RBNZ to lift rates, what to expect – Forex News Preview

Posted on August 16, 2021 at 3:39 pm GMT

The Reserve Bank of New Zealand (RBNZ) is almost certain to raise interest rates when it concludes its meeting at 02:00 GMT Wednesday. Markets have already fully priced in a regular rate increase and are also assigning a small chance for a ‘double’ hike. The kiwi dollar could be disappointed in case it is just a ‘single’ rate hike, but the overall trend seems positive, especially against the euro and yen.  Overheating The New Zealand economy is firing on all [..]


US Open Note – Yen surges due to risk-off factors; oil plunges

Posted on August 16, 2021 at 12:44 pm GMT

Dollar marginally up; Stocks ease The market is beginning the week on a cautious note. The US dollar index is ticking marginally up after a strong negative session, while US futures are suggesting a negative open after the S&P 500 and Dow Jones completed new record highs on Friday. Euro/dollar failed to surpass the 1.1800 psychological level on Friday and is moving lower, while pound/dollar is hovering around 1.3870. Yen shines; commodity currencies fall The yen has risen sharply because of several risk-off factors, all [..]


US Open Note – Dollar is marginally down; euro shines

Posted on August 13, 2021 at 12:32 pm GMT

Dollar eases before Fed releases minutes next week The dollar is dropping from four-month highs as traders are waiting next week for more clues about the Federal Reserve plans for how and when it will unravel its massive stimulus program. After scaling a high of 93.13 earlier in the week, the dollar index has been lingering around 92.95 since Wednesday, when it was driven down by CPI data. Dollar/yen is creating the third consecutive red day after the climb to 110.80. The euro rebounded against the greenback even after yesterday’s [..]


Week Ahead – RBNZ to raise rates, dollar awaits Fed minutes

Posted on August 13, 2021 at 11:37 am GMT

It’s an electrifying week, with a crucial central bank meeting and a storm of economic releases to spark volatility. The Reserve Bank of New Zealand will make history by raising interest rates. However, there is scope for some disappointment in the kiwi, as markets are pricing in a decent chance for a ‘double’ rate hike. Meanwhile, another round of normalization signals from the Fed could begin to reawaken ‘king dollar’.  RBNZ: Time for lift off The main event will be [..]


Weekly comment – RBNZ to lift rates, Fed releases minutes

Posted on August 13, 2021 at 11:15 am GMT

It was a quiet summer week in the FX arena, with most major pairs ending little changed amid a shortage of news. Speculation around when the Fed will begin to withdraw liquidity remains the central market theme. Hence, the minutes of the latest FOMC meeting next week could be crucial. But the main event will be in New Zealand, where the central bank is ready to raise interest rates.  The highlights:  The Reserve Bank of New Zealand is widely expected [..]


US Open Note – FX markets swing sideways; Wall Street mildly lower

Posted on August 12, 2021 at 1:45 pm GMT

Currencies in a range as debate for bond tapering continues The FX world was on the sidelines during Thursday’s European session, suffering the summer doldrums in narrow ranges in the absence of any market movers. On Wednesday, US CPI inflation figures came almost as expected, raising hopes that the extraordinary spikes in previous months have likely reached a peak and therefore the Fed’s view of temporary inflation is probably right, making any aggressive monetary tightening actions less likely in the [..]


Daily Market Comment – US inflation may have peaked, dollar rally cools

Posted on August 12, 2021 at 9:10 am GMT

US CPI unchanged in July as Fed hawks get louder Dollar and yields pull back slightly but remain supported by tapering bets US stocks extend record streak as Senate opens path for $3.5 trillion budget plan Inflation fears ease after CPI in line The rate of inflation in the United States remained at a 13-year high in July according to the consumer price index out yesterday. But there was good news for both consumers and policymakers as price pressures for [..]


US Open Note – Dollar pulls back after US CPI data release

Posted on August 11, 2021 at 1:04 pm GMT

US CPI data drives dollar lower All eyes were on the US CPI data release today. The US consumer price inflation rate remained at 5.4% in July, the same as the previous 13-year high and marginally above market predictions of 5.3%, mirroring the low base effect caused by the coronavirus crisis. There were not any surprises for the market; however, the dollar slipped from the five-week high of 110.80 versus the yen that was printed earlier today. The dollar index [..]


Daily Market Comment – US dollar, yields, stocks climb in tandem ahead of inflation test

Posted on August 11, 2021 at 9:08 am GMT

Dollar extends rally, hits more than 4-month high ahead of crucial US CPI data Euro and yen can’t catch a break, riskier currencies slip too Tech stocks take a tumble but Senate’s infrastructure bill nudges Dow and S&P to record Dollar charges ahead; will CPI data fuel or dent rally? The post-NFP boost for the US dollar and Treasury yields showed no sign of abating on Wednesday as investors continued to ramp up their bets that the Federal Reserve will [..]


Technical Analysis – NZDUSD moves sideways near 0.7000; neutral bias

Posted on August 11, 2021 at 7:52 am GMT

NZDUSD has been moving in a horizontal trajectory over the last two months, going back and forth around its short-term simple moving averages (SMAs). In the medium-term picture, the price is developing in a descending move, trading beneath the falling trend line and the 200-day SMA. As regards the technical indicators, the RSI is flattening near its neutral threshold of 50, while the MACD has risen above its trigger line but is still near its zero level. A rally higher could meet immediate resistance at the 0.7100 psychological level, which overlaps with the 200-day SMA. The down-trending [..]

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