Indexes were back to their negative ways today, shedding a couple days worth of gains. Greece is back in the spotlight, and bad economic data weigh on the US Markets. Master trader, Tim Pesut joins Merlin for a look at what he sees happening in the FX markets, and offer traders insight into his preferred trading pairs.
Editors’ Picks
EUR/USD softens below 1.1750 amid ECB rate hold expectations
The EUR/USD pair declines to around 1.1730 during the early European session on Wednesday, pressured by renewed US Dollar demand. Nonetheless, the potential downside for the major pair might be limited amid the growing acceptance that the European Central Bank is done cutting interest rates.
When is the UK CPI inflation data and how could it affect GBP/USD?
The United Kingdom Office for National Statistics will publish the highly relevant Consumer Price Index (CPI) data for November on Wednesday at 07:00 GMT. GBP/USD is likely to stay subdued if UK CPI meets expectations. However, any upside surprise could cap losses by tempering dovish sentiment ahead of the Bank of England’s policy decision on Thursday.
Japanese Yen weakens ahead of BoJ meeting; USD/JPY retakes 155.00 amid USD uptick
The Japanese Yen extends its steady intraday descent against the recovering US Dollar, pushing the USD/JPY pair back above the 155.00 psychological mark during the Asian session. Any further JPY depreciation still seems elusive in the wake of the growing acceptance that the Bank of Japan will raise interest rates at the end of a two-day policy meeting on Friday.
Editors’ Picks
When is the UK CPI inflation data and how could it affect GBP/USD?
The United Kingdom Office for National Statistics will publish the highly relevant Consumer Price Index (CPI) data for November on Wednesday at 07:00 GMT. GBP/USD is likely to stay subdued if UK CPI meets expectations. However, any upside surprise could cap losses by tempering dovish sentiment ahead of the Bank of England’s policy decision on Thursday.
EUR/USD softens below 1.1750 amid ECB rate hold expectations
The EUR/USD pair declines to around 1.1730 during the early European session on Wednesday, pressured by renewed US Dollar demand. Nonetheless, the potential downside for the major pair might be limited amid the growing acceptance that the European Central Bank is done cutting interest rates.
Gold: Bulls await breakout through multi-day-old range amid Fed rate cut bets
Gold attracts fresh buyers during the Asian session on Wednesday, though it remains confined in a multi-day-old trading range amid mixed fundamental cues. The global risk sentiment remains on the defensive amid economic woes and fears of the AI bubble burst. Moreover, dovish US Federal Reserve expectations lend support to the non-yielding yellow metal, though a modest US Dollar uptick might cap any further appreciating move.
Bitcoin, Ethereum and Ripple extend correction as bearish momentum builds
Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction, as momentum indicators are beginning to tilt bearish.
Ukraine-Russia in the spotlight once again
Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.
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