FX

What you need to take care of on Wednesday, September 28: Dollar buying paused early Tuesday but resumed following the release of better-than-expected US data, also helped by the poor performance of Wall Street. In addition, fears of a worldwide recession keep leading the market sentiment. During the European morning, European Central Bank President Christine

Risk-sensitive currencies such as the Norwegian krone and the Swedish krona are very vulnerable. Therefore, economists at Nordea see EUR/NOK and EUR/SEK at 10.50 and 11 by year-end, respectively.  Overshooting is likely “We believe both the SEK and the NOK will remain weak in the short term, as they are very vulnerable to negative risk

In the overnight session, the GBP/JPY tumbled near 4.50% on concerns over the UK budget. The GBP/JPY pierced the 20 and 50-Week EMAs, hoovering around the 100-Week EMA. GBP/JPY Price Analysis: Shifted bearish biased, as it broke below the 200-EMA, eyeing a re-test of the YTD low around 148.00. The GBP/JPY drops as the New

“In my opinion, the European Central Bank (ECB) must maintain the basic principles of gradualism and flexibility as the problem it faces is different than that faced by the Fed in the US,” ECB Governing Council member Yannis Stournaras said on Monday.  “Inflation in Europe today comes from the side of supply and not demand,” Stournaras

Despite grim PMIs on the continent and risk-off around the globe on inflation worries, the euro and global stocks have been pressured of late with the resurgence of geopolitical worries stemming from the Ukraine crisis. The news that Russian President Vladimir Putin moved to add 300,000 new troops to shore up the country’s flagging war

Gold price tanked to new two-and-half years low at $1638.90. Global S&P PMIs revealed in the EU, UK, and the US sparked investors’ recession fears, increasing appetite for the safe-haven US dollar. Gold Price Analysis: A break below $1638 to send XAU/USD towards $1600. Gold price slides to fresh two-and-half-year lows dampened by a risk-off

Weaker than estimated UK economic data and UK’s new budget fueled UK’s recession fears. A break below the 200-EMA officially shifted the GBP/JPY as bearish biased. GBP/JPY plunged more than 450 pips or 2.93% on Friday, amidst risk-aversion, after PMIs reported by S&P Global showed that the EU and the UK could be headed into

USD/CHF extends its weekly gains to 1.98% after the Fed and SNB monetary policy decisions. The major break above the 0.9600-0.9700 range, registering a fresh weekly high at 0.9851. The USD/CHF path of least resistance is upwards; once it clears 0.9851, a re-test of 0.9900 is on the cards. The USD/CHF advanced during Friday’s North

WTI tumbles more than 7.50% weekly, registering a fresh 8-month low. Global S&P PMIs in September increased worries of a worldwide recession, weighing on WTI. WTI Price Analysis: A break below $78.00 could pave the way for a fall to $70.00. The US crude oil benchmark, also known as WTI, drops below $80.00 per barrel

Eurozone Manufacturing PMI arrives at 48.5 in September vs. 48.7 expected. Bloc’s Services PMI drops to 48.9 in September vs. 49.0 expected. EUR/USD keeps the red near 0.9780 on the mixed Eurozone PMIs. The Eurozone manufacturing sector fell further into contraction in September, the latest manufacturing activity survey from S&P Global research showed on Friday. The Eurozone

What you need to take care of on Friday, September 23: Several central banks announced monetary policy decisions following the US Federal Reserve meeting. The first one was the Bank of Japan which decided to keep its monetary policy on hold. However, not long after the meeting, the BOJ intervene in the FX market. The

At its September monetary policy meeting on Thursday, Indonesia’s central bank, Bank Indonesia (BI), hiked its 7-day reverse repo rate by an unexpected 50 bps from 3.75% to 4.25%. The central bank Governor Warjiyo noted that the rupiah depreciation is relatively better than peers. Additional Comments Global inflation has risen amid geopolitical tensions, protectionist trade policies. Core inflation

AUD/USD bulls have eyes on the 0.6720s despite hawkish Fed. The US dollar has dropped from the post-Fed rate hike highs. AUD/USD has rallied following a 30 pip drop below the round 0.6650 level that came on the back of the knee-jerk reaction to the Fed’s interest rate hike. AUD/USD, however, recovered from a session

USD/CAD is nearing the 1.34 level. Economists at Commerzbank expect the Canadian dollar to remain under pressure unless the Federal Reserve disappoints markets. Bank of Canada’s frontloading seems to be having an effect “The restrictive monetary policy seems to be having an effect slowly. The economic data of the past months is pointing toward falling

Bank of Canada’s Deputy Governor Paul Beaudry, in a speech to university students in Waterloo, Ontario, said  “we will continue to take whatever actions are necessary to restore price stability for households and businesses and to maintain Canadians’ confidence that we can deliver on our mandate of bringing inflation back to 2%.” Even following inflation that

USD/CNH could still advance further and test the 7.0500 region in the next weeks, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang. Key Quotes 24-hour view: “We expected ‘the pullback in USD to extend’ yesterday. Instead of pulling back, USD traded between 6.9905 and 7.0254 before closing little changed at

GBP/USD bulls come up for air in the face of a softer US dollar in NY. The focus for the week is on the Fed and BoE. GBP/USD is back to trading flat on the day as the bulls move in from the lows of 1.1355, taking on the 1.14 area again. The greenback is

The Riksbank is set to expected to announce a 75 basis points rate hike on Tuesday. In order to provide support for the krona, the krona will have to increase its rate path, economists at Commerbznka report. A 100 bps move is not completely ruled out “A rate step by 75 bps to 1.50% has