In this article, we have covered the highlights of global market news about the USD/JPY, USD/CNH, GBP/USD and USD/CAD.
USD/JPY could hit 153 by Q1 2023, according to Wells Fargo
According to Wells Fargo economists, the Bank of Japan’s FX intervention is unlikely to stop the yen decline, who also predict a weaker yen that will push the USD/JPY to 153.
We don’t expect the supportive Bank of Japan monetary policy to shift very soon because of Japan’s sluggish growth and inflation.
The USD/JPY exchange rate is predicted to hit 153.00 by Q1-2023. “We think FX intervention by Japanese authorities will have little impact in preventing additional yen depreciation,” the report said.
USD/CNH: 7.3500 is next on the rise, followed by 7.4000 – UOB
Additional increases in the USD/CNH now aim for the 7.3500 resistance level before 7.4000, said UOB Group economist Lee Sue Ann and markets strategist Quek Ser Leang.
“US Dollar rocketed to a new record high of 7.3322 before finishing higher by a massive 1.37%,” according to the 24-hour perspective (7.3257). A strong rising trend is anticipated to result in greater progress. A break of 7.3500 would not be unexpected, but 7.4000 is unlikely to be in view today, given the extreme overbought circumstances. Support is located at 7.3000, then 7.2800.
Within the next one to three weeks: “Yesterday, US Dollar broke over the key barrier of 7.3000 and soared to a brand-new record high of 7.3322. Even if the US Dollar strength that began around two weeks ago is severely overbought, the rise is still going strong. In other words, the overbought surge will probably continue. 7.4000 is the following note resistance level, followed by 7.3500. On the downside, a breach of the “strong support” level of 7.2600 would signal the end of the US Dollar’s uptrend.
GBP/USD might go below 1.10 later this year, according to ING.
The GBP/USD exchange rate is now below 1.13. Later in the year, according to ING economists, the pair will return to levels below the 1.10 mark.
0.8650-0.8800 is the current trading range for EUR/GBP.
“It is obvious that October 31 will be a significant day for the UK financial markets when Sunak/Hunt propose their fiscal fix. Although we support the dollar, we do not believe that the pair has to move beyond 1.15 to maintain beneath 1.10 goals for the rest of the year.
For the time being, “EUR/GBP to sketch out a 0.8650-0.8800 range.”
Citibank predicts that the USD/CAD will hit 1.40 in the following weeks.
The pair is unchanged at 1.3700. Citibank economists predict that during the following months, the pair will move smoothly toward 1.40.
Bank of Canada is about to stop. We update our 0-3m USD/CAD estimate to 1.40 but leave the 6-12m forecast constantly at 1.31 because of worse Canadian economic data; a Fed committed to keeping tightening into a global recession, and a BoC that is beginning to back off.
We have already warned about the dovish risk of the recent slowdown in housing data, employment, and GDP presented to the BoC’s policy path, and we are getting closer to when the BoC will change course or at least stop.
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