New Zealand Dollar Slips After Inflation Expectations Ease

The New Zealand dollar has declined after New Zealand inflation expectations decelerated in the fourth quarter. In the European session, NZD/USD is trading at 0.6114, down 0.25%. The New Zealand dollar declined by 0.40% after the inflation expectations release but has pared these losses.

Sunset Market Commentary

Trading in Asia and during the morning session in Europe was one long-drawn countdown to US inflation data released this afternoon. Over the previous days we often had to mention that there wasn’t really much of hard news to guide trading, but this obviously changed this afternoon. US January inflation data brought a substantial upward surprise, suggesting that the easiest part in the inflation deceleration might have passed.

Will Oil Continue iIts Rise This Time?

Oil went on the offensive last week, once again confirming the importance of support at the 200-week moving average. Both robust US economic data and OPEC+ intentions to keep production under control fuelled the rally. All this is on top of growing supply issues across the Red Sea.

What Next for Commodity-Linked Currencies?

Just before the turn of the year, the risk-linked currencies - the Australian dollar, the New Zealand dollar, and the Canadian dollar - also known as the commodity-linked currencies, have come under selling pressure despite risk appetite remaining elevated and allowing Wall Street to conquer unchartered territories, with the correlations between these three currencies and the S&P 500 declining notably.

Gold – Falls Below $2,000 After Resilient Display This Year

Gold fell heavily after the data as traders finally appeared to accept that rate cuts may not come as soon and as fast this year as previously assumed.

UK Inflation in Focus Today

This morning at 8:00 CET, UK inflation data for January is expected to rise in y/y terms across the headline, core and services measure. However, focus will be on the monthly seasonally adjusted developments.

A Heartbreaking Blow for Investors

Uh oh! Yesterday’s inflation data from the US didn’t go smoothly down the market’s throat. Instead, the stronger-than-expected set of inflation data dashed hopes of seeing the Federal Reserve (Fed) cut rates anytime in the first half of this year.

USD/JPY Jumping Beyond 150 Triggers Several Verbal FX Warnings from Japan

USD/JPY jumping beyond 150 (150.5) triggered several verbal FX warnings from Japanese officials. Later today, the calendar in US and EMU is thin, but markets will look out for the assessment of Fed governors after the US CPI beat. Tomorrow’s US retail sales is the next real highlight.

Crypto Market Shows No Sign of Stopping

Bitcoin rose 2.2% in 24 hours to $51.2K and peaked at $51.7K. This is the upper limit of the December 2021 consolidation. Bitcoin may well see a shakeout in this area, as it did in September and December 2021. However, we believe this is part of a powerful bullish wave that could resume growth very quickly.

GBP/JPY – Eases From Fighs After Weaker UK Inflation Data

UK inflation unchanged in January Markets expect BoE rate cut in Q2 GBPJPY pares gains after hitting 8.5 year high