IC Markets Europe Fundamental Forecast | 4 April 2023<\/b><\/p>\n
What happened in the Asia session?<\/b><\/p>\n
The RBA has decided to leave the Cash Rate unchanged at 3.60%. The central bank recognises that the full impact of the interest rate increase has yet to be felt and has decided to hold interest rates steady this month to assess the effect of the rise and the economic outlook. The Board expects further tightening of monetary policy to ensure inflation returns to the 2-3% target range.<\/span><\/p>\n What does it mean for the Europe & US Sessions?<\/b><\/p>\n Trading the AUDUSD pair may be a favourable option for those seeking to take advantage of a potential increase in US dollar strength, especially if the upcoming JOLTS Job Openings report exceeds expectations. A sustained break below 0.6760 could see the pair drop towards the psychological support at 0.6700.<\/span><\/p>\n The Dollar Index (DXY)<\/b><\/p>\n Key news events today<\/b><\/p>\n JOLTS Job Openings<\/span><\/p>\n What can we expect from DXY today?<\/b><\/p>\n US job openings can be expected to decrease from 10.82m to 10.49m. If the actual data falls short of the forecast, it may negatively impact the USD, suggesting that the labour market is weakening.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/span><\/p>\n Gold (XAU)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from Gold today?<\/b><\/p>\n The latest Switzerland CPI m\/m is lower than forecasted and previous values, reinforcing a global trend of easing inflation. This may have a bearish impact on gold prices since the yellow metal is deemed a hedge against rising inflation.<\/span><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/span><\/p>\n The Australian Dollar (AUD)<\/b><\/p>\n Key news events today<\/b><\/p>\n Cash Rate<\/span><\/p>\n RBA Rate Statement\u00c2\u00a0<\/span><\/p>\n What can we expect from AUD today?<\/b><\/p>\n The Australian Cash Rate is forecasted to increase from 3.60% to 3.85%, but it could be a dovish hike since Australian CPI y\/y fell for two reported periods. Traders will look for this confirmation in the RBA rate statement. If confirmed, AUD is likely to move swiftly.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/span><\/p>\n The Kiwi Dollar (NZD)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from NZD today?<\/b><\/p>\n No significant news event is impacting the NZD today. Price direction will likely depend on the upcoming RBNZ Official Cash Rate (5.00% vs 4.75%) and Rate Statement. The Rate Statement provides insights into the RBNZ’s future actions, with a more hawkish stance potentially increasing the NZD’s value and a more dovish tone decreasing it.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Japanese Yen (JPY)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from JPY today?<\/b><\/p>\n Japan’s upcoming Monetary Base y\/y data is forecasted at 2.0% (previous -1.6%), potentially positively impacting JPY. The 10-year bond auction’s predicted yield is 0.50, with a bid-to-cover ratio of 7.6, indicating weaker bond demand, which may negatively affect JPY.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Euro (EUR)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from EUR today?<\/b><\/p>\n The impact on the EUR from second-tier data releases today appears mixed. The German Trade Balance is expected to increase slightly to 16.8B from the previous month’s figure of 16.7B, potentially supporting the EUR as it indicates a healthy trade balance for the Eurozone’s largest economy. However, the Spanish Unemployment Change is forecasted to increase to 8.5K from the previous month’s figure of 2.6K. This may put some pressure on the shared currency.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n <\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Swiss Franc (CHF)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from CHF today?<\/b><\/p>\n No major news event is scheduled for CHF today. Therefore, the price direction of the currency is likely influenced by the latest CPI m\/m for Switzerland.\u00c2\u00a0 The figure was 0.2% (forecast 0.4%, previous 0.7%), lower than expected, potentially putting mild bearish pressure on the Swiss Franc.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/span><\/p>\n The Pound (GBP)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from GBP today?<\/b><\/p>\n The GBP may experience some volatility in the upcoming sessions as two members of the MPC are scheduled to speak. Silvana Tenreyro and Jonathan Haskel will share their views on the economy and monetary policy.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/b><\/p>\n The Canadian Dollar (CAD)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from CAD today?<\/b><\/p>\n A forecasted increase of 2.2% in Canada’s Building Permits m\/m could strengthen CAD currency as it indicates a rise in construction activity\u00e2\u20ac\u201dprevious data of registered a -4.0% decline in permits issued.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bullish<\/span><\/p>\n Oil<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from Oil today?<\/b><\/p>\n Oil prices should continue to hold the price gains inspired by the surprise cut in production by OPEC+. However, the move by the cartel could also signify that the demand side of the equation may not hold well for the foreseeable horizon.<\/span><\/p>\n Next 24 Hours Bias<\/span><\/p>\n Mixed<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" IC Markets Europe Fundamental Forecast | 4 April 2023 What happened […]<\/p>\n","protected":false},"author":8,"featured_media":56102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215],"tags":[],"class_list":["post-57552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=57552"}],"version-history":[{"count":2,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57552\/revisions"}],"predecessor-version":[{"id":57560,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57552\/revisions\/57560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/56102"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=57552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=57552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=57552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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