Currencies

Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events

Central banks dominated this week, with the Fed speeding up its QE tapering, Bank of England surprising markets once again and ECB announcing reduction in asset purchases, while maintaining its dovish stance

The pair steadies after two profitable days and intense central bank activity, unfazed by today’s Eurozone CPI figures

The Turkish lira dropped to record lows against the dollar after its central bank lowered its repo rate by 100bps to 14% yesterday. This is despite an inflation rate that has surged in 2021 to above 17%. Moreover, the inflation rate has ticked up in recent months after the bizarre implementation of monetary policy, which flies in the face of traditional economic theory. The weekly chart below displays the capitulation…

Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events

The Bank of England (BoE) decided to raise interest rates for the first time since the pandemic, in the face of surging inflation

The pair saw a surge in volatility during yesterday’s Fed monetary policy decision, but ended the day higher and today it extends gains with an eye on the ECB

Read the daily market update as we head towards the European open, to get some of the latest developments, main market moves and upcoming events

As we head into the next tightening cycle, it is informative to consider the relationship between the dollar and gold. To this end, below is the weekly relative strength chart of FXCM's USDOLLAR basket and our XAUUSD instrument. The chart has a cyclical component to it. Between 2011-2013, the ratio formed a base or accumulation pattern (first green rectangle). When this completed, the greenback appreciated against the precious metal in…

The dollar's momentum has slowed as we head towards the FOMC statement release tomorrow (15 December) at 7:00 pm GMT. This is to be expected, as the tone of the statement will be a key focal point for market participants. However, December has been a less volatile month for the greenback. At the time of writing the December range of FXCM's USDOLLAR basket is only about 35% of November's range.…