The White House dims optimism over the Omicron cure after the US Food and Drug Administration (FDA) approved a pill from Pfizer to treat Covid-19. “The White House has warned it will take more than six months to fulfill its initial order for Pfizer’s antiviral Covid-19 pill, as officials damped speculation the drug could immediately
FX
AUD/USD attracted some dip-buying on Wednesday and bounced over 35 pips from the daily low. Easing Omicron fears extended support to the perceived riskier aussie and provided a modest lift. The Fed’s hawkish outlook acted as a tailwind for the USD and capped any further gains for the pair. The AUD/USD pair climbed back above
USD/CAD remains pressured inside a bearish chart pattern after stepping back from yearly top. RSI retreat, MACD conditions suggest further downside but 1.2690 becomes a tough nut to crack for bears. Bulls need to cross 1.2975 to keep the reins. USD/CAD drops towards 1.2900, extending the previous day’s pullback from the yearly top, during Wednesday’s
Silver gained some positive traction and shot to a near three-week high on Tuesday. Strength beyond 100-period EMA on H4 supports prospects for additional gains. Bearish oscillators on the daily chart warrant some caution for aggressive traders. Silver regained positive traction on Tuesday and snapped two successive days of the losing streak. The momentum pushed
EUR/JPY is at risk of a downside correction should 128.10 give way to bearish pressures. 127.90 guards a deeper resumption of the dominant bear trend. The daily chart shows that the price is consolidating and has reached a 38.2% Fibonacci retracement level. This would be expected to hold on to initial tests and then potentially
USD/JPY is trading in a tight range on Monday. Safe-haven flows dominate the financial markets at the start of the week. Wall Street’s main indexes remain on track to open deep in the negative territory. Despite the renewed dollar strength, the USD/JPY pair closed flat on Friday and started the new week in a calm
NZD/USD remains depressed near intraday low after NZ trade numbers for November. New Zealand Trade Balance, Exports improves, Imports rise as well. Fed’s Waller renewed rate hike concerns, New Zealand experts warn of a jump in virus cases. Light calendar, year-end holiday mood may restrict movement but bears to keep the reins. NZD/USD shrugs off
GBP/USD Weekly Forecast: Bulls eye 1.3380 after BOE out-hawks Fed, Omicron empowers bears They say the Federal Reserve signals, the Bank of England acts. This week the “Old Lady” was the first to move among major central banks in raising borrowing costs, which boosted GBP/USD, outweighing Omicron’s fears. Looking ahead, the main factors impacting the
The US Dollar Index ended the week above the 96.50 threshold. The US 10-year Treasury yield finished down, at 1.412%. DXY Technical outlook: Breaks above the ascending triangle, USD bulls target 98.00. The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, rallies 0.72%, sitting at
GBP/JPY slipped back to pre-BoE levels in the mid-150.00s on Friday as risk appetite deteriorates, boosting the yen. That marks a 1.3% pullback from post-surprise rate hike highs above 152.50, but GBP/JPY is still positive on the week. Though the pair has stabilises in more recent trade as FX markets volumes drop off ahead of
AUD/USD has continued to decline in recent trade and is now in the 0.7130s, down 0.7%, after hawkish Fed rhetoric. Fed’s Waller said the whole point of the Fed’s QE acceleration was to make the March meeting live for lift-off. Recent downside momentum in AUD/USD has continued throughout US trading hours spurred primarily by a
USD/TRY blows past another record high, surges to the 17.00 neighbourhood on Friday. The recent CBRT rate cuts, soaring inflation continues to weigh heavily on Turkish lira. The Turkish lira crashed to another record low on Friday and shot to the 16.85-90 region against its American counterpart during the first half of the European session.
EUR/USD holds onto biggest daily gains in a week around monthly high. Clear break of seven-week-old falling trend line, bullish MACD signals favor buyers. One-month-old horizontal area challenges further upside, ascending trend line from late November restricts short-term declines. Although 200-SMA probe EUR/USD bulls around a monthly peak, a clear break of the short-term key
Gold prices have declined by 6.6% so far this year. Strategists at ABN Amro think that the gold price outlook remains negative. Subsequently, their end 2022 forecast is $1,500 per ounce and end-2023 at $1,300 per ounce. A lower gold price in 2022 “We continue to expect lower gold prices in 2022 and 2023. Our
Despite the hawkish Fed, USD/CAD drops into the abyss. Commodities turning around and FX follows the weaker US dollar. Despite a seismic shift in the Federal Reserve’s dot plot and language with regards to inflation, the US dollar was unable to capitalise on the hawkish outcome. Instead, the greenback is worse off since the release
USD/JPY prolonged its range-bound price move witnessed over the past one week or so. Investors seem to have moved on the sidelines ahead of the FOMC/BoJ policy meetings. The Fed will announce its decision this Wednesday and the BoJ is scheduled on Friday. The USD/JPY pair lacked any firm directional bias and remained confined in
EUR/JPY has reversed lower again from a test of the 128.50 level and is back to the 128.00 area. The pair is tentative ahead of ECB and BoJ rate decisions as well Eurozone flash PMIs and Japan Industrial Production. EUR/JPY has reversed lower again from a test of the 128.50 level earlier in the session
Germany’s IFO institute sharply revised down the country’s GDP growth projections from 5.1% to 3.7% for 2022 amid dwindling economic recovery due to the fourth covid wave. Key takeaways Supply bottlenecks, fourth covid wave further delay economic recovery. Lifts 2023 GDP growth forecast to 2.9% from 1.5%. Expects GDP in Q4 2021 to shrink by