MNI: GERMANY Q4 FLASH GDP -0.2% Q/Q, -0.2%Y/Y

test message from mni

MNI FED WATCH: Powell-No Hurry To Cut Still-Restrictive Rates

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100 BPS TO 13.25%

MNI: Fed Statement Comparison - January vs. December

MNI INTERVIEW2: New NBH Chief Must Clarify Reaction Function

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI: EUROZONE Q4 PRELIM FLASH GDP +0.9% Y/Y

MNI: EUROZONE DEC UNEMPLOYMENT RATE 6.3%

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: Currency Markets Stabilise Ahead of CB Decisions, Greenback Recovers

FOREX
EM BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Overall, G10 FX markets have traded in a more stable manner on Tuesday following the sharp volatility exhibited during Monday’s session. Following a brief bout of greenback strength during APAC hours on tariff related headlines, currency ranges have since held contained ranges as major central bank decisions are awaited across Wednesday/Thursday.
  • Both AUD and NZD are among the poorest performers, with AUDUSD extending its pullback this week to around 1.2% from last Friday’s close. Recent gains stalled at resistance around the 50-day EMA (intersecting at 0.6325), and the subsequent reversal lower suggests the possible end of the correction between Jan 13 - 24.
  • Key quarterly inflation data from Australia is scheduled on Wednesday, that may prompt the RBA to consider rate cuts. Q4 CPI is expected to show a drop to 2.5% from 2.8% y/y prior. A continuation lower for AUDUSD would bring the focus back on 0.6131, the Jan 13 low and the bear trigger. On the upside, a clear breach of the 50-day average is required to signal scope for a stronger recovery.
  • In similar vein, EUR and GBP have tracked around 0.5% lower on the session. Significantly, cable tested resistance at the 50-day EMA on Monday (intersecting today at 1.2520), and with this level holding, medium-term signals remain bearish for the pair. Fiscal matters remain in the spotlight this week with Chancellor of the Exchequer Rachel Reeves due to deliver a speech on Wednesday regarding how the government intends to boost economic growth.
  • Headlining the central bank docket tomorrow will be the Fed decision, with the press conference seen key in determining the FOMC’s stance on policy easing through 2025. Elsewhere, the Riksbank and the Bank of Canada decisions are scheduled, ahead of the ECB on Thursday.
287 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Overall, G10 FX markets have traded in a more stable manner on Tuesday following the sharp volatility exhibited during Monday’s session. Following a brief bout of greenback strength during APAC hours on tariff related headlines, currency ranges have since held contained ranges as major central bank decisions are awaited across Wednesday/Thursday.
  • Both AUD and NZD are among the poorest performers, with AUDUSD extending its pullback this week to around 1.2% from last Friday’s close. Recent gains stalled at resistance around the 50-day EMA (intersecting at 0.6325), and the subsequent reversal lower suggests the possible end of the correction between Jan 13 - 24.
  • Key quarterly inflation data from Australia is scheduled on Wednesday, that may prompt the RBA to consider rate cuts. Q4 CPI is expected to show a drop to 2.5% from 2.8% y/y prior. A continuation lower for AUDUSD would bring the focus back on 0.6131, the Jan 13 low and the bear trigger. On the upside, a clear breach of the 50-day average is required to signal scope for a stronger recovery.
  • In similar vein, EUR and GBP have tracked around 0.5% lower on the session. Significantly, cable tested resistance at the 50-day EMA on Monday (intersecting today at 1.2520), and with this level holding, medium-term signals remain bearish for the pair. Fiscal matters remain in the spotlight this week with Chancellor of the Exchequer Rachel Reeves due to deliver a speech on Wednesday regarding how the government intends to boost economic growth.
  • Headlining the central bank docket tomorrow will be the Fed decision, with the press conference seen key in determining the FOMC’s stance on policy easing through 2025. Elsewhere, the Riksbank and the Bank of Canada decisions are scheduled, ahead of the ECB on Thursday.