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The US Dollar Index (DXY) spent the back half of this week doing something most desks had written off six months ago: rallying on the prospect of a Federal Reserve (Fed) rate hike. The index pushed to a fresh 13-month high before easing back; the move owed less to safe-haven flight than to a cold read on rate differentials. With the Federal Open Market Committee (FOMC) leaning hawkish at its June meeting, the Greenback has become the cleanest way to play the only major central bank still willing to tighten into an energy shock.A yield gap, not a panicUnderneath the…
The week ahead will bring a fresh test for major currency pairs as investors digest the first Federal Reserve (Fed) policy decision under Chair Kevin Warsh and look ahead to the United States (US) Personal Consumption Expenditures (PCE) data, global PMI releases, and central-bank commentary.The US Dollar Index (DXY) trades near the 100.70 price zone on Friday after reaching a 13-month high of 101.13 earlier in the day. The Greenback rose sharply this week following the Fed’s decision to leave interest rates unchanged in the 3.50%-3.75% range, and removing its previous reference to “additional rate adjustments” . A hotter-than-expected PCE…
Silver (XAG/USD) price tumbles for the third consecutive trading day, down over 3.32% on Friday, courtesy of broad US Dollar (USD) strength and rising US Treasury yields, which have aimed higher since Wednesday amid the Fed’s hawkish tilt.XAG/USD Price Forecast: Technical OutlookSilver price continued to trend lower after clearing the 200-day Simple Moving Average (SMA) at $69.11, which was tested three times this week, but buyers surrendered, and sellers are gaining the upper hand, pushing the white metal below $65.00.Momentum shows that bears have continued to gain traction, as indicated by the Relative Strength Index (RSI), though it’s worth noting…
The USD/CAD pair rises during the North American session, up 0.27% on Friday and over 1.34% for the week, with the pair remaining upward-biased and set to test higher prices seen last year. At the time of writing, the pair trades at 1.4175, after bouncing off daily lows of 1.4131.USD/CAD Price Forecast: Technical outlookPrice action shows a clear uptrend, with USD/CAD poised to test 1.4200 in the short term. Momentum is also extremely bullish, as depicted by the Relative Strength Index (RS), which is above the overbought level of 70 and near an extreme at 86.45, indicating the pair is…
The Pound Sterling recovers some ground after reaching a three-month low on Friday at 1.3163, sponsored by the Fed’s hawkish tilt, but edges up 0.18% amid thin trading conditions due to a holiday in the US. The GBP/USD trades at 1.3226, yet it is poised to end with weekly losses of 1.25%.GBP/USD trims losses as traders weigh Fed, BoE and geopoliticsMarket sentiment remains fragile despite the recovery from the US-Iran deal. During the last two days, hostilities between Hezbollah and Israel tested the Middle East agreement signed digitally by Washington and Tehran.Recently, a Hezbollah source stated that if Israel adheres…
According to UOB Global Economics & Markets Research, EUR/USD extended its recent decline as the US Dollar index hit a one-year high following the Fed’s hawkish hold. The pair closed at 1.1456, with Euro sentiment also shaped by comments from ECB Chief Economist Philip Lane on a potentially higher neutral rate and an ongoing energy-related price shock from the Middle East.Euro slides as DXY hits one year high”The US dollar extended gains on Thu to its highest in more than a year after a hawkish hold from the Fed triggered bets on rate hikes. The US dollar index (DXY) surged…
The Indian rupee ended largely unchanged against the dollar after a choppy session on Friday, as weakness in regional currencies largely offset the unwinding of long dollar positions, but the currency posted its best week in the last 11 on debt inflows.This was also the fourth weekly gain in the last five weeks.The rupee climbed to 94.21 early in the session as long dollar positions were unwound, but surrendered gains later as the dollar strengthened and index-rebalancing outflows hit the currency. It ended little changed at 94.32 per dollar.For the week, the rupee rose 0.83%, marking its best performance since…
Rupee ended largely unchanged against the dollar after a choppy session on Friday, as weakness in regional currencies largely offset the unwinding of long dollar positions, but the currency posted its best week in the last 11 weeks on debt inflows.This was also the fourth weekly gain in the last five weeks.The rupee climbed to 94.21 early in the session as long dollar positions were unwound, but surrendered gains later as the dollar strengthened and index-rebalancing outflows hit the currency. It ended little changed at 94.32 per dollar.For the week, the rupee rose 0.83%, marking its best performance since week…
For deposits up to $1 million, the interest rate has increased to 7%, Bandhan Bank said in a release. | Photo Credit: RUPAK DE CHOWDHURI Private sector lender Bandhan Bank on Friday said it has increased interest rates on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits for non-resident Indian customers.The bank will now offer an interest rate of 7.1 per cent on US dollar-denominated FCNR(B) deposits of $1 million and above for tenures ranging from 3 to 5 years, according to a company release.For deposits up to $1 million, the interest rate has increased to 7 per cent, the bank said…
The Japanese Yen (JPY) remains offered against the US Dollar (USD) on Friday, and the USD/JPY pair stands comfortably around 161.30, its highest level since 2024, way beyond the level that triggered an alleged intervention on April 30.Markets have remained oblivious to the Bank of Japan’s (BoJ) decision to hike rates to 31-year highs earlier this week. Speculative traders have kept selling the Japanese currency, lured by rising bets that the US Federal Reserve will be forced to hike interest rates in the second half of the year.On Thursday, Japan’s Chief Cabinet Secretary, Minoru Kihara, reiterated that the authorities are…