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The pair stays at critical technical levels awaiting high impact events, which include the ECB rate decision and Fed Chair Powell Congress testimony
The Kiwi slides as the central bank maintained the OCR at 5.5%, trimmed its terminal rate forecast and toned down the hawkish stance
The pair faces pressure after core inflation from Japan came in above forecast and the central bank’s 2% target
The pair managed to stage a rebound last week, trying to surpass key resistance area, but the next leg will likely depend on the upcoming inflation updates from both sides of the Atlantic
Gold has drifted sideways for 2024 (blue arrow). There was a brief impulse up during December 2023 as markets priced in the first rate cut for 2024 in March. This was relatively short-lived, with the first rate cut being pushed back to June.
The pair runs a profitable week, helped by the elevated pay growth in Australia and the hawkish accounts of the central bank’s last policy meeting
The UK economy has dipped into a technical recession with two straight quarters of negative growth. The Office of National statistics said UK GDP printed at -0.3% for the fourth quarter of 2023. This, after the previous quarter came in at -0.1%. All three sectors – services, production, and construction output – showed contraction for the quarter.
The pair drops after Tuesday’s US inflation figures came in hotter than estimates, while the UK ones today were lower than expected and CPI contracted on a monthly
The pair was mixed last week, continuing to lack firm direction, as markets contemplate the policy path of both central banks and brace for incoming inflation data from both sides of the Atlantic
The pair heads towards a profitable week on moderated expectations around a Fed pivot, but is shows some cautions today, as the IMF urged the BoJ to end its YCC and asset purchases
The pair extended its slide last week, as the Fed’s cautious stance and the strong jobs report moderate market pricing around the timing and amount of Fed cuts
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