Daily Forex News

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Brazil’s Central Bank Increases the Selic Rate by 1.5% that Affect USD and BRL

Selic rate increased to 150 basis points on Wednesday, all thanks to the central bank of Brazil that has done this to set a benchmark . It’s the largest hike done by the bank in 20 years. The plans related to the additional financial spending have destroyed the hopes of the long-running inflation expectations but with the recent framework, risk will increase and it will unbalance things. The central bank of Brazil has also released a statement that determines that the market should also expect a rate hike similar to the past at the next policy meeting.

Real, the currency of Brazil is under extreme pressure as of now because the government has declared that it intends to ignore spending terms and help the strugglers with the money. The extra funds may build pressure on the policymakers of the central bank as the policy will continue to tighten at a fast pace to fight inflation. The officials of the central bank announced that they aim to hike 100 basis points or bps at this month’s meeting. However, things have gone more aggressively as the financial viewpoint of the country is shifted.

The rates of the Central bank had not hiked more than 100 basis points since the year 2002. As per the latest policy of the central bank of Brazil, it intends to return the inflation with the bank target. The prices of the consumer are rising as the year will end at 3.75%. This process of controlling the money will keep on picking up the pace as the bank will gain some confidence as per the medium-term prospects of the Brazilian economy. Let’s see how the policy is released and what impact it does on the economy of Brazil. For more information, keep in touch with our blogs and get the ultimate information about the forex news of the world. Read our other news to know more!

[Roger4l9]

I still find it weird that a bank from Brazil has so much influence on USD.

[xtreamforex]

EUR/USD will Raise More After Traders Ignore Dovish Lagarde

EUR/USD saw a long-time low phase that went on to rise on May 25 and stopped for 1.2266. This went on low to 1.1524 on October 12. This lowering of the currency pairs looks to be ending as the latest week’s price is indicating that the trend is going high and will continue to follow this trend. The European central bank decided not to change the monetary policy of governing council and the news was spread when President Christine Lagarde released this statement at the conference. She said that ECB will raise the Eurozone interest rates in 2022 because the inflation will fall off by then.

Lagarde stated that it could increase a lot more in the future but as the years will pass on, the pressure of price rise will slow down because the high energy prices will be out of the equation. The market is moving fast in easier way as expected, this has been moved to price in a position earlier than expected. As a result of this, the EUR/USD got higher.

Having the credit for what you have is of utmost importance is a central bank chief. The ECB may not move toward the reduction of the monetary programs at the December meeting where the new staff will process the economic projections. Thursday’s increase in the currency pair shows that a strong rise in the currency pair has now begun after the five-month downtrend.

The upcoming weeks will make the Euro even stronger than its previous prices as several events are coming like Eurozone that will affect it. Things will change especially in Australia, the US, and the UK as the central bank decisions are going to happen on Tuesday, Wednesday, and Thursday. Apart from this, the US nonfarm payroll data will be released on Friday. The data release is the second tier that includes the German retail sales, industrial production, factory order, and Eurozone retail sales unemployment.

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CAD Rises that Makes it Safe to Spend On

The week is going to be big for the global market because we are hearing a lot of reports out of the US and the macro calendar is loaded with Federal Reserve and nonfarm payrolls documents. The Canadian dollar is going toward a big week after the bank of Canada surprised after announcing their QE program. The incident happened on Saturday that gave a strong push to CAD as the USD/CAD got down to 1.2300 handles.

As the US and Canada are two hawkish central banks right now in the market, combining the two currencies in a pair for the trends is not seen as a weak idea. Traders may see the USD and CAD as a weaker currency that is backed by the central bank which is not going to tighten the policy soon that includes the Japan, Yen, and Euro.

The currency pair of Canada and Japan CAD/JPY can be profitable to deal with considering the oil segment of the world. The pair was great for October as the prices got increased to 90.00 that come under the six-year highs. The CAD/JPY is getting attractive as the bank of Canada is getting strong from the market movement and becoming more hawkish to inflation. The country’s oil strength is boosting that will improve the Canadian economy soon.

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EUR/USD to recover soon after a slow down

The currency pair EUR/USD will be soon back on track and will challenge its top figures of 1.1616 that were once achieved. The exchange rate is also expected to improve as the European Central Banks are going to make changes in the interest rates of the nation to fight the inflation rates. European central bank executive board member Philip Lane recently gave reports that state “Euro is still weak and is facing the inflation issue”. The central bank is trying to build pressure on inflation through the monetary policy that will stabilize it to a percent or so.

