Elsewhere this week, an ongoing theme has been weakness in EM currencies, with analysts at Deutsche Bank noting that 17 EM countries have seen their currencies depreciate by over 3% since China devalued CNY last Monday. EM currencies remained under pressure today in reaction China Caixin Mfg flash PMI figure printing its lowest reading since Mar’09 (47.1 vs. Exp. 48.2), as well as the ongoing selling pressure in energy and metals markets. USD/RUB trades close to its highest level since Jan'15, USD/IDR at highest level since 1998 and USD/TRY also trades close to record levels. As WTI is set for its longest weekly losing streak since 1986, energy prices may remain in focus next week as the notable tier 1 data is CPI, with weakness in energy prices expected to weigh on the data.
Other highlights next week include German IFO business confidence, US durable goods and UK GDP.
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EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.