FX

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

The USD/JPY is set to finish the week with losses, so far down 0.59%. A dismal market mood weighed on US Treasury yields and the USD/JPY. USD/JPY Technical Outlook: A triple-bottom formation targets 117.48. On Friday, the USD/JPY retreats from the double-bottom “neckline” at around 115.80 to weekly lows, negating the chart pattern late in

Fed Chair Jerome Powell, speaking before Congress on the first day of his semi-annual testimony, said that we think we need to engage in a series of rate increases and let our balance sheet shrink, reported Reuters.  Additional Remarks: “Supply-side constraints are much more durable than expected.” “As this year has gone on, markets have reacted

AUD/USD saw a stunning rebound on Friday, rallying back to the mid-0.7200s as risk appetite improved. That marks a near 2.0% rebound from Thursday’s post-Russia invasion of Ukraine lows. Next week will be busy with the RBA deciding policy, US jobs and ISM surveys and Aussie GDP plus geopolitics. AUD/USD saw an ultra-impressive rebound on

The Australian dollar remains in the front foot in the week, up some 0.68%. Despite a mixed market mood, the US Dollar Index fails to weigh on the AUD. AUD/USD Technical Outlook: Range-bound but close to an upward break if it remains above 0.7200. The Australian dollar stays firm in the North American session as

According to the flash estimate of the European Commission’s Eurozone Consumer Confidence survey, the headline index fell to -8.8 in February versus forecasts for a slight rise to -8.0 from -8.5 the month prior (January).  Market Reaction The euro did not see any reaction to the slightly weaker than expected Eurozone Consumer Confidence data, with FX markets much

On Wednesday, the January retail sales report is due in the US. According to analysts at Wells Fargo, sales likely rebounded rising 2.1%, a number above the 1.6% increase of market consensus.  Key Quotes:  “Retail sales declined sharply to end 2021. During December, total sales fell 1.9%, a drop that was more severe than consensus

Silver broaden its weekly gains, up so far 5.17%. US inflation reached levels last seen in August 1982, above 7% for the second consecutive month. Money market futures have priced in an 80% chance of a 50 bps increase on the Fed’s March meeting. XAG/USD is neutral biased, but bulls get ready to attack the

The commodity-linked New Zealand dollar ended Friday’s session with losses of 0.69%. The NZD/JPY retracement from weekly tops could lead to further losses below 76.00. The NZD/JPY slumps for the second time in the week as traders get headed into the weekend. As Wall Street closed and thin liquidity conditions hit the FX market, the

The non-yielding metal is trading above $1805, the trendsetter 200-DMA. The US ADP data was worse than expected; it could be a prelude to the Nonfarm Payrolls (NFP). XAU/USD Technical Outlook: A daily close above the 200-DMA could signal a shift in gold’s trend. Gold (XAU/USD) climbs in the North American session as US T-bond