After an initial drop yesterday the EUR pare loss waiting for a major meeting in Brussels tomorrow. That event could be a market-shaker.
U.K inflation beat inflation expectation again with CPI core inflation at 5.2% YoY against 5% expected, which will add pressure to BOE (Bank of England) to raise the rate and curb inflation.
Bond sell-off continues as traders continue to assess J.Powell's hawkish comments.
There is a high chance that the FED raise the USD rate by 0.5% on the next 5th May FOMC meeting if inflation expectations haven’t dropped from now.
U.S President will meet tomorrow in Brussels to announce new sanctions to Russia.
High commodities prices continue to drive AUD higher. AUD/USD reached a four-month high yesterday.
The USD/JPY keeps rising and continues to be driven by interest rate differential and commodities shock, Japan is a major oil importer.
What’s in the pipe?
- U.S President J.Biden attends NATO emergency summit in Brussels on Thursday
- U.S initial jobless claims on Thursday
- Eurozone Markit PMIs on Thursday
USD/JPY @ 121.13 - Very bullish trend
EUR/USD @ 1.1024 - Bearish trend
GBP/USD @ 1.3262 - Bearish trend
USD/CNH @ 6.3876 - Breach of the bearish trend