Currencies

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

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 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

Gold prices are up over 15% for the year-to-date with the green 5-day moving average above the orange 10-day moving average in bullish formation. Whether this persists may depend on the Federal Reserve and the speed potential for rate cuts this year.

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

The Japanese yen hit a 34-year low against the dollar on Monday before rebounding, amidst speculation of official intervention. Thin trading in Japan due to Shōwa Day saw the USD/JPY swiftly rise, reaching its weakest level against the dollar since 1990. This year, the USD/JPY has gained around 12%, driven by widening bond yield differentials. While US 2-year Treasury yields rose by 75 basis points to 5%, Japan's 2-year bond…