In this article, we have covered the highlights of global market news about the NZD/USD, USD/JPY, EUR/GBP and USD/TRY.
NZD/USD is on the defensive as the USD weakens.
The NZD/USD pair saw some selling on Thursday, retreating from a multi-week high between 0.6270 and 0.6275 the day before. The pair continued to trade in a defensive posture during the early part of the European session. They were last seen trading in the vicinity of 0.6225 and 0.6230, which is just a tiny number of pip increments above the daily low.
Bulls took a small break amidst concerns about the possibility of a recession after the recent strong rebound that increased the price by almost 200 pips from the region of 0.6060, representing the lowest level since May 2020. Investors continue to be worried about the quick rise in borrowing prices, the ongoing conflict between Russia and Ukraine, and the most recent breakout of COVID-19 in China, all of which might pose difficulties to the global economy. This, in turn, was considered a crucial element that worked as a headwind for the risk-sensitive New Zealand currency; however, the advent of new US dollar selling helped limit the downside for the NZD/USD pair.
The USD/JPY is approaching 138.50 as the Bank of Japan’s Kuroda seems cautiously hopeful.
In his address early on Thursday in Europe, the Governor of the Bank of Japan (BOJ), Haruhiko Kuroda, attempted to reintroduce monetary easing. This caused the USD/JPY currency pair to post slight gains around 138.30. The yen pair can maintain its post-BOJ comeback despite the market’s cautious optimism due to this action.
BOJ Governor Kuroda reaffirmed his commitment while stating that he would not be reluctant to relax monetary policy further if it is deemed appropriate. “Risks to the economy skewed toward the negative for the time being but will be balanced afterward,” says BOJ’s Kuroda. “Risks to the economy skewed toward the downside for the time being.”
EUR/GBP Price Analysis: EUR/GBP remains solid above 0.8500 inside the weekly bullish channel.
The EUR/GBP pair is now trading higher at 0.8530, and it has just refreshed its intraday peak while reversing the drop from a fortnight high that it experienced the previous day. This is happening ahead of Thursday’s European session.
As a result of this action, the cross-currency pair continues to trade inside the confines of a weekly rising trend channel while simultaneously touching the 100-week simple moving average.
Because the first RSI is only at 14, indicating that the market is not oversold and because trade has remained stable inside the weekly bullish channel, it is probable that the EUR/GBP prices will continue to be higher.
The 100- and the 200-day simple moving averages might limit quick gains to the upside at 0.8525 and 0.8555, respectively.
If the EUR/GBP pair can break above 0.8555, they may target a downward sloping resistance line that began on June 15 and is now located around 0.8630 as of this writing.
In the alternative, pullback movements must challenge the bullish channel pattern by breaking through the 0.8500 support.
USD/TRY falls from its annual high ahead of CBRT.
As the USD/TRY price falls to 17.58 ahead of Thursday’s European trading day, bulls in the currency pair take a break near a high that hasn’t been seen in seven months. As a result, the Turkish lira (TRY) pair posted its first daily loss in four days as market participants waited for a monetary policy meeting to be held by the Central Bank of the Republic of Turkey (CBRT).
The quotation brought the yearly high back up to its previous level earlier in the day as markets anticipate that the CBRT’s monetary policy will not alter even if the inflation rate in Turkey reaches an all-time high in May.
According to Reuters, at the beginning of this month, a worldwide credit rating agency lowered Turkey’s debt rating from “B+” to “B,” citing growing inflation and economic worries as the reason for the change. The explanation may be connected to the nation’s ongoing quest for qualitative measures and its opposition to a rate rise, even though headline inflation rates have reached an all-time high. Despite this, Turkey’s Consumer Price Index (CPI) reached a new all-time high of around 39.0 percent in June.
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