All Blogs
Earlier this week, we wrote a piece on the AUD/USD highlighting the potential for a pullback after China's industrial production growth eased more than expected (click HERE for details...
After a dovish outlook from the Federal Reserve on Wednesday, JP Morgan's chief US economist Michael Feroli cut his forecast for the number of interest rate hikes by the FOMC in 2016 to 2...
Analysts at Bank of Tokyo Mitsubishi explained that renewed USD strength should still materialise but from weaker level. "Our current dollar forecasts (Foreign Exchange Outlook 1st March) were based on two rate increases this year and two still seems most likely – in June and December...
Analysts at TD Securities are calling a further thrust lower to 108.50 in USD/JPY. Brokers TD Securities have put out a call for the USD/JPY rate to break lower extending to a target at 108.50. “We think short positions in USDJPY offer a compelling risk/reward profile...
Our economics team’s view has been that tightening in financial conditions and market disruptions will ultimately prevent the Fed from tightening rates further this year. The message from this week’s FOMC is that the Committee agrees with this view, at least for now...
Despite rising core inflation and falling unemployment, the Fed stays on hold, and lowers their outlook for rate hikes in 2016, notes UBS. "Lower for longer, but same pace once they really get going As expected, the Fed left rates on hold (Kansas City Fed President George dissented...
According to analysts from TDS, the decline in USD/ZAR, after the FED and the South African Reserve Bank (SARB) decision, could be an opportunity to re-establish long positions. “The SARB hiked the repo rate by 25bp to 7.00% in a split decision that was all but easy to call...
Analysts at Bank of Tokyo mitsubishi explained that forward implied interest rate differentials show markets looking for less RMB depreciation vs. USD (but still in line with our forecasts...
Analysts at Brown Brothers Harriman explained that many investors and journalists were worried about the US slipping into a recession. "However, Q4 15 growth was revised up, and Q1 16 growth is returning to the post-crisis trend pace near 2...
Analysts at Bank of Tokyo Mitsubishi noted that the BoJ modified its negative interest rate policy this week by including Money Reserve Funds and doubling the size of Loan Support Program borrowings in the Macro Add-On Balance. "The Fed also left monetary policy intact...
Analysts from Danske Bank expect EUR/USD to remain between 1.10 and 1.14 after yesterday’s FOMC dovish message to the markets. “Needless to say, the surprisingly dovish message sent USD crosses lower across the board with EUR/USD testing new post-ECB highs above the 1.12 level...
Analysts at Bank of Tokyo Mitsubishi explained that the FOMC statement, forecast updates and press conference from Chair Yellen have all helped provide EUR/USD with support and the degree of Fed dovishness and the momentum in favour of dollar selling suggests upside risks from here for the week a...
The surprised dovishness of the Fed is leaving its mark on the rates market and USD. In our view, it seems as though USD may be returning to where it was in February, unable to decide whether to appreciate or to depreciate in the medium term...
GBP/JPY: Bullish Move Stalled Around Hourly 200-MA The bullish momentum in the GBP/JPY cross appears to have run out of steam around hourly 200-MA located at 161.27 levels as Cable is struggling to break above 1.45 handle. Bid above 23.6% Fibo The pair ran into bids after it recovered above 159...
James Knightley, Research Analyst at ING, notes that the Bank of England voted unanimously to leave Bank Rate at 0.5% and the size of the asset purchase facility at £375bn...
USD/CHF Falls to 2016 Lows Near 0.9650 The increasing selling pressure hitting the greenback has dragged USD/CHF to post fresh YTD lows in the mid-0.9600s so far...
EUR/GBP Hit Fresh Session Low, Nears 5-DMA The EUR/GBP cross hit a fresh session low of 0.7813 in the US session as Cable extended gains to 1.45 in an impulsive move, while the EUR/USD pair lagged. Offered above 0.79 The cross turned lower from the high of 0...
GBP/USD Struggles to Surpass 1.4500 The upside momentum around the sterling remains unabated today, although GBP/USD still can’t break above 1.4500 on a sustainable basis. GBP/USD bolstered by USD weakness Spot has advanced to fresh 4-week highs just above the 1...
According to analysts from Danske Bank, the decision and the statement from the Federal Reserve, was a very dovish message to the markets. “As widely expected, the Fed maintained the Fed funds target rate unchanged at 0.25%- 0.50% (Kansas City Fed’s George dissented and voted for a hike...
