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Silver (XAG/USD) remains range-bound on Friday as traders avoid aggressive positioning amid uncertainty surrounding US-Iran negotiations. At the time of writing, the white metal trades near $76.00 and is likely to close the week on a flat note.In the latest developments, Iran’s Foreign Ministry spokesperson said, “We cannot necessarily say that we have reached a point where an agreement is close,” according to Tasnim News Agency. The spokesperson also said, “Details related to the nuclear issue are not being discussed at this stage,” according to Islamic Republic News Agency (IRNA), adding, “We will not reach a conclusion if we try…
Gold price edges lower during the day as the Greenback recovers some ground amid doubts that the US and Iran could reach a deal to end the conflict, and traders are pricing in a Federal Reserve (Fed) rate hike by the end of the year. At the time of writing, XAU/USD trades at $4,518, down 0.50%.XAU/USD falls as US Dollar strength pressures Bullion demandThe Greenback is weighing on the yellow metal, underpinned by hawkish remarks of a Fed official. The US Dollar Index (DXY), which tracks the buck’s performance against a basket of six currencies, is up 0.07%, at 99.26.Oil…
ING economists Min Joo Kang and Lynn Song expect the Bank of Korea to leave policy rates unchanged this week but to adopt a more hawkish tone. They see updated dot plots pointing to one or two rate hikes within six months, alongside upgraded GDP and CPI forecasts. Strong chip production and resilient activity data are expected to support South Korea’s growth outlook.BoK seen steady but turning hawkish”We expect the Bank of Korea to keep rates unchanged on Thursday, but signal a hawkish stance.””Dot plots should indicate one or two rate hikes within six months, with the BoK upgrading its…
Kevin Warsh was sworn in as the 17th head of the Fed on Friday, the first chair to take the oath at the White House since Alan Greenspan in 1987, a venue choice that says plenty about how close this central bank now sits to the executive branch. The optics got stranger from there. The president used the ceremony to insist he wants Warsh to act independently and to ignore him entirely, an extraordinary thing to say from a man who spent two years publicly hounding the previous chair to cut faster, reportedly joked about suing his successor if rates…
Rabobank’s Senior FX Strategist Jane Foley notes that the Australian Dollar (AUD) has shifted from a top G10 performer to one of the weakest on a 5‑day view as markets reassess Reserve Bank of Australia (RBA) tightening prospects after softer labour data. With the Bank of Japan (BoJ) expected to hike and AUD/JPY losing momentum, Rabobank sees scope for a pullback toward the AUD/JPY112 area over three months.AUD strength fades as BoJ risk rises”The AUD has become a familiar fixture at, or close to, the top of the G10 FX performance table this year. This relates to the sharp turnaround…
Gold (XAU/USD) consolidates on Friday, remaining confined within this week’s trading range as investors cautiously monitor ongoing diplomatic efforts between the United States and Iran to reach a deal to end the war in the Middle East. At the time of writing, XAU/USD is trading around $4,517, staying on course for a second consecutive weekly decline.Indirect negotiations between the United States and Iran continue under Pakistani mediation, as Iran’s Foreign Minister Abbas Araghchi held another meeting with Pakistani Interior Minister Mohsin Naqvi to discuss the latest proposals. However, major disagreements remain unresolved. A senior Iranian source told Reuters that “no…
The rupee rose for the second consecutive session on Friday to close at 95.73 (provisional) against the US dollar on softening of crude oil prices and supposed intervention by the Reserve Bank.Forex traders said markets found some comfort after comments from US Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction.Moreover, positive domestic equities and a decline in US treasury yields also supported the rupee.At the interbank foreign exchange market, the rupee opened at 96.30 against the US dollar, then touched an intraday high of 95.30 and a low…
The Indian rupee rallied to close above the 96-per-dollar mark for the first time in a week on Friday, helped bythe central bank’s aggressive interventions to arrest the currency’s slide from 94.50 to nearly 97. The rupee closed at 95.69 per dollar, up 0.5% from its close in the previous session. The Reserve Bank of India sold $2 billion to $3 billion on Thursday and intervened in the markets again on Friday, according to bankers.Two state-run lenders were consistently selling dollars through Friday’s trading session, three traders told Reuters, adding that this marked a change from relatively subdued and intermittent…
The Reserve Bank of India sold $2 billion to $3 billion on Thursday to defend the rupee against relentless pressure and stepped in again on Friday, helping it strengthen past the 96-per-dollar level, according to bankers.The RBI intervened via large state-run banks before the market opened on Thursday, triggering a rally in the rupee, with dollar sales continuing through most of the day.The rupee rose 0.64% to close at 96.20 on the back of that intervention and extended past the 96 level on Friday, when the RBI resumed dollar sales, the bankers said.Around $500 million was sold pre-market on Thursday,…
The German IFO Institute Business Climate Index has unexpectedly improved to 84.9 in May, while it was expected to arrive lower at 84.2. The sentiment data in April has been revised higher to 84.5 from 84.4.The IFO Current Assessment Index also arrives higher at 86.1 from 85.4 in April. It was expected to drop to 85.1.Expectations Index comes higher at 83.8 vs. expectations and the previous reading of 83.5. April’s figure revised higher from 83.3.Market reactionNo immediate reaction seen in the Euro (EUR) after the data release. As of writing, EUR/USD trades subduedly around 1.1610. German economy FAQs The German…