Forex News Roundup for 13th July, 2023
Categories: Forex News | Published by: GoofySm
- Today, the United States is scheduled to release its Consumer Price Index (CPI), which measures inflation. Analysts anticipate that the data will reveal a 0.3% increase in monthly inflation, accompanied by a significant decrease in the annualized rate, dropping to 3.1% after a notable decline last month. Should the CPI report unexpectedly show a smaller decline or even a rise, it could potentially strengthen the value of the USD. However, if the data aligns with expectations, it is probable that the USD will continue its downward trend.
- Amidst its policy meeting today, the Bank of Canada is projected to announce an increase in the interest rate by 0.25%, bringing it to 5.00%. This step signifies the central bank’s intention to implement a monetary policy adjustment aimed at tightening the country’s financial conditions.
- In line with widespread expectations, the Reserve Bank of New Zealand opted to maintain its Official Rate without any changes during its recent policy meeting. Consequently, the New Zealand Dollar exhibited minimal response to the central bank’s decision.
- The USD/JPY currency pair is attracting attention in the Forex market as the Japanese Yen maintains its recent streak of strength, positioning it as the strongest major currency in today’s trading session. In contrast, the US Dollar is displaying weakness. Notably, USD/JPY has dropped well below the ¥140 level, signifying a potential conclusion to the long-term bullish trend. The price movement suggests more than a mere bearish retracement, leading to growing speculation that the Yen has reached a significant turning point. This shift in sentiment is driven by the Bank of Japan’s gradual departure from its previous ultra-loose monetary policy.
- Another currency pair that is attracting attention is the GBP/USD as it maintains its upward trajectory, reaching new long-term highs and displaying strong bullish momentum. Currently, the GBP/USD is trading near $1.2970, marking a 15-month high.
- The price of Bitcoin is currently trading below a significant psychological level of $31,000, which holds great importance for market participants. The recent price action has introduced an element of uncertainty, indicating that the possibility of a bullish breakout is becoming less likely.
- While there is a mixture of performances across equity markets, the Hang Seng Index has shown notable strength, registering a gain of over 1% during the day.
- Yesterday’s release of UK unemployment claims data revealed a slight deviation from the anticipated figures, indicating a slight uptick in the numbers.