The pound received two blows: wage growth remained stagnant at 2.8% y/y and then inflation tumbled to 2.5% y/y, lower than early expectations. This weighs on the BOE’s rate decision in May. Here is their view, courtesy of eFXdata: TD Research discusses GBP outlook and keeps flagging near-term downside risks (see here), noticing that a mix … “GBP/USD Likely To Break Below 1.40; EUR/GBP Likely Range-bound – TD”
Category: Opinions
4 reasons for the BOC to prepare for a rate hike – BOC Preview
The BOC convenes for an important rate decision which also consists of new forecasts and a press conference. Canadian policymakers can be pleased with NAFTA progress, oil, and jobs but not all is rosy. The USD/CAD is apparently in a downtrend, but close to oversold territory. The Bank of Canada is likely to leave the … “4 reasons for the BOC to prepare for a rate hike – BOC Preview”
USD/JPY: 3 Reasons For Fuhrer Strength Towards 116 In Q3 – BofAML
USD/JPY moved higher and stalled near 108. Can it extend its gains further? Here is the view from Bank of America Merill Lynch. Here is their view, courtesy of eFXdata: Bank of America Merrill Lynch Research discusses USD/JPY outlook and maintains its bullish bias on the pair targeting more upside towards 112 in Q2 and … “USD/JPY: 3 Reasons For Fuhrer Strength Towards 116 In Q3 – BofAML”
With all that support, no wonder USD/JPY is rising
The Technical Confluences Indicator shows that the USD/JPY has lots of support at around ¥106.80. This area is the convergence of the Fibonacci 38.2% one-week, the Bolinger Band 15m Lower (Stdv. 2.2), the SMA5-4h, the Bolinger Band 1h-Middle, the SMA200-1h, the SMA50-4h, and the Fibonacci 23.6% one-day. On the other hand, there are only weaker and sparser technical … “With all that support, no wonder USD/JPY is rising”
FOMC minutes will try to balance between trade fears and optimism on the economy
The Fed publishes the meeting minutes from the first rate decision led by Powell. The focus is on inflation and also on the actions of the government. The US Dollar will look for any hints about a fourth rate hike in 2018. The Federal Reserve releases the FOMC Meeting Minutes on Wednesday, April 11th, at … “FOMC minutes will try to balance between trade fears and optimism on the economy”
GBP/USD: Bullish In April; All Cards Falling Into Short-Term Positives – ING
The pound is looking perky and this may happen for a good reason. April is a good month for Sterling. Here is their view, courtesy of eFXnews: ING Research discusses GBP/USD outlook and maintains a strong bullish bias for the month of April. “All the cards are falling into place for GBP/USD to post a … “GBP/USD: Bullish In April; All Cards Falling Into Short-Term Positives – ING”
GBP/USD: Staying Structurally Bullish But Unlikely To See A ‘Smooth Straight Line’ – BTMU
The pound has been on the back foot against the dollar but looks better against the euro. What’s next for cable? Here is the view from BTMU: Here is their view, courtesy of eFXnews: BTMU Research discusses GBP outlook and maintains a structural bullish bias targeting the pair around 1.44 by end of Q2, ahead of … “GBP/USD: Staying Structurally Bullish But Unlikely To See A ‘Smooth Straight Line’ – BTMU”
USD: 5 Reasons Behind Equity Market Turmoil; USD Set To Gain N-Term – Nordea
The stock markets are suffering enhanced turbulence that is affecting currencies as well. What is going on? Here is their view, courtesy of eFXnews: Nordea Research discusses the recent equity market conditions and argues that along with trade tensions, there are larger forces at play, such as… “i) a weaker global macro environment (PMIs are falling), ii) the tide of dollar … “USD: 5 Reasons Behind Equity Market Turmoil; USD Set To Gain N-Term – Nordea”
AUD/NZD: Betting On 1.04-1.11 L/Term Range To Hold A Profitable Strategy? – NAB
The Australian dollar has been suffering against the greenback of late. But what about its trade against the New Zealand dollar? Here is their view, courtesy of eFXnews: NAB Research discusses AUD/NZD medium-term outlook and expects its 1.04-1.11 long-term range to hold in the medium-to-long term. “Since 2014, the cross has traded within a 1.04-1.11 range … “AUD/NZD: Betting On 1.04-1.11 L/Term Range To Hold A Profitable Strategy? – NAB”
USD: A Weaker USD Is ‘Clearly’ Part Of Trump’s Economic Plan – ING
The US dollar dropped against its peers and especially against the Japanese yen. Fears of a trade war have risen. Perhaps this is not by chance. Here is their view, courtesy of eFXnews: ING Research discusses the USD outlook in light of the ongoing escalation of trade tensions between the US and China. “Yesterday’s announcement of 25% … “USD: A Weaker USD Is ‘Clearly’ Part Of Trump’s Economic Plan – ING”