James Stanley

Next week is huge with multiple high impact Central Bank rate decisions and the focus will be on hints of future rate hikes that could create ripple effects across the FX market.

Next week brings the European Central Bank rate decision and the big question is whether the bank will be hiking rates in the coming months.

It’s a big week for the British Pound, along with the USD, JPY and Euro, as each economy has a central bank rate decision and two of those banks may be looking to hike rates in the coming months.

The next few days are probably going to be intense with the Fed, ECB, BoE and BoC all hosting rate decisions. Meanwhile gold broke down early in the session and tries to grasp on to support amidst a rally in the DXY basket.

Central bank week continues with the European Central Bank and the Bank of England tomorrow morning, with USD/JPY holding above the 160.00 level to go along with a broad theme of USD-strength.

It’s been busy as was expected given the central bank meetings in both the US and Europe, but it was perhaps the Yen intervention that’s had a larger role on EUR/USD price action over the past 24 hours. EUR/USD has put in a bounce from a key support level while setting up a bullish reversal formation on short-term charts.

A widely reported intervention out of Japan has sent the USD/JPY pair spiraling lower. While the sell-off has seemingly stalled for now, it doesn’t mean that the move is over yet.

SPX just finished its strongest month since 2020 when Covid stimulus was still fueling markets, and buyers continue to show an insatiable appetite for risk despite several dark clouds on the horizon.

USD/JPY is on the verge of fresh 40-year highs and while many retail traders appear to expect some form of intervention the reality is it's not such a simple matter.

Weakness can be opportunity, particularly when a counter-trend move shows in a broader theme that remains in-place. Markets are still pricing in rate hikes for later this year and the below-expected CPI print earlier this morning produced a pullback in the US Dollar.