gbp to aud

A close eye will also stay on energy markets which has shown traders remain convinced that the market will remain tight given OPEC+ will stick to their gradual output increase strategy and as US production struggles to ramp up despite rising rig counts.  Energy traders will continue to watch for developments with the EU nearing a Russian energy ban.

 

 

India

The Reserve Bank of India sprung a surprise rate hike on markets this past week, sending the Sensex lower whilst providing some support to the INR temporarily. India’s CPI inflation release on Thursday will be this week’s key risk event. If the data comes in above expectations at 7.30%, expectations will rise of a faster more aggressive hiking cycle from the RBI which was quite hawkish in its guidance after the hike. THat will send Indian equities sharply lower once again, while possibly mollifying the impact on the INR from a rampant US Dollar.

 

Australia

Australia could be a correlation trade for the tier-1 PMI r

Volatile GBP/AUD - Good Morning Forex By FXMAG.COM

Volatile GBP/AUD - Good Morning Forex By FXMAG.COM

Rebecca Duthie Rebecca Duthie 11.04.2022 11:30
To give some perspective on how the Forex market is currently performing, this article will report on 4 different currency pairs, a major currency pair, a minor currency pair, a volatile currency pair and another major pair. The major currency pair is the EUR/USD: Since the market opened this morning the Euro hit a high of 1.09471, this means it costs traders 1.09471 USD to buy 1 Euro. This figure beats Fridays's market closing. The Euro held its position in spite of the fact that the far right did not win the first round of the elections in French votes, this position was helped by the rising U.S. Yields. EUR/USD Chart Stronger Euro - EUR/GBP: Since market opening, the GBP is at 0.8377. This means it costs traders 0.8377 GBP to buy 1 Euro. The EUR/GBP relationship is bearish. Despite this bearish relationship, the Euro has slightly strengthened over the weekend. EUR To GBP Chart Volatile GBP/AUD: Since market opening, the AUD reached a high of 1.75442, this means that it costs 1,75443 AUD to buy 1 GBP. The relationship between these 2 currencies is considered volatile due to the fact that the AUD is a commodity currency (the price of AUD is linked to the value of Australian exports). Therefore, since the start of the trade war between the US and China, currency pairs that contain AUD have increased in Volatility. GBP To AUD Chart Rushing 10-year treasury yield - USD/JPY: The relationship between these 2 currencies is currently bullish. Since market opening, the JPY reached a high of 125.444, which means that it costs 125.444 JPY to buy 1 USD, the weakening Yen is as a result of the 10 year treasury yield rushing 77bps reaching 2.77%. USD/JPY Chart Charts: finance.yahoo.com
Pound (GBP) takes a tumble after BoE hike

Pound (GBP) takes a tumble after BoE hike

Kenny Fisher Kenny Fisher 06.05.2022 09:56
The British pound is fading badly on Thursday. GBP/USD has dropped a staggering 2.15% today and has fallen below the 1.24 line for the first time since July 2020. After the BoE decision, market focus has shifted to the elections in Northern Ireland later today. A Sinn Fein victory could weigh on the wobbly pound.   BoE hike fails to impress markets The BoE raised interest rates for a fourth straight time since December, bringing the Official Bank Rate to 1.00%, its highest since 2009. Yet the market reception to the BoE move was decidedly chilly, as the pound has plunged almost 2% today. Why the sour reaction from the markets? The 0.25% was a modest move and it’s questionable if it will have much impact on soaring inflation. In March, CPI rose to 7.0%, up from 6.2%, and the BoE has warned that inflation could surpass 10%. The modest rate hike passed by a vote of 6-3, surprising the markets which had expected an 8-1 vote. Two MPC members called for a 0.50% hike, which reveals a sharp split within the MPC. Governor Bailey admitted after the meeting that an uncertain economic outlook had led to a range of views in the MPC, and such a statement can hardly be expected to instill confidence amongst investors. The BoE cannot be blamed for not being aggressive – it is well into its rate-hike cycle and the policy summary noted that “some degree of further tightening in monetary policy may still be appropriate in the coming months”. In addition, the BoE dropped the word “modest” to describe upcoming rate hikes. Yet the markets appeared to focus on the split vote and the warning from the BoE that the country could face a sharp economic downturn, and the thumbs-down response has sent the pound sharply lower. As expected, the Federal Reserve raised rates at its meeting by a half-point, the largest increase in 20 years. The Fed signalled that it will deliver additional half-point hikes in June and July, with Fed Chair Powell stating that the FOMC was not “actively considering” a 0.75% increase. The Fed is also implementing quantitative tightening with a reduction in the balance sheet. Starting in June, the Fed will sell USD 45 billion/mth in assets, which will rise to USD 95 billion/mth in September. In sharp contrast to the BoE’s hike, the financial markets reacted positively, as investors believe that the Fed’s rate hikes can curb inflation while ensuring a soft landing for the economy and avoiding a recession.     GBP/USD Technical GBP/USD faces resistance at 1.2612 and 1.2719 There is support at 1.2272 and 1.2179           This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Week Ahead: India (Indian rupee - INR), Australia (Australian dollar - AUD)

Week Ahead: India (Indian rupee - INR), Australia (Australian dollar - AUD)

Ed Moya Ed Moya 09.05.2022 07:01
A close eye will also stay on energy markets which has shown traders remain convinced that the market will remain tight given OPEC+ will stick to their gradual output increase strategy and as US production struggles to ramp up despite rising rig counts.  Energy traders will continue to watch for developments with the EU nearing a Russian energy ban.     India The Reserve Bank of India sprung a surprise rate hike on markets this past week, sending the Sensex lower whilst providing some support to the INR temporarily. India’s CPI inflation release on Thursday will be this week’s key risk event. If the data comes in above expectations at 7.30%, expectations will rise of a faster more aggressive hiking cycle from the RBI which was quite hawkish in its guidance after the hike. THat will send Indian equities sharply lower once again, while possibly mollifying the impact on the INR from a rampant US Dollar.   Australia Australia could be a correlation trade for the tier-1 PMI releases from China over the weekend. Poor China data could see the AUD and local equities pressured with most of Asia, ex-Japan closed.SImilarly, a decent showing by the China PMIs will have a positive impact. Markets, especially currency markets, could face liquidity issues and see sharp moves if the weekend news wire is heavy as Australia and Japan will be the only two major centres open. Most attention will be focused on Tuesday’s RBA rate decision. A 0.15% hike is fully priced by markets and the clouds from Ukraine and China are weighing heavily on AUD/USD anyway. If the RBA does not hike AUD/USD could fall sharply in the short-term. If the RBA hikes and adjusts its guidance to a more hawkish, AUD/USD could potentially see a big move higher.

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