Forex News for 9th May, 2023

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May 9, 2023
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Forex News
  • Even though the banking crisis in the US economy seems to be subsiding at the moment, the Federal Reserve has cautioned that the US economy may slow down because a credit crunch could occur as a result of the turmoil.
  • In an effort to lower the elevated inflation in the economy, the Bank of England is anticipated to announce its 12th straight rate hike with a 25 basis point increase in interest rates. 
  • Prior to this Wednesday’s scheduled release of the US CPI figures, a stable inflation report is expected. The USD and the major pairs will undoubtedly experience some volatility as a result. 
  • In the long term, the bearish trend will continue for the US Dollar, however recently there has been a small surge against the trend.  However, the downtrend may present a favourable chance to get into pairs like GBP/USD and EUR/USD  and enter long trades. The Japanese Yen continues to exhibit strength in the short term, while the Euro seems to be the weakest currency at the time. 
  • According to Bank of Japan Governor Ueda, the banking crisis in the US and EU won’t have a substantial influence on Japan. They are also observing some encouraging indicators for the economy to rebound, but they also anticipate an increase in inflation levels. 
  • According to Philip Lane, chief economist at the European Central Bank, the  inflation in the Eurozone is slowing down and will gradually fall by year’s end, but for the time being, momentum will be strong because it will likely take more than two years to reach the 2% target.  
  • Prior to major economic data releases, which will serve as the next catalyst for the price action that is set to occur after this week’s data releases, the forex market is experiencing a lot of sideway movements. 
  • Due to rising US bond yields, the price of gold has been battling to rise and gain some pace, and the price of bitcoin has continued to decline as a result of uncertainties regarding the cryptocurrency market. 
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