He again said that by tightening the monetary policy, we cannot lower the inflation rate but surely we can slow down the pace of the economy and reduce employment rates in the coming years. Thus, these steps will reduce the medium-term inflation pressure. It seems like the ECB will hold on to the ongoing speculations in the market rising regards to the interest rates. This will be a productive step for the nation. EUR/USD will see a large recovery through this in the coming days if the currencies are going to open at the right rate in November. In case there is a decline seen in the exchange rate, it will allow people to show their rush in the market just like what we saw at the beginning of this year.

Let’s see how things are going to change soon regarding the EUR/USD. Find more information regarding the world of trading by reading our blogs on the site of Xtreamforex. Understand the deep aspects of the forex market with our daily blogs that have easy-to-read information that will get you close to the market situation effectively. Register at the site of Xtreamforex and make money online with comfort. See our other news too!

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AUD/USD will Improve its Monthly Opening Range as Jobs in Australia Increases

The currency pair of AUD/USD has downgraded as it failed to trade above 0.7548. The news coming from Australia may control the recent decline in the exchange rate as the job growth is expected to return in October month. AUD/USD currency pair is going down where the price was noted to 0.7192 in October, which is a little low than the previous time. It’s expected that the figures will improve in November month.

As the Australian employment growth rate expanded in October month, a lot of jobs are expected to grow for the unemployed, ensuring them a bright future along with the economic improvement of the nation. This will boost the AUD/USD low rates. The positive development will push the reserve bank of Australia to take a step forward toward growth. This is because the central bank is removing its yield curve control program that was once operational. The central bank is expected to show great enthusiasm in increasing the higher interest rates. This will increase the economy and will hit inflation for the good.

The net long of traders was noted 3.39% that is lower than yesterday’s mark and 12.48% that is higher than the last week. The trader net-short is 1.23% which is noted higher than yesterday, and 15.66% that is lower than the last week. The increase in the net long interest rates has grown the trader’s sentiments to 42.81%. The exchange cost of the currency pair will rise in the coming week of November.

As the job will grow in the market, the Australian government is going to control the drop in AUD/USD that will recover the currency pair downfall. The exchange rate will continue to advance from the low phase, i.e. 0.7192 in November. Let us see what happens in November month and how soon the AUD/USD currency pairs see an improvement.

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Rivian Gears up for Nasdaq Debut, Tesla Bounces Back

The electric car manufacturer Rivian is all set to make its debut on the Nasdaq today with the highest IPO, and the timings could not be more perfect than this. A pledge of not using fossil fuel-based vehicles by 2040 was taken by the countries and the top companies to reduce the carbon emissions that are highly affecting the climate and causing global warming. They did a settlement to have a stronger environment.

It’s a matter of concern that the key players of the automotive industry like Germany, China, and the USA were not present at the meeting. These brands make cars like Audi, Toyota, Volkswagen, Mercedes, and more. However, it seems like the brands will be present in the talk going to happen in the future because everyone is looking to have a better climate that is human friendly.

Talking about the Rivian, it started in the year 2009 when it launched its first and fully electric R1T pickup truck in September. The brand has received 55,400 orders since then and it looks like the corporation is going to speed up its production because of high demand in the near future. From a report, it will take almost 60 years for the company to fulfill the present order they have with them.

Elon Musk’s Tesla has seen a near 20% drop when traders saw a Twitter poll that was rumored to be spreading the news of the selling of the Tesla owner’s shares to avoid the tax. But the news has got settled now as the prices of the shares got raised to over 4% in the day. For more updates about the forex world, keep reading the Xtreamforex news section and grow your financial knowledge. Don’t forget to see the other news of the forex world too to earn an income with the right trading knowledge.

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NZD/USD Weakens Even After Failing to Defend its November Opening Range

NZD/USD is going weak despite its November opening range that was superb figures. The currency has broken down to defend the November opening range right now in the market. NZD/USD takes ahead the lower highs and lower lows early this week after getting the reaction that is large than expected in the US consumer price index. The inflation stickiness may raise the participation in the US dollar as it can put pressure on Federal Reserve to apply higher interest rates soon.

It would not be a mature decision to change the aspects of the rising of rates, addressed by San Francisco President Mary Daly. Her comment suggests that FOMC will keep to its existing strategy as the pivotal banks will continue to showcase the temporary rise in inflation. However, the growth in the price may save USD ahead of the next FOMC interest rate decision on December 15, as the central bank has a hope of updating the summary of economic projections.

