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What is a managed account? Should you use it? There are many ways to invest in the financial markets; one is by using a managed account. Think of it as […]

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Sharp Declines in Euro and European Markets Triggered by French Political Drama

Posted 15 June 2024

Global financial markets were abuzz with several high-profile events last week, including critical meetings of Fed and BoJ, alongside release of US inflation data. However, it was the escalating political turmoil in France that captured the most attention, significantly impacting Euro and overshadowing other major economic news. The common currency emerged as the week’s weakest […]

The post Sharp Declines in Euro and European Markets Triggered by French Political Drama appeared first on Action Forex.

Euro Resumes Decline as French Bond Risk Premium Surges Amid Political Turmoil

Posted 14 June 2024

Euro is once again capturing market attention today as this week’s significant selloff resumes. The steep decline has been driven by rising political tensions in France, as the snap parliamentary election called by President Emmanuel Macron has heightened investor anxiety, particularly as left-wing parties coalesce against him. There is a growing concern among market participants […]

The post Euro Resumes Decline as French Bond Risk Premium Surges Amid Political Turmoil appeared first on Action Forex.

BoJ Decision Sends Yen Plummeting as Taper Plan Delayed

Posted 14 June 2024

The Japanese Yen has taken a significant hit today, losing ground against all major currencies after BoJ refrained from detailing an immediate plan to taper its bond purchases. In the lead-up to the announcement, expectations were high among traders and investors that BoJ would begin tapering soon, fueled by multiple media reports. However, the central […]

The post BoJ Decision Sends Yen Plummeting as Taper Plan Delayed appeared first on Action Forex.

Markets Week Ahead: BoE, SNB, RBA Deliberate on Rates

Posted 15 June 2024

Three major central banks meet this week with a large focus on the UK as the improving CPI trend could usher in a dovish tone from the BoE. RBA to hold, SNB to cut?

British Pound (GBP) – Bank of England and Inflation Data on Deck Next Week

Posted 14 June 2024

UK inflation is expected to fall further next week and that may give the Bank of England a bit of wiggle room when discussing future rate cuts

French-German Bond Spread Widens, Signaling Euro Weakness Ahead of Elections

Posted 14 June 2024

The euro faces a challenging week as political uncertainties in France outweigh the brief reprieve from US CPI data. EUR/USD and EUR/GBP technical analysis reveals key levels

US Dollar Index Prints a One-Month High, USD/JPY Rallies Post-BoJ Meeting

Posted 14 June 2024

The US dollar is benefiting from a bout of weakness in the Euro and the Japanese Yen and is nearing levels last seen one month ago.

US Dollar Index rises amid weak EUR and JPY performance

Posted 14 June 2024

USD - United States dollar

The US Dollar Index (DXY) was up more than a third of a percent to start Friday’s session as the two largest contributors to the 6 currency US Dollar Index (DXY) struggled. The euro was dealing with political uncertainty as well as an overnight release of French inflation that fed rate cut expectations. Also overnight, the Bank of Japan (BoJ) held rates as expected but fell short of market expectations for bond buybacks. On the docket today, markets will look towards the University of Michigan consumer confidence survey which is expected to rise to 72 on the index from 69 last month.

Key Movers

The euro continued to fall against the USD as the world’s second-biggest currency faced political uncertainty following last week’s elections. Adding to this was the snap call for elections in France this summer. Economically, inflation in France released this morning showed signs of calming with the harmonized rate coming in at 2.6%, lower than the expected 2.7%. This fed expectations of a rate cut from the European Central Bank (ECB) at its July meeting.

In Japan, the BoJ held rates at 0.1% overnight as expected. Weighing on the Yen though was the decision to hold off on pairing back the bank’s bond buyback program. BoJ members did say that they would start slowing this down in the future but that markets would have to wait until their July meeting for details.

The Canadian dollar was down this morning against the USD as markets moved in favor of the greenback. With no data releases in Canada today, the Loonie struggled as the USD gained. Oil was up this morning with West Texas Intermediate (WTI) crude oil prices heading back towards the $80 a barrel mark. This came on the back of separate reports from The Organization of the Petroleum Exporting Countries (OPEC) and Goldman Sachs showing that oil demand should remain strong through 2024.

Expected Ranges

EUR/USD: 1.0674 - 1.0806 ▼

GBP/USD: 1.2679 - 1.2789 ▼

AUD/USD: 0.6606 - 0.6712 ▼

USD/CAD: 1.3695 - -0.6218 ▲