Forex News for 5th April, 2023

My FX List
April 5, 2023
  1. Mester, a Fed official, acknowledges the effectiveness of the central bank’s actions to stabilize banks and suggests raising rates above 5%.
  2. The RBNZ’s Orr implies that the central bank will continue to tighten policies to bring inflation within the target range of 1-3%, while the banking sector remains well-capitalized.
  3. BOJ has increased its offer to purchase JGBs for 10 to 25 years from 200 billion JPY to 250 billion JPY.
  4. The NZD/USD pair surged significantly after the RBNZ decision, following its consolidation against other forex counterparts in the previous trading day.
  5. The US Dollar declined in line with its long-term bearish trend in the Forex market yesterday but has since regained some strength. During the Asian session, the Canadian Dollar appeared to be the strongest major currency, while the Japanese Yen was the weakest. The decreasing volatility in the US Dollar puts more emphasis on currency crosses.
  6. The Reserve Bank of Australia surprised the market by not implementing the expected 0.25% rate hike. The RBA explained that it may still need to tighten monetary policy, but it wants to see more outcomes from its recent rate increases before deciding on further rate hikes. The Australian Dollar slightly weakened on this news but has not decreased significantly yet.
  7. The GBP/USD currency pair surged yesterday, almost reaching its multi-month high level, which could indicate a substantial bullish breakout in this currency pair in the coming days.
  8. Soft commodities, including the Sugar ETF CANE, are performing well, with CANE ending yesterday at a new multi-year high closing price.
  9. Following OPEC’s announcement of a surprise production cut over the weekend, the price of WTI Crude Oil remains above $80.
  10. Swiss CPI (inflation) data released yesterday revealed a more significant drop than anticipated, declining from a 0.7% month-on-month increase to 0.2%.


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