Author: FX

Recommended by IG Improve your trading with IG Client Sentiment Data Wall Street looks set to deliver its fifth consecutive week of gains, pushing ahead with another round of stellar gains overnight (DJIA +1.26%; S&P 500 +1.22%; Nasdaq +1.15%). Considering that the Fed is still data-dependent, market participants have not been buying into the Fed’s hawkish guidance, with the Fed funds futures continuing to price for one last 25 basis-point hike in July and rate cuts as early as next year. This serves as a pushback against the Fed’s guidance of 50 basis-point hike by the end of 2023 and…

This is in brief from Deutsche Bank’s look at the European Central Bank’s ‘as expected’ rate hike of 25bp to 3.5% yesterday and outline what’s still to come from the Bank. Our baseline expectation is a final 25bp hike in July to a terminal rate of 3.75%. The risks remain clearly to the upside. We expected more emphasis on the intention to hold at the terminal rate for longer. In our view, this message was implicit rather than explicit. One could interpret the combination of the dovish elements (recognition of inflation declining, tentative signs of underlying inflation softening, upside inflation…

Share: NZD/USD eases from three-week high to print the first daily loss, so far, in four days. Business NZ PMI marks activity contraction for the third consecutive month in June. 100-DMA, previous resistance line join bullish MACD signals to favor Kiwi buyers. NZD/USD takes offers to refresh intraday low around 0.6230 amid the early hours of Friday’s Asian session. In doing so, the Kiwi pair takes a U-turn from the highest levels since May 24, marked the previous day, while also snapping a three-day uptrend, amid downbeat New Zealand (NZ) data. NZ Business PMI for June came in…

Toltek/iStock via Getty Images Prices for U.S. wheat, soybeans and corn all surged Thursday on the Chicago Board of Trade, as forecasts for continued dry weather in key areas of the Midwest crop belt raised concerns about yield prospects. The latest weekly data from the U.S. Department of Agriculture estimated 57% of the domestic corn crop and 51% of soybeans are dealing with drought conditions, up 12% from last week for both, as the trouble spreads in the Midwest and Plains. A three-month seasonal drought outlook by the U.S. Climate Prediction Center forecast drought conditions persisting or developing from eastern…

We’ve got a fresh batch of U.K. inflation figures comin’ right up soon. How could these updates potentially impact the BOE’s policy bias and GBP price action? Event in Focus: U.K. Consumer Price Index (CPI) and inflation data for May 2023 When Will it Be Released: June 21, 2023 (Wednesday), 6:00 am GMT Use our Forex Market Hours tool to convert GMT to your local time zone. Expectations: Headline CPI y/y: +8.4% y/y forecast vs. +8.7% y/y previous Core CPI y/y: +5.8% y/y forecast vs. +6.8% y/y previous PPI input m/m: +0.4% m/m forecast vs. -0.3% m/m previous PPI output…

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EURO FORECAST:EUR/USD jumps following the European Central Bank’s policy decision, recapturing a major trendline. Meanwhile, EUR/JPY soars to its highest level in nearly 15 yearsThe ECB raised interest rates by 25 basis points and revised higher its inflation projections, signaling more tightening is on the horizonEuro’s technical bias is turning more constructive against some of its top peers Recommended by Diego Colman Get Your Free EUR Forecast Most Read: Japanese Yen Outlook Rests on Bank of Japan Stance. USD/JPY Set to Blast Off?The euro strengthened across the board on Thursday following the European Central Bank’s monetary policy announcement. In late…

By Matt Spetalnick and Simon Lewis WASHINGTON (Reuters) – The U.S. sharpened its criticism of Russia’s record on human trafficking on Thursday, citing Moscow’s treatment of conscripts and Ukrainian children, in an annual report on countries that Washington says are failing to protect victims. The State Department’s 2023 Trafficking in Persons report kept Russia on a list of “state sponsors” of human trafficking and ranked Russia among the world’s worst at addressing the problem. Relations between Moscow and Washington are at a breaking point over Russia’s invasion of Ukraine. A section on Russia included more criticism than last year of…

In a preview of tonight’s Bank of Japan (BoJ) meeting, Credit Agricole notes that as the USD/JPY pair returns above 140, Japanese policymakers have resumed verbal intervention in the forex markets. Hirokazu Matsuno, Japan’s Chief Cabinet Secretary, stated that he is closely monitoring the FX markets and considers excessive movements undesirable.Credit Agricole assesses the current level of verbal intervention at 3 on their 1-7 scale, with 7 indicating imminent foreign exchange intervention. The bank points out that for the verbal intervention to grab investors’ attention, there would need to be references from policy officials about the currency being misaligned with…

JAPANESE YEN FORECAST:USD/JPY rises modestly following the Fed’s decision on WednesdayAttention now turns to Bank of Japan’s monetary policy announcementBoJ is expected to keep its ultra-loose stance unchanged, creating additional headwinds for the Japanese yen Recommended by Diego Colman Get Your Free JPY Forecast Most Read: Fed Pauses for Now but Signals Higher Peak Rate, Gold Prices Shift into ReverseUSD/JPY moved slightly upwards on Thursday, despite broad-based U.S. dollar weakness, triggered by falling U.S. Treasury yields. In early afternoon trading, the pair was up around 0.25% to 140.35, well off the Asian session highs, when it briefly rose above 141.50…