Financial market alerts

Traders are now pricing in 50/50 odds for both a BOJ rate hike and a Fed rate cut in December, setting USD/JPY up for volatility around key economic reports.

Learn how the Fed, ECB, and BOJ impact forex markets. Get answers to FAQs on interest rates, currency trends, and trading strategies in this must-read guide.

The Fed is seen as nearly 50/50 to cut interest rates again in December after Donald Trump and the Republicans secured a “Red Wave” last week - see what to expect from US CPI!

The US Dollar was very strong in October as rising odds of a Trump win started to get priced-in to markets, but can equities avoid a pullback if longer-term US rates continue to fly-higher?

The Fed has shifted its focus to employment data, but after a stellar jobs report, could CPI pick up again?

If you have a basic understanding of how the front-end rates markets work, you’ll almost certainly have better understanding of how influential it can be across a variety of asset classes. In the interest of improving that understanding, we looks at how one trade on Wednesday contributed to a sizeable US dollar rebound.

In the post-Bernanke “Fed Communication as a Policy Tool” era, this is the most uncertain that traders have ever been heading into a Fed meeting - what does that mean for markets?

Traders and economists expect the US CPI report to fall to 3.1% y/y on a headline basis, with the “Core” (ex-food and -energy) reading expected to hold steady at 3.4% y/y.

A confirmed break below $2275 support in gold would project a “measured move” objective for the pattern down around $2100.

Inflation reports are the main theme for next week, with figures set to be released from the US, Canada, Australia and Japan. EUR/USD traders might want to be on guard for headline risk surrounding French elections, as it is the last full week before votes are cast and that means polls could easily sway sentient for European markets.

Why might the Fed cut rates in July? Inflation is running below the Fed’s target with timely measures of shelter inflation, jobless claims are ticking up, monetary policy is tight per the Taylor Rule, and the election is looming.

GBP/USD has rallied 3.5% since April's low despite favourable yield differentials with the US. Yet price action on the daily and H4 charts suggests a minor pullback may be due.

USD/JPY could be vulnerable as cooling ISM Prices Paid and disinflationary base effects point to a potential decline in CPI inflation this month

Diverging interest rate expectations between the Federal Reserve and the rest of the developed world have been THE biggest story of the year for FX traders (USD/JPY in particular), and Friday’s Core PCE report will be the next major test to determine if that trend will carry over into Q2

155 has become the latest 'glass ceiling' for the rapid rise of USD/JPY. And with a key US inflation report, BOJ meeting and potential for risk-off sentiment next week, this key level could be tested and prompt a response from Japan's central authorities.

With traders keen to see who will be the first among the BOE, BOC or RBNZ to cut rates, their attention will be surely on next week's inflation reports for their respective regions.