- The past 24 hours have brought a series of interesting drivers into FX markets, with last night’s RBNZ rate decision leading into this morning’s ‘Super Thursday’ at the Bank of England. Shortly after that rate decision concluded at the BoE, we received April inflation numbers out of the United States.
- While US inflation remains strong, with headline printing at one-year highs while Core inflation remained above 2%, the US Dollar[1] is pulling back after what’s been an aggressively-strong three-week run. The big question at this point is whether we see re-ignition of the longer-term bearish drive, or whether this morning’s sell-off is a pullback in a move of bullish continuation in USD[2]. We look at pairs for either scenario below[3], looking to GBP/USD[4] for a deeper reversal of USD-strength and the short-side of NZD/USD[5] for a continuation of this recent theme.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
US Inflation Numbers (CPI), Bank of England ‘Super Thursday, RBNZ Rate Decision
It’s already been a busy morning across global markets as we near the US equity open. The Bank of England hosted their second ‘Super Thursday’ rate decision of the year,
