FX

CME Group’s flash data for gold futures markets noted traders increased their open interest positions by around 8.7K contracts on Thursday, reversing at the same time two consecutive daily pullbacks. Volume followed suit and went up by around 17.3K contracts after three straight daily drops. Gold: Door open to extra gains near term Gold prices

USD/CAD bears are taking on a double bottom near 1.3450 support area. Bears eye a 61.8% Fibonacci retracement near 1.3415 should the double bottom (DB) be breached.  USD/CAD is eating into the bullish rally’s tracks from yesterday’s business with 1.3450/30 eyed as a potential support structure in what has been a choppy descent from above 1.3500 on

European Commissioner for Economy Paolo Gentiloni said in a statement on Thursday, “we’re in a period of economic contraction.” Further comments “Contraction can be limited to two quarters.” “A technical recession in Germany is uncertain.” “China’s reopening means LNG prices are going up.” “Real inflation challenge is adapting fiscal policy.” “We need more flexible, enforceable

Reuters reports that Philadelphia Federal Reserve President Patrick Harker reiterated on Wednesday that he’s ready for the US central bank to move to a slower pace of interest rate rises amid some signs that hot inflation is cooling off. “High inflation is a scourge, leading to economic inefficiencies and hurting Americans of limited means disproportionately,” Harker said

The Japanese Yen plunged to the 131 level after the BoJ’s decision to leave its policy tools unchanged. Economists at ING expect the USD/JPY rcovery to stall at 132.50/133 and see the pair with chances to trade at 120 by year-end. A volatile bear trend “USD/JPY remains priced as one of the most volatile currencies

Tom Barkin, the president and CEO of the Federal Reserve Bank of Richmond, is crossing the wires. Key comments My hope is that we have passed the peak of inflation. The median CPI is still too high for what I want to see. Cannot declare victory over inflation too soon. Doesn’t favour backing off too soon,

European Central Bank (ECB) board member and Bank of Portugal Governor Mario Centeno said on Tuesday, “the fourth quarter growth in Europe will be most likely still positive.” Additional quotes “Economy has been surprising us quarter after quarter.” “Maybe we’ll also be surprised in the first half of this year.” “There are no signs of

EUR/USD’s 1.0820 structure has been broken. Eyes are on a test below 1.0770 that guards the risk of a drop towards 1.0700/20 support.  As per the start of the week’s analysis, EUR/USD Price Analysis: Bears attacking the bullish H4 trendline support, the bears needed to break trendline support on the lower time frames, such as the 4-hour

Economists at Commerzbank explain why JGBs are yielding around 0.50% – and what that tells us about the BoJ. Born yesterday? “Because the impression arises that the BoJ’s YCC is changing along the lines of a ‘leaning against the wind’, selling pressure for JGBs does increase. The BoJ has to meet this pressure with increasing

USD/CHF retraced earlier gains after printing a daily high of 0.9316. Upbeat US economic data is bad for the greenback as the US Dollar weakens. USD/CHF Price Analysis: A break / daily close below 0.9300 would expose the pair to further selling pressure. The USD/CHF is trading below its opening price, though it failed to

NZD/USD finished the week with solid gains of 0.6700%, spurred by softer US CPI data. Consumer inflation expectations in the US edged lower and weighed on the US Dollar. NZD/USD Technical Analysis: Failure at 0.6400, cheered by sellers, eyeing a fall to 0.6300. The NZD/USD retraced after testing the current week’s high of 0.6417, dropped

USD/CAD finished Friday’s session with gains, though it faltered to clear 1.3400. USD/CAD Price Analysis: Exposed to selling pressure below 1.3400. The USD/CAD prolonged its weekly losses and tumbled for the fourth consecutive week, losing 0.36%, but on the day, the USD/CAD is up 0.22%. After the University of Michigan (UoM) Consumer Sentiment release showed

According to analysts at MUFG Bank, the Japanese Yen is set to gain further ground on the back of monetary policy expectations from the Bank of Japan. They consider possible a slide under 120.00 for later in 2023. Key quotes: “USD/JPY has fallen further still today and is now 15.5% down from the peak on

Analysts at MUFG Bank have a bullish outlook for the EUR/CHF cross, considering it could benefit from a further scaling back of fears over recession in the Eurozone. Key quotes: “After trading within a narrow range between 0.9800 and 0.9950 throughout most of Q4, the pair has broken higher in recent days as it first

The index attempts a tepid rebound just above 102.00. Investors keep pricing in a 25 bps rate hike by the Fed in February. Advanced Michigan Consumer Sentiment only due later in the docket. The greenback, when tracked by the USD Index (DXY), advances marginally on Friday following a marked drop to the 102.00 neighbourhood in

AUD/USD breakout traders target 0.70 the figure and above. Failures to hold in 0.7000 could lead to the capitulation of the bulls.  As per the prior analysis, AUD/USD Price Analysis: Distribution could be playing out into US CPI critical event, a thesis for the downside was illustrated leading up to the US Consumer Price Index event

The Bank of Korea (BoK) will hold its Monetary Policy Committee (MPC) meeting on Friday, January 13 at 01:00 GMT and as we get closer to the release time, here are the expectations as forecast by the economists and researchers of five major banks.  BoK is expected to hike rates by 25 basis points to

XAG/USD is under pressure after breaking short-term support levels during the American session. The metal is under pressure, approaching the $23.00 level. US Dollar mixed as equity prices rises modestly. Silver is under pressure during Wednesday’s American session, trading at the lowest level since Friday, near $23.20. The white metal is falling by 1.25%, getting