US Dollar Bound to See Weak ISM, NFP Results - What Impact Will They Have? Euro Balancing The Influence Of Bailouts And An Expected ECB Rate Cut Japanese Yen May Fall As Seasonal Forces Grip the Forex Market British Pound Forecast Bearish Ahead of Bank of England Cuts Canadian Dollar May Fall As Labor Market Weakens
Forex traders pushed the Australian dollar higher despite a hefty 1.00% interest rate cut as the RBA signaled it was done lowering borrowing costs for the time being. Inflation data is on tap for European hours with Euro Zone Producer Prices and Swiss Consumer Prices set for release.
The GBPCHF plunged 750+ pips to end the previous session at 1.7953, and the pair may face increased selling pressures over the week as investors continue to curb their appetite for risk.
The RBA is expected to cut their benchmark rate by 75 bps at their policy meeting as the Australian economy is heading toward a recession. There has been some speculation that the central bank has some concerns that if they lower interest rates too far that upside inflation risks will re-emerge.
After an extended holiday for the US that drained FX liquidity, the market is back to capacity; and with it has come risk aversion. An RBA rate decision presents top event risk for Tuesday's session.