In this article, we have covered the highlights of global market news about the EUR/USD, USD/CAD, USD/ZAR and NZD/USD.
EUR/USD might reach 1.08 and 1.0950/1.1000 with a closing over 1.0600/10610 – ING
The EUR/USD pair ended the day unchanged after failing to make a clear move in either direction. ING economists point out two crucial technical levels to keep an eye on.
The current 200-Day Moving Average reading is 1.0350.
“If we had to choose two levels, the main resistance is around 1.0600/10610. A close above that on a weak US CPI announcement would signal impending severe pain, with the EUR/USD slipping below 1.08 and perhaps 1.0950/1.1000.
The 200-Day Moving Average is at 1.0350 and would be a threshold any investors locked long Dollars at higher levels would want to dump some Dollars, according to the bearish analysis.
USD/CAD falls to 1.3600 as oil prices rise and the US dollar falls somewhat.
During the first part of the European session, there was some selling pressure on the USD/CAD pair, and in the past hour, it has reached a new daily low at the 1.3600 level.
On Tuesday, crude oil prices increase for the second consecutive session, building on the previous day’s recovery from close to the YTD low. The commodity-linked Loonie is thus viewed to be supported by this, and this, together with a little decline in the US Dollar, puts some downward pressure on the USD/CAD pair.
The safe-haven dollar is still being weighed down by optimism about relaxing COVID-19 limits in China, which continues to underpin the current improvement in risk sentiment. Additionally, the yields on US Treasury bonds are hampered by the uncertainty surrounding the Fed’s rate rise trajectory, which puts the US Dollar bulls on guard.
However, traders could hold off on making risky wagers until the most recent US consumer inflation statistics are scheduled to be released later during the early North American session. The key US CPI data will be critical in determining the Fed’s policy stance and the path the dollar will take shortly.
USD/ZAR: The current level at 17.50 could not persist for long, according to ING
The Rand has had the poorest EMEA FX performance since November 10th, save from the Russian Rouble. ING economists predict that the USD/ZAR pair won’t stay at its present levels, which are close to 17.50, for very long.
President Ramaphosa is facing a proxy impeachment vote.
“President Cyril Ramaphosa has been embroiled in a controversy. An independent panel has determined he may have broken the law by improperly handling the inquiry into the theft of money from his home. Today, the South African parliament will vote on the panel’s recommendations, which is seen as a vote of impeachment for Ramaphosa.
“We believed that if this vote hadn’t happened, the Rand would be trading much more strongly. But on the other hand, if the vote passes, USD/ZAR can easily trade over 18.00 in the sparse December markets. In other words, the present levels around 17.50 could not endure forever.
NZD/USD slowly rises over 0.6400, emphasizing US CPI ahead of the FOMC.
In the early hours of the European session on Tuesday, the NZD/USD pair attracted new offers and slowly moved back over the 0.6400 level.
The US Dollar is being sold off due to several causes which support the NZD/USD pair. The optimism around the relaxation of COVID-19 limits in China has aided the current improvement in the risk sentiment. Additionally, the yields on US Treasury bonds are hampered by the uncertainty surrounding the Fed’s rate rise trajectory, which puts the US Dollar bulls on guard.
On the other hand, the upside for the NZD/USD pair will be restricted since traders could hold off on making risky bets before this week’s important US data and event concerns. Later in the North American session, November’s critical US consumer inflation numbers are scheduled for publication. However, Wednesday’s two-day FOMC monetary policy meeting will continue to be the center of attention.
Market investors anticipate a comparatively lower 50 bps lift-off because they are certain that the Fed will pause the rate-hiking cycle. However, the arrival of encouraging US macroeconomic data has fueled rumors that the US central bank may increase rates faster than anticipated. Investors will thus look for clarification on the Fed’s policy outlook, which should impact the dynamics of the US Dollar price in the short term.
Please click here for the Market News Updates from 12 December, 2022.