FX

Share: Market focus remains on the collapse of Silicon Valley Bank (SVB) and the repercussions for the wider US banking system. Economists at Commerzbank expect the US Dollar to suffer Has Fed monetary policy failed? “At the end of last week, a medium-sized Californian bank had to close after the losses that in the end

Share: Analysts at CIBC point out that the February Canadian employment report wasn’t as dramatic as January’s surge, but a slightly above consensus employment gain is another sign that the Canadian economy has more momentum to start 2023 than had initially been expected. Less drama, still solid momentum “Although employment growth wasn’t as dramatic this

Share: EUR/USD reached a two-week high at 1.0700 and finished the week with minimal gains. Sentiment shifted sour on a default by the Silicon Valley Bank in the US, at the risk of spillover in the sector. US jobs data was mixed but flashed signs of cooling down. Germany’s inflation was unchanged and warranted further

Share: USD/CHF extended its drop past the 20/50-day EMAs after facing resistance at the 200-day EMA. USD/CHF Price Forecast: Shifted bearish, though needs to crack 0.9130s to test YTD lows. USD/CHF falls below the confluence of the 20 and 50-day Exponential Moving Averages (EMAs), extending its daily losses to more than 1% Friday. A mixed

Share: The California Department of Financial Protection and Innovation closed Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Equity prices of SVB Financial Group collapsed during the week. On Wednesday the bank surprised by announcing it needed to raise $2.25 billion in stock, triggering concerns. The situation around Silicon Valley

Share: USD/MXN to finish flat on Friday after rallying to a new two-week high of around $18.60.  The US Bureau of Labor Statistics revealed the US economy added more jobs than expected. A rise in the US unemployment rate would warrant a less hawkish Federal Reserve. USD/MXN is almost flat after hitting a daily high

Share: The continuation of the downtrend in AUD/USD should meet a tough support around the 0.6500 region, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group. Key Quotes 24-hour view: “Yesterday, we held the view that ‘there is room for AUD to weaken, any decline is likely part of a

Share: WTI bears are in the market as the countdown to NFP is underway. WTI dropped around 1% on the third day of losses. West Texas Intermediate is down by some 1% on the day in late Wall Street trade. The black gold fell from a high of $78.01bbls to a low of $75.63 despite

Share: Kit Juckes, Chief Global FX Strategist at Société Générale, expects the JPY, CAD and AUD to remain under downside pressure in the short term. USD/CHF is closer to being a sell than DXY is “I can see no support coming for the Yen, the Loonie or even the Australian Dollar in the near-term.”  “But

Share: GBP/USD stays around 1.1840s, following hawkish remarks by the US Federal Reserve (Fed) Chair Jerome Powell. Powell’s two-day testimony before the US Congress will conclude on Wednesday at the US House of Representatives, with market participants expecting him to remain hawkish. Therefore, the GBP/USD is exchanging hands at 1.1843, gaining 0.10%. Read More… The GBP/USD pair consolidates the

Share: NZD/USD languishes near its lowest level since November amid sustained USD buying. The USD remains pinned near a multi-month top amid bets for aggressive Fed rate hikes. The prevalent risk-off environment further acts as a headwind for the risk-sensitive Kiwi. The NZD/USD pair seesaws between tepid gains/minor losses, around the 0.6100 mark through the

Share: GBP/USD plunges over 100 pips as the US Federal Reserve (Fed) Chairman Jerome Powell testifies at the US Senate on Tuesday. The US Dollar is rising despite US Treasury bond yields dropping. At the time of writing, the GBP/USD is trading at 1.1854 after hitting a daily high of 1.2065. Read More… The GBP/USD pair comes

Share: NZD/USD regains positive traction on Tuesday, though any meaningful upside still seems elusive. A generally positive risk tone undermines the safe-haven USD and benefits the risk-sensitive Kiwi. The market focus remains on Fed Chair Jerome Powell’s semi-annual congressional testimony. The NZD/USD pair attracts some buying on Tuesday and builds on the overnight late rebound

Share: WTI bulls are moving back in for a test in the $80s.  The focus will be back on the US economy this week.  West Texas Intermediate (WTI) erased earlier declines and is up for the fifth straight day, moving in on the $80s. It has made the highest closing price in the futures markets in three

Share: Over the last month, only the MXN has outperformed the SEK versus both the USD and EUR. Economists at CIBC Capital Markets expect the Krona to continue strengthening over the coming months. Riksbank to tighten by a further 50 bps in April “In the context of elevated core prices, we would expect the Riksbank

Share: The National Bank of Canada revised its year-end target for the USD/CAD pair from 1.27 to 1.32. however, they warn that the reopening of the Chinese economy, coupled with the disruption of commodity supplies due to the war in Ukraine, will help limit the depreciation of the Canadian Dollar. Weak Canadian GDP = BoC

Share: Next week, the Bank of Canada (BoC) will have its monetary policy meeting. No change in rates is seen. Analysts at TD Securities point out that the forward guidance is not expected to change significantly from the January meeting. BoC: Live to hold another day “The downside surprise on Q4 GDP should allow the

Share: EUR/USD to finish the week above 1.0600 after hitting a weekly low of 1.0533. A risk-on impulse and falling UST bond yields are a headwind for the US Dollar. US ISM Non-Manufacturing data showed the US economy remains resilient. EUR/USD reversed its course and is set to finish the week with gains of more