FX

Gold (XAU/USD) begins the week on the right foot, up 0.54% in the week. A softer buck and concerns of the US falling into a recession courtesy of an aggressive Fed lifts the prospects of the yellow metal. Gold Price Forecast (XAU/USD): Bulls need to reclaim the 20-DMA, if not a re-test of the 200-DMA

DXY starts the week on the offered stance near 102.60. US yields extend the corrective downside on Monday. Chicago Fed Index, Fedspeak next on tap in the docket. The greenback extends the bearish move and drops to new 3-week lows in the 102.60/55 band when tracked by the US Dollar Index (DXY) on Monday. US

Reuters reported on the weekend that Shanghai’s central Jingan district, a key commercial area of the Chinese financial hub, will require all supermarkets and shops to shut and residents to stay home until at least Tuesday. ”The district plans to carry out COVID mass testing from Sunday until Tuesday, it said on its official WeChat account.

The Canadian dollar gained 0.47% vs. the greenback in the week, which was soft throughout the whole week. The US Dollar Index reclaimed the 103.000 mark but ended the week with losses of 1.38%. USD/CAD Price Forecast: A daily close above the 20-DMA could pave the way for a move towards 1.3000. The USD/CAD is

GBP/USD Weekly Forecast: Will the recovery sustain above 21 DMA? Bulls were finally rescued, as GBP/USD stalled its four-week downtrend and rebounded firmly from two-year lows of 1.2155 reached a week ago. A temporary bottom seemed in place, with the 400+ pips recovery, as the US dollar embarked on an overdue correction. The currency pair

Next week the Reserve Bank of New Zealand will have its monetary policy meeting. According to analysts at Wells Fargo, high inflation and a hawkish central bank outlook sets the stage for another 50 bps hike in May to 2.00%. They expect the rate to end the year at 3.00%.  Key Quotes:  “The Reserve Bank

Despite falling on Friday, the AUD/USD is up in the week by 1.34%. Sentiment fluctuated negatively in the last hour, dragging the AUD/USD lower. AUD/USD Price Forecast: A daily close below the 20-DMA could pave the way towards the YTD low below 0.6850. The Aussie dollar is struggling at the 20-day moving average (DMA) and

Gold has had a 6.9% drop in May so far. XAU/USD now trades under a prior triangle breakout and is testing the 200-day moving average (DMA) at $1,838, indicating that the technical posture is not favourable, Benjamin Wong, Strategist at DBS Bank reports. Inability to stage a bounce “Posting declines under 200-DMA $1,838 forces a

The Loonie advances benefited from a soft US dollar and high oil prices. Statistics Canada reported that consumer prices hit a 31-year high at 6.8%y/y. USD/CAD Price Forecast: To reach 1.2700 once USD/CAD bears reclaim 1.2800. The USD/CAD slides for the third day of the week and is trading back below the 1.2900 figure after

Economists at ING expect the rand to stay under pressure for the time being. Subsequently, USD/ZAR could reach the 17 level on a break past the stubborn resistance at 16.35. Rising US real yields and the China slowdown weigh on emerging markets “16.35 is big resistance for USD/ZAR, above which 17.00 beckons for later in

GBP/USD is recording losses of 0.98%, almost pairing Tuesday’s gains. UK’s inflation rises to 9% up from 7% the previous month. GBP/USD Price Analysis: Remains downward biased and might re-test the YTD lows at around 1.2155. The GBP/USD snaps three days of gains and is losing close to 1% during Wednesday’s session on a dampened mood

Gold witnessed selling for the second straight day on Wednesday amid modest USD strength. Aggressive Fed rate hike bets, rising US bond yields helped the USD to stall its recent downfall. Recession fears weighed on investors’ sentiment and could lend support to the safe-haven metal. Gold edged lower for the second successive day on Wednesday

UK CPI Preview: Inflation “apocalypse” priced in, GBP/USD has room to fall Economists expect the headline UK Consumer Price Index (CPI) to have jumped from 7% YoY in March to 9.1% in April. I will argue that this leap is already baked into cable, leading to a ‘buy the rumor sell the fact’ effect, in

USD/RUB holds lower ground near two-year low, pressured of late. Falling wedge bullish chart pattern, Dragonfly Doji tests USD/RUB sellers. Bulls need clear break of 200-DMA to retake control. USD/RUB remains on the back foot for the second consecutive day, after bouncing off a two-year low. That said, the Russian ruble (RUB) pair seesaws around

Bad China’s economic data paints a gloomy environment for Australia’s largest trading partner, a headwind for the AUD. A risk-off mood boosts the prospects of the US dollar. AUD/USD Price Forecast: The major could be subject to a mean-reversion move towards 0.7029 before resuming its downtrend. The Australian dollar records decent gains, despite weaker-than-expected Chinese economic

USD/CAD regained positive traction on Monday and reversed a part of Friday’s downfall. Retreating crude oil prices undermined the loonie and acted as a tailwind for spot prices. The USD was seen consolidating its recent gains and did little to provide a fresh impetus. The USD/CAD pair held on to its good intraday gains through

The uspide potential of the US dollar versus the Japanse yen is becoming more limited, warned analysts at MUFG Bank. They noted the USD/JPY pair is reverting to a traditional risk-on/risk-off patterns amid financial instability. Key Quotes: “The fact that US yields have been more sensitive to asset price declines than to higher than expected

Gold’s recovery capped by the $1,820 area, stays under pressure. Improvement in risk sentiment offers limited help to the yellow metal. On a weekly basis, XAU/USD is down almost 4%. Gold bottomed at $1,799 on Friday, the lowest level since February. A recovery followed later that found resistance quickly at $1,820. The yellow metal remains