The People’s Bank of China decided to decrease the interest rate on its 1-Year Loan Prime Rate by 5 basis points to 4.20%, but countered this move by a 5 basis point increase in its 1-Year Loan Prime Rate to 4.85%. This surprised markets today where the overall mood is geared towards risk-off. German PPI data showed a monthly increase, but pointed towards an annualized slowdown. The EURJPY is drifting lower after moving into resistance, what impact will today’s advance consumer confidence data out of the Eurozone have on price action?...
Following the ECB interest rate cut and restart of QE last week, the Fed’s interest rate cut yesterday, this morning’s Bank of Japan and SNB decision to keep interest rates unchanged, the Bank of England’s interest rate announcement is expected to show no change. With wage pressures accelerating, the British central bank is likely to remain on the sidelines which will support a stronger British Pound moving forward. Can the rally in the GBPUSD extend as monetary policies between the US and the UK diverge or is price action going to partially...
The Australian labor market surprised to the upside on its headline figure on the back of part-time jobs creation. Full-time jobs were lost and the unemployment rate advanced. The Australian Dollar came under selling pressure as bearish momentum is expanding. The Reserve Bank of Australia will closely follow economic developments as its last minutes indicated that an interest rate cut is on the table. Will the AUDCHF enter a bigger sell-off or is the current sell-off a limited move to the downside? Today’s fundamental analysis will cover price...
The US dollar is trading near a seven-week high against the Japanese yen, amid a slow recovery in the oil market after attacks on Saudi Arabia. Nevertheless, traders prefer caution in anticipation of the US Federal Reserve meeting, which is expected to lead to another interest rate cut.
Forex traders are eagerly awaiting today’s FOMC announcement. Expectations call for a 25 basis point interest rate cut by the US Fed to 1.75%, but what will Fed Chief Powell hint in regards to future monetary policy? US President Trump has openly criticized his central bank and even called for negative rates. Inflation has been absent and Trump is seeking assistance in his trade war with China. Despite the more dovish central bank, the US Dollar was able to attract safe haven bids. How will the USDCAD perform after today’s interest rate...