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The yen weakened sharply against the dollar and other major peer currencies on Friday after the Bank of Japan raised rates to a 30-year high but did not offer clarity on future hikes. The yen fell against the dollar after the BOJ lifted its policy rate to 0.75% from 0.5% in a move that had been well-telegraphed by policymakers, prompting traders to sell. Losses in the Japanese currency extended after BOJ Governor Kazuo Ueda’s post-meeting press conference, where he remained vague on the exact timing and pace of future rate hikes and said only that the door was open to…
Silver (XAG/USD) price rallies to a new all-time high of $67.46 even though US Treasury yields and the US Dollar remain firm on Friday, amid the lack of catalysts, except for the US Consumer Sentiment poll made by the University of Michigan, which showed that US households are trimming spending on durable goods, and are worried about the jobs market.XAG/ÜSD Price Analysis: Technical OutlookPrice action suggests further upside in Silver prices, as traders could target $68.00. Momentum is strongly bullish as depicted by the Relative Strength Index (RSI), which is overbought with an upward slope.Conversely, if XAG/USD slides below $67.00,…
Gold (XA/USD) surges during the North American session on Friday, up 0.30% despite rising US Treasury bond yields and of the US Dollar, which is poised to finish the week with modest gains of 0.25%. At the time of writing, XAU/USD trades at $4,344 after bouncing off daily lows of $4,309.Bullion advances late Friday despite rising US yields, steadier US DollarOn Friday, the US economic docket is scarce, as the last ‘formal’ trading week of the year comes to an end, as most trading desks get off for the Christmas holidays. The Consumer Sentiment Index by the University of Michigan…
The US Dollar Index (DXY) is on a three-day winning streak, although gains are modest, the index is heading into the weekly close near the 98.60 price region, after a softer-than-expected United States (US) Consumer Price Index (CPI) was released on Thursday, briefly weighing on the US Dollar. Doubts about the quality of the inflation slowdown arose on Friday, following comments from Federal Reserve (Fed) John Williams, who noted that CPI data “may have been pushed down a bit” when speaking on CNBC. The Fed announced its monetary policy decision on Wednesday, and as expected, policymakers cut the interest rate…
The Japanese Yen (JPY) weakens sharply against the US Dollar (USD) on Friday as the Yen slumps across the board following the Bank of Japan’s interest rate decision. At the time of writing, USD/JPY is trading around 157.48, up nearly 1.20%, its highest level since November 21.Earlier in the Asian session, the BoJ raised its policy rate by 25 basis points (bps) to 0.75%, marking the highest level in roughly three decades. The central bank stated that Japan’s economy has continued to recover at a moderate pace, with tight labor market conditions and solid corporate profits supporting steady wage increases.…
Gold (XAU/USD) Gold (XAU/USD) regains ground on Friday, edging modestly higher after earlier weakness, even as a resilient US Dollar (USD) caps upside momentum. At the time of writing, XAU/USD trades around $4,345, recovering from a daily low near $4,309.The precious metal briefly surged toward record highs on Thursday after US inflation data undershot expectations. However, gains quickly faded as softer inflation lifted risk appetite across equity markets and pushed Gold back within the range established earlier this week.That said, the downside appears limited, as a dovish Federal Reserve (Fed) outlook and persistent geopolitical risks continue to provide a steady…
The Canadian Dollar (CAD) trades little changed against the US Dollar (USD) on Friday, as a rebound in the Greenback keeps USD/CAD confined within its week-old range. At the time of writing, the pair is trading around 1.3784, recovering slightly after dipping to an intraday low near 1.3755.The US Dollar holds firm despite a mixed batch of US economic data released earlier in the day. Existing Home Sales rose by 0.5% MoM in November, slowing from October’s 1.5% increase.Meanwhile, the University of Michigan’s final December survey showed a modest easing in sentiment. The Consumer Expectations Index was revised down to…
The GBP/USD pair hovers around familiar levels, yet it has dropped below the 1.3400 mark on Friday after Retail Sales in the UK missed estimates and Federal Reserve (Fed) speakers crossed the wires. At the time of writing, the pair trades at around 1.3370, virtually unchanged.Sterling eases after disappointing UK consumption data, while cautious BoE and Fed rhetoric keep downside risks aliveSales in the UK rose by 0.6% YoY in November, unchanged from the previous print but missed estimates of 0.9% expansion. On a monthly basis, figures fell 0.1%, beneath forecasts of a 0.4% expansion, reported the Office for National…
The Bank of Japan’s (BoJ) 25bp rate hike to a 30-year high of 0.75% failed to support the yen, as cautious guidance from Governor Ueda undercut confidence. Despite rising domestic yields and narrowing US–Japan spreads, the JPY weakened sharply, likely exacerbated by positioning, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. JPY slides despite narrowing yield spreads”The BoJ tightened its policy rate 25bps to a 30Y high of 0.75%, as expected. But cautious comments on the rate outlook from BoJ Governor Ueda at his press conference have undercut the JPY. Market pricing for a follow-up move late next…
Pound Sterling’s (GBP) post-BoE push through 1.34 has reversed alongside a broader US Dollar (USD) rebound, leaving GBP/USD back near the middle of its recent range. A narrow 5–4 vote to cut rates underscored how finely balanced policy decisions have become, with markets still leaning toward a follow-up cut in April but showing less conviction beyond that, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. BoE split vote keeps April cut in play”Cable’s advance through 1.34 following the BoE decision unwound in line with the broader rebound in the USD. Policymakers voted to cut 25bps, as expected yesterday.…