- Industrial product price index (IPPI) 0.7% vs 1.0% estimate.
- IPPI YoY 16.1% vs 18.1% last month
- Raw material price index MoM -2.9% vs -1.3% estimate
- RMPI YoY 29.0% vs 36.2% last month
Articles
Germany Consumer Price Index (YoY) came in at 4.9%, above expectations (4.3%) in January
200141 January 31, 2022 21:40 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
AUD/USD to recover towards 0.74 after RBA leaves aussie on the back foot near-term – Rabobank
200140 January 31, 2022 21:35 FXStreet Market News
Having dipped below the AUD/USD 0.70 level on Friday to its lowest level since July 2020, the currency pair has bounced a little higher. With a hawkish tilt already expected from the Reserve Bank of Australia (RBA) on Tuesday, the aussie could be facing disappointment. Nonetheless, economists at Rabobank expect the AUD/USD pair to drift back higher towards 0.74 later in the year.
Near-term the RBA is likely to provide the cue for AUD/USD
“Over time it is likely that the AUD will lose some of its sensitivity to risk appetite given that Australia is no longer running a current account deficit and its government bond yields are no longer offering a large carry over their US counterparts. This should reduce speculative flows in and out of the currency. Another factor that should be supportive for the AUD is the current strength of commodities such as oil (a substitute good for coal) and LNG.”
“Even though the RBA could project a more constructive tone regarding the economic outlook at its February 1 meeting, there is a strong risk that Governor Lowe will push back at market expectations of progressive rate hikes this year. Although this could leave AUD/USD on the back foot near-term, we see AUD/USD recovering to the 0.74 level towards the latter part of the year as policy tightening from the RBA moves more clearly into focus.”
Full Article
Solana price set for $100 as crypto markets look to the upside
200138 January 31, 2022 21:35 FXStreet Market News
- Solana price keeps hovering above the monthly S2 support.
- SOL price sees RSI slowly climbing out of the oversold area on the RSI.
- Expect a pickup in bullish sentiment once Nasdaq confirms risk-on will be the central theme for this week.
Solana (SOL) price saw its bullish reversal stop short on Sunday and is now nearing the monthly S2 support level again at $89.28. Although ASIA PAC equity and European indices are firmly in the green, the sentiment has not spilled over to US futures and cryptocurrencies yet. Expect a bounce off the monthly S2 support level and look for a first test at $100 to the upside before continuation this week towards $130.70.
Solana bulls are pushing the RSI away from the oversold area
Solana price action saw bulls in good shape on Friday and Saturday, erasing a part of the games and trying to reach $100 to the upside. Instead, the sharp uptick stopped on Sunday as cryptocurrencies again looked heavy, with trading starting on Monday. Strangely enough, the most critical Asian indices and European indices are firmly in the green, where US futures are somewhat mixed and relatively flat during the European trading session.
Expect for SOL price to stay hovering around this S2 level as the Relative Strength Index (RSI) is still at or in an oversold area, limiting any potential downside for bears. This should help bulls to use this window of opportunity to go long and make a bounce off the S2 level at $89.28. Once US futures kick into gear and take over the sentiment from Europe, expect some bullish uptick again, targeting $100 intraday and $130.70 for this week.
SOL/USD daily chart
On the downside, a break below the S2 support level would see a dip towards the low from last week, around $82. If European indices give up their gains and turn red, together with US futures firmly in the red, expect to see another wave of selling, with a possible nosedive threat towards $58.84. With that move, the RSI would overshoot firmly into being oversold.
Canada IPPI for December 0.7% versus 1.0% estimate
200136 January 31, 2022 21:33 Forexlive Latest News Market News
- Canada producer price data and raw material price data for December 2021
Full Article
Canada Industrial Product Price (MoM) registered at 0.7%, below expectations (0.8%) in December
200135 January 31, 2022 21:33 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Canada Raw Material Price Index came in at -2.9% below forecasts (0.6%) in December
200134 January 31, 2022 21:33 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
What is on the calendar today?
200133 January 31, 2022 21:29 Forexlive Latest News Market News
What is on the economic/event calendar today.
- Canada industrial product price index and raw material price index will be released at 8:30 AM with estimates for IPPI at 1.0% and RMPI at -1.3%
- The FOMC member George will speak at 12:40 PM ET
The Chicago PMI index will also be released with expectations of 61.7 (9:45 AM) ET later today at 2 PM, the loan officers survey will be released.
Full Article
Russian Security Council says Bitcoin ban could backfire while BTC price teases bearish shift
200132 January 31, 2022 21:09 FXStreet Market News
- Bank of Russia proposed a ban on crypto issuance, exchanges and mining as it threatens the country’s financial stability.
- A former Russian President believes that a ban on Bitcoin could move activities to a “grey” area.
- Analysts predict Bitcoin could post a third month of losses with a bearish shift in momentum.
The Central Bank of the Russian Federation revealed plans to ban cryptocurrency issuance and related activities. The former President of Russia criticized the plan.
Bitcoin momentum could shift to bearish according to top indicator
Bank of Russia, the central bank of the Russian Federation, has revealed plans to ban Bitcoin, cryptocurrencies and related activities. Russian politicians and critics opposed the central bank’s restrictive policy on crypto.
Dmitry Medvedev, the former Russian President, now serves as Deputy Chairman of the Security Council. Medvedev argues that a ban on Bitcoin and crypto could backfire, having the opposite of the intended effect.
The former Russian President is quoted as saying:
To be honest, when you try to ban something, this very often leads to the opposite result.
Medvedev believes that restrictions on the issuance and circulation of Bitcoin and cryptocurrencies could halt the development of blockchain technology in Russia. The Russian Association for Electronic Communications (REAC) believes a ban would complicate control as market activities move to the “grey” area.
