Forex News for 9th May, 2023

  • The forex market in general is experiencing a lot of choppiness ahead of key economic data releases which will be the next catalyst for the price action that is about to happen following the fresh data releases.
  • The bearish trend will continue for the USD in the long term but lately there was a little rise against the trend.  Still, the bearish trend could be a good opportunity to go long on pairs like GBP/USD and EUR/USD. Still, the Euro happens to be the weakest currency at the moment while the Japanese Yen continues to show strength in the short term. 
  • The Bank of Japan Governor Ueda has stated that the Banking crisis in the US and EU won’t be having any significant impact on Japan and they are also seeing some positive signs for the economy to recover but a rise in inflation levels can also be expected. 
  • European Central Bank chief economist Philip Lane stated that the Eurozone inflation is slowing down and will eventually drop by the year end but the momentum will remain high for now as they think it will take more than 2 years to reach the 2% target. 
  • The Federal Reserve has warned that the US economy may experience a slow down as a credit crunch could possibly happen as the result of all the issues surrounding the American banking system even though the crisis appears to be fading as of now. 
  • The Bank of England is likely to announce its 12th consecutive rate hike with a 25 basis point increase in interest rates as an attempt to curb the elevated inflation in the economy. 
  • A steady inflation report is being anticipated ahead of US CPI data that is about to be released this Wednesday. This will surely cause some action for USD and the major pairs. 
  • For other major asset classes, gold price has been struggling to go up and gain some momentum due to the rising US bond yields and the Bitcoin market witnessed a further fall due to the concerns surrounding the cryptocurrency world.