- The past 24 hours have brought a series of interesting drivers into FX markets, with last night’s RBNZ rate decision leading into this morning’s ‘Super Thursday’ at the Bank of England. Shortly after that rate decision concluded at the BoE, we received April inflation numbers out of the United States.
- While US inflation remains strong, with headline printing at one-year highs while Core inflation remained above 2%, the US Dollar is pulling back after what’s been an aggressively-strong three-week run. The big question at this point is whether we see re-ignition of the longer-term bearish drive, or whether this morning’s sell-off is a pullback in a move of bullish continuation in USD. We look at pairs for either scenario below, looking to GBP/USD for a deeper reversal of USD-strength and the short-side of NZD/USD for a continuation of this recent theme.
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US Inflation Numbers (CPI), Bank of England ‘Super Thursday, RBNZ Rate Decision
It’s already been a busy morning across global markets as we near the US equity open. The Bank of England hosted their second ‘Super Thursday’ rate decision of the year,