50bp hike next week has been well-communicated, focus will be on the path thereafter – Rabobank
The Federal Reserve, the Bank of England and the European Central Bank (ECB) will have their policy meetings next week. Market participants expect a 50 basis points rate hikes and to signal it will continue raising rates. Analysts at Rabobank, point out that a 50bp rate hike is all but a given for next week. […]
Things set to remain tough for the Dollar – Commerzbank
The US Dollar struggles to stay resilient ahead of the US Gross Domestic Product (GDP) data. The greenback could remain under pressure on signals of a cooling of the US economy, economists at Commerzbank report. Positive review, shaky outlook “A rate hike by ‘only’ 25 bps at the next Fed meeting is now increasingly likely […]
XAU/USD is expected to rally further – Credit Suisse
Os Tuesday, Gold XAU/USD registered its highest daily close since April. Strategists at Credit Suisse expect the yellow metal to enjoy further gains. Initial support aligns at $1,897 “Gold is expected to extend its rally to resistance next at the 78.6% retracement of the 2022 fall and April 2022 high of $1,973/98, with a fresh […]
An explicit signal of a pause will weaken CAD – MUFG
Later today, we have the Bank of Canada policy meeting. Economists at MUFG Bank do not expect a big reaction on the CAD unless the BoC explicitly signals a pause. Approaching terminal rate? “While we believe there is a good chance today’s 25 bps hike could be the last, we are less sure that the […]
Sticky Australian inflation data may add steam to the rally – ING
AUD/USD broke decisively above 0.7000 yesterday. Australian Consumer Price Index data for the fourth quarter could fuel the rally if figures come out sticky, economists at ING. AUD/NZD may retest the recent 1.0950 highs soon “Tonight’s fourth-quarter CPI data in Australia will be key, as evidence of sticky inflation may force a hawkish repricing across […]
Gains through low 1.09s to revive bull move for a push on to 1.1000/50 – Scotiabank
EUR/USD keeps its range below the 1.09 level. A move above here will revive bullish momentum, economists at Scotiabank report. Firm support on modest dips to the low/mid-1.08s “EUR/USD is holding a solid-looking bull trend on the daily chart and is backed by supportive trend strength oscillators across the short, medium and longer-term DMIs. This […]
Decline to persist on a move below 391 – SocGen
EUR/HUF’s correction is set to extend if 391 gives way, analysts at Société Générale report. 404 must be reclaimed to negate the break “The HUF is outperforming in CEE4 this year, and the thawing of relations with the EU means the currency could stay in demand.” “EUR/HUF recently confirmed a Head and Shoulders pattern and […]
EUR/USD closing in on 1.10 but 2y2y rate differentials not keeping up – SocGen
Euro moves one step closer to 1.10. Can EUR/USD have a go at 1.10? Economists at Société Générale discuss the pair’s outlook Hedge funds are not getting carried away “Interestingly, 2y2y forwards (3 bps wider in favour of USD this morning) are not keeping track with the currency. Hedge funds are not getting carried away […]
USD/JPY will fall by the end of the year – HSBC
Economists at HSBC think USD/JPY will fall by year-end 2023 on a range of factors from future BoJ policy announcements to improvements in Japan’s balance of payments and a revival of the JPY’s “safe haven” status. A revival of Yen’s ‘safe haven’ status could weigh on USD/JPY “There are many upcoming events that could lead […]
ECB and Fed policies to diverge, lifting the Euro – MUFG
Near-term ECB policy outlook has been the driver of EUR volatility this week. A diverging monetary plicy between Fed and ECB is set to boost the Euro, according to economists at MUFG Bank. ECB policy rate to reach 3.00% by the end of this quarter “We are sticking with our forecast for the policy rate […]