RBA’s Debelle poured cold water over near-term rate cut hopes - TDS

Dhwani Mehta FXStreet

The T D Securities (TDS) Analysts are out with their thoughts on Wednesday’s surprisingly upbeat speech delivered by the Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle.

Debelle is likely to make an appearance again today at 0230 GMT.

Key Quotes:

“Debelle poured cold water over near-term rate cut hopes.

The key sentence was "Hopefully we will get some resolution of this tension in the coming months with the incoming flow of data".

RBA clearly stated that it may take some time for this 'tension' to be resolved. This patience contrasts with a market that is impatient for a cut - or at the very least an explicit easing bias - at the next Board meeting on May 7.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.