On the Tokyo front, the Bank of Japan is expected to consider unwinding the prolonged monetary easing, according to an economists’ poll by Reuters. More than 90% of economists have supported the view of phasing out monetary easing in the latter half of CY2023. This might strengthen the Japanese yen bulls further as BOJ’s ultra-loose policy has been a major factor behind the yen’s weakness. Unless crossing a three-week-old previous support line, currently DotBig around 1.0410, the EUR/USD pair’s recovery remains elusive. Markets in the Asian domain have recovered dramatically after Chinese authorities considered economic stimulus to offset Covid-inspired bleak economic projections. Chinese equities have soared vigorously as public unrest has been restricted by marshals. On Monday, Beijing stocks faced an intense sell-off as the general public came on the roads for anti-Covid lockdown protests.
China’s daily covid infections dropped from an all-time high of 40,347 to 38,645, as per the latest official readings conveyed by Reuters. This also joins the upbeat performance of Chinese equities as the national securities regulator lifted a ban on equity refinancing for listed property firms, per Reuters. Adding to this, a bleak outlook for the UK economy contributes to the British Pound’s underperformance and acts as a tailwind for the EUR/GBP cross. This, however, is offset by expectations that the Bank of England will continue to raise borrowing costs to combat stubbornly high inflation. The mixed fundamental backdrop, in turn, is holding back traders from placing aggressive directional bets and capping the upside for the EUR/GBP cross. Market participants also seem reluctant ahead of the flash German CPI figures and BoE Governor Andrew Bailey’s scheduled speech on Tuesday. CME Group’s flash data for crude oil futures markets noted traders scaled back their open interest positions by more than 6K contracts on Monday, reve…
Black Gold Under Pressure #COVID #WTI #oil #trading
Rising bets for less aggressive rate hikes by the Fed continue to weigh heavily on the greenback. That said, any subsequent move up might continue to confront stiff resistance near the $21.60-$21.70 supply zone. Some follow-through buying will reaffirm the bullish bias and allow the XAG/USD to reclaim the $22.00 mark. This is followed by a five-month high, around the $22.25 zone, above which spot prices could climb to the $22.50-$22.60 area en route to the $23.00 round figure. GBP/USD regains positive traction on Tuesday amid the emergence of fresh USD selling. The GBP/USD pair attracts fresh buying on Tuesday and reverses a major part of the previous day’s slide to a three-day low.
- Bets for less aggressive Fed rate hikes continue to weigh on the buck amid a positive risk tone.
- The Fed’s Beige Book will provide projections for growth rate and inflation, the current situation of consumer spending, and other economic catalysts.
- Forex trading involves significant risk of loss and is not suitable for all investors.
- It is worth noting that Canada is a leading oil exporter to the United States, therefore, a meaningful recovery in oil prices supports the Canadian Dollar.
- Meanwhile, the 10-year US Treasury yields are holding their gains around 3.70%.
A Bloomberg Terminal would almost certainly deliver the news quicker, but it costs thousands of dollars per month, something most retail traders cannot afford. If there is a lag, use an alternative news source as a backup option or if the currency price has already moved, then skip the trade. That said, the risk-off mood could gain additional support from BOE’s Bailey and may drown the pair further toward the south amid the recent wave of speculations supporting easy rate hikes. The news joins the all-time high of daily virus infections from the dragon https://www.forexlive.com/ nation to weigh on the sentiment. AUD/USD is flat as we approach Tokyo but is at risk of updates relating to China’s coronavirus spread, subsequent lockdowns and protests thereof. The risk-off mood has been supporting a move into the US Dollar while a Federal Reserve, , speaker at the start of the week made hawkish comments, pouring cold water on the brewing sentiment of a Fed pivot. The AUD/JPY pair is expected to extend its downside journey towards the crucial support of 92.00 as the Statistics Bureau of Japan has reported stable employment data.
Loonie Falls Ahead Of Canada GDP Data
The commodity’s latest rebound could be linked to the market’s cautious optimism as well as speculations that the OPEC+ will aim for production cuts during the next meeting. Also keeping the energy buyers hopeful is the European Union’s struggle to announce a price cap on Russian crude oil exports. Against this backdrop, the US stock futures and equities in the Asia-Pacific region print mild gains despite the downbeat performance of Wall Street. Further, the US 10-year Treasury yields remain depressed near 3.69% by the press time and weigh on the US Dollar amid the risk-on mood. Widening the controlled range of 10-year government bond yields from the current “around plus and minus 0.25 percent” was the second-most likely means, chosen by 10 respondents. Eight selected shortening of the maturity of the yield target to less than 10 years, and eight others thought the BOJ would cease to keep short-term interest rates negative. Apart from that, investors will focus on the release of the United States Automatic Data Processing Employment data.
The upside momentum also takes clues from the bullish Moving Average Convergence and Divergence indicator, as well as the firmer Relative Strength Index , placed at 14. Gold price grinds higher as bulls poke the 38.2% Fibonacci retracement of the bullion’s upside https://twitgoo.com/dotbig-review/ between November 09 and 15. Turkey Economic Confidence Index dipped from previous 97.1xa0to 96.9 in November… Make virtual opening remarks at XIII Encuentro Financiero on Tuesday, European Central Bank Vice President Luis de Guindos noted that the centra…
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