FX

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.

Open interest in gold futures markets shrank by more than 16K contracts on Wednesday, extending the downtrend for the third session in a row according to preliminary readings from CME Group. Volume followed suit and dropped by around 123.2K contracts. Gold: Further upside targets the 200-day SMA Gold prices corrected from recent peaks and printed

Economic data from the United States was mixed and bolstered the US Dollar. US Retail Sales grew the most in eight months, while Industrial Production disappointed. Albeit Australia’s WPI jumped, it won’t deter the Reserve Bank of Australia from 25 bps hikes. The AUDUSD retreats from weekly highs around 0.6800 after a sales report in

CME Group’s flash data for gold futures markets noted open interest shrank for the second session in a row on Tuesday, this time by around 14.8K contracts. Volume, instead, increased by around 150.5K contracts after two consecutive daily drops. Gold: Next on the upside comes the 200-day SMA Prices of the ounce troy of gold

Wall Street is printing in the red with benchmarks at the lows of the day following news that at least two are dead after Russian missiles landed in NATO state Poland on the Ukraine border, according to the Express.  Poland has convened a national security committee meeting according to a spokesman.  More to come… Market reaction US

WTI pares the biggest daily loss in seven weeks, prints mild gains of late. Convergence of 50% Fibonacci retracement level, monthly support line restricts immediate downside. Bearish MACD signals and sustained trading below 200-SMA favor sellers. Buyers need validation from $88.10 to retake control. WTI crude oil remains pressured around $84.70 while consolidating the previous

The USDCAD is seen moving to the upside over the next quarters, although at a slower pace after the recent decline of the US Dollar, according to analysts from Danske Bank. They forecast USDCAD at 1.36 in a month, and at 1.39 in a six-month horizon.  Key Quotes:  “Similar to other central banks that have

USDCAD has sensed buying interest around 1.3250 as DXY rebounds ahead of US midterm elections outcome. The change of the House of Representatives’ stewardship to Republicans will dampen expansionary policies. Loonie investors are eyeing the release of the inflation figures. The USDCAD pair is displaying a rangebound structure after gauging the cushion around 1.3250 in

The USDJPY is set to finish the week with losses of more than 5%. From a daily chart perspective, the USDJPY is neutral-to-downward biased if the major stays below the 100-day EMA. The USDJPY extended its free fall and plummeted another 200 plus pips on Friday, below the 100-day Exponential Moving Average (EMA) at 140.76.