The RAEC issued the following statement:
The ban on the circulation of cryptocurrencies will leave Russia on the sidelines of the development of one of the fastest-growing digital markets at the moment, which will significantly slow down the innovative development of the country.
The moving average convergence divergence (MACD), a momentum indicator, shows the relationship between two moving averages of a cryptocurrency. As MACD histogram dropped below zero, analysts noted that this implies a “sell signal” in Bitcoin.
The indicator suggests that momentum could turn bearish, and selling pressure on Bitcoin may increase.
FXStreet analysts have predicted that Bitcoin price could crash to $30,000.
German Jan CPI MoM: 0.4% (Forecast -0.2%, Previous 0.5%)
200130 January 31, 2022 21:05 Forexlive Latest News Market News
- German Jan CPI MoM:
German Jan CPI MoM:
Full Article
USD/CAD pares intraday losses, bulls have the upper hand around mid-1.2700s
200129 January 31, 2022 21:05 FXStreet Market News
- A combination of factors assisted USD/CAD to attract some buying near the 1.2720 area.
- Retreating crude oil prices undermined the loonie and extended some support to the pair.
- The Fed’s hawkish stance, the risk-off impulse drove some haven flows towards the USD.
The USD/CAD pair trimmed a part of its intraday losses and was last seen hovering around mid-1.2700s heading into the North American session.
A combination of supporting factors assisted the USD/CAD pair to attract some dip-buying near the 1.2720 area on Monday, though the uptick lacked bullish conviction or a strong follow-through. An intraday pullback in crude oil prices undermined the commodity-linked loonie. Apart from this, the not so hawkish Bank of Canada rate decision to leave the benchmark interest rate unchanged last week continued weighing on the Canadian dollar and extended some support to the USD/CAD pair.
On the other hand, the prospects for a faster policy tightening by the Fed remained supportive of elevated US Treasury bond yields and acted as a tailwind for the US dollar. This, along with a fresh leg down in the equity markets, helped revive demand for the safe-haven greenback. That said, the flattening of the US Treasury yield curve held back the USD bulls from placing aggressive bets and kept a lid on any meaningful upside for the USD/CAD pair, at least for the time being.
Hawkish comments by Atlanta Fed President Raphael Bostic over the weekend bolstered bets of aggressive policy tightening by the Fed and dampened future growth expectations. This is playing out in the money markets, where the spread between two and ten-year US government bonds fell below 59 bps for the first time since early November. This, in turn, warrants some caution before positioning for the resumption of the USD/CAD pair’s recent move up from over two-month low, around mid-1.2400s set last week.
Market participants now look forward to the US economic docket – featuring the release of the Chicago PMI. This, along with the US bond yields, will influence the USD and provide some impetus to the USD/CAD pair. Apart from this, traders will take cues from oil price dynamics to grab some short-term opportunities.
Technical levels to watch
Full Article
Gold Price Analysis: XAU/USD going sideways in $1790 area ahead of US data/central bank packed week
200128 January 31, 2022 21:05 FXStreet Market News
- Spot gold is going sideways in the $1790 area ahead of a busy week for US data and central banks.
- XAU/USD looks vulnerable from a technical perspective after it fell under key levels of support last week.
- If strong/inflationary US data this week further boosts Fed tightening speculation, gold could be headed towards $1750.
Spot gold (XAU/USD) prices are going sideways in the $1790 area amid a quiet start to a busy week of central bank policy decisions and important economic data releases. The subdued tone to trade is not surprising given the lack of price action in FX and bond markets, where the DXY is consolidating close to recent highs above 97.00, as are bond yields, with the US 10-year just under 1.80%.
As attention turns to the US January ISM PMI surveys scheduled for release on Tuesday and Thursday ahead of the release of the official January labour market report on Friday, XAU/USD is looking vulnerable from a technical perspective.
Gold clatters below key support
Gold’s swift sell-off in the latter three days of last week that saw it drop more than 3.0% from around the $1850 level has seen the precious metal clear a number of key areas of support to the downside.
First, spot gold broke below an upwards trend channel that had been in plan since mid-December and secondly, spot prices broke below the 21, 50 and 200DMAs between the $1800-$1820 levels. For now, annual lows in the $1780s are offering support, but a break below here would open the door to a test of the December lows near $1750.
Hawkish Fed vibes weigh on gold
Federal Reserve Bank of Atlanta Raphael Bostic, whilst sticking to his expectation that the Fed would hike rates three times this year, hinted over the weekend that significantly more rate hikes could be in order should the data require it. He also openly hinted at the possibility that the Fed could depart from its usual policy of implementing 25bps moves by hiking interest rates by 50bps if required.
His remarks come on the back of last week’s hawkish Fed policy announcement that triggered speculation of as many as seven rates hikes in 2022 from some US banks, speculation which at the time hit gold hard (and benefitted the US dollar and US yields).
Upcoming jobs report key
On a week where strong US data could spur further hawkish speculation, gold also looks vulnerable from a fundamental perspective. Friday’s jobs report will be the most important metric to keep an eye on, with measures of labour market slack (unemployment and participation rate) and wage inflation (average hourly earnings growth) more important than the headline NFP number.
That is expected to be weak due to the spread of Omicron dissuading workers from returning to the workforce. Some analysts are calling for gold to head lower to $1600 if the wage and inflation data in the coming weeks (ahead of the March Fed meeting) suggests more persistent inflationary pressures than expected by the Fed.
Full Article
Chile Unemployment rate meets expectations (7.2%) in December
200127 January 31, 2022 21:02 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.