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GBPCAD - Jumps as BoC resists raising rates

No breakout yet, though The pound has been range-bound against the Canadian dollar for the last week and that remains the case so far today, despite the Bank of Canada holding off on raising interest rates. It had been expected to start the tightening cycle today, with the market's pricing in up to five more over the course of the year after inflation hit a 30-year high and the labour market improved. But with the central bank taking a more patient approach and instead laying the foundations

26-01-2022 11:58 GMT by Craig Erlam

Pound steady ahead of FOMC

The British pound has ticked higher, trading just above the 1.35 line in the North American session. We could see stronger movement from GBP/USD later today, after the release of the FOMC policy decision. The British pound is sensitive to risk, so a strong reaction from the financial markets will likely be reflected in the pound's movement as well. Investors are keeping both eyes on the FOMC policy meeting, although policy makers are not expected to make any changes in monetary policy.

26-01-2022 11:44 GMT by Kenneth Fisher

NZ dollar flat ahead of CPI and the Fed

It has been a quiet week for the New Zealand dollar, but that could change later in the day, with two key releases. The Federal Reserve holds a policy meeting and New Zealand releases CPI for the fourth quarter. The currency markets have been steady this week, in contrast to the equity markets, which have seen sharp drops ahead of today's FOMC meeting, the first in 2022.

26-01-2022 09:46 GMT by Kenneth Fisher

Another promising rebound

We're seeing a strong start to trading on Wednesday after what has been a very turbulent start to the week. We've seen some sharp sell-offs already this week but investors appear to be encouraged by just how quickly and strong markets have bounced back. Monday looked like it was going to be a bloodbath in equity markets but rather than panic, investors poured back in and seized upon the lower valuations. We saw this again after the close on Tuesday, when Microsoft earnings caused another wobbl

26-01-2022 09:32 GMT by Craig Erlam

Oil eyes USD 100, gold awaits FOMC

Oil eyeing triple figures after brief pullback Oil prices are continuing to edge higher after a brief pullback last week. The move followed some turbulence at the start of the week and came as API reported an 872,000 barrel draw which exceeded expectations.

26-01-2022 09:26 GMT by Craig Erlam

Canadian dollar rises ahead of BoC decision

The Canadian dollar is usually sleepy before the North American session. Today has been unusual, with the currency showing recording steady gains in the Asian and European sessions.

26-01-2022 05:53 GMT by Kenneth Fisher

Euro drifting ahead of FOMC meeting

The euro continues to have a quiet week and is trading just shy of the 1.13 level. All eyes on FOMC It has been a calm week for the euro, but that could change later today when the FOMC releases its policy decision. Fed policy makers are in an unenviable position, as they strive to find that proper balance between responding to the inflation threat while also being careful not to be overly aggressive in raising interest rates. If the markets feel that the Fed has not achieved this delicate ba

26-01-2022 04:08 GMT by Kenneth Fisher

NAS100 - Heading for bear market territory?

Fed a big test on Wednesday It's been a wild ride so far this year and there may still be plenty more to come. The NAS100 has smashed through key support levels on an almost weekly basis and now sits around 15% off its highs, thanks to a remarkable rebound on Monday. The index has trended lower once more today but remains above yesterday's lows which could be a promising signal. Turnarounds like yesterday don't happen very often and the power of the rebound could be viewed as an encouraging s

25-01-2022 16:55 GMT by Craig Erlam

Gold rally, oil higher on geo risks

Gold/FX Gold is rallying as investors run to safety over fears the Fed will aggressively tighten policy and as the list of geopolitical risks continues to grow: The Russian-Ukraine standoff will remain a tense situation for the foreseeable future, North Korea may resume nuclear tests, and Iran nuclear talks are approaching a decisive moment. The dollar edged higher as the Treasury steadied into the start of the two-day FOMC policy meeting. Oil rises over Russia/Ukraine jitters Geopolitical r

25-01-2022 15:21 GMT by Edward Moya

Market volatility remains elevated, another stock market comeback, US data, bitcoin base formed

Market volatility remains elevated as investors are still feeling jittery over a very tense Ukraine-Russia situation, a whole range of inflationary issues that include a potentially aggressive Fed and a global chip problem that just won’t get any better. Optimism remains that a massive correction is still unlikely to happen because the US growth story will likely remain intact this year, but Wall Street is not seeing many buyers emerge ahead of the Fed and as the conflict in Ukraine escalates.

