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The Australian central bank stayed again on the sidelines and inflation jitters keep rate cut prospects far, in a policy differential that is supportive for the pair, despite the Fed’s reluctance to pivot
The ECB slashed rates this month, as the Fed is reluctant to pivot, with the unfavorable policy differential making the pair vulnerable to its 2024 lows
The pair drops as another strong US jobs report strengthens the Fed’s higher-for-longer stance, while election woes take hold in Europe after France snap elections
Tomorrow the ECB is likely to deliver a 25-bps cut – the first major advanced economy central bank to begin its cutting cycle. The cut is expected, with markets having priced in the cut from 4% to 3.75% for a few weeks now. However, forward guidance will be key here, with market participants focusing on any clues provided regarding future policy direction.
The pair comes from its first profitable month of the year, but now looks to Thursday’s pivotal ECB decision, as the central bank could slash rates after ten hikes
Japan’s Ministry of Finance confirmed Friday its first currency intervention since 2022, after the yen plunged to a 34-year low in April. Between April 26 and May 29, Japan spent 9.7885 trillion yen ($62.25 billion) on intervention, coinciding with a sharp yen rebound. The yen hit 160.03 against the U.S. dollar on April 29, prompting speculation of intervention, and strengthened over 2% shortly after. Analysts estimated the initial intervention at…
The pair dropped to the lowest since August 2022, as the ECB is widely expected to cut rates next week, whereas the case for a BoE June pivot has become harder
The PCE is the Federal reserve’s preferred measure of inflation, and the April number is due for release on Friday. It will influence market participants’ views on the central bank’s monetary policy path.
The pair has made a strong start to the week, but monetary policy dynamics are unfavorable, while markets brace for incoming inflation reports from both sides of the Atlantic
Canadian CPI moderated according to today’s data, helping the pair’s bounce from critical support levels, as it strengthens the case for a BoC pivot
The pair rebounds after the pullback from its four-decade highs and the speculated FX intervention, with investors now looking forward to Wednesday’s US CPI inflation
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