FX

The Bank of Japan (BOJ) is expected to raise its forecast for FY 2021-2022 inflation at its January 17 and 18 monetary policy meeting, the Yomiuri newspaper reported over the weekend. Key takeaways “The central bank’s outlook for price trends for fiscal 2022, currently at 0.9%, will be raised to 1% or higher.” “The possible revision

AUD/USD has been choppy on Friday in wake of a mixed US labour market report. The pair is now trading in the 0.7180s having dipped as low as the 0.7130s. The dollar weakened broadly despite the jobs report spurring upside in yields on Fed tightening expectations. AUD/USD was choppy on the final day of the

The New Zealand dollar advances some 0.46% as the North American session ends. A risk-off market mood was no excuse for the NZD to gain vs. the USD. NZD/USD Technical Outlook: Downward biased as long as it remains below 0.6859. On Friday, the New Zealand dollar trimmed some of its Thursday’s losses despite a risk-off

The British pound advances some 0.18% vs. the Japanese yen. GBP/JPY failure to reclaim above 158.22 exposes the pair to downward pressure unless GBP bulls keep the pair above 156.00. As the end of the first trading week of 2022 approaches, the British pound trimmed some of Thursday’s losses and reclaimed the 157.00 figure. At

GBP/USD Weekly Forecast: Cable at the mercy of US inflation and Omicron, correction seems imminent Omicron may be peaking in London – but the Federal Reserve’s urge to tighten is still rising. These two forces will likely remain in play in the upcoming week, featuring all-important US inflation and retail sales data, GDP from the

USD/JPY is taking a healthy breather. Economists at Credit Suisse view this as a healthy pause ahead of a test of the long-term downtrend from April 1990 at 116.83. Support at 114.96 ideally now holds “With 10yr US Bond yields now seen completing a major base as looked for we expect this to further reinforce

DXY consolidate the first weekly gains in three amid pre-NFP trading lull. Fedspeak backed hawkish FOMC Minutes to propel yields the previous day. Virus woes, softer data and US inflation expectations seem to probe bulls during quiet Asian session. US Dollar Index (DXY) struggles to extend the recent gains, easing to 96.23 during Friday’s Asian

Silver witnessed aggressive selling on Thursday and dived to a near three-week low. The technical set-up supports prospects for a further near-term depreciating move. A sustained strength above the $22.00 mark is needed to negate the negative bias. Silver dived to a near three-week low heading into the North American session, with bears now awaiting

The Caixin/Markit services Purchasing Managers’ Index (PMI) has risen to 53.1 in December from 52.1 in November. This leaves the outlook solid with the reading above the expansion level of 50, a point that separates growth from contraction on a monthly basis. Reuters reported that ”activity in China’s services sector expanded at a faster pace in December

SHOP plunged more than 10% on January 4. Shopify trades at about 44 times sales. Shopify stock is feeling the brunt of the sell-off in growth stocks. Shopify (SHOP) surprised many of its backers when it closed down an unusual 10.4% on Tuesday, January 4. The stock had been trending lower since November 19 when it

NZD/USD is on the verge of either a break to the upside or restest of critical support that could open the downside.  The bears are seeking a weekly downside extension, but the M-formation is a bullish reversion pattern.  With the recent lower low in NZU/USD and the bearish impulse on the daily chart, the bears

EUR/GBP turned lower for the second successive day and dropped to a near two-year low. Divergent BoE-ECB monetary policy outlooks continued attracting sellers at higher levels. The set-up favours bearish traders and supports prospects for additional near-term losses. The EUR/GBP cross continued losing ground through the mid-European session and dropped to the lowest level since

USD/CHF takes offers to refresh intraday low, pares heaviest jump since December 06. US 10-year Treasury yields remain steady around multi-day tops after rising the most in three months. Virus woes, Fed rate-hike concerns propel yields, US dollar. Swiss CPI, US ISM Manufacturing PMI decorate calendar. USD/CHF refreshes intraday low to 0.9173 while paring the

DXY partially reverses Friday’s pullback and approaches 96.00. Recent lows in the mid-95.00s should hold the downside for now. The recent corrective downside in DXY seems to have met some decent contention in the 95.50 region. A breach of the 95.50 zone should allow for an immediate test of the 55-day SMA at 95.39. On

USD/CHF refreshes intraday high, snaps five-day downtrend to bounce off two-month low. Previous support lines from August, January 2021 restrict recovery moves. 50% Fibonacci retracement, November’s low on bear’s radar. Descending RSI line, the key support breaks keep sellers hopeful. USD/CHF rebounds from a two-month low to defend the 0.9100 threshold, around 0.9130 during Monday’s

The S&P 500 is flat in subdued trade on the final session of 2021, having slipped back under 4800 on Thursday. The index is on course to post an annual return of more than 27%. All the major US indices were powered higher in 2021 by massive fiscal and monetary stimulus plus mass vaccine rollouts.

The USD/JPY edges higher in the year’s last trading day, up some 0.03%. A risk-off market mood put capped the downtrend of the USD/JPY. USD/JPY Price Forecast: The upward bias to continue, a break above 115.20 would open the door for a test of the YTD high at 115.52.  As of year-end looms, the USD/JPY

The first week of next year will have a busy schedule regarding economic data. In the US and Canada, employment numbers and ISM figures are due. Also the Federal Reserve will release the minutes from its latest meeting. Analysts from TD Securities expect a net job creation of 30K in Canada during December and NFP