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EURUSD consolidates ahead of the FOMC meeting The dollar index started the week on a rather pessimistic note, trading below 102 points, suggesting that the market is setting low expectations for a hawkish Fed outcome on Wednesday. A moderate correction is taking place in the risk assets as a...

US data surprises helps USD to stage mini-rebound Currency markets continue to remain in a relative equilibrium with FX majors fluctuating in fairly narrow ranges. US broad equity indices also lack direction, the key benchmark of the market, SP500, after two mini-selloffs to 3900 and 3960 in...

Weak UK PMI data points to further Pound weakness Incoming data on the EU economy roughly correspond to the thesis put forward by the market that the bloc will be able to dodge a recession. The PMI index from S&P Global climbed into the positive zone in January, amounting to 50.2 points...

USD remains range-bound on dovish Fed rate hike outlook Asset markets are somewhat sluggish and reluctant to recover on Friday, following Thursday drop, which saw S&P 500 breaking through 3900 points. Dollar was slightly bid on the back of growing risk-off, however, during this week the DXY...

Dovish surprise in US retail sales leaves little to salvage dollar bulls The Bank of Japan dismissed market rumors about further adjustments in yield curve control and left policy unchanged today, disappointing recent buyers of the yen. The report from Bloomberg released yesterday that the...

Upbeat China data may unlock more upside in Euro and other pro-cyclical currencies The unexpected rebound of Chinese economy as seen in the latest batch of Chinese data reinforced the idea that hidden China economic momentum will unlock the upside in pro-cyclical currencies, including the...

EURUSD presses against 1.08 level, market anticipates benign CPI print as energy inflation drops Risk appetite apparently grows in equity markets as Fed chief Powell did not take advantage of the Riksbank conference yesterday to repeat the recent mantra that a high inflation rate warrants...

Market braces for EURUSD breakout of 1.08 as risk of inflation easing grows in US Cautious optimism remains in the currency markets regarding the idea that signs of US losing growth momentum will force the Fed to tap the breaks on monetary tightening and prepare markets for an easing cycle...

Is gold primed for a rally on expectations of central banks easing cycle in 2023? Major European currencies ceded ground to dollar on Tuesday, EURUSD broke down 1.06 and GBPUSD 1.20 level. The start of European session saw major sell-off both in EUR and GBP: Positive December price data...

The risk of more downside in USDJPY remain high on implications of BoJ major policy shift FX market continues to digest BOJ’s hawkish surprise yesterday, USDJPY volatility remains elevated. The market reaction to the shocking move of the Bank of Japan delivered a crushing blow to JGB demand...

FOMC meeting preview: dovish dreams may not come true The Fed is expected to deliver a 50 bp rate hike on December14, continuing to meticulously dampen inflation pressure in the economy. However, the chances of a recession that markets price in continue to rise, as evidenced from bond prices...

Upside surprise in NFP will likely trigger rebound in oversold USD Another batch of US macroeconomic data pointed to easing in inflation pressures - consumer spending index (Core PCE) rose by 0.2% in October against the forecast of 0.3%. US equities rose after the report, dollar dipped while...

Powell and NFP risk may renew demand for battered USD Intensifying yield curve inversion in the US (when short-dated bonds are cheaper than long-dated ones) and WTI price below critical $80 support level tell us that markets are becoming more worried about global demand prospects. The risks...

Hunt for yields pressures dollar as S&P 500 reclaims key 4000 level Composite PMI index in EU remained in the zone of depression in November (47.8 points), slightly better than in October, but still pointing to a reduction in activity in the European economy. The good news is that inflationary...

Oil prices plunge on hints OPEC may raise output European bourses are down, STOXX 50 losing 0.6% amid reports of increased covid measures and new lockdowns in China, which increased market risk aversion. The yuan weakened again, USDCNY rate increased from 7.02 to 7.16 over the week. The...

As market dials back Fed Pivot expectations, greenback has some room to rally After shedding 4% last week, greenback was offered support near 106 level on DXY in the first half of this week and eventually rallied on Thursday: The rally was likely driven by US October retail sales report...

Another dovish surprise in US PPI boosts stocks and bonds, pressures USD OPEC, citing significant economic uncertainty in the coming months, has lowered its oil consumption growth forecast for the 5th consecutive time since April. The adjustment was -100K b/d for 2022 and 2023. The last time...

USD Correction may Have Legs as Economic Calendar is Light this Week The euro and pound sterling pare down the intraday decline that took place during the Asian session as risk appetite remains high while the dollar repositioning continues. EURUSD consolidates around 1.03, GBPUSD trades...

US elections uncertainty prompts bids in Treasuries, dollar selling Chinese foreign trade data for October, released on Monday, had dovish implications for the broad market as both imports and exports didn’t live up to growth expectations, declining YoY (-0.3% exports, -0.7% imports). Both...

US CPI report is the only hope for USD this week The long squeeze in the dollar that began last Friday has continued this week – investors dumped US currency since the opening of European stock exchanges on Monday, which could signal that safe-haven demand for greenback has started to wane...