Author: admin

European Central Bank (ECB) policymaker and Governor of Central Bank of Latvia, Martins Kazaks, said during European trading session that risks to inflation and growth in the Eurozone are more balanced.Additional commentsECB will move when needed but shouldn’t be jumpy.Risks to inflation and growth are more balanced.Market reactionEUR/USD trades with caution near the two-week low around 1.1560, posted on Thursday, during European trading hours. Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it…

Gold (XAU/USD) attracts some sellers following an Asian session uptick to the $4,046 area and, for now, seems to have stalled this week’s recovery from its lowest level since October 6. The US Dollar (USD) preserves its strong gains registered over the past two days, to a nearly three-month top, in the wake of the US Federal Reserve’s (Fed) hawkish tilt, which, in turn, is seen undermining the non-yielding yellow metal.Apart from this, the latest optimism over a de-escalation of trade tensions between the US and China – the world’s two largest economies – turns out to be another factor…

The rupee showed some recovery and traded 5 paise higher at 88.64 against the dollar in early trade on Friday, tracking lower crude oil prices and weaker American currency.According to forex traders, the outflow of foreign funds amid selling pressure in the equity markets prevented a sharp gain in the domestic unit.At the interbank foreign exchange, the rupee opened at 88.60 rose slightly to 88.59 before trading at 88.64 against the greenback, up 5 paise from its previous close.On Thursday, the rupee had crashed 47 paise to settle at 88.69 against the US dollar after the US Federal Reserve reduced…

GBP/USD fell again on Thursday, grinding down toward the 1.3100 handle and tipping into six month lows at 1.3116. The Pound Sterling (GBP) continues to shed weight against the US Dollar (USD), and is down over 2% against the Greenback through the month of October alone.Cable has declined for all but one of the last ten straight trading days, plummeting from a half-hearted swing high into 1.3450 and is now knocking on the 1.3100 handle. GBP/USD has fallen below the 200-day Exponential Moving Average (EMA) near 1.3275, setting up Pound sellers for a continued backslide.The Federal Reserve (Fed) cut interest…

AUD/USD weakens on Thursday to around 0.6550 at the time of writing, down 0.40% for the day. The pair is weighed down by a rebound in the US Dollar (USD) following a positive meeting on Thursday between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.The two leaders agreed to a one-year trade truce that includes reducing US tariffs on Chinese imports from 57% to 47%, as well as China’s commitment to resume US soybean purchases and allow the free export of rare earths to the United…

EUR/USD is giving away previous gains and returns to levels near the 1.1600 area at the time of writing, from session highs at 1.1635. Markets remain cautious ahead of the European Central Bank’s (ECB) monetary policy decision, which leaves the pair treading water despite the good news from the Sino-US trade deal and better-than-expected Eurozone Gross Domestic Product (GDP) figures.Eurozone’s preliminary GDP data revealed that the economy accelerated to 0.2% in the third quarter, beating expectations of a 0.1% growth. Apart from that, the economic sentiment has improved beyond expectations, with confidence in the industrial and services sectors’ activity also…

The rupee depreciated 48 paise to close at 88.70 (provisional) against the American currency on Thursday on a strong US dollar, weak domestic markets, and a hawkish US Fed.Forex traders said the US Federal Reserve slashed interest rates by 25 bps in its Federal Open Market Committee (FOMC) meeting. However, Fed Chair Jerome Powell’s commentary was hawkish, trimming rate-cut expectations for December.Moreover, month-end dollar demand from Oil Marketing Companies (OMCs) and foreign fund outflows may also weigh on the rupee.At the interbank foreign exchange market, the rupee opened at 88.37, and later fell to an intra-day low of 88.74. The…

The Indian rupee slid to its lowest in two weeks on Thursday as outflows worsened the hit from a hawkish tilt in Federal Reserve policy, which sent the dollar and U.S. Treasury yields higher.The rupee closed at 88.6950 against the U.S. dollar, down 0.6% on the day, after touching a two-week low of 88.7375 earlier in the session.India’s central bank likely stepped in intermittently, via state-run banks, to limit the rupee’s losses but the intervention was not aggressive, traders said.”A lot of stop losses have been triggered in 88.40 to 88.50 zone leading to fresh highs in USD/INR,” a trader…

AUD/USD gains ground after recovering its recent losses registered in the previous session, trading around 0.6580 during the European hours on Thursday. The Australian Dollar (AUD) holds ground against the US Dollar (USD) following the highly anticipated meeting between US President Donald Trump and China’s President Xi Jinping in South Korea. Any shift in China’s economic conditions could also affect the Australian dollar (AUD), given the close trade ties between China and Australia.President Trump announced that tariffs on China will be reduced to 47% from the current 57%. Trump added that the rare earth dispute has been resolved, ensuring no…

FILE PHOTO: The Indian Rupee logo is seen inside the Reserve Bank of India (RBI) headquarters in Mumbai, India, December 6, 2024 | Photo Credit: FRANCIS MASCARENHAS Reserve Bank of India (RBI) doesn’t view a weak exchange rate as a policy tool to gain a competitive edge in a world grappling with high tariffs, Poonam Gupta, RBI’s Deputy Governor said.“Can exchange rate give us a competitive edge in the world of tariffs? My view is that it’s not even a policy tool,” Gupta said Wednesday at an event hosted by the Business Standard newspaper in Mumbai. “Where the exchange rate…