TRENDING:

US CPI

BoE Interest Rate

BoE and ECB in focus today

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 18th, 13:00 CET UK BoE interest rate decision.
Thu, 18th, 13:30 CET UK Gov. Bailey speech.
Thu, 18th, 14:15 CET EU ECB interest rate decision.
Thu, 18th, 14:30 CET US Consumer price index.
Thu, 18th, 14:45 CET EU ECB press conference.

Rate decisions

Today’s interest rate decisions could have the tendency to move markets. While it is expected that the BoE is cutting rates by 25 basis points, the ECB might remain steady with their approach. Falling consumer prices and a slowing in employment might suggest a more dovish tone of the Bank of England. Traders should hence focus on the ress conference with governor Bailey for more insights. The Pound has been weakening in recent trading sessions and might continue to do so. While the pressure on the EUR might remain limited some potential strength in the Dollar could cause the currency pair to weaken as well. The current risk aversion might hence push markets lower.

Market talk

The risk sentiment in equities has been muted. The flaring up of further issues in regards to the previously mentioned AI story remains the current burden. Most big companies like Nvidia, Oracle among others seem to fade further, causing the entire indices to weaken as well. Based on the daily charts both the Nasdaq and S&P 500 indices continue to trade below the 50- moving average and seem to weaken further. The crypto space seems also far from taking part in a Santa- Claus rally. Instead, most tokens show further weakness led by Bitcoin, which keeps sliding towards the next technical support zone of USD 85.000. Especially XRP looks set to move lower, as the psychological support zone of USD 2.00 broke last weekend. Lower prices should hence be expected for now.

Tendencies in the markets

Equities weaker, USD stronger, crypto weaker, oil sideways, Silver sideways, Gold sideways.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD remains below 1.1750 ahead of ECB policy decision

EUR/USD remains on the back foot below 1.1750 in the European session on Thursday. Traders move to the sidelines and refrain from placing any fresh directional bets on the pair ahead of the ECB policy announcements and the US CPI inflation data.

GBP/USD ticks north following BoE’s announcement

The Bank of England decided to cut the benchmark interest rate by 25 basis points as expected. The MPC voting was tight, with just 5 out of 9 officials backing the decision. Sterling Pound advances on relief as investors anticipated a more dovish outcome.

Gold holds losses below $4,350 ahead of US CPI report

Gold struggles to capitalize on the previous day's move higher and holds its pullback below $4,350 in the European session on Thursday. The downtick could be attributed to some profit-taking amid a US Dollar bounce. All eyes now remain on the US CPI inflation data.

US CPI set to grow at stable 3.1% in November, further complicating the Fed’s dilemma

The US Consumer Price Index is forecast to rise 3.1% YoY in November, a mild uptick compared with September. The inflation report will not include monthly CPI figures.

Bitcoin steadies near $87,000 as strong ETF inflows offset bearish pressure

Bitcoin price hovers around $87,000 on Thursday, stabilizing after declining earlier this week. US-listed spot ETFs recorded $457.29 million in inflows on Wednesday, the highest single-day inflows since November 11.

Dogecoin Price Forecast: DOGE breaks key support amid declining investor confidence

Dogecoin (DOGE) trades in the red on Thursday, following a 4% decline on the previous day. The DOGE supply in profit declines as large wallet investors trim their portfolios. Derivatives data shows a surge in bearish positions amid declining retail interest.