NZD/USD Tepid As the Week Draws to an End
The Kiwi has the opportunity to halt its five-week losing streak, but faces difficulties as we move towards the European open
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The Kiwi has the opportunity to halt its five-week losing streak, but faces difficulties as we move towards the European open
On Tuesday 7 December the Reserve Bank of Australia kept is cash rate at 0.10%, in line with the consensus forecast. The statement suggests that inflation generation is still a concern for the central bank, "…inflation has picked up, [but] it remains low in underlying terms. Inflation pressures are also less than … many other countries… because of…modest wages growth in Australia." Thus, a key determinant on monetary policy is…
Further to yesterday's article, the Bank of Canada kept its overnight rate at 0.25%, which was expected. The market has been pricing in a rate hike as early as March next year, and possibly even earlier, but the BoC reaffirmed its guidance that the first hike should come "in the middle quarters of 2022." This was more dovish than the market expected, and the USDCAD reacted by jumping higher on…
The common currency managed to stage a solid rebound on Wednesday, following a poor weekly start, but today it faces renewed pressure
The Pound dropped to its lowest level since November 2020 against the greenback yesterday, harmed by UK’s tougher Covid rules
The pair started the week on the back foot, but today it rises, as talk of UK lockdowns harm the Pound
The CAD has benefitted from the appreciation in oil over the last few days. Moreover, yesterday's Ivey PMI beat forecast, printing at 61.2 (60.2). The Bank of Canada is due to release its December rate statement and overnight rate today at 3:00 pm GMT. This is likely to introduce volatility. Rates are expected to remain at 0.25%, with hikes expected by markets in March next year. This would be earlier…
The pair rebounds following its poor start to the week, as markets try to stay upbeat following yesterday’s risk-on mood
The pair attracts buyers today, as risk-on mood prevails, trying to put an end to its five-week losing week
The chart on the left shows the GBPUSD daily time frame. Its heiken ashi is in the weak area, between the lower blue and lower red bands. The daily stochastic is maintaining a weak reading in its lower quintile (aqua arrow). This is indicative of bearish momentum. Given this weakness in the daily, the right chart is interesting. It is the H1 timeframe and shows that after a ~24hr rally,…
Risk-on mood prevailed as fears around the severity of the omicron variant subside, helping the pair higher, after two loosing weeks
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