EURO WEEKLY FORECAST The Euro managed modest gains against the US Dollar on Friday, helped in part by news that the Eurozone economy managed some growth at last last month. The S&P Global’s Composite Purchasing Managers Index for the currency bloc climbed to a seven month high of 50.3 in January. That was above both...Read More

Crude oil gave up some ground today after making a 2-week peak on Friday. The WTI futures contract has traded under US$ 79 bbl while the Brent contract is approaching US$ 85.50 bbl. Concerns around another hot US inflation figure on Tuesday have led to speculation that the Federal Reserve might need to be more...Read More

U.S. stocks have been under pressure going into next week’s key economic data releases after the carry over effects of the recent Non-Farm Payroll (NFP) report hurt valuations (in particular rate-sensitive growth stocks). The chart below shows both the 2-year (orange) and 10-year U.S. government bond yields rising of recent leaving future earnings for these...Read More

USD/JPY SHORT-TERM TECHNICAL FORECAST – NEUTRAL The Japanese yen’s rally against the US dollar appears to have stalled in recent days as the market looks for further cues from the upcoming US Federal Reserve Open Market Committee meeting. While the market widely expects the Fed to hike rates by 25 basis points to 4.5%-4.75% on...Read More

NZD/USD SHORT-TERM TECHNICAL FORECAST – NEUTRAL Wednesday’s drop in the New Zealand dollar against the US dollar could be short-lived. NZD/USD fell after New Zealand’s fourth-quarter inflation rose less than what the Reserve Bank of New Zealand (RBNZ) had forecast. CPI rose 7.2% on-year in the fourth quarter, slightly above analysts’ expectations of 7.1%, but...Read More

Asia-Pacific Market Briefing – Australian Dollar Vulnerable to Risk Aversion The sentiment-linked Australian Dollar underperformed against its major counterparts over the past 24 hours. It began with a disappointing employment report, where Australia unexpectedly lost jobs in December as unemployment ticked slightly higher. While this may induce less-hawkish Reserve Bank of Australia policy expectations, the...Read More

high against the US Dollar with USD/JPY trading as low as 127.46 on Friday. Inflationary data released today might provide a headache for the Bank of Japan at their monetary policy meeting this Wednesday. Year-on-year PPI to the end of December came in at 10.2%, above forecasts of 9.5% and 9.7% previously. The month-on-month figure...Read More

The New Zealand Dollar plunged against the US Dollar on Tuesday as NZD/USD sank 2.22%. That was the worst single-day performance since March 2020. What caused such a dramatic reversal after a few days of cautious gains? It was August’s US CPI report. The headline rate of inflation clocked in at 8.3% y/y versus 8.1%...Read More