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Gold is cooling off after going on a tear post-FOMC Joshua Gibson

Gold has been drifting lower following the FOMC's rate hike that failed to meet market expectations. Participants were expecting a fourth rate hike to be added to the Fed's rate hike schedule along with the twenty-five basis point hike on Wednesday, but the dot plot currently stands at three and the US Dollar and 08:46 22 March /2018 Forex

Brazil: Copom cuts Selic rate cut by 25bps - Rabobank Sandeep Kanihama

Analysts at Rabobank note that the Copom cut the Selic (policy) rate by 25bps to 6.50% p.a., as widely expected.Key Quotes“In the statement, the BCB sees as “appropriate” another move to 6.25% for the next meeting. Seeing a downward tilt in the balance of risks (even after lowering inflation estimates), the Copom saw space to stimulate the economy yet more than (we and) the market...

08:23 22 March /2018 Forex

FOMC sees growth firming and gradual normalisation appropriate - ANZ Sandeep Kanihama

Analysts at ANZ note that the Fed raised rates 25bps, taking the IOER to 1.75% and left its guidance on rates unchanged for this year i.e. two more hikes are expected, but it raised its estimate for fed funds in late 2020 by 30bps to 3.4%.Key Quotes“The boost to grow...

08:00 22 March /2018 Forex

RBNZ: No fireworks offered - TDS Sandeep Kanihama

Analysts at TDS note that the RBNZ left the official cash rate (OCR) at 1.75% and the brief statement left a blank playbook for incoming RBNZ Governor Adrian Orr.Key Quotes“As expected, we take the opportunity to push back the timing for the first RBNZ hike to November. Consensus does not expect a rate rise t...

08:00 22 March /2018 Forex

Forex Today: USD weakness extends into Asia, EZ PMIs, UK retail sales and BOE eyed Dhwani Mehta

Less hawkish FOMC outcome induced broad-based US dollar weakness extended into Asia this Thursday, as the Asian traders reacted to the overnight Fed news and unwound their USD longs. The Fed dot plot showed two more rate hikes for this year, disappointing the expectations of four rate hikes in 2018.Most majors benefited from the renewed dollar selling, with the Yen having emerged the top gainer am...

08:00 22 March /2018 Forex

Fed rate hike on expected lines – NBF Sandeep Kanihama

Jerome Powell started his tenure as Fed Chairman with an expected interest rate hike amidst a much-improved U.S. economic outlook, according to Krishen Rangasamy, Research Analyst at NBF.Key Quotes“The recently passed Bipartisan Budget Act, which included significant fiscal stimulus, prompted the Fed to raise its U.S. growth estimates over the 07:46 22 March /2018 Forex

AUD/USD looking for the floor ahead of US PMIs Joshua Gibson

The Aussie was unable to capitalize on the Dollar's softness post-FOMC rate hike, and the AUD/USD is sinking ahead of the European session, testing near 0.7750 after reaching an Asia session low of 0.7737.Dollar dumped, but Aussie dumped harderA decline sparked in the Aussie following07:46 22 March /2018 Forex

USD/CAD options market sheds CAD bearish bias Omkar Godbole

The USD/CAD one-month 25 delta risk reversals (CAD1MRR) gauge has dropped to zero vs. 0.10 CAD puts yesterday and 0.14 CAD puts seen on March 15.The drop in the implied volatility premium for one-month expiry CAD puts (sell CAD) indicates the investors see the decline in the USD/CAD from 1.3125 to 1.2280 is here to stay.Further, ...

07:23 22 March /2018 Forex

EUR/USD: Stretched too thin above 1.23 ahead of EU PMIs? Joshua Gibson

The Euro has capitalized in Dollar softness following the FOMC's rate hike on Wednesday that saw the EUR/USD lift to an Asia session high of 1.2370 as markets sold off equities and the Greenback in retaliation for the Fed not lifting their 'dot plot' to include a fourth rate hike this year.Thursday sees plenty of Markit

06:46 22 March /2018 Forex

GBP/USD: options market has retraced major chunk of bearish bias Omkar Godbole

The GBP/USD weekly 25 delta risk reversals (GBPSWRR) are being paid at 0.30 GBP puts vs. 0.40 GBP puts a week ago and 1.0 GBP puts in February. The decline in the implied volatility premium for GBP puts as highlighted by the risk reversals indicates falling demand for the GBP puts (sell GBP).The risk reversals add credence to the bullish t...

