EUR/USD Weighed by the Fed’s Hawkishness, as US CPI Looms
The pair comes from a poor week and the new one started in similar fashion, amidst Russia-Ukraine escalation and renewed Fed hawkishness, ahead of Thursday’s CPI inflation from the US
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The pair comes from a poor week and the new one started in similar fashion, amidst Russia-Ukraine escalation and renewed Fed hawkishness, ahead of Thursday’s CPI inflation from the US
The BoE has announced an increase in its daily gilt purchases and will implement measures to ensure calm prevails as its emergency bond-buying programme winds up. The central bank intervened in the bond market after the government's mini-budget sparked a sell-off, threatening the UK's pension sector. The emergency intervention is due to end on Friday, 14 October.
The cc is a meaningful 87 on the daily chart. As such, if the real rate has charted a higher trough, we would expect dollar strength to follows. As such, we are monitoring the green sideways arrow - if the price closes above, the greenback may also have charted its higher trough. This will be bullish, creating a potential foundation for USDOLLAR's next impulse move up.
The central bank of New Zealand maintained its hawkish stance and delivered another 50 basis points interest rates hike today, just a day after its Australian counterpart slowed its pace
The real rate uptrend remains valid, and the upward green trendline defines its momentum. In this vein, a pullback to test this momentum will be compelling, given the Fed's current aggressive monetary policy. As such, and until proven otherwise, a dip in the yield uptrend remains our preferred scenario.
Australia’s central bank raised interest rates again today, but the 0.25% move was smaller than expected and constituted a step back from the larger hikes in the previous four meeting
The pair finds stability after last week’s intense price action, as the UK Chancellor confirmed that he will not go ahead with the abolishment of the top tax rate bracket
A bearish turn of the EMAs and stochastic (black ellipses) at this confluence may prove problematic. If the stochastic crosses and heads towards the 20 levels, the pressure will be building downwards. Moreover, if it reaches and maintains (red arrow), GBPUSD will be in danger of another leg down.
The pair runs its seventh straight profitable week, as markets brace for today’s PCE inflation from the United States
Sentiment takes another nosedive today and Wednesday’s relief rally falters, as markets brace for key economic data from the US, later in the day and on Friday
The International Monetary Fund (IMF) issued a statement on Tuesday, criticizing the government’s recent spending plan and the Pound comes renewed pressure today
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