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MUFG’s Michael Wan notes that softer US data have pushed US 10-year Treasury yields lower and led Fed fund futures to fully price a June rate cut. Wan highlights that this repricing has been most visible in USD/JPY, which slipped below 155, while broader Dollar performance and risk sentiment have shown a more mixed pattern ahead of US Non-Farm Payrolls.Yield drop drives Dollar-Yen adjustment”US 10-year Treasury yields fell to around 4.15% while the Fed Fund futures priced in more US rate cuts, with the next cut now fully priced in for the June meeting, and coming ahead of non-farm payrolls…
The rupee depreciated 6 paise to 90.62 against the US dollar in early trade on Wednesday as geopolitical tensions and dollar demand from importers weighed on investor sentiments.At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, then lost some ground to touch 90.62, registering a loss of 6 paise over its previous close.In the initial trade, the rupee also touched 90.46 against the American currency.On Tuesday, the rupee pared initial losses and settled on a positive note, higher by 10 paise at 90.56 against the US dollar.Forex traders said that while markets initially welcomed…
Gold (XAU/USD) attracts some dip-buyers following the previous day’s modest slide and climbs back above the $5,050 level during the Asian session on Wednesday. Prospects for lower US interest rates keep the US Dollar (USD) depressed near its lowest level in over a week and act as a tailwind for the non-yielding yellow metal. However, the underlying bullish sentiment might cap the upside for the safe-haven commodity. Traders might also opt to wait for the release of the US Nonfarm Payrolls (NFP) report before placing fresh directional bets.The US Census Bureau reported on Tuesday that Retail Sales remained unchanged in…
The yen held on to solid gains on Wednesday, bolstered by a rally in Japan’s stock market and bets that Prime Minister Sanae Takaichi’s landslide election victory puts her in a strong position to pursue more fiscally responsible policies.Elsewhere, the dollar wobbled ahead of the key U.S. non-farm payrolls report due later on Wednesday, after a run of data overnight hinted at a softening in the world’s largest economy.The yen was up 0.1% against the dollar at 154.22, building on a 1% rise in the previous session that also saw it rally against other currencies.The euro was fetching 183.60 yen…
China’s CPI, PPI OverviewThe National Bureau of Statistics of China (NBS) will publish its data for January at 01.30 GMT. The Consumer Price Index (CPI) is expected to show a rise of 0.4% YoY in January, compared to 0.8% in December. The Producer Price Index (PPI) is projected to show a decline of 1.5% in January versus a fall of 1.9% prior.The CPI is a key indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to the same month a year earlier. Meanwhile, the PPI is a measurement of the rate of inflation…
Commerzbank’s Thu Lan Nguyen warns that unusually low gas storage levels in Germany and across the EU, combined with higher consumption and a flatter forward curve, raise the risk of price spikes and potential consumption restrictions. Expanded LNG import capacity and flexible spot-market sourcing reduce the need for storage, but cannot fully cover peak winter demand, leaving the region vulnerable to supply shocks and weather extremes.Low storage and LNG reshape gas risk”At the current rate of depletion, EU-wide gas reserves would fall to less than 20% by the end of winter. In Germany, this level is likely to be breached…
Rabobank’s Michael Every portrays Europe as stuck near a 1.5% growth path, with German deindustrialisation offset by rearmament and political fragmentation. He highlights EU struggles to implement single-market reforms, tensions over carbon border tax changes, and the difficulty of promoting Euro usage and Eurobonds for stablecoins while third countries remain entrenched in Dollar-based practices.Deindustrialisation, politics and Euro ambitions”In Germany, Bosch is to lay off 20,000 workers as deindustrialisation snowballs, yet German rearmament continues. The latter is boosting GDP growth, but without recovery in other industries (and why assume that?), current trends project a very different German economy ahead – more…
The rupee pared initial losses and settled on a positive note on Tuesday, higher by 9 paise at 90.57 (provisional) against the US dollar, supported by positive cues from domestic equities and weakening of the American currency in the overseas market.Forex traders said the rupee is witnessing sideways price action as the support from positive domestic equities and foreign fund inflows was negated by geopolitical tensions and dollar demand from importers.At the interbank foreign exchange market, the rupee opened at 90.63 against the US dollar, then lost some ground to touch an intraday low of 90.77 and a high of…
The rupee pared initial losses and settled on a positive note on Tuesday, higher by 9 paise at 90.57 (provisional) against the US dollar, supported by positive cues from domestic equities and weakening of the American currency in the overseas market.Forex traders said the rupee is witnessing sideways price action as the support from positive domestic equities and foreign fund inflows was negated by geopolitical tensions and Dollar demand from importers.At the interbank foreign exchange market, the rupee opened at 90.63 against the US dollar, then lost some ground to touch an intraday low of 90.77 and a high of…
Silver price (XAG/USD) depreciates after two days of gains, trading around $81.70 per troy ounce during the European hours on Tuesday. Silver prices dropped more than 2.5% as traders probably booked profits, while volatility in the precious metals market remained elevated after a historic selloff in recent weeks.The safe-haven metal could regain strength amid persistent geopolitical tensions between the United States (US) and Iran. Uncertainty continues as Iran insists on maintaining uranium enrichment, a key sticking point for Washington. On Monday, the US warned American-flagged vessels to avoid Iranian waters in the Strait of Hormuz, even as both sides indicated…