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EUR/JPY trades on the back foot on Friday, easing away even as the Euro (EUR) posts solid gains against the US Dollar (USD). The Japanese currency surged suddenly near the start of the American session after a surprisingly weak United States (US) employment report. But the cross recovered much of those losses fairly quickly.Japan and the United States conducted coordinated Yen-buying intervention last Friday, a rare bilateral action, and that memory is enough to make traders reluctant to sell the Yen into a US Dollar that fell over 1% against the Yen during the early American session on Friday. The…
NZD/USD trades around 0.5890 on Friday at the time of writing, up 0.36% on the day. The pair is benefiting from a sharp decline in the US Dollar (USD) following a much weaker-than-expected US employment report, while the Reserve Bank of New Zealand’s (RBNZ) hawkish stance continues to support the New Zealand Dollar (NZD).Data released by the Bureau of Labor Statistics (BLS) showed that US Nonfarm Payrolls (NFP) fell by 23K in July, compared with market expectations for an increase of 80K jobs. Previous months were also revised sharply lower, with June payrolls revised down from 57K to 20K and…
The Indian rupee ended little changed on Friday and firmed modestly week-on-week as central bank intervention blunted pressure from higher oil prices, which added to traders’ caution heading into a key U.S. labour market report.The rupee closed at 95.2075 per dollar, barely changed from its close at 95.22 in the previous session, but up about 0.2% week-on-week.Oil prices rose 0.3% to $82.7 on Friday on concerns surrounding the reopening of the Strait of Hormuz and potential Iranian bans and fines on vessels it deems hostile or in violation of proposed rules.Uncertainty over the Middle East conflict remains a key overhang…
The United States (US) Bureau of Labor Statistics (BLS) is set to release the Nonfarm Payrolls (NFP) data for July on Friday at 12:30 GMT. With investors scaling back bets for a Federal Reserve (Fed) interest rate hike in September on easing inflation fears, the underlying details of the employment report could influence how markets assess the US central bank’s policy outlook and drive the US Dollar’s (USD) valuation. What to expect from the Nonfarm Payrolls report?Investors expect NFP to rise by 80K following June’s disappointing print of 57K. The Unemployment Rate is seen holding steady at 4.2%, while the annual wage…
The rupee traded in a narrow range and depreciated 6 paise to 95.28 against the US dollar in early trade on Friday, tracking a firmer dollar and a rise in US treasury yields.Forex traders said dollar demand from importers and profit-taking after the rupee’s recent appreciation appear to have outweighed the favourable global backdrop.At the interbank foreign exchange market, the rupee opened at 95.27, then touched 95.28 against the American currency, registering a fall of 6 paise from its previous close.On Thursday, the rupee depreciated 14 paise to close at 95.22 against the US dollar.”With oil back near $83, the…
According to a report from The Guardian, Saudi Arabia aims to extend its military operations against Iran-aligned Houthis for attacking the Najran province, which is located in its southern region, and Yemeni government troops. It should be noted that Saudi Arabia is a supporter of the internationally recognized Yemeni government.In a separate attack early on Friday, a Saudi official accused the Houthis of indiscriminately shelling civilian areas in Saudi Arabia, injuring 11 civilians, including a four-year-old child. Maj General Turki al-Maliki, spokesperson for the Saudi-led military coalition supporting Yemen’s government, said the coalition would continue taking all necessary measures to…
The dollar drifted higher against the yen and euro on Friday, building on the previous day’s gains as doubts about an Iran peace deal buffed the U.S. currency’s appeal as a haven.The greenback also drew support from higher Treasury yields after a Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh pointed to the potential for a September interest rate hike, depending on incoming data.The monthly U.S. payrolls report, due later on Friday, could provide more clues on the Fed’s rate path.The dollar rose slightly to 158.505 yen in the Asian morning, after gaining 0.4% on Thursday,…
United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CNH is trading with a soft underlying tone, with scope for the Dollar to test support levels near 6.7420 in the short term, while a sustained break lower is seen as unlikely. Over the 1–3 week horizon, they still expect gradual downside toward 6.7300, provided resistance at 6.7640 holds. On a 1–3 month view, they see tentative upward momentum that would require a break above the 21‑week EMA at 6.8430 to confirm a sustained recovery.Short-term tests, gradual downside bias”24-HOUR VIEW: While we indicated yesterday that USD…
Silver (XAG/USD) trades lower at around $60.95 on Thursday at the time of press, down 1.73% on the day. The precious metal is facing profit-taking as the US Dollar (USD) regains momentum, with the US Dollar Index (DXY) advancing about 0.30% to trade near the psychological 100.00 level.The stronger US Dollar reduces Silver’s appeal for holders of other currencies. At the same time, safe-haven flows continue to support the Greenback as investors monitor ongoing geopolitical tensions in the Middle East, despite reports that Iran and Oman are moving closer to a temporary agreement on shipping through the Strait of Hormuz.Investors…
ING’s FX Strategist Francesco Pesole notes Sweden’s core CPIF excluding energy rose to 0.6% in July, giving the Swedish Krona (SEK) a modest boost, while headline inflation slowed as expected. He argues that even after adjusting for temporary tax effects, inflation is not strong enough to justify market pricing of Riksbank tightening, maintaining a no-hike view and a year-end EUR/SEK target of 10.80.Hotter core yet policy on hold”Sweden’s CPIF excluding energy surprisingly accelerated from 0.4% to 0.6% in July. The headline figure slowed as expected from 1.3% to 0.7%. The slightly hot print in core has prompted a small positive…