Forex News

GBP/USD is now probing recent pivot high at 1.2270/1.2300. A move beyond here would open up the December peak near 1.2450 and perhaps projections of 1.2610, analysts at Société Générale report.  Defending last week low of 1.2010 crucial for continuation in up move “Daily MACD has entered positive territory denoting regain of upward momentum.” “If…

Lee Sue Ann, Economist at UOB Group, assesses the latest GDP figures in New Zealand. Key Takeaways “GDP came in much weaker than expected, contracting by 0.6% q/q in 4Q22, in contrast to the revised 1.7% q/q gain in 3Q22, and lower than expectations for a print of -0.2% q/q. The latest GDP outcome was…

The US Dollar Index (DXY) has moved below the 103.25/35 region. A sustained break under this zone would signal more losses ahead, economists at Scotiabank report. Seasonal patterns turn more USD-negative through Q2 “Seasonal patterns turn more USD-negative through Q2.” “The DXY charts show the index is on the cusp of a bearish break under…

EUR/USD has so far defended the 100-Day Moving Average and low of January near 1.0520/1.0480 resulting in an initial bounce. Economists at Société Générale note that reclaiming 1.0800 would negate Head and Shoulders pattern. Break below 1.0520/1.0480 to trigger an extended down move “It is worth noting that the pair is evolving within a possible…

The Federal Reserve's new Bank Term Funding facility and discount window lending are working to provide liquidity to the banking system, US Treasury Secretary Janet Yellen will tell at the American Bankers Association conference on Tuesday. Yellen will further note that aggregate deposit outflows from regional banks have stabilized following these measures. Additional takeaways via Reuters "US…

USD/CAD achieved projections near 1.3860 earlier this month and has embarked on an initial pullback. A break under 1.3500/1.3420 would mean onset of a deeper downtrend, analysts at Société Générale report. Overcoming recent peak near 1.3860 would affirm extension in up “Break below a short-term channel highlights possibility of a down move towards 1.3630 and…

GBP/USD edges modestly lower but the undertone remains positive, economists at Scotiabank report. Price action looks consolidative ahead of another push higher “Cable has drifted a little from yesterday’s late session high of 1.2285 but losses have been relatively limited and price action looks consolidative ahead of another push higher.” Spot gains through the 55-Day…

USD/CHF comes under some renewed selling pressure on Tuesday amid sustained USD selling. Bets for a less hawkish Fed offset a further recovery in the US bond yields and weigh on the USD. The risk-on environment could undermine the safe-haven CHF and lend some support to the pair. Investors might also prefer to move to…

Barring clearly positive developments in the banking sphere, economists at ING suspect the approaching Fed announcement could favour some defensive Dollar positions today. FOMC risk event draws closer “What is undoubtful is that tomorrow’s rate announcement will be a big risk event, and markets are only pricing in a 60% chance of a hike.” “From…

The FOMC meeting tomorrow will be a rollercoaster for the Dollar, rather weighing on it, in the opinion of Antje Praefcke, FX Analyst at Commerzbank. If the Fed is determined to continue with its measures against inflation that would be positive for the USD “If the Fed is similarly determined as the ECB to continue…