Inflation

At the start of next week there are two Far East data points that are important to talk about more from a perspective of technicalities. That is, they aren't expected to cause an immediate move in the currency markets, but do provide some…
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EURUSD seeks support The US dollar surged after consumer prices rose faster than expected last month. The euro’s rally came to a halt in the supply zone around 1.0190, then a fall below 1.0090 forced leveraged short-term long positions…
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Tomorrow is likely to be one of the most important days for the markets this week, because we get some crucial data ahead of the FOMC meeting next week. To make matters more interesting, the Fed is already in its blackout period. Meaning…
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Editor's note: On Friday, the BOE announced it would delay the MPC meeting by one week due to the death of Queen Elizabeth II; the meeting will be held at the same time on Sept 22. Earlier this week, cable dropped to lows not seen…
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Earlier this week, the PBOC made a "surprise" announcement cutting the reserve requirement ratio (RRR) for banks. The "surprise" is in quotes, because even though it wasn't pre-announced, the economic situation was such that a lot of…
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In general terms, the economic policy of the UK under the new government is expected to remain very similar. For example, the new Chancellor Kwasi Kwarteng might have had differences in public image with former chancellor Sunak, but in…
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We can expect quite a bit of volatility on Thursday, when the ECB will make its rate decision. Surveyed economists are almost evenly split on whether there will be a 50bps or a 75bps hike. The market has priced in around 68bps, implying a…
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The sales pitch for gold is that it's a hedge against inflation, because it doesn't lose its value. It is a real commodity, unlike fiat currency. Yet, as inflation has skyrocketed around the globe this year, the price of gold has not. In…
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The yen has weakened to the lowest level since 1998, with the USDJPY popping above the 140 handle. Through the week, the pair rose 1,9%. In a period of economic uncertainty, usually traders would expect the yen to get stronger on safe-haven…
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NZDUSD continues lower The New Zealand dollar softens as risk appetite continues to subside. A bearish MA cross on the daily chart points to an acceleration to the downside. A short-lived bounce to 0.6190 indicates strong headwinds.…
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