Author: admin
USD/CHF holds ground for the third consecutive day, trading around 0.7840 during the Asian hours on Tuesday. The Swiss Federal Statistical Office is set to release the April Consumer Price Index (CPI) data later in the day.On Monday, the Swiss SVME – the Manufacturing Purchasing Managers’ Index (PMI) climbed to 54.5 in April from 53.3 previously, beating expectations of 52.0. This marked a second straight month of expansion and the strongest reading since October 2022. Sentiment in Swiss manufacturing improved despite ongoing volatility in the Middle East.The USD/CHF pair appreciates as the US Dollar (USD) advances on increased risk aversion…
The Indian rupee slid to a record low on Tuesday after U.S.-Iranian strikes in the Gulf rattled markets, dimming hopes for a resolution and deepening concerns over risks confronting the oil-importing economy. The currency weakened to 95.39 per dollar, down 0.3% on the day, eclipsing its previous all-time low of 95.33 hit on Thursday last week. Oil-sensitive Asian peers such as the Indonesian rupiah and Philippine peso also weakened on Tuesday as the Gulf hostilities tested a fragile truce and kept investors on edge.Analysts reckon that an elongated conflict in the Middle East, which keeps energy prices elevated, would widen…
The Reserve Bank of Australia (RBA) is having a monetary policy meeting this week and will deliver its decision on Tuesday. Market participants expect the Board to deliver a 25 basis points (bps) interest rate hike, the third consecutive one. If markets are right, the Official Cash Rate (OCR) will then reach 4.35% from the current 4.1%. As usual, policymakers will release a statement that should shed some light on the discussion that led to the decision. Governor Michele Bullock will then hold a press conference, in which she could provide additional information about officials’ assessment of the current macroeconomic…
BNP Paribas economists project Eurozone Gross Domestic Product (GDP) growth to slow from 1.5% in 2025 to 1.0% in 2026, with inflation rebounding to 3.0% in 2026 and 3.3% in 2027. Activity is expected to withstand energy shocks, supported by investment in defence, AI (Artificial intelligence) and electrification, while the European Central Bank (ECB) is seen delivering two 25 bps hikes in 2026, lifting the deposit rate to 2.5%.Growth slows as inflation rebounds”Eurozone growth would slow due to spillovers from the Middle East conflict.””GDP growth, which reached 1.5% in 2025, would slow down to 1.0% in 2026 and 1.3% in…
Gold (XAU/USDS) kicks off the week under pressure, hovering near one-month lows as hawkish interest rate expectations continue to weigh on the non-yielding metal amid ongoing tensions in the Middle East. At the time of writing, XAU/USD is trading around $4,560, down nearly 1.10% on the day.Strait of Hormuz tensions keep markets on edgeMarket sentiment remains fragile amid uncertainty over the future of US-Iran peace talks, with tensions escalating. Iran’s Fars news agency reported that two missiles struck a US naval vessel near the island of Jask after it allegedly ignored warnings from the Islamic Revolutionary Guard Corps (IRGC) to…
With the Indian rupee slipping to fresh record lows and crude oil staying above $100 a barrel, the Reserve Bank of India is weighing a rare set of measures last seen during the 2013 currency crisis to shore up dollar reserves and slow the currency’s slide.According to Reuters, the RBI is studying ways to attract fresh dollar inflows, including reviving a special deposit window for non-resident Indians and easing tax rules for foreign investors in government bonds, as pressure builds on the rupee amid the Iran conflict, rising oil prices and persistent capital outflows.The rupee on Monday closed at a…
Rupee fell 39 paise to close at an all-time low of 95.23 (provisional) against the US dollar on Monday, as the ongoing West Asia tensions cause volatility in global markets, keeping oil prices high and raising fears of inflation and economic slowdown.Forex traders said Brent oil, hovering near $110 per barrel, is maintaining pressure on oil-importing economies such as India. Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee opened at 94.95 against the US dollar, then lost ground and finally settled for the day at…
Commerzbank’s Michael Pfister argues the Swiss National Bank (SNB) has few sustainable tools to weaken the Swiss Franc (CHF) against major currencies such as the US Dollar (USD). Large-scale FX interventions like those before 2024 are seen as unlikely due to balance-sheet risks and political constraints, leaving the long-run bias toward a structurally stronger Swiss Franc despite near-term relief.SNB constrained on lasting CHF weakness”The SNB’s verbal interventions and its apparently swifter response do nothing to address a fundamental problem: the central bank has limited options for weakening the franc in the long term.””In order to influence the franc’s long-term direction,…
The rupee depreciated 11 paise to 94.95 against the US dollar in early trade on Monday as the ongoing tensions in the Middle East continue to keep markets on edge.Forex traders said Brent oil is hovering near $108, maintaining pressure on oil-importing economies like India.Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.At the interbank foreign exchange market, the rupee touched 94.95 against the US dollar in initial trade, registering a fall of 11 paise over its previous close.On Thursday, the rupee had settled at 94.84 against the American currency.Stock exchanges and currency…
Gold (XAU/USD) attracts some sellers during the Asian session on Monday, though it lacks bearish conviction and shows some resilience below the $4,600 mark. Major central banks, including the US Federal Reserve (Fed), have turned hawkish in the wake of concerns that energy shocks stemming from geopolitical tensions in the Middle East would revive inflationary pressures. This, in turn, is seen as a key factor undermining demand for the non-yielding yellow metal.US President Donald Trump announced a plan to guide ships stranded in the Gulf through the Strait of Hormuz under a project called “Project Freedom” and also warned that…