Till then, the currency pair of NZD/USD will depreciate as it may fall from its October prime point of 0.7219. Again, a decrease in the exchange rate will reduce the inclination in the retail market as per the market specialists and this year’s record. NZD/USD may face again a decline in the coming days as it will extend the series of lower highs and lower lows this week.

The advance from October low (0.6877) may proceed to unravel as the exchange flow has failed to defend the opening range of November. The future days are surely going to improve the weak zone of the NZD/USD and let’s see how things go in the way for the people who are looking for the currency pair to show its worth to traders who are eyeing to make money with these. For more updates like this, read our daily forex news.

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China’s Retail Sales Growth Impact & Forecast

The Chinese economy is going through a difficult time due to the spread of the novel coronavirus infection (COVID-19). Meanwhile, China faces serious challenges from soaring energy prices. Coal and natural gas prices have soared over the past few months. As a result, the government has demanded that the private sector be restricted from working during peak hours.

However, according to data released by the National Bureau of Statistics, the country’s economy is in relatively good shape. Since October, retail sales in China have increased by 4.9%. This is higher than the average of 3.5%. It was also relatively worse than the previous 4.4%. Meanwhile, according to data, industrial production increased by 3.5% in October. This is better than the average of 3.0% and the previous 3.1%. Sentiment in the Chinese real estate market is being shaken by a deepening debt crisis as real estate giants China Evergrande and Kaisa Group face default. “We expect policymakers to take more easing measures to prevent growth from falling too much,” said Oxford’s Kuijs, adding that weaker demand is driving the broader industry slowdown rather than just supply constraints. Weakening demand is causing not only supply constraints, but also a broader industry slowdown, he added.

Policy sources and analysts told Reuters that China’s central bank will be cautious about easing monetary policy to stimulate the economy as slowing economic growth and rising factory inflation fuel fears of stagflation. NBS spokeswoman Fu Linghui said at a briefing in Beijing on Monday that signs of stagflation are caused by short-term factors such as high global commodity prices. Capital investment continued to slow, according to 4,444 NBS data, up 6.1% in the first 10 months compared to the same period a year ago, up from a 6.2% increase in Reuters and a 7.3% increase in January-September.

“I think the macroeconomic policy is near a turning point. We expect the government to increase budget spending by the end of the year to stabilize the trend of declining investment,” said Zhang.

The daily chart shows that the USD/CNY pair has been under strong pressure over the past few weeks. The pair is down more than 2% since June. As a result, it fell below the 25-day moving average and the 50-day moving average. It is also close to the key support level of 6.355, which is the lowest level of the year.

So, the pair will see a big downtrend over the next few days. However, this depends on the generally fixed rate of the Central Bank of China

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EUR/JPY broke its eighth straight day of decline and is hovering around the 130.00 level

The pair has been under pressure from an upward US dollar backed by inflation data. In addition, the adjusted decline in US Treasury yields also contributed to the negative trend. The US dollar will strengthen on Tuesday as it continues to hold its 16-month high near 95.40. Meanwhile, US Treasury yields were moderated by mixed market sentiment ahead of the release of US retail sales data this afternoon.

In addition to data on US retail sales, market sentiment will also be influenced by future data on the gross domestic product (GDP) in the euro area and a speech by European Central Bank (ECB) President Christine Lagarde. According to previous data, industrial production in the Euro zone fell 0.2% m/m in September and 5.2% in the last 12 months. Japan reported weak third-quarter GDP data and Bank of Japan (BOJ) Governor Kuroda hinted that the COVID-19 financing program could be phased out.

Meanwhile, the dollar continued to strengthen. The reason could be a hint that the Fed will cut rates at the November 23rd FOMC meeting. This has weakened the yen’s attractiveness as a safe haven. The pair’s price movement could be a tailwind due to US President Joe Biden’s $1 trillion bipartisan infrastructure bill.

Eurozone News reported that the escalating Belarusian border crisis along the border with Poland is escalating geopolitical tensions in Europe. ECB officials also continue to view inflationary pressures as temporary. The Netherlands also initiated a three-week lockdown over the weekend, Austria quarantined unvaccinated people, and Germany’s infection rate hit an all-time high. All of this has somehow affected the euro, and as a result, the euro has shown relatively low dynamics recently.

More broadly, the advance at 114.42 (2020 low) is still ongoing, with strong support from the 55-week EMA confirming the medium-term bullish sentiment. Further growth is expected to reach 137.49 (2018 high). A decisive break in this area will resume all long-term gains at 109.03 (2016 lows). The next target would be a 100% forecast from 114.42 to 142.88 and from 109.03 to 137.49. It will now be the preferred option as long as support remains at 127.91.