FX

AUD/USD attracted buying for the second consecutive day and recovered further from YTD lows. The risk-on impulse undermined the safe-haven USD and benefitted the perceived riskier aussie. COVID-19 jitters might hold bullish traders from placing aggressive bets and cap gains for the pair. The AUD/USD pair edged higher during the early European session and climbed

Oil prices have rebounded strongly to a marked area of resistance. General consumption data doesn’t support the demand fears. Oil prices as measured by West Texas Intermediate (WTI) crude are higher by more than 5.6% at the time of writing as the Wall Street session moves into the final hour of trade.  Improved risk appetite set

FX option expiries for July 21 NY cut at 10:00 Eastern Time, via DTCC, can be found below. – EUR/USD: EUR amounts         1.1700 1.3B 1.1770 289M 1.1800 312M 1.1825-35 633M 1.1850 670M – USD/JPY: USD amounts          110.00-15 1B 110.50 820M – AUD/USD: AUD amounts 0.7400 858M – USD/CAD: USD amounts        1.2600 305M 1.2700 510M 1.2745 260M

WTI is edging higher in the second half of the day on Tuesday. Improving market mood seems to be helping oil gain traction. Investors await API’s Weekly Crude Oil Stock data. Crude oil prices came under strong heavy selling pressure at the start of the week and the barrel of West Texas Intermediate (WTI) lost

COVID-19 resurgences appear to be the primary driver of moves across many markets this year. Until the COVID-19 case count gets back under control, the yen may strengthen, the UK yield curve may flatten, and defensive lockdown-era leaders in the stock market may continue to outperform, according to Jeffrey Kleintop, Managing Director and Chief Global

GBP/JPY bears are in control, but weely support could result in a meaningful correction.  Monthly prospects are bearish towards a lower low and prior resistance.  The yen is picking up a safe-haven bid in the open of the week pertaining to fear of the delta variant spreading worldwide.  However, from a technical standpoint, the price

The Bank of Indonesia (BI) is likely to hold on Thursday, July 22 amid rupiah pressures despite growth risks. According to economists at TD Securities, downside risks to IDR are set to remain in short-term. Bank Indonesia to hold amid IDR weakness “We expect BI to keep its 7-day reverse repo rate unchanged in line

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