06:46 22 March /2018 Forex

RBNZ’s Spencer: NZD is "in the vicinity of fair value Dhwani Mehta

The Reserve Bank of New Zealand (RBNZ) acting Governor Spencer is reportedly on the wires now, via Reuters, commenting on the exchange rate value in an interview before his imminent handing over to the newly appointed RBNZ Governor Adrian Orr.Main Headlines:06:23 22 March /2018 Forex

GBP/USD: Bullish setup, all eyes on BOE rate vote split Omkar Godbole

The GBP/USD pair clocked a seven-week high of 1.4170 in Asia on account of the broad-based USD selling.Eyes BOE rate vote splitThe Bank of England (BOE) will likely keep interest rates unchanged at 0.5 percent, however, the hawks at the central bank may feel embolde...

06:23 22 March /2018 Forex

PBOC: Rate adjustment helps market to shape reasonable interest rate expectations Omkar Godbole

The People's Bank of China is explaining the rationale behind its decision to hike seven-day repo rate by 5 basis points. Key quotes (source: Reuters)

06:00 22 March /2018 Forex

Underlying commodity demand in China is still solid – Goldman Sachs Dhwani Mehta

Goldman Sachs is out with some comments on the demand for commodities from the world’s biggest consumer, China.Key Points via Bloomberg:China commodities demand delayed not disappeared.Underlying commodity demand in China is still solid.

05:46 22 March /2018 Forex

BOJ's next policy move will be steps toward unwinding stimulus - Reuters Poll Omkar Godbole

Majority of economists believe the Bank of Japan's (BOJ) next move will be towards unwinding of the unprecedented stimulus program, according to Reuters poll. Key points (Source: Reuters)Thirty-seven of 41 economists polled expect the BOJ's next move will be to scale back its super-loose monetary policy but four economists project its next action would be easing further. 13 of 37 ...

05:46 22 March /2018 Forex

BOE to stand pat on its monetary policy – Nomura Dhwani Mehta

Analysts at Nomura offer their thoughts on today’s Bank of England (BOE) interest rate decision and minutes release, noting that they believe the BOE will make no changes to its monetary policy settings.Key Quotes:“We doubt the Bank will need to go as far as it did in September when it felt forced to "hand-hol...

05:23 22 March /2018 Forex

PBOC raises 7-day reverse repo rate by 5 basis points to 2.55 percent - Reuters Omkar Godbole

The news is crossing the wires via Reuters that People's Bank of China (PBOC) has raised the seven-day reverse repo rate by 5 basis points to 2.55 percent. The central bank said the rate rise is normal response to Fed's 25 basis point rate hike.  

05:00 22 March /2018 Forex

USD/JPY hunting for 105.50 Joshua Gibson

The Greenback tripped over itself against the Yen in the overnight session, dropping to 105.58 before edging back slightly to 105.70.Risk aversion has broken back into the broader market and the USD/JPY is dropping lower following the big 05:00 22 March /2018 Forex

NZD/USD stretching as USD swoons Joshua Gibson

The Kiwi is testing higher in the Asia trading session, looking for a foothold above the 0.7230 level.The US Dollar is staying on the soft side following the FOMC's rate hike. The Greenback slide and equities dropped after the FOMC failed to call for an additional rate hike this year over the already expected three.The Kiwi has been granted a brief reprieve after getting hammered last week, and ha...

04:46 22 March /2018 Forex

Fed hiked rates above Australia's OCR for the first time in 18 years – AFR Dhwani Mehta

The Australian Financial Review (AFR) expressed its take on the Fed’s rate hike decision, with the key points found below:Fed raised interest rates a...

04:23 22 March /2018 Forex