Author: FX

Share: Economists at Société Générale analyze USD/BRL outlook ahead of the interest rate decision from the Brazilian central bank (Banco Central do Brasil, BCB).  Erosion of positive carry should put a brake on BRL appreciation The return of inflation to the central bank target range and the rise in real rates have cleared the path for the BCB to lower the Selic rate to 12.75%. The guidance for further policy easing is likely to be maintained for the next two meetings, meaning rates would end the year at 11.75%.  The path of inflation will determine the speed of…

A surprisingly slower U.K. inflation just dragged the British pound lower across the board! Will it mean an extended downtrend for GBP/CHF? Here’s what we’re looking at in the 1-hour time frame! GBP/CHF 1-Hour Forex Charts by TV In case you missed it, the U.K. just dropped its August inflation figures. The headline CPI slowed down from 6.8% to 6.7% when analysts saw the number accelerating to 7.0%. Even the core figure clocked in at 6.2%, much slower than the dip from 6.9% to 6.8% that market players are expecting. The not-so-hot consumer price increases give the Bank of England…

POUND STERLING TALKING POINTSUK CPI misses but PPI beat could be troublesome down the line.Little change in BoE forecasts for tomorrow, 25bps hike expected.GBP/USD arrives into oversold territory on RSI. Recommended by Warren Venketas Get Your Free GBP Forecast GBP/USD FUNDAMENTAL BACKDROPThe UK CPI release missed on both headline and core inflation respectively (see economic calendar below) with the largest downward contributor being food while upside influences saw motor fuel leading the way. This is no surprise as global CPI reports are capturing the rally in crude oil prices, leaving central banks wary about future costs.Although inflationary pressures slightly softened,…

EU car registrations jump 21% in August Source link

3/3 © Reuters. Striking United Auto Workers members picket outside the Stellantis Jeep plant, in Toledo, Ohio, U.S. September 19, 2023. REUTERS/Rebecca Cook 2/3 By Ben Klayman TOLEDO, Ohio (Reuters) -A Toledo grocery store parking lot was full of Jeeps and Fords on Tuesday morning in a show of strength by auto workers on strike from Stellantis (NYSE:)’s nearby Jeep plant. Dozens set out in an Ohio-to-Michigan convoy to rally support for their walkout, many Jeeps adorned with signs reading “No Justice, No Jeeps.” “We don’t get no profit sharing. We don’t get full benefits. I get paid $16.66 (an…

Once again major forex rates traded in limited ranges ahead of a big Wednesday coming up with:UK inflation data, the Federal Open Market Committee (FOMC) statement, and Federal Reserve Chair Powell’s news conference.The early part of the session brought comments from US Treasury Secretary Yellen on how the US views potential intervention on the yen. USD/JPY dribbled a little lower on the remarks. These were soon followed by intervention-related comments from Japan’s Finance Ministry’s Vice Finance Minister for International Affairs Kanda, often referred to as Japan’s ‘top currency diplomat’. USD/JPY lost a further few points. As the headline to this…

Share: AUD/JPY loses traction near 95.35 following the People’s Bank of China (PBoC) rate decision. The cross holds above the 50- and 100-hour EMAs; Relative Strength Index (RSI) holds above 50 in the bullish territory. The immediate resistance level emerges at 95.60; the key support level is seen at 94.90. The AUD/JPY cross edges lower to 95.35 during the Asian session on Wednesday. The cross faces some follow-through selling after Japan’s top currency diplomat Masato Kanda came out with verbal intervention remarks early Wednesday.Kanda stated that the Japanese authorities will deal appropriately with FX moves and will closely…

GlobalStock The trading arm of French oil and gas producer TotalEnergies (NYSE:TTE) is bidding up the U.S. physical crude market, Bloomberg reported Tuesday. WTI crude for delivery at the Cushing hub in Oklahoma has jumped to its highest premium since November, in addition to futures prices surging above $90/bbl; overseas buyers must pay an additional $1-$2/bbl to get the crude shipped to the Gulf Coast for export. At such elevated levels, U.S. crude is quickly becoming too expensive for buyers from Asia to Europe who have relied on the U.S. to plug the global oil shortfall led by OPEC+ cuts,…

© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen addresses a news conference during a G20 finance ministers’ and Central Bank governors’ meeting at Gandhinagar, India, July 16, 2023. REUTERS/Amit Dave/File Photo By David Lawder and Kanishka Singh NEW YORK/WASHINGTON (Reuters) -Treasury Secretary Janet Yellen said U.S. growth needed to slow to a rate more in line with its potential growth rate to bring inflation back to target levels since the economy was operating at full employment. She added that demand-supply imbalances in the labor market have abated. “Growth has to slow. I mean, you want growth to slow, you…

USD/JPY TECHNICAL ANALYSISUSD/JPY took a quick plunge early last week, but found solid footing just above technical support at 146.00. This resilience led to a swift recovery in subsequent trading sessions, with the pair steadily trekking upwards in recent days, seemingly intent on challenging channel resistance located around the psychological 148.00 level.Throughout this month, USD/JPY has struggled to breach the 148.00 threshold, as shown in the chart below. Every effort made by the bulls to take out this ceiling has been met with rejection, indicative of a notable cluster of sellers in this region. With that in mind, a similar…