Market Outlook

“US dollar cooled following PCE release, focus shifted to risky assets temporarily.” Greenback consolidates with largest daily loss in two weeks as recent data spur recession fear among traders. According to Bureau of Economic Analysis, Core PCE Price Index for May came in at 0.3%, slightly lower than forecast of 0.4%. The report highlights slight depreciation in terms of consumption,

“Fed is committed to use its tools to dial down inflation to 2%.” Dollar bulls marched substantially as Federal Reserve re-emphasized their commitment to quell inflation by raising interest rates. During the European Central Bank panel session, Fed Chair Jerome Powell commented that the US economy is well positioned to withstand negative impact from tighter monetary policy. While Powell

“ECB President Christine Lagarde failed to offer fresh insights with regards to policy outlook.” EURJPY remain restricted near double top’s peak after European Central Bank failed to offer any new insights. As of today, ECB is widely expected to follow the footsteps of its peers by raising interest rates in July to combat soaring inflation. While the central bank would tighten

“Dollar bulls wane as focus shifted towards other risky assets.” US dollar slipped during Asian trading session as traders seek higher yields from other risky assets. Prior, Federal Reserve have made it clear to tighten monetary policy at a faster pace to control rising inflation. As the market has fully digested the fact, in addition to lack of important data from the US, the limelight

“Bullard says recession fears are premature.” Greenback eases from the top, trimming some of its gains from last week as recession fears abate. Last Friday, St Louis Federal Reserve President James Bullard commented that recession fears are over exaggerated as the US economy is still buoyant. In addition, Bullard expressed that aggressive response via policy tightening is the best way to

“Powell delivers a rather contradicting element which disappoints traders.” US dollar appears choppy as market sentiment gets tangled up following testimony from Fed Chair Jerome Powell. Powell cited that they are going all out to control rising inflation in the country. However, he emphasized that the Fed may induce recession due to hastened tightening. His testimony came as US releases

“Recession fear induce higher demand for safe-haven.” AUD/USD pared its gains, touching fresh weekly low of 0.6880 after Fed Chair Jerome Powell’s testimony in front of US Senate. During the session, Powell reemphasized that they are committed to bring down inflation. While pace of tightening would depend on upcoming data, he also acknowledged for the first time that their action might

“Deficit widens for New Zealand; greenback continues to triumph.” NZD/USD slumps towards intraday low following downbeat trade data during early Wednesday trading session. Last month, Trade Balance depreciated to $263 million, significantly lower than previous month of $440 million. Deficit continues to deepen in New Zealand as the China-reliant economy faced with lower exports due to

“EU bound to raise interest rates as soaring inflation erodes savings and jeopardizing corporate profits.” Traders shifted their focus towards euro despite heightened political risk in France after President Emmanuel Macron failed to secure an absolute majority in the parliamentary election. Yesterday, European Central Bank President Christine Lagarde reemphasized to raise interest rates

“Oil price slumps further as sentiment remains sour.” Global oil price is feeling the blues as investors’ sentiment remain fragile over slowing economic growth and supply concerns. Exports from Russia remains diminished due to sanctions from the United States. While the impact was partially mitigated by global petroleum reserves, it may not sustain if the issue were to prolong. This may