Senior Economist at UOB Group Alvin Liew reviews the latest US inflation figures and the impact on the Fed’s rate path in the near term. Key Takeaways “Both key measures of US inflation came in below expectations for Jul. US headline consumer price inflation was still elevated but came off from recent highs, to 8.5%… Read More »
Gold edges down for the third straight day amid a modest pickup in the USD demand. The risk-on impulse further exerts some downward pressure on the safe-haven metal. The uncertainty over the size of further rate hikes caps the USD and extends support. Gold slips into negative territory for the third straight day on Friday… Read More »
US dollar bulls are moving in following a significant sell-off in the greenback. US yields perked up towards the end of the week as hawkish Fed sentiment overrides softer US inflation data. The US dollar, DXY, was set for its third weekly loss in four against its rivals, but the bulls are moving in on… Read More »
AUD/USD is being pressured as the US dollar recovers in midday New York trade. The bears are moving in with US yields also rallying and as US stocks tail-off. The US dollar DXY, and the US 10-Year Treasury yields were lower which had been giving US stocks and higher beta currencies such as the Aussie a lift at the… Read More »
USD/JPY turns lower for the second straight day and drops to over a one-week low on Thursday. The post-US CPI USD selling bias, sliding US bond yields continue to exert pressure on the pair. The risk-on impulse could undermine the safe-haven JPY and help limit the fall, for the time being. The USD/JPY pair attracts… Read More »
GBP/USD Forecast: Pound to remain bullish as long as 1.2175 support holds GBP/USD has gone into a consolidation phase early Thursday following Wednesday’s impressive rally. The near-term technical outlook suggests that the pair’s bullish bias stays intact and an extended recovery could be witnessed in case buyers continue to defend 1.2175. The dollar came under… Read More »
AUD/USD catches fresh bids on Thursday and climbs to a two-month high amid weaker USD. Diminishing odds for a larger Fed rate hike in September, the risk-on mood weighs on the USD. The technical set-up favours bullish traders and supports prospects for further near-term gains. The AUD/USD pair attracts some dip-buying on Thursday and steadily… Read More »
USD/CHF drops to a fresh multi-month low amid the emergence of fresh USD selling. Diminishing odds for a later Fed rate hike in September continue to weigh on the USD. The risk-on mood undermines the safe-haven CHF and helps limit any further downside. The USD/CHF pair witnesses selling for the fourth successive day and drops… Read More »
USD/JPY turns lower for the second straight day on Thursday amid renewed USD selling. Diminishing odds for a larger Fed rate hike in September continue to weigh on the buck. The Fed-BoJ policy divergence and a positive risk tone could undermine the safe-haven JPY. A convincing break below the post-US CPI swing low is needed… Read More »
USD/CAD remains on the defensive near a two-month low touched on Wednesday. Hopes for a less aggressive Fed, the risk-on mood continues to weigh on the buck. An uptick in oil prices underpins the loonie and also contributes to capping the pair. The USD/CAD pair struggles to gain any meaningful traction and remains confined in… Read More »
