FX

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

We have covered the impact of the magazine cover indicator before here. Another helpful sentiment indicator is also one of the most easily accessible and popular sentiment surveys – the American Association of Individual Investors. This is a weekly survey, free to access, where they ask individual investors this one simple question, ‘Do you feel the

AUD/USD has plunged below 0.6700 as the market mood has soured on upbeat US Services PMI data. A tight labor market and solid demand for services in the US indicate that short-term inflation is still de-anchored. The RBA is expected to announce a third consecutive 25 bps rate hike ahead. The AUD/USD pair has witnessed

OPEC and its allied producers (OPEC+) have agreed to maintain their current oil-output targets despite a recent decline in energy prices. Oil prices showed no immediate reaction, which bode ill for the Norwegian Krone, economists at Commerzbank report.  OPEC+’s long-term price setting scope seems limited “In the run-up to the OPEC+ meeting there had been

Gold price is hovering around $1,800.00 as investors await US ISM Services PMI data. The upbeat US NFP data has failed to fade the odds of the Fed’s rate hike slowdown. Solid United States Services New Orders could drive inflation expectations higher. Gold price (XAU/USD) is facing immense pressure in conquering the round-level resistance of

The USD/JPY retraced from daily highs of 120 pips, as the USD is being offered. USD/JPY: Daily close below the 200-DMA opens the door for a drop to 131.70s. The US Dollar (USD) gave away its earlier gains courtesy of upbeat economic data revealed in the United States (US) and dropped 0.52% against the Japanese

NZD/USD is set to finish the week with gains of 2.56%. The November US Nonfarm Payrolls suggested a tight labor market, so the Federal Reserve needs to keep hiking rates. NZD/USD Price Analysis: Daily close above 0.6400 exacerbates a rally towards 0.6570s. The New Zealand Dollar (NZD) climbed against the US Dollar (USD) for the

The Indian rupee is likely to depreciate moderately due to the potential strengthening of the US dollar in the near term, according to analysts at MUFG Bank. They forecast USD/INR at 82.300 by the end of the first quarter of next year and at 80.500 by the third quarter.  Key Quotes: “Tracking gains in most

The Mexican Peso has been rising versus the US Dollar over the last weeks. Analysts at MUFG Bank, argue the resilience of the Mexican Peso might not last long amid domestic and external risks. Their forecast is for USD/MXN to reach 19.80 by the end of the first quarter 2023 and 20.00 by the third quarter. 

US Dollar Index (DXY) has now lost 8.5% from the top in October and is below the August low of 104.60. Economists at Société Générale highlight the next targets on the downside. An initial bounce is on the cards “Daily MACD is within deep negative territory pointing towards an overstretched move. An initial bounce is