FX

The European Central Bank (ECB) announced on Thursday that it raised its key rates by 50 basis points (bps) following the December policy meeting as expected.  With this decision, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 2.5%,

The People’s Bank of China leaves the China one-year MLF rate at 2.75% (est 2.75%; prev 2.75%)  and the one-year MLF Volume was set at 650B vs. (est 500.0B; prev 850.0B). USD/CNY is under pressure at a key level of support: China’s worsening economic slump is expected to keep the People’s Bank of China on its easing

Cable remains firmafter having reached a fresh multi-month high of 1.2443 on Tuesday. Economists at Scotiabank expect the GBP/USD pair to attack the 1.2450/60 area. GBP/USD appears to be consolidating “Cable is well-supported against rising, short-term trend support off the early Nov low at 1.2320 intraday.” “The GBP appears to be consolidating ahead of another push

NZD/USD takes offers to pare the biggest daily gains in two weeks around six-month high. NZ HYEFU forecasts three quarters of negative GDP growth for New Zealand. RBNZ defends rate hike forecasts by expecting higher levels of employment, inflation. US inflation bolstered calls for Fed’s 50 bps rate and less-hawkish policy in 2023 but surprises

AUD/USD regains some positive traction on Tuesday amid a modest USD weakness. A positive risk tone and softer US bond yields keep the USD bulls on the defensive. Traders now look to the US CPI for a fresh impetus ahead of the key FOMC meeting. The AUD/USD pair attracts fresh buying near the 0.6740-0.6735 region

NZD/USD seesaws around intraday high, remains indecisive on a day. Convergence of 50-SMA, one-week-old ascending trend appears a tough nut crack for bears. Bulls need validation from 0.6420 to retake control. NZD/USD takes rounds to 0.6390 during early Tuesday as the Kiwi pair traders await more clues to extend the latest recovery from the key

GBP/USD Forecast: Pound Sterling struggles to benefit from upbeat UK data GBP/USD has started the new week in an indecisive manner with market participants refraining from making large bets ahead of the high-tier data releases and all-important central bank decisions. The pair’s short-term technical outlook points to a loss of bullish momentum but it would

AUD/USD takes offers to refresh intraday low, prints the first daily loss in four. 61.8% Fibonacci retracement level will challenge the bears ahead of the key 0.6690 support confluence. Rising wedge teases sellers, 200-day EMA acts as immediate upside hurdle. AUD/USD begins the key week on the negative side as it takes offers to refresh

Europe and the G-7 started applying a price cap to oil prices, crude plunged. EU Commission President Von der Leyen anticipated more sanctions ahead. WTI trades near a weekly low of $71.11 a barrel, the lowest since December 2021. The barrel of West Texas Intermediate Crude Oil plummeted this week and trades at levels that

Bank of England to hike rates by 50 bps, fresh forecasts coming up. Concerns about a global economic setback weighed on US indexes. GBP/USD trades near its recent multi-month high of 1.2343. The GBP/USD pair peaked at 1.2321 after Wall Street’s opening but trimmed intraday gains and hovers at around 1.2280. The pair ends the

The US Michigan Consumer Confidence Index improved to 59.1 in December. The uncertainty surrounding the US Federal Reserve’s decision weighs on mood. EUR/USD eases following upbeat US data but holds above 1.0500. Despite a knee-jerk mid-week, the EUR/USD pair is comfortably trading above the 1.0500 threshold, seesawing around 1.0530 following the release of the December University

Gold trades flat when compared to Monday’s opening. US inflation data and/or the Fed and ECB could give new impetus to the Gold market next week, economists at Commerzbank report.  Gold will be affected by three major events next week “First, the US inflation data will be published – they could turn out to be more

Kit Juckes, Chief Global FX Strategist at Société Générale, believes that the New Zealand Dollar still looks a better buy than Aussie. AUD and NOK may be the two G10 currencies most at risk of a New Year hangover “The RBNZ is the only central bank that is more hawkish than the Fed, and rate

WTI crude oil licks its wounds near the yearly low. Bearish MACD signals, key resistances challenge the black gold buyers. Three-week-old descending support line challenges further downside. WTI crude oil picks up bids to pare weekly losses around the lowest levels in 2022 as bulls poke the $72.00 level during Friday’s Asian session. In doing

Many stocks tend to gain towards the end of the year in what’s known as a ‘Santa Rally’. Is it optimism surrounding holidays? Window dressing year-end results? A self-fulfilling prophecy as the general mood of buying gifts translates into buying stocks too? Whatever it is, the pattern is notable. Furthermore, if the Fed needs to

AUD/NZD struggles to defend the bounce off yearly low. Oversold RSI conditions, Wednesday’s Doji candlestick signal further recovery. Ascending trend line from March 2020 appears to be the key support. AUD/NZD remains sidelined around 1.0585 during Thursday’s Asian session, after bouncing off the yearly low the previous day. In doing so, the quote justifies Wednesday’s

UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting assess the latest inflation figures in the Philippines. Key Takeaways “Headline inflation accelerated for the third straight month to a 14-year high of 8.0% y/y in Nov (from +7.7% in Oct), matching our estimate but surpassing Bloomberg consensus’ 7.8% gain. It was driven by

Solid risk aversion theme is propelling the US Dollar for more upside. The kiwi asset has not challenged the 200-EMA around 0.6300 yet. A slippage inside the bearish range of 20.00-40.00 by the RSI (14) will trigger a bearish momentum. The NZD/USD pair is struggling to climb above the immediate hurdle of 0.6320 in the