Week Ahead: Euro to climb on more aggressive ECB rate hike bets?

Last week, we cited the possibility of the US dollar falling as recession fears mount.

At the time of writing, the benchmark dollar index (DXY) is set for a weekly decline, ending a run of three consecutive weekly gains. The softer greenback has in turn allowed EURUSD to resurface back above 1.05.

Week Ahead EURUSD ECB European Central Bank inflation rate hike unemployment fragmentation risks US Dollar Federal Reserve

What is a recession? And what it could mean for stocks, oil and gold.

Things are looking gloomy in the world.

The prices of goods and services are skyrocketing at a pace not seen in several decades, making it more expensive to go about our daily lives. 

At the same time, more than 60 central banks around the world have already raised their respective interest rates, and are set to continue doing so for the rest of this year … and beyond.

Recession inflation Fed rate hikes Stocks S&P 500 Crude Oil Gold Bullion Yield Curve Inversion

Trade Of The Week: Gold Waits For Another Directional Catalyst…

After the explosive price action last week, gold kicked off Monday on a calmer note.

A softer dollar attracted gold bulls into the vicinity. However, upside gains were capped by hawkish comments from Fed Governor Christopher Waller over the weekend who supported another 75-basis point rate increase at the Fed’s July meeting. This was based around economic data matching his expectations.

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Week Ahead: US dollar to fall further on recession fears?

Even though the June FOMC meeting is now behind us, markets will continue being laser-focused on the Fed’s quest to tame inflation, a campaign which is feared could end with a recession.

Hence, Fed Chair Jerome Powell’s testimonies before Congress over two days next week will be closely watched for more clues about its incoming rate hikes, and its tolerance for economic pain.

FED FOMC Federal Reserve US Dollar USD index inflation Fed rate hike Recession

Sterling rides on BOE hawks’ wings

In our Week Ahead article (posted before last Friday's US inflation shocker), the question was asked: ‘Can (the) BOE keep up with hawkish Fed and support GBPUSD?’

Today, we got our answer = yes … or, at least the BOE will try.

 

Let’s break down the latest policy decision by the Bank of England.
 

BoE Bank of England rate hikes GBPUSD Pound Sterling inflation

Trade Of The Week: Big Week For Dollar As Focus Shifts To Fed

King dollar kicked off the new week on a solid note, asserting its dominance against all G10 currencies as investors evaluated last Friday’s red-hot US inflation figures and China’s Covid woes.

Dollar index Federal Reserve inflation Fed rate hike

Week Ahead: Can BOE keep up with hawkish Fed and support GBPUSD?

GBPUSD has been reflecting the latest policy signals out of the US Federal Reserve and the Bank of England.

These major central banks are set to grab the headlines amidst a busy global economic calendar in the coming week:

Monday, June 13

Week Ahead FED FOMC Federal Reserve Bank of England BoE rate hikes inflation GBPUSD

ECB sinks EURUSD yet again!

EURUSD was hurled about on Thursday by the European Central Bank’s latest policy signals (or rather, the lack thereof).

Most of the gains came immediately following the release of the ECB’s policy statement (more on that later).

However, as ECB President Christine Lagarde began addressing questions from the media at her press conference, EURUSD then unwound all of its gains and was dragged back below the 1.070 mark.

EURUSD Euro ECB European Central Bank rate hike inflation Ukraine conflict

Trade Of The Week: Pound To Be Rocked By Political Uncertainty?

UK Prime Minister Boris Johnson was flung into the spotlight on Monday after enough Conservative MPs triggered a vote of no-confidence in his leadership.

GBPUSD BoE British Pound Brexit
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