Test of corrective February bond/FX trend
“We forecast a gain in headline of 0.4% MoM, the largest since October. A hot number that lends credibility to the repricing of the Fed outlook could mean more trouble for risk assets and high beta FX, accelerate the unwinding of bullish January trends which have characterised the first two weeks of February.”
“Underwhelming data will trigger short covering in bonds (lower yields, steeper curve) and could place the dollar back on a weakening trend.”
“Dollar bulls will be inclined to raise targets to 105 area for the DXY (+1.9%) if data today and tomorrow exceeds expectations. This would correspond to 1.05 in EUR/USD and 1.19 in GBP/USD.”
EUR/USD recaptures 1.0750 ahead of US CPI
EUR/USD is picking up fresh bids to extend gains above 1.0750 in the European session. The US Dollar struggles to find demand and allows the pair to stay in positive territory as investors refrain from taking large positions ahead of the key US inflation data.
EUR/USD News
GBP/USD rises toward 1.2200 as focus shifts to US CPI
GBP/USD has gathered bullish momentum and climbed toward 1.2200 in the European trading hours. The data from the UK showed that ILO Unemployment Rate remained unchanged at 3.7% in December while annual wage inflation, ex-bonus, rose to 6.7%. US CPI is next in focus.
GBP/USD News
Gold clings to gains near $1,860, focus remains on US CPI report
Gold price attracts some buying on Tuesday and recovers a major part of the previous day’s slide to the $1,850 level, or its lowest level since January 6. Gold sticks to modest gains at around $1,860 as investors eagerly await the January US CPI data.
Gold News
Bitcoin holders brace for impact as BTC correlation with stocks increases ahead of US CPI release
Bitcoin holders brace for impact as BTC correlation with stocks increases ahead of US CPI release
Bitcoin holders are watching Tuesday’s US CPI data release with renewed focus as the correlation between crypto and tech stocks climbs to 0.74.
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