Forex News Roundup for 13th June, 2023
Categories: Forex News | Published by: GoofySm
- The recent decision by the People’s Bank of China to unexpectedly reduce its 7-day reverse repo rate from 2.0% to 1.9% is believed to have played a role in fostering an overall positive sentiment in stock markets. This surprise rate cut has likely contributed to the prevailing bullish mood among investors.
- The market’s attention is centered around the US CPI data. Investors closely observe this release to gauge the inflationary pressures in the country. Forecasts indicate a decrease in the annualized inflation rate from 4.9% to 4.1%. If the actual data aligns with these predictions, it could signal the emergence of a meaningful positive real interest rate in the US.
- The release of US CPI data may set the stage for the upcoming meeting of the Federal Reserve. Market sentiment suggests that the central bank is unlikely to raise interest rates this time, marking a departure from the trend of rate hikes observed over the past year.
- Once again, the US Dollar is experiencing a decline in the Forex market. During the Asian session, the Euro has emerged as the strongest currency, while the US Dollar has shown weakness. Traders who follow trends may continue to seek long trading opportunities in the USD/JPY currency pair, particularly as it recently reached a new six-month high price.
- The upcoming week will see policy meetings from the three prominent central banks: the US Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BoJ). This series of meetings is likely to introduce heightened volatility in the Forex market. Traders should prepare for potentially dynamic market conditions as these central banks discuss and announce their policy decisions
- Once again, the Turkish Lira witnessed a record-breaking drop as it reached a new historic low. The currency has been steadily losing value ever since the likelihood of President Erdogan’s election victory began to solidify.