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The USD/JPY outlook remains modestly bullish, as poor risk sentiment benefits the dollar more than the yen. Japan’s PM could call for an early election, keeping the yen under pressure. Speculations about the Fed’s independence could limit the dollar’s rally in the short term. The USD/JPY pair trades near a one-year high as the Japanese yen faces pressure. At the start of the week, the pair dropped for a short time but quickly bounced back, close to the 158.00 handle. –Are you interested in learning more about forex tools? Check our detailed guide- The price action shows the US dollar’s…
The rupee depreciated 5 paise to 90.23 against the US dollar in early trade on Monday, driven by rising crude oil prices and an unabated outflow of foreign funds.According to forex traders, a volatile geopolitical situation and concerns over further US tariffs on Indian exports fueled the selling of Indian stocks by foreign institutional investors, even as traders awaited cues from macroeconomic data to be released this week.At the interbank foreign exchange, the rupee opened at 90.23 and stayed weaker by 5 paise from its previous closing level.On Friday, the rupee fell 28 paise to close at 90.18 against the…
The Japanese Yen (JPY) recovers slightly after touching a fresh one-year low against a broadly weaker US Dollar (USD) during the Asian session on Monday. The global risk sentiment takes a hit amid concerns about further escalation of geopolitical tensions, which, in turn, is seen driving some safe-haven flows toward the JPY. The USD, on the other hand, is pressured by growing concerns about the Federal Reserve’s (Fed) independence, which offsets reduced bets for more aggressive policy easing this year, and exerts pressure on the USD/JPY pair.However, a deepening Japan-China rift and reports that Japan’s Prime Minister Sanae Takaichi may…
The Indian rupee, already under pressure from foreign outflows and hedging, could face further strain on Monday on mounting tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell. The 1-month non-deliverable forward indicated the rupee will open in the 90.22-90.28 range versus the U.S. dollar, having dropped 0.16% on Friday to settle at 90.1625. The rupee was unable to make headway last week despite two interventions on different days by the Reserve Bank of India that were aimed at pushing the currency higher. Bankers said the central bank stepped up to break the momentum in speculative long…
A group of European nations, headed by the United Kingdom (UK) and Germany, is discussing plans to increase its military presence in Greenland to show US President Donald Trump that the continent is serious about Arctic security, Bloomberg reported on Sunday.The source said that Germany will propose setting up a joint NATO mission to protect the Arctic region. Meanwhile, UK Prime Minister Keir Starmer urged allies to step up their security presence in the High North and recently reached out to leaders, including French President Emmanuel Macron and German Chancellor Friedrich Merz to discuss the issue.Market reaction At the time of…
The dollar gained on Friday after data showed slower than expected U.S. jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month. The unemployment rate fell to 4.4% last month from a revised 4.5% in November, the U.S. Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000. The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers…
EUR/USD prolonged its agony throughout the week, poising to print losses of 0.70%, as it fell 0.20% on Friday, despite the release of mixed economic data in the US. In the European Union, Retail Sales exceeded forecasts, but traders’ focus remains around the dynamics of the US and the Dollar. The pair trades at 1.1636 after hitting a daily peak of 1.1662.Euro remains under pressure despite mixed US data, as investors stay focused on Dollar dynamicsDecember’s US Nonfarm Payroll figures were mixed as the economy added 50K jobs, below forecast for a 60K increase, also below November’s 64K print. Nevertheless,…
Richmond Fed President Tom Barkin said the decline in the unemployment rate was welcome and described job growth as modest but stable. He also noted that hiring remains concentrated in healthcare and AI, leaving the overall picture uncomfortably narrow, adding that demand still looks healthy, while progress on inflation will take time, keeping upcoming data in focus.Key QuotesDrop in the unemployment rate is welcome.Hard to find firms outside of healthcare or ai who are hiring.Job growth is modest, very much in line with low-hiring and low-firing continuing.The narrowness of hiring is “uncomfortable.”Do not hear the cost of interest being cited…
The Canadian Dollar (CAD) trades little changed against the British Pound (GBP) on Friday, with GBP/CAD struggling to find direction as traders show a muted reaction to Canada’s latest employment report. At the time of writing, the pair trades around 1.8636, hovering near one-month highs.Data released by Statistics Canada showed that Net Change in Employment rose by 8.2K in December, beating market expectations for a 5K decline, but easing sharply from November’s 53.6K gain. Meanwhile, the Unemployment Rate climbed to 6.8% from 6.5%, coming in above forecasts of 6.6%.Wage growth also showed signs of cooling. Average Hourly Wages increased 3.7%…
AUD/USD trades lower on Friday, with the pair hovering around 0.6680 at the time of writing, down 0.23% on the day. The move mainly reflects renewed support for the US Dollar (USD), against a backdrop of mixed macroeconomic releases in the United States (US), while the Australian Dollar (AUD) remains weighed down by softer expectations for monetary tightening in Australia.The US Dollar is supported after the release of December labor market data in the United States. Figures from the Bureau of Labor Statistics showed that job creation slowed, with only 50,000 new jobs added, falling short of market expectations. However,…