This week the focus of attention will be on the Reserve Bank of New Zealand policy meeting, the UK CPI data and the US Core PCE figures and the highlight would be to how NZDUSD, EURUSD and GBPUSD may react.
RBNZ decision → NZDUSD
This week, only the Reserve Bank of New Zealand will be having a policy meeting among the world’s major central banks. On Wednesday, most investors expect it to decide to increase interest rates by 25 basis points. This would be the 12th consecutive hike since the cycle began in October of last year, bringing the cash rate to 5.50%, the highest of any developed nation. NZDUSD is failing to continue the bounce off the 0.6175 support level but it remains above the short-term SMAs.
US PCE index → EURUSD
The preferred Fed pricing indicator, the core PCE, is expected to have slowed by 0.2 percentage points to 4.4% in April. After months of stagnation in the 4.6%-4.7% range, this would be a positive development. EURUSD is standing near the 1.0800 psychological number; however, the market stands beneath the long-term ascending trend line.
UK CPI → GBPUSD
The headline rate of UK CPI is anticipated to have dipped below 10% for the first time in April, falling to 8.3% from 10.1% in March. The CORE figure is anticipated to decrease to 5.7%. GBPUSD is currently in weakening movement, testing the 50-day SMA and holding above the uptrend line for now.
This week the focus of attention will be on the Reserve Bank of New Zealand policy meeting, the UK CPI data and the US Core PCE figures and the highlight would be to how NZDUSD, EURUSD and GBPUSD may react.
RBNZ decision → NZDUSD
This week, only the Reserve Bank of New Zealand will be having a policy meeting among the world’s major central banks. On Wednesday, most investors expect it to decide to increase interest rates by 25 basis points. This would be the 12th consecutive hike since the cycle began in October of last year, bringing the cash rate to 5.50%, the highest of any developed nation. NZDUSD is failing to continue the bounce off the 0.6175 support level but it remains above the short-term SMAs.
US PCE index → EURUSD
The preferred Fed pricing indicator, the core PCE, is expected to have slowed by 0.2 percentage points to 4.4% in April. After months of stagnation in the 4.6%-4.7% range, this would be a positive development. EURUSD is standing near the 1.0800 psychological number; however, the market stands beneath the long-term ascending trend line.
UK CPI → GBPUSD
The headline rate of UK CPI is anticipated to have dipped below 10% for the first time in April, falling to 8.3% from 10.1% in March. The CORE figure is anticipated to decrease to 5.7%. GBPUSD is currently in weakening movement, testing the 50-day SMA and holding above the uptrend line for now.
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