The British pound is trading quietly on Monday, as the currency markets have started the week with a whimper.
BoE Governor Bailey testified before lawmakers earlier today, and his message was a grim one. The BoE has predicted that soaring inflation could top 10%, and Bailey today admitted that "this is a bad situation to be in". Bailey said that the Ukraine war...
The euro has stabilized on Friday, after a dreadful Thursday in which EUR/USD fell 1.26%.
The euro continues to struggle and is trading at lows last seen in January 2017. The Ukraine war has taken a bite out of the eurozone economy and sent the euro tumbling. The latest development weighing on the euro was Russia's announcement of sanctions on some European gas...
This week has gone from bad to worse for the New Zealand dollar, as NZD/USD has taken a tumble on Thursday. In the North American session, NZD/USD is trading at 0.6248, down 0.74% on the day. The currency has dropped 2.66% this week and is trading at lows not seen since June 2020.
The US inflation report for April showed that CPI eased, but the decline was much...
The British pound is in positive territory, as the currency tries to break a four-day losing streak. In the European session, GBP/USD is trading at 1.2355, up 0.36% on the day.
US inflation dipped in April, but still came in above the forecast. Headline CPI dropped from 8.5% to 8.3%, above the estimate of 8.1%. Core CPI came in at 6.2%, down from 6.5% but above...
It goes without saying that it's been a pretty torrid six months for bitcoin since hitting all-time highs close to $69,000.
Soaring inflation has forced central banks around the world into action and at the most aggressive pace since the global financial crisis. What's more, there's much more to come, so much so that recessions may well be on the cards.
Risky...
The Japanese yen is slightly lower at the start of the week. In the Asian session, the yen fell as low as 131.35, which marked a 20-year low.
The speed of the Japanese yen's depreciation has been remarkable, falling 12% against the US dollar in just three months. The formula for the yen's slide has been relatively simple - US Treasuries have been moving higher,...
The British pound has stabilized on Friday, after sustaining huge losses a day earlier. GBP/USD is trading at 1.2342 in the European session, down 0.11%. Earlier, the currency fell to 1.2276, its lowest level since June 2020.
The BoE dutifully raised interest rates at its meeting on Thursday, but the market reception was a chilly one. GBP/USD plummeted a...
The British pound is fading badly on Thursday. GBP/USD has dropped a staggering 2.15% today and has fallen below the 1.24 line for the first time since July 2020. After the BoE decision, market focus has shifted to the elections in Northern Ireland later today. A Sinn Fein victory could weigh on the wobbly pound.
The BoE raised interest rates for a fourth...
The New Zealand dollar is in positive territory on Wednesday, as the currency looks for its first winning session since April 20th.
The New Zealand labour market remains robust, as confirmed by the Q1 employment report. The unemployment rate remained at a record low of 3.2%, matching expectations. Employment growth fell to 2.9%, (3.1% exp.), which was down from...
It was another tough week for the Australian dollar, as AUD/USD fell 2.53%. In the European session, AUD/USD is trading quietly at 0.7046.
The RBA will be in the spotlight, as it holds its policy meeting on Tuesday. This meeting is live, as it's unclear what policy makers have planned. There's little doubt that the RBA is poised to embark on a rate-hike cycle,...
EUR/USD suffered a dismal week, plunging 2.33%. The euro broke below the 1.05 line on Thursday but has managed to recover.
The ECB doesn't meet until June, but policy makers will be closely monitoring eurozone inflation, which continues to climb. It was only a few months ago that ECB President Lagarde was dismissive about rising inflation, saying that it was a...
The euro has bounced back on Friday with strong gains, ending a nasty 6-day losing streak. In the European session, EUR/USD is trading at 1.0565, up 0.64% on the day.
It has been a rough road for the euro, which hit a 5-year low this week as it broke below the 1.05 line. We're seeing a correction today, primarily due to solid GDP data out of Germany and the...
The misery continues for the New Zealand dollar, which is down almost 1% on Thursday. NZD/USD has fallen below the 0.65 level and has plunged 6.54% in the month of April.
ANZ Business Confidence was unchanged in April, with a reading of -42.0. That means close to half of New Zealand businesses are pessimistic about the economic outlook over the next 12 months....
The Japanese yen has reversed directions on Wednesday and is sharply lower. USD/JPY is trading at 128.54 in the North American session, up 1.04% on the day.
The Bank of Japan holds its policy meeting later today, but investors shouldn't expect any major moves. The central bank has done little more than jawbone as the yen continues to fall. It's been a miserable...
The Canadian dollar has been on a nasty slide, falling around 2% since Thursday. There are no Canadian releases until GDP on Friday, which means that US releases during the week will have a significant impact on the movement of USD/CAD.
Bank of Canada Governor Tiff Macklem can usually be counted on for using clear and understandable language, which I'm always...
The euro has started the week with sharp losses as it struggles to stay above the 1.07 line. In the North American session, EUR/USD is trading at 1.0717, down 0.73% on the day.
On Sunday, President Emmanuel Macron won a decisive victory over Marie Le Pen of the extreme right, by a score of 58% to 42%. The markets reacted with relief rather than elation, given...
Or could we finally see a bearish breakout?
The recent rally in gold appeared to be building momentum but just as it did, it ran into firm resistance around $2,000 and it's been downhill since then.
The yellow metal may have been supported by higher inflation expectations but yields have continued to rise as traders price in more rate hikes on the back of some...
The Canadian dollar is up sharply on Wednesday, as Canada's inflation report was hotter than expected. In the North American session, USD/CAD is trading at 1.2519, down 0.74% on the day.
Canada's CPI for March jumped 6.7% YoY, a full percentage point higher than the 5.7% gain in February. On a monthly basis, inflation rose 1.4%, up from 1.0% prior. Both the...
