News

EURJPY recovers losses but lacks new highs. Mixed signals; breakout above 164.20 or below 159.70 needed. EURJPY has been range-bound after immediately recouping the steep drop to 158.14 last week. Persistent rejections around the 163.00 area have capped upside momentum, but not all signs are negative. A bullish cross between the 20- and 200-day SMAs […]

The post EUR/JPY Sits on the Sidelines as ECB Rate Decision Looms appeared first on Action Forex.

Just six days ago, we highlighted the historic breakthrough of the $3,200 level for the first time. Now, as the XAU/USD chart shows today, the price of an ounce of gold on global exchanges is fluctuating above $3,300. Bullish sentiment is being driven by a weakening US dollar and rising trade tensions between the United […]

The post Gold Price Surpasses $3,300 for the First Time in History appeared first on Action Forex.

Rate cuts by year-end

• Fed: 86 bps (84% probability of no change at the upcoming meeting)
• ECB: 79 bps (99% probability of rate cut at today’s decision)
• BoE: 79 bps (87% probability of rate cut at the upcoming meeting)
• BoC: 45 bps (52% probability of no change at the upcoming meeting)
• RBA: 118 bps (78% probability of 25 bps rate cut at the upcoming meeting)
• RBNZ: 78 bps (99% probability of rate cut at the upcoming meeting)
• SNB: 24 bps (74% probability of rate cut at the upcoming meeting)

* for the RBA, the rest of the probability is for a 50 bps cut.

Rate hikes by year-end

• BoJ: 14 bps (99% probability of no change at the upcoming meeting)

Since yesterday’s update we got some slight changes in the pricing. There is a less dovish pricing for the RBA following the solid Australian employment report today (although it remains pretty aggressive compared to just three weeks ago). Some positive comments from BoJ officials regarding the need of rate hikes have also impacted the expectations with a slightly more hawkish pricing.

This article was written by Giuseppe Dellamotta at www.forexlive.com.