FX

Analysts at MUFG Bank hold onto a short EUR/USD trade idea and see it moving below parity. They consider the euro will be affected by ongoing fears over disruption to the Eurozone economy and fragmentation risks.  Key Quotes: “We expect the EUR to remain under downward pressure in the near-term driven by ongoing fears over

AUD/USD is set to finish the week up by 2.23%. US Services and Composite PMIs plummeted below 50, suggesting a recession could be near. Hawkish RBA minutes revealed during the week cushioned the AUD/USD from falling further on weak Aussie PMIs. The AUD/USD rises for the second consecutive day, registering solid gains amidst a fragile

In its quarterly Survey of Professional Forecasters (SPF), the European Central Bank (ECB) expects Eurozone short- and long-term inflation expectations higher. Key takeaways   Sees 2022 inflation at 7.3% vs 6.0% seen 3 months ago; 2023 seen at 3.6% vs 2.4%. Sees 2024 inflation at 2.1% vs 1.9% 3 months ago; longer-term seen at 2.2%

Meme stocks are lost momentum despite a better market mood. GME stock ends Thursday in the red as optimism faded.  Gamestop stock split is due on Friday, July 22. UPDATE: GME finished the day in the red at $153.47 per share, down 3.19%. Market players remained cautious amid persistent inflationary pressures and signs of global economic

Here is what you need to know on Thursday, July 21: Investors remain on the sidelines and the market mood remains cautious early Thursday ahead of the European Central Bank’s (ECB) highly-anticipated policy announcements. Later in the day, the US economic docket will feature the weekly Initial Jobless Claims data and the Federal Reserve Bank

Italian Prime Minister Mario Draghi won a confidence motion in the upper house Senate on Wednesday, but three main coalition parties refused to take part in the vote, effectively dissolving his administration and he is said to announce his resignation in the chamber tomorrow. The motion asked the house to approve a speech made by Draghi

Here is what you need to know on Wednesday, July 20: The dollar selloff seems to have taken a break on Wednesday with the US Dollar Index moving sideways above 106.50 after having erased more than 1% so far this week. The benchmark 10-year US Treasury bond yield fluctuates above 3% and US stock index futures

USD/CAD’s broadening formation on the daily chart is compelling. USD/CAD could be on the verge of a significant move lower. USD/CAD has moved in on a monthly price imbalance to fill the void which raises the prospects of a move lower according to lower time frame broadening formations as illustrated in the following charts: USD/CAD

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