Higher inflation opens the door to MAS tightening – UOB

Senior Economist at UOB Group Alvin Liew reviews the latest inflation figures in Singapore. Key Takeaways “Singapore’s headline CPI rose slightly faster than expected, at 1.0% m/m, 5.6% y/y in May (from 0.1% m/m, 5.4% y/y in Apr). Core inflation (which excludes accommodation and private road transport) also rose at a faster clip, up by … Read more

GBP/USD pares intraday losses to weekly low, keeps the red ahead of Powell’s testimony

GBP/USD witness heavy selling on Wednesday and dropped to a fresh weekly low. Dovish BoE expectations, recession fears, Brexit woesd the British pound. A goodish pickup in the USD demand further exerted downward pressure on the pair. The downside seems cushioned as the focus remains on Fed Chair Powell’s testimony. The GBP/USD pair refreshed its … Read more

USD/CAD drops below 1.3000 on a soft US Dollar

The Loonie begins the week on the right foot, up by 0.23%, as shown by the USD/CAD falling. An upbeat sentiment boosted the Canadian dollar while the buck weakened. USD/CAD Price Forecast: In consolidation, but it’s showing the formation of negative diversion in the daily/4-H chart, opening the door for further losses. The Loonie gained … Read more

EUR/USD tumbles towards 1.0500 on risk-aversion and mixed US data

The euro records substantial losses vs. the greenback, down 1.81% in the week. Stagflation looms as US inflation accelerates, and consumers’ pessimism increases. EUR/USD Price Forecast: Daily close below 1.0532 would send the major tumbling for a retest of YTD lows at around 1.0340. The EUR/USD nosedives and approaches the 1.0500, a level not seen … Read more

AUD/USD drops to fresh two-week low, back below 0.7100 on hotter-than-expected US CPI

AUD/USD turned lower for the third straight day in reaction to stronger US inflation figures. The latest US CPI reported hawkish Fed expectations and boosted the greenback. The risk-off impulse further underpinned the buck and weighed on the risk-sensitive aussie. The AUD/USD pair witness aggressive selling during the early North American session and turned lower … Read more

USD/CAD spikes to fresh two-week high post-US CPI, bulls ignore upbeat Canadian jobs data

The USD strengthened across the board and pushed USD/CAD to a fresh two-week high. Stronger US CPI reaffirmed expectations hawkish Fed and provided a strong lift to the buck. Better-than-expected Canadian CPI did little to benefit the loonie or hinder the move up. The USD/CAD pair added to its intraday gains and shot to a … Read more

XAU/USD bounces to $1840 area from initial post-hot US CPI data lows in $1820s

Gold prices saw a choppy reaction to the latest hotter-than-expected US CPI data. XAU/USD was last trading just above $1840 versus initial post-data lows around $1825. Prices are currently higher versus pre-data levels, but at risk of falling given strength in US yields and USD. Spot gold (XAU/USD) prices saw a choppy reaction in wake … Read more

NZD/USD hits fresh multi-week lows under 0.6400 post-hot US CPI data, having earlier rejected the 21DMA

NZD/USD slipped to fresh multi-week lows under 0.6400 on Friday after hot US CPI data. The annual rate of headline inflation hits a fresh four-decade high. In response, risk appetite soured, US yields rose and the buck strengthened as traders upped Fed tightening bets. NZD/USD hit fresh multi-week lows under the 0.6400 level on Friday … Read more

USD/JPY holds above 134.00, eyes this week’s multi-decade peaks near 134.50 post-hot US CPI

USD/JPY has pared earlier losses and is eyeing a test of multi-decade highs hit earlier in the week near 134.50. Yen strength after a joint Japanese government/BoJ statement of concern about currency weakness was short-lived. As US yields rise in wake of hotter-than-expected US CPI, USD/JPY remains at risk of further upside. The yen’s earlier … Read more

GBP/USD plummets to fresh three-week low, below 1.2400 amid US CPI-inspired USD strength

GBP/USD witness heavy selling for the third successive day amid broad-based USD strength. Stronger US CPI print for May reaffirmed hawkish Fed expectations and boosted the greenback. The risk-off impulse further underpinned the safe-haven buck and exerted pressure on the pair. The GBP/USD pair extended this week’s rejection slide from the 1.2600 neighborhood and some … Read more