FX

What you need to know on Monday, July 19: The dollar keeps strengthening on growth-related concerns. Mixed data released in the US on Friday somehow confirmed investors are concerned about the slower pace of growth. Wall Street edged lower, posting substantial losses on Friday after posting record highs. US Treasury yields remained depressed, with that

The euro has recently underperformed against other G10 currencies, point out analysts at MUFG Bank. They warn, next week’s European Central Bank (ECB) meeting could be more of market mover than previously expected. Key Quotes: “The main event risk for the EUR in the week ahead will be the ECB’s latest policy meeting. While the

USD/JPY rose to a daily high of 110.35 on Friday. 10-year US Treasury bond yield erased its daily recovery gains. US Dollar Index stays in the positive territory after mixed US data. After closing the previous two trading days in the negative territory, the USD/JPY pair staged a rebound and reached a daily high of

Jane Foley, Senior FX Strategist at Rabobank, thinks that the AUD/USD pair could drop toward 0.7200 by the end of the year. Key quotes “Over the coming year or so, developments in the Australian labour market and in particular wage data will be instrumental in guiding expectations regarding RBA policy.” “In this time-frame, it is

GBP/USD falls under 1.3800 to one-week lows Pound weakens near the end of the week amid risk aversion. GBP/USD could post the lowest weekly close since April. The recovery of GBP/USD was short-lived and after reaching 1.3865, it turned to the downside. Recently broke under European session lows and fell to 1.3771, hitting the lowest

Here is what you need to know on Friday, July 16: The dollar is off the highs as markets attempt a recovery after a risk-off day on Thursday. Comments from Fed Chair Powell and his colleagues caused uncertainty. US retail sales and consumer sentiment are eyed. The yen is down after the BOJ and the

“I don’t think we’ve made sufficient progress yet to taper,” Chicago Federal Reserve Bank President Charles Evans said on Thursday, as reported by Reuters. Additional takeaways “Expecting Fed rate liftoff in early 2024 though it wouldn’t take much to move it to 2023.” “By fall, could be making some judgments on taper; I do not have a date

The Bank of Canada did not rock the boat at the July policy meeting. The QE taper to $2bn/week was broadly expected and forward guidance for rates and future QE adjustments was unchanged from June. There isn’t much new news on the BoC front since CAD has been pricing most of these developments since April.

FOMC Chairman Jerome Powell is responding to questions after delivering the US Federal Reserve’s semiannual Monetary Policy Report to the US House Committee on Financial Services. Key quotes “US economy will adapt fairly quickly to a balance of supply and demand, inflation will then fall to more normal levels.” “In six months wages will have moved

AUD/USD consolidates the recovery above 0.7450 amid USD pullback. The aussie remains weighed down by the Australian covid concerns. Focus remains on Fed Chair Powell’s testimony for fresh direction. Having found strong bids near 0.7435, AUD/USD took a flight, now consolidating the bounce above 0.7450 amid a cautious market mood. On Tuesday, hotter-than-expected US inflation data

XAU/USD tested $1,800 support in early American session. US Treasury bond yields struggle to gain traction on Tuesday despite strong CPI data. Gold eyes the 200-day SMA as the next target on the upside. After closing virtually unchanged on Monday, the XAU/USD pair moved sideways around $1,810 in the first half of the day on

CME Group’s flash data for crude oil futures markets noted open interest increased by around 12.7K contracts after four consecutive daily pullbacks. In the same line, volume reverses three drops in a row and rose by just 950 contracts. WTI faces some consolidation near term Monday’s negative price action in WTI was accompanied by rising

After confirming that coronavirus-related restrictions will be eased further as planned on July 19, British Prime Minister Boris Johnson noted that the pandemic is not over and urged people to proceed with caution, as reported by Reuters. “We cannot simply go instantly to life as it was before COVID,” Johnson told a news conference and asked

In opinion of FX Strategists at UOB Group, EUR/USD is now expected to navigate between 1.1790 and 1.1895 for the next weeks. Key Quotes 24-hour view: “EUR traded between 1.1823 and 1.1881 last Friday, slightly higher than our expected range of 1.1820/1.1875. Upward momentum has improved a tad and EUR could edge higher to test

The European Central Bank’s (ECB) new strategy on inflation targeting allows more flexibility and preparedness for a future crisis, the central bank’s policymaker Yannis Stournaras said in an opinion column in Greece’s Kathimerini newspaper. Additional comments “I express the belief that we are better prepared to face any future economic turmoil.” “Compared to the current

Gold price books third straight weekly gain, 200-DMA remains in sight. Daily closing above 21-DMA reignites bullish interest, as RSI recovers to 50.00. Gold Price Weekly Forecast: XAU/USD bulls bet on Golden Cross pattern, uptrend support, lower yields. Thursday’s Doji candlestick doesn’t seem to have discouraged the bulls, as gold price staged an impressive bounce

Commenting on the inflation outlook, the European Central Bank (ECB) executive board member Isabel Schnabel said Saturday that she is very confident that Eurozone will not experience ‘excessively high inflation.” Key quotes “Our medium-term inflation projection is subdued: only 1.4% in 2023. Though that is surrounded by uncertainty, I am sure that we will not experience excessively

AUD/USD consolidates the stellar recovery below 0.7500 The aussie resistance aligns around 0.7490 where key averages coincide. Hourly RSI has turned flat below the overbought region. AUD/USD is consolidating its robust recovery from seven-month lows below 0.7500, as the bulls take a breather before the next push higher. Looking at the hourly chart, the aussie’s