empty
 
 

Forex Analysis & Reviews: Recent rebound does not change the overall trend in markets (look out for a local increase in USD/CAD and USD/JPY)
time 29.09.2022 10:25 AM
time Relevance up to, 01.10.2022 09:15 AM

Stock markets in Europe and North America bounced back on Wednesday, thanks to growing demand for US Treasuries, which put pressure on their yields and dollar. There were no special reasons for growth, but the closing of short positions after a multi-day sell-off helped the markets recover the previous losses.

However, the hawkish rhetoric of the Fed pointed to a continued increase in interest rates in the foreseeable future, so stock futures started to decline again today. Minutes ahead of the European trading session, the yield on 10-year bonds grew by 3.15% to 3.824%, while futures fell from 0.36% to 0.70%. This is a strong bearish signal for the equity markets and a significant support factor for dollar.

Due out today is Germany's data on consumer inflation and revised US GDP figures for the second quarter. Forecasts say the former will rise to 1.3% m/m and 9.4% y/y, which will prompt the ECB to raise rates again by 0.75%. But this is unlikely to stimulate a strong growth in euro as the currency is affected by the current economic situation in the Eurozone. The latter, meanwhile, is expected to show a slight decrease to -0.6%, but a much larger fall will put pressure on market sentiment, which will increase the sale of stocks and purchases of dollar.

Forecasts for today:

This image is no longer relevant
This image is no longer relevant

USD/CAD

The pair is currently testing the level of 1.3715. If it rises above it, further growth to 1.3835 is possible, especially amid a decline in crude oil prices and general negative dynamics in the markets.

USD/JPY

The pair is currently testing the resistance level of 145.00. If it rises above it, further growth to 146.00 is possible, especially amid a general negative dynamics in the markets and resumption of growth in the yield of US Treasuries.

Pati Gani,
Analytical expert of InstaForex
© 2007-2023
USDJPY
US Dollar vs Japanese Yen
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Oil maintains bullish outlook

When everyone is selling, there is a great opportunity to buy. The strong U.S. employment statistics for January and the related strengthening of the U.S. dollar were good news

Marek Petkovich 09:44 2023-02-07 UTC+2

Collapsing house prices is about to become another problem for the Bank of England

Pound slumped due to the recent statements made by Bank of England representatives. Obviously, the latest interest rate hike was not enough, and the sharp reversal and soft tone

Jakub Novak 08:30 2023-02-07 UTC+2

GBP/USD. Overview for February 7, 2023

Without even an indication that a correction was about to start, the GBP/USD currency pair resumed its downward trend on Monday, which started after last week. As market participants might

Paolo Greco 06:02 2023-02-07 UTC+2

EUR/USD. Overview for February 7, 2023

As predicted yesterday, the EUR/USD currency pair continued to decline on Monday, albeit with less volatility. Given that neither the US nor the EU released any significant macroeconomic information

Paolo Greco 05:39 2023-02-07 UTC+2

Turkey halted oil exports after major earthquake

Oil rebounded from lows as flows to a key Turkish terminal were suspended and part of a major European field was shut down. The US crude oil benchmark known

Andrey Shevchenko 22:56 2023-02-06 UTC+2

What conclusions can we draw after three meetings?

As a result, meetings of the three central banks took place last week. As analysts and economists have been formulating theories regarding interest rates and the rhetoric of central bank

Chin Zhao 18:25 2023-02-06 UTC+2

AUD/USD: Australian dollar awaits RBA verdict

During Tuesday's Asian trading session, the Reserve Bank of Australia will summarize the results of its first meeting of the year. This is by no means a passing event, although

Irina Manzenko 17:38 2023-02-06 UTC+2

AUD/USD: ahead of the RBA meeting

After rebounding last Thursday from a local 10-month low of 100.68, the dollar index (DXY) rose sharply on Friday. The U.S. labor statistics published on Friday contributed to the strengthening

Jurij Tolin 17:26 2023-02-06 UTC+2

Three reasons for euro's weakness

Who is to blame for a collapse in the EUR/USD pair? Christine Lagarde with her confusing comments? Surprisingly strong data on the US labor market for January? Or the Chinese

Marek Petkovich 14:53 2023-02-06 UTC+2

What does lower inflation mean for the dollar?

On August 25, 2022, participants from 34 countries gathered in Jackson Hole, Wyoming for the annual economic policy symposium hosted annually by the Federal Reserve Bank of Kansas City

Irina Yanina 11:45 2023-02-06 UTC+2
Can't speak right now?
Ask your question in the chat.