Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD: risk is making its way in?
Information is not investment advice
The economic background is still pretty heavy these days. The WHO warns that the worst is still to come in relation to the virus, and world state authorities are lowering their expectations of the economic output of their respective countries. Nevertheless, the risky mood doesn’t want to stay neglected juts because of the dire reality and makes its way into the stock and Forex market. While the former starts this week with a gain, the latter sees a weaker USD across the board.
The Aussie, a primary marker of risky market inclinations, is testing the resistance of the mid-term sideways channel that was containing it since the middle of June. If the trend stays, it will soon challenge the 6-month high set by the same June performance.
The British pound shows a similar trajectory to the one of the AUD but with stronger fluctuation and deviation from the main trend. After declining most of June, it is now looking upwards at the resistance of 1.2540.
The euro gives a stronger performance against the USD and seems to be confident with its higher lows than with its bullish spikes during the last 2 weeks. That pushes to the idea that if the mood persists throughout the week, it will cross the upper border of the trend and come to test 4-moths highs made in June at 1.1380.
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.