Economists expect an improvement in Markit’s preliminary UK PMIs for January. The data is critical for the Bank of England’s upcoming decision. GBP/USD may react in five different ways in reaction to the data. To cut or not cut – this is still an open question for the Bank of England after Tuesday’s jobs report beat expectations with 3.2% annual … “Five scenarios for trading UK PMIs with GBP/USD”
Category: Opinions
Lagarde is different than Draghi, but she also knows how to drag the euro down
The European Central Bank has left rates unchanged as expected. ECB President Lagarde has been cautious in her press conference. The ECB’s reluctance to cheer recent developments leaves EUR/USD exposed. A wise owl – that is what Christine Lagarde, President of the European Central Bank aspires to be. She said that back in December and … “Lagarde is different than Draghi, but she also knows how to drag the euro down”
Will the ECB boost the euro? Three scenarios for Lagarde’s show
The ECB is set to leave rates unchanged in its first meeting of 2020. President Lagarde may find hope at the potential of fiscal stimulus and improving inflation. A focus on downside risks – which remain significant – may send the euro down. The bank’s freshly-launched strategic review is still in focus. A dose of … “Will the ECB boost the euro? Three scenarios for Lagarde’s show”
USD/JPY is set to rock on Japanese events for a change
USD/JPY’s has cautiously advanced above 110 amid trade headlines. The BOJ’s rate decision, US housing, and PMIs are set to move markets. Mid-January’s chart is painting a bullish picture. The FX Poll is pointing to falls in the medium and long terms. A good deal or only a prolonged trade truce? Investors are still trying … “USD/JPY is set to rock on Japanese events for a change”
GBP/USD awaits last data points for the BOE’s upcoming rate cut
GBP/USD has suffered from weak UK data but benefited from the US-Sino deal. The UK jobs report and forward-looking PMIs are critical to the next moves of the BOE and the pound. Early January’s daily chart is painting a bullish picture. The FX Poll is pointing to higher levels for pound/dollar. Almost everything is pointing to … “GBP/USD awaits last data points for the BOE’s upcoming rate cut”
Is USD/JPY bound for a downside correction? Eyeing the American consumer
USD/JPY’s advance has reversed amid trade headlines and mixed US data. Mid-East tensions, trade developments, and US consumer data are all of interest. Early January’s chart is painting a moderately bullish picture. The FX Poll is showing that experts are divided on the next moves. Walking the walk or only talking the talk? Mid-East tensions … “Is USD/JPY bound for a downside correction? Eyeing the American consumer”
AUD/USD: A Buy On Dips In The 0.6800/50 Zone; AUD/NZD: Attractive Entry Levels For Longs – TD
The Australian dollar has been on the back foot amid geopolitical tensions. Where next? Here is their view, courtesy of eFXdata: TD Research discusses AUD outlook and adopts a buy-on dips bias in AUD/USD, and AUD/NZD. TD is long AUD/NZD* strategically as one of its top trades for 2020. “AUD remains topical following the collapse … “AUD/USD: A Buy On Dips In The 0.6800/50 Zone; AUD/NZD: Attractive Entry Levels For Longs – TD”
Bubbles in 2020: The five potential bursts to watch and dollar impact
Five financial bubbles are looming and may burst in 2020. Each one may have a different impact on the US dollar. The direction of travel depends on the magnitude. The highest market volatility happens when bubbles burst – but which one will it be? The froth in the housing market that led to the Great Recession is unlikely to … “Bubbles in 2020: The five potential bursts to watch and dollar impact”
How these five currencies may react to rising unemployment in 2020
Global employment is nearing a peak, and downfall cannot be ruled out. A rise in unemployment may not necessarily have an adverse impact on the local currency. We examine five countries and their impact on currencies, local or foreign. Wages have become all the rage for central banks – and that is a sign that employment … “How these five currencies may react to rising unemployment in 2020”
EUR/USD may extend gains on inflation figures – preview
Preliminary inflation figures for December 2019 are set to show healthy price development. A 0.1% increase in core inflation would send it to the highest in over six years. EUR/USD bias is to the upside leading into the event. Mario may be like Moses – former European Central Bank President Mario Draghi fought to raise inflation but may … “EUR/USD may extend gains on inflation figures – preview”