XAU/USD to extend its rally on slowing inflation – Commerzbank
Gold price climbed to $1,880 at the start of the week, thereby posting an eight-month high. The US inflation data for December will be released on Thursday and could lend further tailwind to the yellow metal, economists at Commerzbank report. Inflation rate to have fallen from 7.1% to 6.5% “US inflation data could lend further […]
Sterling helped by the constructive risk environment at the start of 2023 – ING
Sterling has been performing slightly better. Without any doubt, the better risk environment is helping the GBP, economists at ING report. Better risk environment provides some insulation “The UK has quite a large country weight in global equity and debt benchmarks, meaning that flows into these products can provide some support.” “Market pricing of a […]
XAU/USD supported by negative real yields – Erste Group
XAU/USD increased by +9.9% in the fourth quarter. Negative real yields favour a rising Gold price, economists at Erste Group Research report. Gold to inch higher to around $1,890 in 1Q 2023 “Real yields remain in negative territory in 1Q 2023 despite Fed rate hikes. This is a factor that favours a rising Gold price. […]
XAU/USD at risk of suffering a setback – Commerzbank
Gold price has chalked up gains at the start of the new year. Nonetheless, strategists at Commerzbank envisage a risk of setbacks in the yellow metal market. Any lasting recovery will require a shift in sentiment among ETF investors “Gold’s upswing is presumably due primarily to more optimism among speculative financial investors, who are generally […]
Next target now comes at 1.2270 – UOB
In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD’s upside could retarget the 1.2270 area in the short term. Key Quotes 24-hour view: “We highlighted last Friday that ‘there is room for the weakness in GBP to extend to 1.1850 before stabilization is likely’. While GBP subsequently […]
Recession is coming but the ISM does not mark the start of it – Wells Fargo
The ISM Service PMI for December released on Friday came in below expectations and triggered fears about a hard landing of the economy. Analysts at Wells Fargo forecast a recession is coming but they point out that this report does not market the start of it. Key quotes: “One unsettling takeaway from today’s services ISM […]
EUR/USD uptrend in late 2022 to be replaced by pullbacks and choppy trading conditions – Rabobank
Although analysts at Rabobank are forecasting that the DXY index could end the year a little lower, they expect that 2023 will provide plenty of opportunities for USD bulls to become re-engaged. They retain a 1-month forecast of EUR/USD 1.05 and a 3-month forecast of EUR/USD 1.03. Key quotes: “The first trading week of the […]
The case for additional labor market weakness is clear – Wells Fargo
On Friday, the US official employment report will be released. Market consensus is for an increase in payroll by 200K. Analysts at Wells Fargo point out the demand for workers has started to roll over. They argue job openings and hiring plans have declined since the start of 2022, and the trend in layoffs is […]
Is gold primed for a rally on expectations of central banks easing cycle in 2023?
Major European currencies ceded ground to dollar on Tuesday, EURUSD broke down 1.06 and GBPUSD 1.20 level. The start of European session saw major sell-off both in EUR and GBP:Positive December price data from Germany failed to offset selling pressure in Euro, despite significant pullback in the rate of consumer price growth – from 10% […]