In this article, we have covered the highlights of global market news about the USD/CAD, NZD/USD, EUR/CHF and USD/CNH.
USD/CAD will go below 1.25 in the first quarter of 2023 – ING
The USD/CAD pair is trading far over the 1.30 psychological barrier. Despite this, the analysts at ING anticipate that the pair will go in the other direction and drop to below 1.25 in the first quarter of the following year.
There is still a solid foundation for a CAD comeback. There is still some wiggle area for a hawkish repricing in the Bank of Canada’s rate forecasts, which might help sustain the Canadian dollar.
Because of its modest exposure to Europe and China and its good carry, the Canadian dollar is expected to continue to be the most desirable currency for trading commodities over the next several years.
In the first quarter of 2019, we anticipate the USD/CAD trade at values lower than 1.25.
NZD/USD: The downside pressure has been relieved over 0.6145 – UOB
A break over 0.6145, according to the opinions of FX Strategists at UOB Group named Lee Sue Ann and Quek Ser Leang, is likely to reduce the amount of selling pressure around NZD/USD in the immediate future.
The 24-hour view: “Yesterday, we said that ‘the present movement is part of a consolidation phase.’ Based on this information, we anticipated that the New Zealand dollar will ‘trade sideways between 0.6065 and 0.6130.'” Even though the New Zealand dollar moved inside a smaller range than anticipated (0.6079/0.6102), our prediction that it would trade sideways was correct. Additional consolidation is not unexpected and is expected to occur within the range of 0.6080 and 0.6140.
Within the next three weeks: “Our most recent story was from last Friday (02 September, spot at 0.6090), where additional New Zealand Dollar weakening is predicted, and the next support is around 0.6030.” After then, the NZD exchange rate fell to 0.6051, but it has been unable to make any more advances in the downward direction. The rate of decline is starting to slow down, and a break below 0.6145 (which remains the same as yesterday’s strong resistance’ level) would imply that the New Zealand dollar is not likely to continue falling beyond 0.6030.
EUR/CHF will continue its downward trend towards 0.95 – ING
Since the Swiss National Bank (SNB) startled the market in June with a raise of 50 basis points, EUR/CHF has held at a reasonable offering price. The economists at ING anticipate that the pair will continue to fall and reach a low of 0.95.
“SNB President Jordan is sounding rather hawkish at the moment,” indicating that far more significant issues than Ukraine influence inflation. These variables include energy transition, de-globalization, and demography.
“It appears reasonable to anticipate a rate increase of 75 basis points from the SNB in late September. A hawkish setting should imply that it continues to lead EUR/CHF down over the coming months – to 0.95 – to maintain the stability of the real CHF.”
GBP/USD might fall to 1.10 in the next months, according to ING.
The value of the pound has struggled over the summer. The economic analysts at ING anticipate that the GBP/USD pair might reach 1.10 during the next few months, which would be a significant drop.
As Europe and the UK face recession, GBP will probably remain under pressure. The recent decline in the price of Gilts implies that overseas investors do not approve of either the Bank of England’s intentions to begin selling Gilts or the expected plan of the incoming Prime Minister, Liz Truss, to provide vast amounts of unfunded government assistance.
Because it is a currency susceptible to growth, the sterling is expected to remain under pressure as Europe and the United Kingdom enter a recession.
1.10 is the potential loss for cable during the next few months.
Please click here for the Market News Updates from 5 September 2022.