FX

Here is what you need to know on Tuesday, July 19: Following Monday’s poor performance, the dollar continues to weaken against its major rivals on Tuesday with the US Dollar Index pushing lower toward 107.00 in the early European session. Eurostat will release its final revision of June inflation data. Later in the day, Housing

EURUSD begins a crucial week on the right foot, up by 0.82%. Last week’s US consumer-related data calmed traders’ expectations of a 100 bps Fed hike. EURUSD traders are awaiting the EU’s inflation data and ECB’s monetary policy decision. EURUSD extended gains to two consecutive days after hitting a fresh 20-year low below parity. Since

The US dollar has continued to weaken modestly during the Asian trading session after losing some upward momentum towards the end of last week. The scaling back of expectations for an even larger 100 basis points (bps) hike later this month is the main reason for the USD pullback. Scaled back expectations for 100 bps

USD/JPY gained 1.80% in the week, extending its rally to the seventh consecutive week. USD/JPY Price Analysis: Divergence between price action and RSI spurred a pullback, though a daily close below 137.70 would tumble the USD/JPY towards 134.26. The USD/JPY retreats from YTD highs at around 139.38, towards the middle of the 138.00-139.00 range on

GBP/USD Weekly Forecast: A technical rebound could be in the offing Having tested levels below 1.1900 a week ago, GBP/USD lost further ground and hit a new 28-month low of 1.1760 amid a combination of factors that worked against the British pound. The US inflation stood out in the week and added extra legs to

EURUSD trades above 1.0060 and trims its weekly losses, down 1.03% in the week. US Retail Sales and UoM Consumer sentiment exceed estimations, easing prospects of a 100 bps Fed hike. Interest rate differentials between the Fed and the ECB boost the EURUSD fall. EURUSD buyers stepped in vigorously, defending the euro from falling below

Further upside momentum could lift USD/JPY to the 140.00 region in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang. Key Quotes 24-hour view: “While we expected USD to strengthen yesterday, we were of the view ‘a sustained rise above 138.00 is unlikely’. We did not anticipate that

AUD/USD remains heavy during the week, extending its losses by almost 1.80%. Sentiment remains negative due to high US inflation reports, further cementing aggressive Fed tightening. AUD/USD Price Analysis: Tilted to the downside; unless buyers reclaim 0.6800, the further downside pressure remains. The AUD/USD trims two consecutive days of gains and slides during the North

GBP/USD met with a fresh supply on Thursday and dropped back closer to the YTD low. Aggressive Fed rate hike bets, recession fears underpinned the USD and exerted pressure. Brexit woes continued acting as a headwind for sterling and contributed to the selling bias. The GBP/USD pair came under some renewed selling pressure on Thursday

A risk-off impulse was no excuse for the AUD/USD to rise but remains negative in the week. US inflation above 9%, for the first time since 1981; Fed odds of a 100 bps hike lie at 84%. US 2s-10s yield curve inverted the most since 2001; is recession around the corner? The Australia business and

Economists at Credit Suisse hold a 1.30 USD/CAD target ahead of today’s Bank of Canada (BoC) rate decision. They do not expect the BoC to alter its assessment of housing risks, but markets will be on the lookout for dovish hints. BoC unexpected to alter its assessment of housing risks “In the more likely event

Silver slides on safe-haven flows towards US Treasuries as bond yields fall The greenback takes a breather after reaching a 24-year high above 108.000, a respite for silver traders. The US 2s-10s yield curve screams recession, falling to 2007 levels at around -0.107%. Silver (XAGUSD) remains on the defensive as Tuesday’s North American session progresses,

GBP/JPY extends the week-start pullback amid risk-aversion. UK’s political leaders step forward for President’s chair after Boris Johnson’s departure. Treasury yields remain pressured, portray recession fears as inflation expectations soar. The second round of BOE Governor Bailey, risk catalysts will be important to watch for fresh impulse. GBP/JPY holds lower ground near the intraday bottom

The white metal remains downward biased but appears to have found a base around $19.00. Safe-haven flows toward the greenback, and US Treasuries keep the precious metals complex under pressure. The US 2s-10s yield curve is still inverted, flagging recession fears. Silver (XAGUSD) is subdued during the North American session, seesawing for the fourth consecutive

A combination of factors assisted USD/CAD to regain positive traction on Monday. Sliding oil prices undermined the loonie and extended support amid a stronger USD. Aggressive Fed rate hike bets, softer risk tone lifted the USD closer to a 20-year high. The USD/CAD pair attracted fresh buying near the 1.2940 region on Monday and for

EUR/USD bulls could be about to make their move.  Traders are watching the US dollar for the start of the week and opening sessions.  The euro could benefit at the start of the week so long as the greenback continues to correct to the downside. In the charts below, it is illustrated that the DXY

June’s US Nonfarm Payrolls report exceeded expectations, further cementing the case for a Fed’s 75 bps rate hike. The consensus amongst ECB policymakers is for a 25 bps rate hike in July; September is still open. EUR/USD Price Analysis: Sellers in control might take a breather before launching an assault towards parity. EUR/USD remains subdued

The USD/JPY has been trading in a choppy 100 pip range for the last five days. The major seesawed spurred by the assassination of Japan’s ex-PM Abe and upbeat US economic data. USD/JPY Price Analysis: Range-bound, but the RSI’s aiming lower and USD/JPY uptrend overextended, might pave the way for further downside. USD/JPY is subdued as