ex-China. PBOC’s readiness to defend the world’s second-largest economy keeps buyers hopeful. Australia witnesses record virus-led deaths, New Zealand pushes back border reopening. Tokyo and the other 12 prefectures are up for quasi-emergency, geopolitics also plays their roles. Asian shares print losses, just
FX
USD/JPY has settled in the 114.50 area, roughly flat on the day despite a dovish BoJ and higher US yields. Safe-haven demand has underpinned the yen on a day where Fed tightening fears have driven US equities lower. USD/JPY has eased back to near the 114.50 mark in recent trade after briefly spiking as high
Update: Gold (XAU/USD) takes offers to reverse early Asian session gains while declining to $1,817 during the initial European morning on Tuesday. The metal’s latest declines could be linked to the US dollar’s extension of the previous two-day upside, backed by the firmer US Treasury yields. It’s worth noting that the US 10-year and 5-year
The Bank of Canada’s (BoC) Business Outlook Survey (BoS) for the fourth quarter revealed on Monday that the business sentiment in Canada improved again, with the BoS indicator coming in at a new record high of 5.99, up from 4.73 in the third quarter. Note that the data for the latest survey was collected prior to the rapid spread
GBP/USD Price Analysis: Further downside hinges on 1.3655 break GBP/USD bounces off intraday low to 1.3675 during Monday’s Asian session. Even so, the cable pair holds onto the previous week’s U-turn from the 200-DMA. In addition to the failures to cross the key moving average, easing bullish bias of the MACD and the overbought RSI
The shared currency edges lower during the New York session by 0.14%. EUR/GBP Technical Outlook: Downward biased, but a break under the 0.8300 figure, would push the pair towards lower prices. The EUR/GBP slide for the second time of the week, though, remains trapped in the 0.8320-65 range for the sixth consecutive day. The EUR/GBP
GBP/USD bulls unable to break above the 200-DMA and defend the 1.3700 figure On Friday, a pack of solid UK macroeconomic data failed to underpin the British pound, which struggled to cling to the 1.3700 figure, falling during the New York session. At press time, the GBP/USD is trading at 1.3670. It is worth noting
The USD/CHF fall ended after three consecutive days amid a risk-off market mood. The rise of the 10-year US Treasury yield underpins the greenback. USD/CHF is neutral biased, but a bullish-engulfing candle pattern may open the door for an upside move; otherwise, it could challenge August 2021 monthly lows. The USD/CHF snaps three straight days
EUR/USD has stabilised just above 1.1400, having dropped back from earlier session highs in the 1.1480s. Technicians will be eyeing a key level of support in the 1.1380 area. EUR/USD selling has continued into the US trading session, though the bearish intra-day momentum has for the moment eased with the pair finding support above the
NZD/USD has slipped back from the 0.6850 area to the 0.6820s and is down about 0.5% on the day. Weak US data was largely ignored, with the dollar staging a tentative rebound, whilst choppy equity markets hurt NZD. NZD/USD’s positive mid-week momentum has faded on Friday, with the pair falling back below the key 0.6850
GBP/USD has been creeping steadily higher in the face of a softer US dollar. Some hawkish tones have been dialled down at the Fed by recent comments from officials. At 1.3729, GBP/USD is higher on the day so far, trading up 0.16% after climbing from a low of 1.3705. The price is stalling here but
Analysts at Wells Fargo maintain their view for a broadly stronger US dollar over the course of 2022 and into 2023. They consider a more hawkish Federal Reserve should result in capital flows toward the greenback, pushing it to the upside against most G10 and emerging market currencies. Key Quotes: “We expect the greenback to
Analysts at Societe Generale offer a sneak peek at what they expect from Bank Indonesia, on the policy front, for 2022. Key quotes “Indonesia’s December headline inflation touched an 18-month high of 1.9% and we expect it to inch up from here and move toward its median target of 3.0% in 2022.” “BI’s monetary policy
Gold continues to trade broadly flat on the day in the $1820 area post-hotter than expected US CPI. In an unintuitive reaction, the dollar has been weakening in recent trade, but technical resistance is stopping gold from benefitting. In wake of a broadly hotter than expected US Consumer Price Inflation (CPI) report, spot gold (XAU/USD)
With China facing an uphill battle to contain the rapid spread of the highly-contagious Omicron covid variant, Goldman Sachs economists, including Chief China economist Hui Shan, lowered their 2022 GDP growth projection for the dragon nation. Key highlights (via Bloomberg) “Goldman Sachs Group Inc. cut its forecast for China’s economic growth this year to 4.3%.”
A combination of factors assisted USD/JPY to regain positive traction on Tuesday. A positive risk tone undermined the safe-haven JPY and extended some support. Fed rate hike bets acted as a tailwind for the USD and also provided a modest lift. The USD/JPY pair built on its steady intraday positive move and climbed to a
The Financial Times (FT) quotes multiple economists, including former Bank of England official Tony Yates, to back UK PM Boris Johnson’s decision to ride out the Omicron wave of Covid-19 infections with minimal restrictions might turn out to be the right call for the economy. Additional quotes They have accused ministers of setting policy based
USD/TRY posts modest gains and eyes a test of 14.0000. The pair looks side-lined between 13.00 and 14.00 so far. Turkey’s Unemployment Rate remained at 11.2% in November. The Turkish lira depreciates further and pushes USD/TRY back to the proximity of the 14.00 hurdle at the beginning of the trading week. USD/TRY stays capped by