FX

EUR/USD is oscillating around 1.0000, more weakness expected on Eurozone stagflation fears. An unexpected improvement in US Retail Sales is keeping the DXY at elevated levels. Investors are blaming the ECB for underestimating the pace of inflation. The EUR/USD pair is displaying back-and-forth moves below the magical figure of 1.0000 in the early Tokyo session.

UOB Group’s Senior Economist Alvin Liew and Rates Strategist Victor Yong review the latest release of US inflation figures. Key Takeaways “US headline consumer price index (CPI) inflation was off from recent highs but still elevated at 8.3% y/y (from 8.5% y/y in Jul), above Bloomberg estimates of 8.1% (but in line with our forecast).

XAG/USD climbed on a risk-on impulse and lowered US T-bond yields. US PPI for August tempered inflationary pressures on the producer side. XAG/USD Price Analysis: Break above $20.00 to send silver towards $21.00 mark. Silver price rebounds at around the 50-day EMA and climbs towards a daily high near $19.69 on Wednesday after the US

USD/CAD surrenders modest intraday gains to the 1.3200 neighbourhood, or a one-week high. A positive risk tone weighs on the safe-haven greenback and exerts some downward pressure. Aggressive Fed rate hike bets and recession fears warrant caution for aggressive bearish traders. The USD/CAD pair struggles to capitalize on its intraday positive move to a one-week

Gold is pressured as the US dollar continues to make highs. The US CPI leaves the door open for aggressive tightening by the Fed. The price of gold was pressured on Tuesday and has fallen by over 1.3% on the day. At the time of writing, the yellow metal is testing the $1,700 level and

Earlier this month the Ocado share price hit its lowest level in 4 years on pessimism that management would be able to paint a narrative that involves the prospect of turning a profit, as it battled the multiple challenges of rising costs of raw materials, energy, and product. A few months ago, as a result

GBP/USD prints fresh weekly highs above 1.1700 The GBP/USD is rising on Monday and during the American session climbed to 1.1709, reaching the highest level since August 30. Cable remains near the top, holding onto daily gains and a bullish bias in the very near term. The pound continues to recover from multi-year lows against

Emini S&P September beat strong resistance at 3985/95 to target strong resistance at 4060/80. A high for the day exactly here in fact. Nasdaq September futures longs at support at 12100/12000 worked perfectly on the bounce to my target of 12400/450 for profit taking. We then hit strong resistance at 12600/700, with a high for

GBP/USD Weekly Forecast: Eyes 21 DMA on a technical rebound ahead of critical US, UK events GBP/USD put an end to its three-week losing streak and staged a strong comeback from roughly four-decade lows of 1.1405. The US dollar correction and economic stimulus measures unveiled by the new UK PM Liz Truss saved the day

“A steady path of rate hikes, predictable adjustments based on data could improve market functioning, facilitate balance sheet runoff,” Kansas City Fed President Esther George said on Friday, as reported by Reuters. Additional takeaways “For interest rate hikes, steadiness and purposefulness over speed.” “Case for continuing to remove policy accommodation is clear cut, but peak

Federal Reserve Governor Christopher Waller said on Friday that it was too soon to say whether inflation was moving meaningfully and persistently downward, as reported by Reuters. Key takeaways “I support another significant hike in two weeks.” “The pace of tightening is uncertain; it will depend on the data.” “Fears of a recession have faded;

The index loses further momentum and breaches 109.00. The risk complex regains poise and leaves behind recent weakness. Fedspeak, Wholesale Inventories next on tap in the docket. The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, sheds further ground and drops to multi-session lows in the sub-109.00 area

Bank of Canada senior deputy governor Carolyn Rogers says bank has seen early signs monetary policy is working. ”We’re not where we were in July, but we’re a long way from where we need to be.” ”The bank still sees a path to a stop to a soft landing, that’s still our objective’s.” ”Neutral territory

The highlight today will be the European Central Bank (ECB) meeting. In the view of economists at Commerzbank, the euro is unlikely to strengthen even if the central bank delivers a 75 basis points rate hike. A 50 bps step would be disappointing for the market “A 50 bps step would be disappointing for the

USD/CHF retraces from weekly highs and dives below the 0.9800 figure due to a risk-on impulse. A triple-top chart pattern in the 4-hour chart keeps the USD/CHF under some selling pressure, targeting a fall to 0.9660. USD/CHF slides from weekly highs reached at around 0.9869 on Wednesday, despite risk appetite improving, which usually benefits riskier

USD/INR picks up bids to reverse the previous day’s losses. DXY refreshes 24-year high as Fed Fund Futures hint at 75% chance of 0.75% rate hike in September. Rupee traders fail to praise Indian FinMin optimism amid recession woes. Reuters poll suggests more trouble for INR, focus on Fedspeak. USD/INR prints mild gains around 79.95

GBP/USD trimmed earlier gains nearby the 1.1600 figure on positive US economic data. The US services sector improved while price pressures continued to ease. Kwasi Kwarteng, the so-called new Chancellor in the UK: “Truss government would not blow a hole in public finances.” The GBP/USD tumbled toward its opening price after the US ISM Non-Manufacturing

AUD/USD has recovered from 0.6790 on the 50 bps rate hike announcement by the RBA. A fourth consecutive half-a-percent rate hike has pushed the OCR to 2.35%. The DXY is expected to remain volatile ahead of US ISM Service PMI data. The AUD/USD pair has recovered sharply after slipping below the critical support of 0.6800.