AUDCAD propels after RBA send hawks.
“Market triggered by hawkish comment from RBA, sparking high demand on AUD.” Reserve Bank of Australia continues to itch the market as they left the door open for more speculation. Earlier this morning, the central bank raised interest rates by 25 basis points, matching economist’s forecast. At the same time, RBA members signalled to raise interest rates further in the coming period, raising speculation for more hawkishness ahead. Quick recap on AUDCAD A strong rebound could be
EURUSD in its best shape yet.
“Euro stood tall as ECB may gear up to address rising cost of living which is widespread across Europe." During European trading session, EURUSD uphold its previous ascend above 1.05 mark as market participants remains optimistic towards European Central Bank (ECB). Prior, ECB member Gabriel Makhlouf commented that the minimum rate hike for upcoming meeting will be 50 basis point as inflation remains high. In addition, ECB member Francois Villeroy remarks that it is too soon to discuss
Gold may rise further in the future.
“Fed sends out doves after inflation starts to retreat.” Gold bulls cheered as market participants speculate an imminent change in Federal Reserve future course of action in terms of policy setting. Recently, Fed Chair Jerome Powell signalled that “a slowing down may be relevant in order to balance the risks”. His latest comment suggests higher possibility of a less aggressive Fed in the upcoming policy meeting, coinciding with deceleration of inflation for October’s PCE Index.
Will USOIL survive its latest rebound?
“USOIL rejoice as OPEC+ and China provides positive sentiment towards exhausted market bulls.” USOIL stages its rebound during European trading session, celebrating over an array of positive news in the market. According to reports, OPEC+ may not alter their daily production level in the upcoming meeting, a sign of relief for oil bulls. On the other hand, China has recorded a downtrend in coronavirus cases, signaling possible loosening in lockdown restrictions. Quick recap on
USDCHF slumps downwards, but will it last?
“China recent lockdown and protest sparks risk-off sentiment, shining the limelight on safe-havens.” Swiss franc aims to thread lower as the market was spooked by civil unrest in China due to harsh anti-Covid restrictions. Last weekend, scuffle occurred in several cities in China after rising coronavirus cases prompted local government to enact total lockdown. Recent happenings have dialled down market expectation towards China economy and at the same time, raising the demand for
Just as it hits new high, NZDUSD backs off.
“Rising coronavirus cases in China triggers a shift in market sentiment that emphasize favor towards safe havens.” New Zealand dollar edged down slightly during European trading session as the market weighs on rising economic concern in China. Lately, China has recorded an upsurge in coronavirus cases which prompts the government to impose strict lockdown measure. The economy has suffered from several local lockdowns in the past, which jeopardizes market sentiment. Recent developments
USDJPY relinquished after Fed minutes shows dovish tilted signal.
“Fed minutes shows possible slowdown in policy tightening, pushing greenback downwards.” US dollar tumbled across the board soon after Federal Reserve released their latest minutes from November’s meeting. From the minutes, Federal Reserve raised its interest rates by 75 basis points last month to combat rising price of goods across the nation. The minute also shows that Fed officials are satisfied with the move and suggested to stop large increase and move towards smaller actions
EURUSD dejected after covid cases surge in China.
“Bears pushes euro downwards as China recorded a surge in coronavirus cases.” Euro struggled to make any substantial gains against the greenback as risk aversion sentiment dominates the financial market. According to reports, China has recorded a significant jump in daily coronaviruses cases with two virus-led death on Monday. The report sparks concern over the government’s action which may impose strict lockdown to contain its spread. Nonetheless, losses on the euro were cushioned by
USDCAD may plunge even further into the oblivion.
“US dollar tumbles as focus redirected back to risky assets, Canada data in view.” Greenback struggled against its major peers after US government downplayed the significance of missile strike that was launched towards one of Poland’s villages. Following the announcement, fear in the market recedes substantially, reducing the premium for holding greenback as safe-haven asset. On the other hand, investors are currently waiting for the release of CPI data from Canada to gauge Bank of
Strong footing seen, NZDUSD may extend it further.
“US dollar pullback eyed as no new signal was delivered by Fed official’s comment.” New Zealand dollar kickstart the day with substantial bullish momentum despite hawkish signal from Fed official. According to report, Fed Vice Chair Lael Brainard commented while they may reduce the pace of rate hikes, she still supports the case for a 50-basis points increase. She also emphasized that the Fed may not ease that easily and acknowledged that “many works are yet to be done” in terms
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