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Societe Generale strategists note Swiss August Consumer Price Index (CPI) and second-quarter Gross Domestic Product (GDP) surprised to the upside, triggering profit-taking in EUR/CHF and USD/CHF but leaving Swiss National Bank (SNB) policy expectations unchanged. They point out that wider G10/SNB rate differentials and low FX volatility may encourage EUR/CHF dip-buying, while warning that renewed […]
Derek Halpenny at MUFG notes the Canadian Dollarโs (CAD) immediate advance after the Bank of Canada left rates unchanged at 2.25% but signalled greater concern over inflation. Communications hinted at a possible earlier hike, yet MUFG doubts a sustained CAD rebound, citing shortโterm valuation models that suggest USD/CAD should trade higher, with Oil and Middle East risks […]
Commerzbankโs Tatha Ghose notes that NBP Governor Adam Glapinski used G20 remarks to shift towards a more neutral, flexible stance, avoiding earlier dovish hints of imminent rate cuts. With August CPI surprising hawkishly and the Zloty underperforming CE3 peers, the bank is seen on the back foot. Ghose expects unchanged rates on 9 September but […]
United Overseas Bankโs (UOB) Quek Ser Leang and Lee Sue Ann report AUD/USD dipped to 0.7122 before a strong rebound to 0.7176, leaving intraday price action in a 0.7140โ0.7180 range. Downward momentum is fading and a break above 0.7190 would confirm 0.7120 is out of reach. On a 1โ3 month horizon, the pair is seen poised to […]
Chris Turner at ING notes that a near 1% drop in USD/JPY within minutes, followed by another slide, sparked talk of renewed Japanese intervention after the Bank of Japanโs earlier $96 billion sales. Authorities appear satisfied with price action, but Turner says a likely Fed hike in mid-September should keep USD/JPY supported unless the Bank […]
BNYโs Geoff Yu notes that the July FOMC-driven Dollar hedging impulse has largely run its course, with early signs of USD buying returning against EUR, MXN and CAD. Trade-weighted Dollar holdings are historically light, suggesting scope for stabilization, but a sustained recovery still depends on stronger U.S. asset demand and renewed real-rate leadership. Dollar hedges […]
Facts: Recommendation: Trade: Long position on EURUSD at market price Target: 1.1677, 1.1745 Stop: 1.1535 Opinion: EURUSD has been trading in an upward trend recently. Looking at the D1 interval, one can see that the recent downward correction reached the key support, where buyers appeared twice .The area 1.1580 is marked with previous price reactions […]
The USD/JPY pair saw a sharp sell-off today, falling by over 1.2 per cent and testing the dayโs low at 156.35 . The market is rapidly pricing in the growing risk of direct intervention by the Japanese Ministry of Finance (MoF) and signs of a hawkish shift in the Bank of Japanโs (BoJ) policy. 1. […]
Key takeaways As we move into the second half of the week, the oil price is dipping and there are signs of stabilisation in the bond market and in stocks. US indices snapped a 3-day losing streak on Wednesday, Asian indices rose overnight and futures prices point to more stabilisation today, with the FTSE 100 […]
The bond market sell off is once again the main driver of price action on Wednesday. Stocks are broadly lower across Europe, with tech and industrials taking the brunt of the sell off. However, the decline in stocks is milder than it was on Tuesday. US futures are also pointing to a lower open, after […]
