FX

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

GBP/JPY is set to finish the week with decent losses of 1.28%. From a daily chart perspective, the cross-currency GBP/JPY shifted to neutral biased. Short term, the GBP/JPY is about to hit 162.30. the head-and-shoulders target. The GBP/JPY drops for the four consecutive trading session, down by 0.86% on Friday, after Wall Street finished the

Silver price is erasing Thursday’s losses up by almost 2% on Friday. September’s US economic data justifies the Fed’s 75 bps rate hike. The US Consumer Sentiment improved, showing US citizens resilience despite a worsening economic outlook. The silver price climbed as the Wall Street close looms, gaining 1.85% during the day, caused by a

Analysts at Rabobank continue to expect US dollar strength will persist into next year. They see the GBP/USD pair moving to 1.08 on a six-month perspective.  Key Quotes:  “Soft UK retail sales data provide evidence of demand erosion. Additionally, investors are wary about the outlook for public finances. The sensitivity of GBP to UK poor

USD/JPY reverses an intraday dip and turns positive for the second straight day on Friday. Aggressive Fed rate bets, elevated US bond yields boost the USD and remain supportive. The risk-off impulse underpins the safe-haven JPY and caps any further gains for the pair. The USD/JPY pair attracts some dip-buying near the 142.80 area on

AUD/USD bears seeking a break of 0.67 the figure. Meanwhile, the US dollar is stuck in a range, breakout traders are on alert.  AUD/USD shows no sign of correcting at this stage on a longer-term time frame basis, as illustrated below and threatens a break of key support in the following analysis: AUD/USD daily chart

The market is pricing in a near 75 bps hike for next week’s Bank of England meeting. However, economists at ING do not expect the EUR/GBP pair to stage a significant move. A break in data releases today “In a very busy week for the UK economic calendar, we don’t get any major releases today.”

EUR/USD reached a weekly low at 0.9955, just below the 20-day EMA. US economic data fueled expectations of a 100 bps rate hike, with odds lying at 26%. Money market futures estimate an ECB 75 bps rate hike in October. The EUR/USD slightly recovers from yesterday’s losses, advancing almost 0.31%, due to a soft US

August US Core Price Index (CPI) report easily beat expectations, reinforcing the case for the same USD-positive near-term forecasts as economists at Credit Suisse had last week. No reason in the short-term to change key calls end-Q3 “Looking at the immediate future, the balance of risk has tilted from concerns about a possible weak US

NZD/USD collapsed after US CPI rose higher than estimated, further cementing a large Fed interest rate increase. August inflation in the US flashed signs of being stickier than expected. Traders await NZ Current Account alongside US PPI on Wednesday. The NZD/USD sinks more than 100 pips or 2% during Tuesday’s North American session, spurred by

EUR/USD picks up bids to refresh intraday high during three-day uptrend. Successful break of 50-SMA, bullish MACD signals keep buyers hopeful. Upside clearance of 1.0200 becomes necessary to confirm the bullish chart pattern. 50-DMA, weekly support line restricts immediate downside moves. EUR/USD refreshes intraday high around 1.0150 as bulls portray the three-day uptrend amid the

On Tuesday, key inflation data is due in the US. The August CPI print will be watched closely by market participants ahead of the next FOMC meeting to be held September 20-21. According to analysts at Wells Fargo, the CPI will show a decline of 0.2% in August, on the back of a further plunge

The real was able to appreciate after the inflation data for August last Friday. The Brazilian central bank (BCB) remains an important support for the real, in the opinion fo economists at Commerzbank.  Incumbent Jair Bolsonaro continues to trail in the polls “Inflation fell less than expected despite tax cuts and measures to reduce fuel

GBP/USD Weekly Forecast: Eyes 21 DMA on a technical rebound ahead of critical US, UK events GBP/USD put an end to its three-week losing streak and staged a strong comeback from roughly four-decade lows of 1.1405. The US dollar correction and economic stimulus measures unveiled by the new UK PM Liz Truss saved the day

“A steady path of rate hikes, predictable adjustments based on data could improve market functioning, facilitate balance sheet runoff,” Kansas City Fed President Esther George said on Friday, as reported by Reuters. Additional takeaways “For interest rate hikes, steadiness and purposefulness over speed.” “Case for continuing to remove policy accommodation is clear cut, but peak

Federal Reserve Governor Christopher Waller said on Friday that it was too soon to say whether inflation was moving meaningfully and persistently downward, as reported by Reuters. Key takeaways “I support another significant hike in two weeks.” “The pace of tightening is uncertain; it will depend on the data.” “Fears of a recession have faded;

FX Strategist at UOB Group Lee Sue Ann and Quek Ser Leang note GBP/USD is now seen navigating between 1.1420 and 1.1620 in the short-term horizon. Key Quotes 24-hour view: “We highlighted yesterday that ‘while the strong bounce in GBP could extend, any advance is viewed as part of a higher trading range of 1.1460/1.1560’.

Bank of Canada senior deputy governor Carolyn Rogers says bank has seen early signs monetary policy is working. ”We’re not where we were in July, but we’re a long way from where we need to be.” ”The bank still sees a path to a stop to a soft landing, that’s still our objective’s.” ”Neutral territory