Author: FX

USD/JPY accelerates the downfall to 128.00. The pair could dive as low as 124.00, economists at Société Générale report.  Channel at 134/134.80 should cap short-term upside “Daily MACD has flattened recently however signals of an extended bounce are not yet visible.” “The pair is likely to drift towards next projections at 128 and 126.80. Peak of 2015 near 125.85/124.00 could be the next significant support zone.” “The channel at 134/134.80 should cap short-term upside.”  See: USD/JPY looks set to challenge the 126.50 mark – ING Source link

The index reverses part of the recent acute sell-off. US yields remain directionless across the curve on Friday. Flash Michigan Consumer Sentiment will be next on tap. The greenback’s recovery picks up extra pace and revisits the 102.65/70 band when gauged by the USD Index (DXY) on Friday. USD Index meets contention around 102.00 Following the earlier retracement to levels just below the 102.00 mark, the index manages to regain some composure and advance to the 102.60 region on the back of the profit talking sentiment in the risk complex. In the US money markets, yields across the curve advance…

In the view of economists at Wells Fargo, end to monetary tightening should bring the US Dollar’s gains to an end by early 2023. Eventual US recession to soften the greenback “An end to rate hikes will coincide with an end to USD gains during early 2023. Indeed, we believe a peak in the trade-weighted US Dollar for the current cycle has already been reached.” “Over time, we forecast a trend of USD depreciation to gather pace. Initially, that depreciation may be modest during the latter part of 2023, as the US economy falls into recession while other international economies…

Bank of Korea (BoK) decided to hike its policy rate today by 25 bps to 3.50%. Economists at TD Securities expect the Won to strengthen in the weeks ahead. Less urgency to tighten further “BoK hiked its 7-day repo rate by 25 bps to 3.50% as widely expected. The decision was not unanimous however, with two members opposing the decision voting for rates to remain on hold.” “While there was no clear signal that BoK has reached terminal we think the bar is high for another hike in the months ahead. Weakening growth, eating inflation pressures and a stronger KRW…

China FX has front-loaded the China reopening and economists at Société Générale are cautious about chasing a CNY rally. Neutral on Yuan “As USD/CNY has already reversed more than 50% of the rise in 2022, it would be necessary to feed more positive surprises to the market to deepen a CNY rally to the 6.30 level, but we are sceptical.” “Our year-end USD/CNY forecast of 6.80 incorporates a ‘gradual’ turnaround in major policies including Zero-COVID. However, nearly all major policies that were seen as negative to the market have been reversed in the past two weeks.” “The FX market has…

EDU, FUV and NCTY are among pre market gainers Source link

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© Reuters. FILE PHOTO: U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration By Iain Withers and Alun John LONDON (Reuters) – The yen surged further on speculation that Japan could revise its ultra-loose monetary policy, while the dollar edged higher after earlier dipping to its lowest level since June against major currencies. The , which measures the safe haven U.S currency against other six major currencies, gained 0.3% to 102.46 as risk appetite faded through the trading session, with mixed U.S. company earnings also setting the tone for markets. Better-than-expected economic data out of…

U.S. EARNINGS ANALYSIS AND TALKING POINTSBanks bolster net reserves showing concerns around the 2023 macro-economic outlook.NII improves for BAC, WFC and JPM but weaker IB limits upside. Recommended by Warren Venketas Get Your Free Equities Forecast U.S. banks in general have kicked off 2023 in the green with JPMorgan (JPM), Bank of America (BAC) and Wells Fargo (WFC) no exception. Higher interest rates as directed by the Federal Reserve’s aggressive monetary policy, has allowed for Net Interest Income (NII) to grow but fears around a global slowdown has forced banks to strengthen their net reserves. Trade Smarter – Sign up…

USD/JPY remains the stand-out interest. Economists at ING expect the pair to nosedive towards the 126.50 mark. Plenty of downside in USD/JPY “The BoJ may be on the verge of its biggest policy change in decades. Even short-dated JPY Interest Rate Swaps have started to move and are at the highest levels (near 30 bps) since 2008!” “Clearly, USD/JPY has come a long way very fast, but some of the longer-term skews in the FX options market point to a structural shift in the market’s view in USD/JPY.” “We suspect few will want to stand in the way of the…