Month: November 2021

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Australia Dollar tumbles broadly today as markets are dissatisfied with RBA’s dovish stance, even though yield curve control is abandoned. Commodity currencies are also trading generally lower. On the other hand, Yen is staging a strong rebound after Japanese Finance Minister Shunichi Suzuki said he’s keeping an eye on the weakening exchange rate. The move is
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DXY picks up bids to consolidate Monday’s losses, justifies bullish candlestick formation, MACD signals. 100-SMA adds to the downside filters before two-week-old horizontal support. Bulls eye October’s peak, monthly high can test short-term traders. US Dollar Index (DXY) takes the bids to refresh intraday high around 94.00, up 0.09% on a day during early Tuesday.
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The market has fully priced in a +15 bps increase BOE’s bank rate (currently at 0.1%). The mixed economic developments since the September indicate that the Committee will be very divided over whether to hike or to stand on the sideline this month. Th staff will also release the latest economic projections which likely show
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Swiss Franc is strengthening notably today, but selling focus has somewhat shifted from Euro to Sterling. Still, the franc is outshone by New Zealand Dollar, which is overwhelming the strongest. On the other hand, Yen is the weaker one following extended risk-on sentiments from Japan to Europe. Sterling is following closely as second weakest. Dollar
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The November FOMC meeting would see the Fed making a formal announcement on QE tapering. We expect the plan would begin immediately and is expected to end by mid-2022. The Fed funds rate will stay unchanged at 0-0.25%. The market has priced in over 60% of a rate hike in June 2022. This appears unlikely
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Japan’s Nikkei index surges sharply by over 2% in Asian session, in very positive response to the easy win of the Liberal Democratic Party in Sunday’s election.  Prime Minister Fumio Kishida’s LDP retained comfortable majority in the House of Representatives, ensuring continuity of the economic policies. While other Asian markets are mixed, Yen is trading
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