Euro Forecast: EUR/AUD, EUR/CAD, EUR/NZD Rates Outlook
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Euro Outlook:
The Euro has been weaker than one might expect against the trio of major commodity currencies as a risk-off mood has gripped global financial markets.
More significant breakdowns in pairs like EUR/AUD and EUR/CAD appear to be starting (or may soon), while EUR/NZD rates have not broken their pandemic downtrend yet, suggesting bears remain in control.
According to the IG Client Sentiment Index, the Euro has a mixed if not bearish trading bias.
Commodity Currency EUR-crosses Look Pessimistic
Global bond yields are soaring and global equity markets are tanking. The US Dollar is in vogue as the world’s reserve currency, backed by higher US Treasury yields. Such conditions speak to a risk-off mood gripping global markets.
New Zealand Dollar Forecast: Long-term Bullish Outlook Unchanged - Setups for NZD/JPY, NZD/USD Advertisement
New Zealand Dollar Outlook:
Both NZD/JPY and NZD/USD rates have fallen back from their yearly highs set just last week, but that doesn’t mean bulls are done yet.
The RBNZ’s change in remit actually makes its monetary posture more hawkish relative to its previous moorings, and moreover, much more hawkish than other central banks.
New Zealand Dollar Bolstered by RBNZ
While central banks like the Bank of Canada and the Reserve Bank of Australia lodge complaints about the Federal Reserve due to the status of their appreciating currencies, the Reserve Bank of New Zealand has a different opponent when it contends with its appreciating currency: itself. The recent change in the RBNZ’s remit actually makes its monetary posture more hawkish relative to its previous moorings, and moreover, much more hawkish than other central banks.
British Pound Forecast: Digesting Gains Around Spring Budget - Levels for GBP/JPY, GBP/USD, EUR/GBP Advertisement
British Pound Outlook:
After a strong run higher, the British Pound may be due for a period of pullback, if not consolidation, before further gains. But longer-term technical studies suggest more strength for Sterling.
Reaction to the UK Spring Budget was muted among the major GBP-crosses, not a surprise given that the contents of the budget are known ahead of the official parliamentary unveiling.
The latest shifts in retail trader positioning suggest different biases among the major GBP-crosses.
UK Spring Budget a Reason to Pause