FX

The AUD only had a modest gain against the USD over the past month, underperforming most other G10 currencies. Despite a dovish Reserve Bank of Australia, economists at HSBC still see potential upside in the aussie this year due to strong domestic fundamentals and a relatively supportive global backdrop. Australia’s sizable budget and its relatively

A new Iran deal is less likely than it was last week. UN nuclear watchdog is extending a recently expired monitoring agreement by a month. The price of oil as measured by West Texas Intermediate spot is higher by over 3.26% at the time of writing, up from a low of $63.65 and reaching a high of $66.11.   The

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank maintained a bullish bias on the EUR/USD pair and expects it to test 2021 swing highs, near the 1.2349. Key Quotes “EUR/USD again tested and held below 1.2243, the February high, twice last week. The daily RSI has diverged and attention has reverted to the

What you need to know on Monday, May 24: The greenback recovered on Friday, ending the week mixed across the FX board.   The American appreciated following upbeat US data and comments from Federal Reserve officials suggesting a sooner rather than later discussion on tapering amid signs of heating inflation. On Friday, Atlanta Federal Reserve President

Gold price retested three-month highs of $1890, although settled the week near $1880 levels, registering the third straight week of gains. Gold price remained undeterred by the FOMC minutes, which offered subtlest hints on tapering, as growing inflation risks continued to support the traditional inflation hedge. Further, persistent weakness in the US dollar and the

The Swiss National Bank (SNB) Chairman Thomas Jordan made some comments on the monetary policy outlook and exchange rate value, in an interview with Swiss daily Neue Zuercher Zeitung on Saturday. Key quotes “The franc remains highly valued.” “Inflation is only slightly above zero.” “Productive capacities are not fully utilized in Switzerland.” “Against this background,

GBP/USD drops toward 1.4150 as the US dollar strengthens on economic data Cable retreats from monthly highs, turns negative for the day. US dollar rises across the board supported by US economic data. The GBP/USD dropped to 1.4153 amid a rally of the US dollar across the board. Cable retreated sharply after hitting at 1.4233

USD/JPY continues to edge higher in the American session. US Dollar Index remains on track to close above 90.00. Several Fed policymakers voice concerns over rising inflation. The USD/JPY pair gained traction during the American trading hours and rose to a fresh daily high of 109.00. As of writing, the pair was up 0.2% on

German/ Eurozone flash PMIs Overview Amongst the Euro area economies, the German and the composite Eurozone PMI reports hold more relevance, in terms of their impact on the European currency and the related markets as well. The flash manufacturing PMI for Germany, due at 0830 GMT, is seen a tad weaker at 65.9 in March

AUD/USD is testing critical daily resistance within the H&S formation.  US dollar back under pressure as equities bounce and US yields slide.  At the time of writing, AUD/USD is trading higher by 0.57% following a rally from a low of 0.7716 to a high of 0.7781. The market is risk-on as US equities bounced and government

FX Strategists at UOB Group now see Cable within the 1.4100/1.4200 range in the next weeks. Key Quotes 24-hour view: “Our expectation for the rally in GBP to ‘test 1.4235 first before easing’ was incorrect as it rose to 1.4200 before selling off sharply to an overnight low of 1.4100. Despite the relatively sharp decline,

GBP/USD sinks like a stone on the FOMC minutes.  The hawkish tone in the minutes has lifted the value of the US dollar and yields.  GBP/USD is currently trading at 1.4114 following the Federal Open Market Committee’s minutes while down some 0.47% on the day having travelled from a high of 1.4200 to a low of

USD/JPY is still expected to keep the 108.50-109.55 trading range in the next weeks, noted FX Strategists at UOB Group. Key Quotes 24-hour view: “Yesterday, we expected USD to ‘trade sideways between 109.00 and 109.55’. Our expectations were incorrect as USD dropped to 108.82 before rebounding. The rapid drop appears to be running ahead of

EUR/USD looks to close fourth straight trading day in positive territory. US Dollar Index remains depressed below 90.00 on Tuesday. Investors await Consumer Price Index (CPI) data from the euro area. The EUR/USD pair rose to its highest level in more than two months at 1.2234 on Tuesday and went into a consolidation phase during

UK claimant count change arrived at -15.1K in April. The unemployment rate in the UK dropped to 4.8% in April. The UK wages excluding bonuses rose by 4.6% YoY vs. 4.6% expected. The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate dropped further to 4.8% in March vs. the previous 4.9% and

USD/CAD came under renewed bearish pressure in American session. Rising crude oil prices provide a boost to CAD. US Dollar Index stays relatively quiet above 90.00. After spending the first half of the day moving sideways around 1.2100, the USD/CAD pair lost its traction and touched its lowest level of the day at 1.2073. As

Tesla shares suffer again on Monday as the tech sector struggles. TSLA looks to be on autopilot for $500. TSLA shares have support at $539 as a first target. Tesla shares continue their march lower post the Q1 2021 earnings release. The results were not bad but the manner of the revenue generation is what

Metals on fire at monthly highs, even as yields hold steady. XAG/USD heads for the third highest daily close since September. After a correction, metals resumed the upside and jumped to monthly highs. Silver rose to $28.15, reaching the highest level since February. It is rising 2.60% on Monday. Gold is also sharply higher, above