FX

The Bank of Canada (BoC) could be near the end of the interest rate hike cycle, point out analysts at RBC Capital Markets. They consider the BoC will hike by 25 basis points in December.  Key Quotes:  “Canada looks on track to deliver a GDP reading next week that’s just above our 1% (annualized) forecast

China’s coronavirus crisis weighs on WTI price, on speculations of lower demand. The Eurozone threatening to impose a cap on Rusian and a buoyant US Dollar keeps WTI defensive. WTI Price Analysis: A daily close below $80.00 could pave the way for a YTD low re-test. Western Texas Intermediate (WTI), the US crude oil benchmark,

NZD/USD has broken through the key 0.6235 resistance level and looks solid, supported by higher rates. But beware of hawkish Fed rhetoric, economists at ANZ Bank note. There is still uncertainty “We do think higher interest rates and the RBNZ’s hawkish stance are, on balance, a positive for the Kiwi, but newspapers are awash with

NZD/USD bears could be about to make their moves.  Bulls eye a run to test 0.6300 while above 0.6250. As per the prior analysis, NZD/USD Price Analysis: The Bird is in full flight, whereby the bulls were creeping higher in Asian trade despite the ground it had already made since the central bank events in the week,

US Dollar stays under pressure on thin holiday trading. Economists at Commerzbank expect the EUR/USD pair to hover around the 1.03 mark. Sit back and relax, it is likely to get a bit dull “In view of the Thanksgiving weekend, there is no data due for publication in the US. However, we are unlikely to

What you need to take care of on Thursday, November 24: The Greenback came under selling pressure on Wednesday and finished the day sharply down against all of its major rivals. The American Dollar got hit by poor growth-related data and dovish US FOMC Meeting Minutes. The document showed that most participants agreed that, despite

“It is very likely that we will see negative growth rates in the fourth quarter in the Eurozone,” European Central Bank (ECB) Vice President Luis de Guindos said on Wednesday. Further comments Upcoming inflation data projections will still be high before starting to slow down in the first quarter of 2023. Upcoming inflation projections will

Kansas City Federal Reserve President Esther George said US house prices remain above the pre-pandemic trend and one can argue it is in part due to quantitative easing. She added that the distributional effects of this are at the expense of first-time homebuyers. Key comments US house prices remain above pre-pandemic trend and one can

Economists at Crédit Agricole CIB Research believe that the EUR/USD pair may have already peaked just shy of the 1.05 level last week. A recession will be hard to avoid “The EUR failed to benefit much from the broad risk-on tone that saw equity gains coupled with a sharp correction in energy prices on Friday.

AUD/USD plunges below 0.6600 as sentiment dampened. Recently, China’s Covid-19 outbreak kept investors worried about speculations that the Government would reimpose restrictions. Traders’ focus turns to Reserve Bank of Australia Governor Philippe Lowe speaking on Tuesday. The Australian Dollar (AUD) fell for the fourth straight day in a risk-off mood after news broke that the

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBPUSD could navigate within a range bound theme before attempting a move higher. Key Quotes 24-hour view: “We highlighted last Friday that ‘the price movements appear to be part of a broad consolidation’ and we expected GBP to ‘trade

USDJPY prepares to finish the week with gains of more than 1%. Even though the USDJPY plunged towards 137.50s, the bias remains upward. USDJPY Price Analysis: Break below 137.50, a fall to the 200-DMA is on the cards; otherwise, the 100-DMA is eyed. The USDJPY is set to finish the week almost flat, dropping in

Federal Reserve officials’ hawkish commentary bolstered the US Dollar, except against the New Zealand Dollar. US Existing Home Sales tanked, flashing an upcoming recession in the United States. Reserve Bank of New Zealand’s upcoming monetary policy meeting would determine NZDUSD direction The New Zealand Dollar (NZD) regained composure and finished the week up by 0.50%

GBPUSD Weekly Forecast: Pound Sterling set to reclaim 200-DMA in the Thanksgiving week GBPUSD buyers remained unstoppable for the second straight week, despite a lack of bullish impetus from the highly-anticipated United Kingdom Autumn Budget. The Pound Sterling also stood resilient to the recent rebound in the US Dollar, as attention now turns toward the

Gold rallied amid a weaker USD. Nonetheless, strategists at ANZ Bank expect the yellow metal to remain under pressure until the first quarter of next year. Rising real rates in the US continue to be a key headwind “Gold is getting renewed support from the weakening US Dollar. However, rising real rates in the US

Economists at Credit Suisse no longer see a compelling reason for USDCAD to reach their 1.4100 target in Q4: they now lower it to 1.3500 and reset their target range from 1.3250-1.4300 to 1.3000-1.3650 for the remainder of the quarter. CAD is vulnerable to deteriorating global growth outlook “We now see fewer compelling reasons for

According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUDUSD now looks side lined between 0.6590 and 0.6800 in the next few weeks. Key Quotes 24-hour view: “We expected AUD to ‘trade sideways between 0.6695 and 0.6785’ yesterday. Our view was incorrect as AUD dropped to 0.6635 before rebounding

In 2023, the Canadian Dollar may emerge as a more attractive pro-cyclical bet. Economists at ING believe that the USDCAD pair could plunge to the 1.25 level. Overall commodity picture should prove rather supportive for the CAD in 2023 “We expect Brent to average slightly above $100/bbl next year, and Western Canadian Select around $85/bbl.