Relative inflation is driving GBPUSD higher
UK inflation is running hotter than US inflation. This has resulted in a fixed income market which is tending to support GBPUSD.
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UK inflation is running hotter than US inflation. This has resulted in a fixed income market which is tending to support GBPUSD.
Earlier in the week we tracked the USDOLLAR’s symmetrical triangle pattern, noting that the lower boundary was being tested. FXCM’s USDOLLAR basket has now broken down out of the pattern, close to the apex of the triangle. In conjunction the weekly RSI has dipped below 50, which is on the bearish side of the oscillator. The longer the RSI maintains this position, the greater the likelihood of further downside pressure…
The pair extends its gains to new 2023 highs, after both core and headline US CPI eased significantly in June, which weighs on the greenback as it may constrain the Fed’s aggressiveness
The dollar’s consolidation continues. FXCM’s USDOLLAR basket has drifted sideways in a symmetrical triangle pattern.
The pair extends it 2023 highs as another hot jobs report keeps pressure on the Bank of England for further monetary tightening
Despite supportive Yen comments by Japanese officials and soft US headline PCE inflation, USD/JPY stays close to the September 2023 intervention levels
FXCM's USDOLLAR basket is consolidating sideways in a symmetrical triangle pattern.
The USDOLLAR reacted to the general hawkish tone by moving from its neutral channel, between the blue bands, into its bullish channel between the upper blue and red bands. Its daily RSI is above 50 (green rectangle). This is the bullish side of the oscillator. The longer it maintains on this side of 50, the greater the likelihood of further USDOLLAR appreciation.
The pair drops as today’s Australian inflation moderated significantly in May, not long after the RBA had hiked rates again in order to control it
The 02-year yield is a good proxy for central bank monetary policy. This is because the short end of the curve adjusts quickly to changes in the cost of capital. As such, we can look at the spread between two regions’ 02-year notes to get an idea on how the market views their respective monetary policies.
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