Elsewhere, USD started this week on the front foot initially, gaining from AUD weakness, subsequently seeing USD/JPY surge to a 2-week high to trade just 4 pips shy of the 120.00 handle, with further moves higher capped by a large vanilla option expiry (1.7bln) at the handle. In early European trade, the USD-index came off its best levels to drift lower amid no new fundamental news, leading EUR to outperform, with short covering in the EUR/GBP cross helping to lift EUR/USD as well as Eurozone CPI which was not as bad as some had feared, while EUR/CHF also gained alongside the EUR strength, with RANsquawk sources reporting leveraged names on the offer in CHF. However, at the 10am NY cut, USD/JPY broke above the 120.00 handle, leaving the greenback to pare much the day’s losses, subsequently weighing on EUR/USD and GBP/USD, after both pairs had previously seen strength.
Looking ahead, as well as the RBA rate decision, tomorrow also sees the GDP annualised reading from Canada as well as comments from BoE’s Carney (Neutral), with many of the MPC members taking a hawkish tone in recent weeks, while the US sees comments from Fed’s Mester (Non-Voter, Soft Hawk) and Yellen (Voter, Dove).
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AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.