25-01-2022 15:16 GMT by Edward Moya

Euro falls, German business climate rebounds

The euro has fallen below the 1.13 level in Tuesday trade. EUR/USD is trading at 1.1266 in the North American session, down 0.55% on the day. Risk appetite down, greenback up The US dollar is higher against all the majors except for the yen, as risk sentiment has taken a tumble.

25-01-2022 10:31 GMT by Kenneth Fisher

Oil picture favourable, gold well supported

Fundamentals remain bullish for oil Oil got caught up in the sell-everything panic at the start of the week, sliding more than 3% at one stage before recovering a little. There wasn't much sense behind the move, but the fact that the dollar was strengthening and crude was already seeing profit-taking after peaking just shy of USD 90, probably contributed to it. The market remains fundamentally bullish and conflict with Russia does nothing to alleviate supply-side pressures.

25-01-2022 09:25 GMT by Craig Erlam

A huge few days for markets

It's been a rollercoaster start to what was always going to be a massive week in the markets and there's little reason to expect that to change in the coming days. The turnaround on Monday was incredible. From eye-watering losses to ending the day in the green; it's not often you see that kind of action.

25-01-2022 09:21 GMT by Craig Erlam

Swiss franc extends slide

The Swiss franc is down sharply on Tuesday, with USD/CHF climbing above the 92 line for the first time in two weeks. In the North American session, USD/CHF is trading at 0.9184, up 0.58% on the day. Investors will be keeping an eye on Swiss Economic Expectations which will be released on Wednesday.

25-01-2022 09:15 GMT by Kenneth Fisher

Dollar pushes yen above 114

The Japanese yen is slightly lower, as USD/JPY is trading at the 114 line in the European session. BoJ Core CPI rises After years of deflation, Japanese inflation indicators continue to point upwards. The latest gauge to confirm the upswing was BoJ core inflation for December, which rose from 0.8% to 0.9% y/y, above the consensus of 0.7%.

25-01-2022 07:33 GMT by Kenneth Fisher

Aussie yawns after inflation surges

The Australian dollar is flat on Tuesday, trading quietly at 0.7140 in the European session. Q4 inflation higher than expected Inflation remains on the move, as fourth-quarter CPI beat expectations. CPI climbed 1.3% q/q (1.0% exp.), up from 0.8% in Q2.

25-01-2022 04:58 GMT by Kenneth Fisher

Bitcoin - Brief respite or recovery?

Rollercoaster start to the week It's been an awful couple of months for bitcoin , plunging more than 50% from its highs and looking extremely vulnerable to further losses. What started as a correction in the cryptocurrency has morphed into part of a broader sell-off that's pummelled bitcoin along with other risk assets. The concerning thing for bitcoin is that there is still plenty of anxiety in the markets and it is not far away from a massive support level . Some may be encouraged by the re

24-01-2022 16:39 GMT by Craig Erlam

US Close: Stocks Claw back, Fed Preview, Oil drops, Gold steady, Bitcoin fights for its life

Stocks tried to claw their way back from a massive Monday liquidation that stemmed from rising fears of aggressive Fed tightening and on fears of Russian invasion of Ukraine. Investors may have gotten a bit too pessimistic about the growth outlook and the market selloff looked more like a reaction that the Wall Street was thinking the Fed could signal a 50-basis point rate hike for the March meeting and a late spring kickoff to the balance sheet runoff. Fed Preview Market expectations going in

24-01-2022 15:22 GMT by Edward Moya

Oil prices ease, gold pares gains

Oil lower but fundamentals remain bullish Oil prices are lower at the start of the week as we continue to see some profit-taking alongside another hit to risk appetite. It's been a remarkable rally and there's nothing to suggest that prices are peaking.

24-01-2022 11:39 GMT by Craig Erlam

Make or Break Week

Another woeful start to trading on Monday, as heightened geopolitical risk compounds investor anxiety and drags on risk assets. It could be a make or break week for the markets, with the Fed meeting on Wednesday, big tech earnings, and ongoing tensions on the Ukraine/Russia border. That may sound a bit over the top given how deep a correction we've already seen, particularly in the Nasdaq, but it could get much worse before it gets better. Wednesday is going to be massive.

24-01-2022 11:36 GMT by Craig Erlam

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