NZ CPI inflation data confirmed inflation was falling and that rates are likely to soften this coming year, adding downside pressure to the NZD. This coming week though, will be all about speculation over the FOMC meeting and what the reserve currency will do. The Fed are likely to leave rates unchanged but a hawkish narrative may drive the USD higher, adding downward pressure to the KIWI.
Current level: 0.6110
Support: 0.6080
Resistance: 0.6200
Last week’s range: 0.6075-0.6135
The European economy is suffering recessionary economic conditions and a good indication of the future will be the measures of CPI/inflation and GDP/growth, in the coming week. Recent spikes in inflation, if confirmed by CPI data this coming week, will encourage the ECB to hold rates and extend the tight monetary conditions. Negative growth will only add pressure to the ECB to cut rates, so the data this coming week is of major significance.
Current Level: 1.6461
Resistance: 1.6595
Support: 1.6390
Last Weeks Range: 1.6433 – 1.6570
The European economy is suffering recessionary economic conditions and a good indication of the future will be the measures of CPI/inflation and GDP/growth, in the coming week. Recent spikes in inflation, if confirmed by CPI data this coming week, will encourage the ECB to hold rates and extend the tight monetary conditions. Negative growth will only add pressure to the ECB to cut rates, so the data this coming week is of major significance.
Current Level: 0.6075
Resistance: 0.6095
Support: 0.6025
Last Weeks Range: 0.6034 – 0.6085
Last week’s resurgence in inflation in the UK was confirmed by the rising CPI. This coming week the Bank of England will consider this and probably extend the ‘higher for longer’ interest rate settings. This will support the stronger GBP, with any dovish sentiment from the Fed, only adding to the Cables strength.
Current Level: 1.9290
Resistance: 1.9385
Support: 1.9190
Last Weeks Range: 1.9214 – 1.9358
Last week’s resurgence in inflation in the UK was confirmed by the rising CPI. This coming week the Bank of England will consider this and probably extend the ‘higher for longer’ interest rate settings. This will support the stronger GBP, with any dovish sentiment from the Fed, only adding to the Cables strength.
Current Level: 0.5184
Support: 0.5151
Resistance: 0.5215
Last week’s range: 0.5165 – 0.5204
Commodity prices remain key to the economic performance of the Australian economy. A measure of Australian Commodity Prices comes out in the coming week, along with final PMI data. Expectations are not high, so recessionary conditions are expected to remain, with the FOMC meeting this coming week, being the greatest influencer. The AUD has traded around 0.6600 for the last week, but the Fed and their decision is likely to have greater impact on the AUD trading direction.
Current Level: 0.6589
Support: 0.6530
Resistance: 0.6635
Last week’s range: 0.6554 – 0.6619
European economies are suffering recessionary economic conditions, as confirmed by the flash PMI data released this week. Final PMI data will probably confirm this, in the coming week, while the market focus will turn to European growth and inflation. EU and member states inflation and GDP growth rates are set to be released, this coming week, and this will determine how the ECB will plan monetary policy. If inflation is confirmed as resurgent then rates will remain higher for longer. Alternatively, if GDP growth rates remain dire, the ECB may be encouraged to stimulate the European economy with rate cuts.
Current Level: 1.7758
Resistance: 1.7955
Support: 1.7670
Last Weeks Range: 1.7695 – 1.7930
European economies are suffering recessionary economic conditions, as confirmed by the flash PMI data released this week. Final PMI data will probably confirm this, in the coming week, while the market focus will turn to European growth and inflation. EU and member states inflation and GDP growth rates are set to be released, this coming week, and this will determine how the ECB will plan monetary policy. If inflation is confirmed as resurgent then rates will remain higher for longer. Alternatively, if GDP growth rates remain dire, the ECB may be encouraged to stimulate the European economy with rate cuts.
Current Level: 0.5631
Support: 0.5555
Resistance: 0.5665
Last week’s range: 0.5577 – 0.5651
The GBP has been fairly static, but may show some signs of life in the coming week, due to the Bank of England rate decision. Inflation in the UK jumped back to 4%, from 3.9%, reversing sharp recent falls. This will only encourage the Bank of England to leave interest rates ‘higher for longer’, thus supporting a stronger Pound.
Current Level: 2.0820
Resistance: 2.0965
Support: 2.0695
Last Weeks Range: 2.0710- 2.0937
The GBP has been fairly static, but may show some signs of life in the coming week, due to the Bank of England rate decision. Inflation in the UK jumped back to 4%, from 3.9%, reversing sharp recent falls. This will only encourage the Bank of England to leave interest rates ‘higher for longer’, thus supporting a stronger Pound.
Current Level: 0.4823
Resistance: 0.4840
Support: 0.4765
Last Weeks Range: 0.4776 – 0.4828