Share: Economists at CIBC Capital Markets expect the USD/MXN pair to extend its decline in the coming months. Long MXN positions look overstretched by a number of metrics Although long MXN positions look overstretched by a number of metrics, we are reducing our Q3 and Q4 USD/MXN forecast to 17.50, and 18.00, respectively.
CIBC continues to believe the Federal Reserve will raise rates by 25 basis points once again in September. The below consensus hiring and past downward revisions suggests that the labor market is coming into better balance. Still, the drop in the unemployment rate and solid wage growth will keep the Fed on track for a
As we noted in our Fundamental Analysis today, data on GDP, the labor market, and inflation are the determining factors for the Fed when planning monetary policy parameters. If the official employment data due on Friday (at 12:30 GMT) also turns out to be strong, Fed officials will have an additional argument in favor of
Share: USD/JPY seesaws at three-week high despite latest retreat. 10-year JGB yields jump to highest since 2014, BoJ announces unscheduled no-limit bond-buying. US Dollar bulls take a breather after US credit rating downgrade, ADP Employment Change favored buyers the previous day. A slew of US data eyed for clear directions, yields are the
Share: Gold price recovers as investors await US labor market data. The US Dollar Index struggles for a firm footing as US Factory activities contract for ninth months consecutively. The impact of a decline in Gold demand, reported by the World Gold Council, starts fading. Gold price (XAU/USD) bounced back after gauging intermediate
Share: GBP/USD remains on the defensive for the third successive day, albeit lacks follow-through. The emergence of some USD dip-buying turns out to be a key factor weighing on the major. The downside seems limited as traders seem reluctant ahead of the BoE meeting on Thursday. The GBP/USD pair struggles to capitalize on
Share: Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes the EUR outlook. EUR/USD needs help from the data calendar or else… The Euro comes into August with short-term rate differentials drifting against it and long EUR futures positions looking vulnerable. Something needs to happen to boost confidence in another 25 bps
Share: GBP/USD edges lower for the second straight day on Tuesday, albeit lacks follow-through. The USD climbs to a fresh multi-week top and turns out to be a key factor exerting pressure. The downside seems limited ahead of the BoE on Thursday and the US NFP report on Friday. The GBP/USD pair remains
Share: EUR/USD remains sidelined after reversing Friday’s corrective bounce off three-week low the previous day. Upbeat Eurozone data jostles with fresh challenges to risk to test Euro bears. Final readings of Germany’s HCOB Manufacturing PMI, US S&P Global PMIs and ISM Manufacturing PMI for July will be in focus. Retreat in hawkish Fed
© Reuters Investing.com – The U.S. dollar edged higher in early European trade Monday, but is on course for a monthly loss as traders weigh up the possibility of an end to the Federal Reserve’s tightening cycle, while the Japanese yen weakened in the wake of the Bank of Japan’s monetary policy shift. At 03:10
