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A Reuters poll revealed that the Bank of Mexico, also known as Banxico, is expected to keep interest rates steady at 7% at the March 26 meeting amid concerns about the Middle East war.If Banxico keeps rates unchanged, it would be the second consecutive time the central bank has opted for a wait-and-see approach, after reducing rates 12 times since the easing cycle began.The survey revealed that 16 of 28 economists expect Mexico’s main reference rate to remain unchanged, while a minority of participants — including analysts at Goldman Sachs and JPMorgan — project a resumption of Banxico’s easing cycle,…
The US Dollar (USD)i weakened this week, with the US Dollar Index (DXY) slipping back below 100.00 to 99.60 on Friday after a surge in the middle of the week driven by the Federal Reserve’s (Fed) decision to hold rates in the 3.50%-3.75% range. The war in Iran is nearing the end of its third week, with the Strait of Hormuz still effectively closed as Oil prices remain high. Reports indicate that the Pentagon is deploying thousands of additional Marines to the region, suggesting that a swift resolution is unlikely. Additionally, Fed’s Chair Jerome Powell has cautioned that inflationary pressures…
Gold (XAU/USD) price extended on Friday its losses for the eighth straight day, poised to end the week down by more than 8.50% as Oil prices continued to rally, boosting the haven appeal of the Greenback. The jump in US Treasury yields and market participants’ pricing in no rate cuts by the Federal Reserve (Fed) keep the yellow metal downward pressured.Gold set for 8% weekly loss as Fed rate cut bets vanish, Middle East conflict escalatesAt the time of writing, XAU/USD trades at $4,560, down nearly 2% in the day. The US Dollar Index (DXY), which measures the buck’s performance…
The Swiss Franc (CHF) trades flat against the US Dollar (USD) on Friday, reversing part of its earlier gains as the Greenback eases slightly from daily highs. At the time of writing, USD/CHF is trading around 0.7878 after briefly touching the 0.7900 mark. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading near 99.54 after retreating from an intraday high of 99.79.Despite the modest pullback in the Greenback, it remains up nearly 0.30% on the day, limiting follow-through selling pressure in USD/CHF. However, the Franc remains relatively firm across the…
The Rupee recorded one of its biggest single day falls in recent times, sinking 108 paise against the US Dollar and weakening well past the 93 mark, as hardening crude oil prices due to the ongoing West Asia War, FPI-related outflows from the equity markets and a strong Dollar weighed on it.The Indian currency (INR) closed at an all-time low of 93.71 per USD against the previous close of 92.63. Opening weaker at 92.89, INR tested an intraday high/low of 92.88/93.7575.The last time the Rupee fell by more than 100 paise was on June 4, 2024. Then the INR crashed…
Gold (XAU/USD) extends losses on Friday following a sharp two-day decline that pushed prices to their lowest level since early February, near the $4,500 mark. The drop comes as markets increasingly price in a ‘higher-for-longer’ global interest rate environment following this week’s major central bank monetary policy announcements.At the time of writing, XAU/USD is trading around $4,580, pulling back from an intraday high near $4,735, and remains on track to post a third consecutive week of losses.Gold loses shine as hawkish central banks tighten gripThe Federal Reserve (Fed), Bank of Japan (BoJ), Swiss National Bank (SNB), Bank of England (BoE),…
The Dow Jones Industrial Average tumbled around 257 points, or 0.6%, on Friday as all three major US indices tracked toward a fourth consecutive losing week. The S&P 500 fell 0.8%, while the Nasdaq Composite underperformed with a decline of 1.2%. Overnight strikes between Iran and Israel, fresh attacks on energy sites in the Persian Gulf, and a Wall Street Journal report that the Pentagon is deploying thousands of additional Marines to the Middle East all weighed on sentiment. Volatility was amplified by the quarterly quadruple witching event, which saw trillions of dollars in options and futures expire, driving heavier…
EUR/USD trades with a mild downside bias on Friday as a modest rebound in the US Dollar (USD) weighs on the Euro (EUR), with price action lacking follow-through buying after failing to sustain a break above the 1.1600 mark.At the time of writing, the pair hovers near 1.1542, down around 0.38% on the day, though it remains on track to close the week in positive territory after two consecutive weekly losses.Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading near 99.67, recovering after falling about 1.10% on Thursday.From a…
GBP/USD trims some of its previous-day gains on Friday, down by 0.84%, as traders turn risk-averse amid an escalation of the Middle East war and price in no rate cuts by the Federal Reserve (Fed) in 2026. At the time of writing, the pair trades below 1.3350 after hitting a daily high of 1.3442.Sterling retreats as rising energy prices and hawkish Fed stance fuel Greenback demandThe jump in Crude Oil prices continues to underpin the Greenback, which, according to the US Dollar Index (DXY), which measures the performance of the American currency against six others, is up 0.48%.On Thursday, the…
AUD/USD trades lower around 0.7040 on Friday at the time of writing, down 0.68% on the day, as the pair is pressured by a return of safe-haven demand despite supportive domestic factors in Australia.The Australian Dollar (AUD) remains underpinned this week by the Reserve Bank of Australia (RBA) decision on Tuesday to raise its Official Cash Rate by 25 basis points to 4.10%, marking a second consecutive hike this year. Governor Michele Bullock stated that inflation remains too high and warned about potential second-round effects from rising energy costs amid tensions in the Middle East. Strong labor market data, with…