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UBS Chief Economist Paul Donovan assesses how Artificial Intelligence (AI) may affect productivity and whether the European Union (EU) could gain an advantage over the United States (US). He notes that AI’s productivity impact remains largely potential, but argues that education structures and skill distributions across workforces in the US, key European economies and the United Kingdom (UK) could shape relative competitiveness as AI adoption spreads.AI productivity and education-driven edge”The potential for the shiny new toy of artificial intelligence to generate productivity is still more an ideal than a reality.””But adopting any new technology should eventually improve economic efficiency (otherwise,…
Silver (XAG/USD) price surges over 4% on Friday, reclaiming $81.00 a troy ounce as the Greenback gets battered on positive news around the Middle East conflict. The reopening of the Strait of Hormuz and a second round of talks between the US and Iran pushed precious metals higher, and the white metal is no exception. At the time of writing, the XAG/USD pair trades at $81.82.XAG/USD Price Forecast: Technical OutlookThe white metal advanced steadily on Friday, rallying for the fourth straight week and reaching a five-week high at $83.06 before retreating to $81.00. Price action seems constructive, and if Silver…
DBS Group Research economists highlight that China’s Q1 2026 GDP growth accelerated to 5.0% year-on-year, driven by strong external demand and resilient industrial production, while domestic demand in consumption, investment and credit stayed weak. Improving PPI and CPI readings reduce urgency for aggressive monetary easing, leading DBS to scale back its 2026 1Y LPR cut forecast to 10 basis points.External resilience, softer domestic momentum”China’s economic growth accelerated from 4.5%yoy in Q4 2025 to 5.0% in Q1 2026, started of with a solid footing. Industrial activity remained well supported by strong external demand, while domestic momentum stayed uneven, with consumption, investment,…
Gold (XAU/USD) price rallies on Friday ahead of the weekend, breaking past the $4,850 level and rising more than 1.50%, as the US-Iran conflict seems to be de-escalating after Iran reopened the Strait of Hormuz, easing inflationary pressures worldwide. Energy prices tumble, with WTI, the US crude oil benchmark, down more than 9%, while the US Dollar falls to a seven-week low.Bullion rallies as falling Oil revives Fed cut hopes for 2026Middle East news remains the focus for market participants, who tend to react strongly to headlines suggesting the conflict may end. The source was different: the Iranian Foreign Minister…
MUFG’s Senior Currency Analyst Lloyd Chan notes that improved diplomatic signals in the Middle East have boosted risk sentiment, softening the US Dollar (USD) and supporting Asian FX. However, high US front-end yields still underpin the Dollar, and bond markets remain cautious. Chan highlights that Asian currencies have rebounded on expectations of a quicker resolution, but warns recent gains could prove vulnerable if diplomacy stalls.De-escalation narrative lifts Asia FX”FX-wise, the USD has also softened on improved risk appetite, but still-high US front end rates are keeping a supportive carry backdrop for the dollar, with the US 2-year yield remaining above…
The US Dollar Index (DXY) is losing momentum near 98.00 as safe-haven demand fades on the reopening news, but downside remains limited amid lingering geopolitical risks. Markets are experiencing fluctuations between relief and renewed caution as developments around the Strait of Hormuz continue to evolve. Earlier reports confirmed that this vital Oil chokepoint is “fully open and ready for full passage,” alleviating fears about prolonged supply disruptions. However, new developments are complicating the situation. Reports suggest that Iran may consider closing the Strait of Hormuz again if the United States maintains its naval blockade, warning that such an action would…
The AUD/USD surged toward the 0.7200 price region on Friday, as improving headlines out of the Middle East weigh on the US Dollar (USD) and support risk-sensitive currencies like the Australian Dollar (AUD).Market sentiment has shifted following announcements that the Strait of Hormuz is now “fully open and ready for full passage.” This development eases concerns about prolonged supply disruptions in global energy markets. A subsequent statement by United States (US) President Donald Trump clarified that while the Strait is operational for business, certain naval restrictions specifically related to Iran will remain temporarily in place as negotiations near completion. Overall,…
The Rupee made a smart recovery in the new financial year so far, gaining about 191 paise against the US dollar. This has come on the back of RBI measures to counteract the depreciation pressure it faced since the US-Israel axis launched air strikes against Iran on February 28, 2026.The Indian currency closed about 28 paise stronger on Friday at 92.9250 per dollar, against the previous close of 93.20. Overall, it gained 81 paise against last Friday’s close of 93.73.As compared to the March 30, 2026 ) closing and intraday low levels of 94.83 and 95.21, respectively, the Rupee has…
Gold’s (XAU/USD) remains practically flat, at $4,790 at the time of writing on Friday, lacking a clear bias after pulling back from one-month highs, at $4,871 earlier this week. Precious metals are consolidating recent gains on Friday, supported by a mild US Dollar weakness as investors await developments from the US-Iran peace talks.News from Iran and the US are diverging, but the market is sticking to US President Donald Trump’s positive comments. He announced a 10-day ceasefire between Lebanon and Israel on Thursday and affirmed that a deal with Iran is “very close”, which has boosted expectations about the peace…
The Indian rupee rose on Friday following a Reuters report of a central bank step to curb state-run oil companies’ dollar demand, adding to measures that have narrowed the currency’s underperformance over the last fortnight.Since hitting a record low of 95.21 per dollar on March 30, the rupee has recovered as the central bank tapped crisis-era tools to shore up the currency which had been battered by foreign portfolio outflows and risks to India’s current account balance. On Friday, the rupee rose 0.3% to close at 92.9250, after touching a one-week high of 92.66 in early trading. Earlier in the…