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USD/CAD loses ground for the third consecutive day, trading around 1.3680 during the early European hours on Wednesday. The daily chart suggests a potential upside breakout, with falling, converging trendlines forming a bullish descending wedge pattern.The USD/CAD pair holds beneath the descending nine-day Exponential Moving Average (EMA) and the 50-day EMA, maintaining a bearish bias. The bearish alignment persists as the nine-day EMA remains below the 50-day EMA and both slopes lower.The 14-day Relative Strength Index (RSI) at 26.38 sits in oversold territory and continues to decline, confirming downside momentum. RSI below 30 warns of stretched conditions, but momentum stays…
The Japanese Yen (JPY) prolongs its uptrend against a broadly weaker US Dollar (USD) for the third successive day and sticks to gains near the weekly top through the early European session on Wednesday. Minutes of the Bank of Japan’s (BoJ) October meeting showed that board members debated the need to continue raising interest rates. Apart from this, geopolitical uncertainties stemming from rising US-Venezuela tensions, the protracted Russia-Ukraine war, and the risk of a renewed Israel-Iran conflict contribute to safe-haven JPY’s outperformance.Meanwhile, the BoJ’s hawkish outlook marks a significant divergence compared to rising bets for further policy easing by the…
The rupee appreciated 12 paise to 89.51 against the US dollar in early trade on Wednesday, supported by the RBI’s major liquidity announcement and the weakness of the American currency in the overseas market. Forex traders said the rupee started the day on a stronger note after the RBI announced sufficient liquidity for the markets to the extent of approx. ₹3 lakh crore, which will also allow the RBI to keep rupee weakness under control. At the interbank foreign exchange market, the rupee opened at 89.56 against the US dollar, then gained some ground and touched 89.51 against the US…
Rupee forward premiums pulled back from multi-year peaks on Wednesday as traders drew comfort from the central bank’s dollar-rupee buy/sell swap, which is expected to siphon off excess dollar liquidity, helping cool a sharp run-up in premia. The USD/INR January month-end forward premium eased to 41 paisa, down from a peak of 58 paisa hit on Tuesday. Similarly, the November month-end premium retreated to 240 paisa, pulling back from a peak of 278 paisa. A glut of dollar liquidity combined with year-end balance sheet constraints had powered a sharp surge in forward premiums in recent sessions, prompting bankers to urge…
The EUR/JPY pair trades 0.27% lower to near 183.60 during the Asian trading session on Wednesday. The pair faces selling pressure as the Japanese Yen (JPY) outperforms across the board, following strong remarks from Japan’s Finance Minister (FM) Satsuki Katayama signaling the possibility of intervention against excessive one-sided moves. Japanese Yen Price Today The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Euro. USDEURGBPJPYCADAUDNZDCHFUSD-0.03%-0.16%-0.31%-0.11%-0.12%-0.08%-0.05%EUR0.03%-0.13%-0.31%-0.09%-0.10%-0.05%-0.02%GBP0.16%0.13%-0.17%0.06%0.05%0.09%0.12%JPY0.31%0.31%0.17%0.23%0.21%0.24%0.28%CAD0.11%0.09%-0.06%-0.23%-0.03%0.00%0.06%AUD0.12%0.10%-0.05%-0.21%0.03%0.05%0.04%NZD0.08%0.05%-0.09%-0.24%-0.01%-0.05%0.03%CHF0.05%0.02%-0.12%-0.28%-0.06%-0.04%-0.03% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while…
White House Adviser Kevin Hassett said that the Federal Reserve (Fed) is not cutting interest rates quickly enough, even though the US economy grew at a much faster-than-expected pace in the third quarter, CNBC reported on Tuesday.Key quotesGDP is a great Christmas present for the American people.Trump trade agenda is working.AI boom is being seen in the data.Regardless of job AI is impacting their job.Will see employment change back in the 100K -150K range if GDP stays in a 4% range.Consumer sentiment is uncorrelated with the hard economic data.Prices are down and income is up that’s why we have such…
The British Pound (GBP) pares earlier gains against the US Dollar (USD) on Tuesday as traders digest a mixed batch of US economic data. At the time of writing, GBP/USD trades around 1.3478, easing slightly after climbing to its highest level since October 1, near 1.3518.Sterling eased modestly as the US Dollar found support following stronger-than-expected US Q3 Gross Domestic Product (GDP) data. The US Bureau of Economic Analysis reported that the US economy expanded at an annualised pace of 4.3% in Q3, beating the 3.3% market forecast and accelerating from the previous 3.8% estimate.Inflation metrics within the GDP report…
The Reserve Bank of India on Tuesday said it will purchase government securities worth Rs 2 lakh crore and conduct a USD 10 billion buy/sell dollar-rupee swap auction to inject liquidity in the banking system.The OMO (Open Market Operations) purchase and swap auctions will be conducted between December 29, 2025 and January 22, 2026.Announcing the decision, the Reserve Bank of India (RBI) said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.The latest announcement comes days after the RBI conducted Rs 1 lakh crore OMO purchase auctions of Government…
Gold (XAU/USD) continues to attract steady buying interest on Tuesday, pushing deeper into uncharted territory as escalating geopolitical tensions keep safe-haven demand firmly in play. At the time of writing, XAU/USD is trading around $4,485, up nearly 1.0% on the day.Meanwhile, sustained expectations that the Federal Reserve (Fed) could lower interest rates further into 2026 keep the US Dollar (USD) on the defensive, offering an additional tailwind to Bullion. A softer Greenback makes Gold more attractive for overseas buyers, while lower interest rates reduce the opportunity cost of holding the non-yielding asset.The latest leg higher also reflects year-end repositioning as…
The pound rose to a near three-month high against a broadly weaker dollar on Tuesday, as traders assessed green shoots in the UK economy while keeping a close eye on persistent inflation.Sterling rose 0.42% against the dollar to $1.3517, its highest level since October 1, extending last week’s gains and putting it on track for its best month out of the last four.The pound is up over 2% so far in December and on track to end 2025 about 8% higher.But a stronger yen was the focal point for traders on Tuesday following the sternest warning yet from authorities signalling…