MUFG – bullish EUR, expecting +50bp ECB February rate hike, and most likely in March too
I posted earlier from MUFG: More from analysts at the bank, European Central Bank preview: We expect the ECB to deliver another 50bps hike at next week’s policy meeting and continue to signal that at least one more larger 50bps hike is likely at the March policy meeting. We only expect a slowdown in the […]
BoC’s 25bps Rate Hike Receives Dovish Reaction, Loonie on Offer
USD/CAD ANLAYSIS Expected 25bps increment leaves CAD floundering. 2023 peak rates priced in by money markets. Descending triangle still in play. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter USD/CAD FUNDAMENTAL BACKDROP Foundational Trading Knowledge Forex Fundamental Analysis Recommended by Warren […]
Westpac is forecasting a +50bp RBNZ rate hike in February
<p>WPAC forecasting a 50bp Reserve Bank of New Zealand rate hike at the February meeting (22nd)</p><p>(not RBA, WPAC tip +25bpfor RBA on February 7)</p><p>Follows the <a href="https://www.forexlive.com/terms/i/inflation/" class="terms__main-term" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa" target="_blank">inflation</a> data from NZ earlier today:</p><p class="article-slot__title title top"><a href="https://www.forexlive.com/news/new-zealand-q4-inflation-14-qq-expected-13-72-yy-expected-71-20230124/" rel="follow" target="_self" class="article-link">New Zealand Q4 inflation 1.4% q/q (expected 1.3%) 7.2% y/y (expected 7.1%)</a></p><p class="article-slot__title title […]
EUR/USD sees recovery to near 1.0900 as ECB to continue rate hikes beyond summer
EUR/USD is eyeing to recapture the 1.0900 resistance as ECB might not pause policy tightening beyond summer. The Euro is delighted with bullish bets for CY2023 as the ECB will continue to raise interest rates further. According to the consensus, investors should brace for a contraction in the US GDP for the fourth quarter of […]
BOC Interest Rate Decision: Another Hike?
After its last meeting, the BOC Governor Macklem said that the likely course would be a pause, unless there was a major change in the data. Of course he said it with a lot more words and technical jargon, but that was the essence of the message. Naturally, the markets adjusted the expectation to the […]
Dollar stays under pressure as sterling, yen rate expectations build By Investing.com
By Geoffrey Smith Investing.com — The dollar tested a new nine-month low in early trade in Europe on Tuesday as economic data from Japan and the U.K. strengthened the case for more interest rate hikes there. By 02:55 ET (07:55 GMT), the , which tracks the greenback against a basket of advanced economy currencies, was […]
USD/CAD declines towards weekly low at around 1.3340 ahead of BoC’s interest rate policy
USD/CAD is looking to extend its downside towards a weekly low around 1.3340 amid the risk-on market mood. The BoC is expected to hike interest rates further by 25 bps to 4.50% this week. Oil prices might deliver a recovery amid optimism over China’s economic recovery. The USD/CAD pair has dropped to near 1.3367 gradually […]
Dollar lower as market eyes slower Fed rate hikes By Investing.com
© Reuters. By Geoffrey Smith Investing.com — The dollar started the week testing a fresh nine-month low as market participants bet on the trimming the size of its interest rate hikes for a second straight meeting in February. Fed officials are entering the ‘quiet period’ before their policy meeting on February 1st, but a report in […]
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 […]
ECB’s Rehn sees reasons for ‘significant’ interest rate increases before summer
European Central Bank (ECB) Governing Council member and Governor of Austria’s central bank Olli Rehn made some comments on the central bank’s interest rates policy during his appearance over the weekend. He said that he sees grounds for “significant interest rate increases from the ECB this winter and the coming spring.” Market reaction EUR/USD is […]