FX

UK CPI Preview: Inflation “apocalypse” priced in, GBP/USD has room to fall Economists expect the headline UK Consumer Price Index (CPI) to have jumped from 7% YoY in March to 9.1% in April. I will argue that this leap is already baked into cable, leading to a ‘buy the rumor sell the fact’ effect, in

Gold’s recovery capped by the $1,820 area, stays under pressure. Improvement in risk sentiment offers limited help to the yellow metal. On a weekly basis, XAU/USD is down almost 4%. Gold bottomed at $1,799 on Friday, the lowest level since February. A recovery followed later that found resistance quickly at $1,820. The yellow metal remains

US dollar losses strength as US yields drop from multi-year highs. DXY hits fresh lows on American hours, backs away from the fresh multi-year high. The USD/JPY rose earlier on Monday to 131.34, reaching the highest level since 2002 and then lost strength. During the American session, it turned to the downside and recently accelerated

The Bank of England hiked rates to 1%, though slashed UK’s economic growth in 2023. The US and UK central bank’s expressed concerns about China’s Covid-19 crisis, which threatens to disrupt supply chains, consequently triggering high inflation. GBP/USD Price Forecast: To fall towards June 2020 swing lows around 1.2251. The British pound plummets on Thursday

The EUR/USD recorded losses in April of 4.75%, the biggest since 2015. Though Wall Street finished with substantial losses, a sudden shift in sentiment failed to boost the greenback vs. the euro. US Core PCE down ticked, but headline inflation rose to 6.6%, as the FOMC will hold its May monetary policy meeting The EUR/USD

XAG/USD continues to trade with a downside bias and hit more than two-month lows in the $23.20s on Wednesday. The buck continues to advance, weighing on the pair, amid risk-off flows, geopolitical jitters and Fed tightening bets. Continued buck buoyancy against the backdrop of still very jittery global market risk appetite (US stocks have pared

Cleveland Fed President and FOMC member Lorreta Mester, speaking in an interview on CNBC, said on Friday that the Fed wants to see tighter financial conditions, though not all at once. “We are in a recalibration phase for monetary policy,” she said, adding that the Fed’s goal is to bring inflation under control, but also

Russia is carrying out the “prelude” to a larger expected offensive operations in eastern Ukraine, a senior US defense official said on Monday according to Reuters. About seven flights of weapons are heading to Europe in the next 24 hours carrying weaponry for Ukraine, the official added. Russian has about 75% of its pre-invasion combat

The GBP/USD is gaining up some 0.18% in the week amidst a thin liquidity trading session. A buoyant US dollar and risk-aversion weighed on the British pound in the week. GBP/USD Price Forecast: To remain downward biased but a double bottom looms. The British pound remains defensive, trading below the 1.3100 mark, on the back

Chicago Fed President and FOMC member Charles Evans on Monday said that high prices in the US will persist for longer than he originally though, though will not be permanent, reported Reuters. The Fed has to reposition itself in its response, he said, noting that supply chain pressures are more intense than he had expected. 

The EUR/USD slides during the North American session, some 0.09%. ECB minutes lifted the EUR/USD above 1.0900, but a risk-off sentiment and Fed’s minutes dragged the pair under the former. EUR/USD Price Forecast: The break of a rising wedge opened the door towards 1.0700. The shared currency is almost flat in the North American session

While NATO believes the military conflict in Ukraine will continue, there is a glimmer of hope stemming from last week’s peace talks that has been updated in the following article: However, Vladimir Putin’s meeting with Volodymyr Zelenskyy will only take place after the development of a specific written document by the Russian Federation and Ukraine, Dmitry Peskov,

Kansas City Fed President Esther George said in an interview with the WSJ on Wednesday that the current surge in inflation is different from what former Fed Chair Paul Volcker (served between 1975-1979) faced and has not yet become embedded in the economy. the path to policy normalisation is likely to be a long one,

The shared currency barely moves vs. the greenback as traders head into the weekend. The EU and the US reached an agreement on natural gas supply. EUR/USD Price Forecast: Confined to the 1.0960-1.1000 range. The EUR/USD remains subdued amid a choppy trading day, as the market mood swings from risk-on to off continue, on “hawkish”

The USD/CAD grinds higher after five days in the red. Fed’s Chair Powell approves 50 bps rate hikes and could happen not just once. USD/CAD Price Forecast: Broke the 200-DMA, exposing the USD/CAD to further downward pressure, with 1.2500 as the next target. The USD/CAD snaps five days of consecutive losses amid a risk-on market

According to Russia’s Chief Negotiator Vladimir Medinsky, Russia and Ukraine’s views are most aligned on the latter’s status as a “neutral” country and offer not to join NATO, reported Russia’s state-run Interfax news outlet. Russia and Ukraine are currently discussing nuances linked to security guarantees for Ukraine should it refuse to joining NATO, Interfax reported. Moscow

The sterling fails to regain 1.3100, remains near mid-term lows. Pound recovery falters despite BoE rate hike expectations.  GBP/USD decline could extend to 1.2500 – ScotiaBank. The pound sterling remains slightly positive on Monday, buoyed by a moderate risk appetite although its rebound from lows near 1.3000 has been capped below 1.3075. Cable remains bearish at

Oil prices have been choppy and mixed on Thursday as traders juggle a multitude of themes. Russia/Ukraine talks didn’t go as well as hoped, and mixed commentary from the UAE has sparked OPEC+ output policy speculation. Having fallen back from an earlier rally towards $115, WTI is a tad lower on the day in the