FX

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

GBP/JPY dipped back from earlier highs near 155.00 to the low 154.00s but remains within recent ranges. The pair is still trading in the green after nursing a recovery from an earlier weekly dip. There is notable resistance in the 153.00 area and resistance in the 155.50 area. GBP/JPY held within a 154.00-155.00ish range on

The greenback slides against the Japanese yen, despite a mixed market mood. Some 8,500 American troops were put under high alert, attributed to the escalation of the Russia – Ukraine conflict. USD/JPY is upward biased despite breaking under the 50-DMA, though the longer time-frame ones remain under the spot price. In the North American session,

Data released on Friday showed an increase in November retail sales in Canada of 0.7%, below the 1.2% of market consensus. Analysts at CIBC, point out the advance was modest in November, and warn that all of that ground and more appears to have been given back in December. Key Quotes:  “Canadian retail sales posted

The Bank of Canada’s (BoC) Business Outlook Survey (BoS) for the fourth quarter revealed on Monday that the business sentiment in Canada improved again, with the BoS indicator coming in at a new record high of 5.99, up from 4.73 in the third quarter. Note that the data for the latest survey was collected prior to the rapid spread

Analysts at Wells Fargo maintain their view for a broadly stronger US dollar over the course of 2022 and into 2023. They consider a more hawkish Federal Reserve should result in capital flows toward the greenback, pushing it to the upside against most G10 and emerging market currencies. Key Quotes:  “We expect the greenback to

The New Zealand dollar advances some 0.46% as the North American session ends. A risk-off market mood was no excuse for the NZD to gain vs. the USD. NZD/USD Technical Outlook: Downward biased as long as it remains below 0.6859. On Friday, the New Zealand dollar trimmed some of its Thursday’s losses despite a risk-off

USD/TRY adds to Tuesday’s gains well above 13.00. The lira loses further ground after a positive start of the year. Focus remains on the next CBRT event later in the month. The Turkish lira accelerates losses and pushes USD/TRY to new 2-day highs in the 13.60 region midweek. USD/TRY stronger after Turkey’s CPI USD/TRY posts

The USD/JPY edges higher in the year’s last trading day, up some 0.03%. A risk-off market mood put capped the downtrend of the USD/JPY. USD/JPY Price Forecast: The upward bias to continue, a break above 115.20 would open the door for a test of the YTD high at 115.52.  As of year-end looms, the USD/JPY

The greenback gains some ground against the aussie, amid closed US equity and money markets. Covid-19 positive news improved investors’ mood as the year-end looms. AUD/USD Price Forecast: Bulls prepare for a challenge of crucial resistance around 0.7280-0.7300. The AUD/USD slides during the late European trading session, down some 0.33% trading at 0.7224 at the