Analysis

Will this week’s U.K. jobs update support the markets’ dovish BOE expectations? Or will they lead to bullish pullbacks for the British pound?

Buckle up, forex fiends – we’ve got quite a week ahead of us! All eyes are on two potential big market movers: Trump’s inauguration ceremony and what could be a game-changing Bank of Japan meeting.

This week our currency strategists focused on the U.K. and U.S. CPI updates for potential high-quality setups in the British pound & U.S. dollar.

The market spotlight was mainly on U.S. inflation data that prompted traders to recalibrate Fed easing expectations. Here’s how the numbers turned out, as well as the top-tier catalysts that pushed major currencies around.

Global markets rallied this week, driven by softer U.S. inflation data and dovish Fed remarks that pushed Treasury yields down from 14-month highs. Stocks, gold, and bitcoin climbed to fresh peaks, while the dollar faced pressure.

If U.S. inflation remains elevated, expectations of higher-for-longer interest rates could keep the USD supported against major currencies like the CHF and AUD.

With the Reserve Bank of Australia (RBA) already shifting towards a more cautious stance, can weaker hiring growth make policymakers even more dovish?

What will the upcoming U.S. CPI release imply for the Fed’s short-term policy biases? Here’s what to look out for in the December inflation report.

If U.K. CPI comes in hot, traders could scale back expectations for BOE rate cuts. Here’s why GBP/CHF and GBP/NZD are on my radar if that scenario plays out!

With BOE officials still pretty much divided on their policy biases, will the upcoming U.K. CPI release steer them towards a particular direction? Here’s what’s expected for this top-tier report.

Forex traders brace for crucial U.S. CPI data and China’s GDP release this week, while BOJ policy speculation intensifies.

This week our currency strategists focused on the Australian CPI update for potential high-quality setups in the Aussie dollar. Let’s see how it played out!

The FX markets had a wild ride in the first full week of 2025, as traders juggled shifting economic data & political developments, that challenged rate cut timelines.

Traders had plenty to chew on during the first full trading week of 2025, with financial markets getting cues from tariffs-related headlines, leading U.S. jobs indicators, and Fed policy biases.

Our short orders on AUD/JPY were missed before sellers took control and take the pair much lower on souring broad market sentiment. Time for a quick review to see what we could learn!

Canada is getting ready to print its December jobs report soon! Will the numbers support the Bank of Canada’s shift to a more gradual pace of easing this year?

Dollar traders still seem to be busy repricing Fed easing expectations for the year, so how will the upcoming NFP release affect all this? Here’s what to look out for in the December jobs report.

Australian CPI data didn’t do enough to change RBA rate cut expectations, potentially setting up AUD/JPY for a bearish move as broad risk & AUD sentiment sours.

Market players are anticipating hotter annual inflation readings from Australia this week. Will this lead to the Aussie gaining pips against counterparts like Loonie or franc?

It’s shaping up to be a busy week for traders with global inflation updates, final PMI readings, and the latest U.S. NFP reports!