Hey Traders.
So this week we have a very interesting week in that there has been significant data releases that is giving us some valuable insight into what we could potentially expect in relations to the Rate Cuts for this year.
DXY
Starting with the DXY. Now just as a formality, the DXY is a weighted basket of currency pairs all paired agains the US dollar.
Now the DXY has seen its best run since last year and the most recent contributor to this is a statement released by the FED's Christopher Waller stating that the FED is within striking distance of their 2% inflation goal.
And according to the CME Fedwatch tool expectations for early rate cuts this year has eased to 60% verses roughly 75% prior.
This has resulted in a very impressive run from the Dollar also now regarded as a safe-haven currency as growing uncertainty remains in both the Chines and European economies.
GBP
CPI data was positive, denting the expectations for an early Bank of England rate cut.
Upon this data British government bond yields also jumped, with interest rate futures implying roughly 60% chance that the BoE would start cutting rates in mid May. This is down from what was previously 80% late Tuesday.
From a technical perspective we see that price has responded quite well to the daily 50 moving average as well as positive momentum across all higher timeframes.
So this week we have a very interesting week in that there has been significant data releases that is giving us some valuable insight into what we could potentially expect in relations to the Rate Cuts for this year.
DXY
Starting with the DXY. Now just as a formality, the DXY is a weighted basket of currency pairs all paired agains the US dollar.
Now the DXY has seen its best run since last year and the most recent contributor to this is a statement released by the FED's Christopher Waller stating that the FED is within striking distance of their 2% inflation goal.
And according to the CME Fedwatch tool expectations for early rate cuts this year has eased to 60% verses roughly 75% prior.
This has resulted in a very impressive run from the Dollar also now regarded as a safe-haven currency as growing uncertainty remains in both the Chines and European economies.
GBP
CPI data was positive, denting the expectations for an early Bank of England rate cut.
Upon this data British government bond yields also jumped, with interest rate futures implying roughly 60% chance that the BoE would start cutting rates in mid May. This is down from what was previously 80% late Tuesday.
From a technical perspective we see that price has responded quite well to the daily 50 moving average as well as positive momentum across all higher timeframes.