FX

Senior Economist at UOB Group Alvin Liew comments on the publication of Japanese Q2 GDP figures. Key Takeaways “Japan’s 2Q 2022 GDP missed market expectations, as it grew by 0.5% q/q, 2.2% q/q SAAR (versus Bloomberg est: 2.6% q/q SAAR, but in line with UOB est 2.2% q/q SAAR) while the -0.5% contraction in 1Q
US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, begin the week on a negative note while declining to 2.44% at the latest. In doing so, the inflation precursor snapped two-day inaction by adding to the market’s cautious mood ahead of Wednesday’s Federal Open Market Committee
Further upside is likely to prompt USD/MYR to revisit the 4.4615 level in the short-term, according to FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research. Key Quotes “Our view for USD/MYR to edge higher last week was incorrect as it dropped sharply to 4.4310 before rebounding. USD/MYR traded on a
Analysts at MUFG Bank, have the idea of a shorting the EUR/USD pair around 1.0290 with a target at 0.9900 and a stop-loss at 1.0540. They consider that European circumstances create uncertainty for the euro and market participants could start pricing in more tightening from the Federal Reserve.  Key Quotes: “We are sceptical of the
Silver price holds lower ground near the short-term key support comprising 50-day EMA, three-week-old ascending support line. Receding bullish MACD signals, sustained pullback from 61.8% Fibonacci retracement tease sellers. Bulls need validation from $21.00 to retake control. Silver price (XAG/USD) remains pressured at around $20.30, keeping the previous day’s bearish bias during Friday’s Asian session.
Economist at UOB Group Lee Sue Ann suggests the PBoC could reduce further the policy rate in the next months. Key Quotes “China’s economy continues to face the same set of challenges including COVID-19 resurgences and perhaps even greater pessimism in the domestic property market as well as high global energy and food prices.” “In