- It has been a quiet start to the week, with the US out yesterday for the Presidents Day holiday and a quiet data calendar ahead of us. The US dollar has started the week mixed against its G10 peers, with the dollar index initially dropping a touch before paring losses with EURUSD hovering within its tight recent trading range. Solid support is seen at 1.0720 and resistance comes in at 1.0830, with the pair treading water with upcoming PMI’s and the minutes of the last ECB meeting on investors minds.
- The pound has slipped against the greenback after rallying a touch yesterday with the pair running into offers around 1.2630, pushing cable below the psychological 1.26 area where it attempts to consolidate. EURGBP has moved higher, breaching the 0.8550 level which has proved stubborn resistance as markets await a speech from BoE Governor Andrew Bailley later today in an otherwise quiet session for data releases.
- China further boosted its support for its troubled property sector producing its biggest ever cut to a key mortgage rate, slashing their five-year loan prime rate by 25 basis points, raising speculation of more aggressive measures to support the economy. The ongoing property crisis in China has been a huge drag on the world’s second largest economy with the move aimed to entice homebuyers as property sales continue to slump.
- The Reserve Bank of Australia kept interest rates on hold at its first policy meeting of the year, but considered raising rates, agreeing that the case to pause was the “stronger one”. Cooling inflation and weaker than expected jobs and consumer spending prints prompted the RBA to keep rates unchanged at a 12 year high, with minutes suggesting that further monetary tightening remains a possibility in their ongoing quest to return inflation to target.
We are using cookies to give you the best experience on our website. Download the GPS Cookies Policy for more information. The main types of cookies we use are as follows: strictly necessary cookies, performance cookies, advertisement cookies, and analytics cookies. You can find out more about which cookies we are using or switch them off in settings. Except for strictly essential cookies, you have also the option to decline the usage of cookies at any time. You can do this through this cookie management panel, which appears when you first visit, and you can access it independently through the link provided at the foot of the page.