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The rupee depreciated 21 paise to 88.43 against the dollar in early trade on Thursday, weighed down by the strength of the American currency after Fed Chairman Jerome Powell indicated that the rate cut in December is not given. Forex traders said the dollar index rose to 99.05 and the 10-year yield to 4.07 per cent despite the 25 bps rate cut by the FED overnight. At the interbank foreign exchange, the rupee opened at 88.37 against the US dollar before dropping to 88.43, down 21 paise from its previous close.On Wednesday, the rupee had settled at 88.22 against the…
The Bank of Japan (BoJ) board members decided to keep the short-term interest rate target steady in the range of 0.4%- 0.5% following the conclusion of its two-day monetary policy review meeting on Thursday.The decision came in line with the market expectations.The Japanese central bank extended the pause to its tightening cycle into a sixth straight meeting, following a 25 basis points (bps) hike in January.Summary of the BoJ policy statementReal interest rates are at significantly low levels.Will continue to raise policy rate if economy, prices move in line with its forecast, in accordance with improvements in economy, prices.Important to…
GBP/USD fell steeply during Wednesday’s American market session, extending a decline through the 200-day Exponential Moving Average (EMA) and pushing Cable positioning even further into bear country. GBP/USD has closed in the red for eight of the last nine consecutive trading days, pushing the Pound Sterling (GBP) into a -2.46% swing against the US Dollar (USD) top-to-bottom.The Federal Reserve (Fed) cut its main reference rate by another 25 basis points on Wednesday, as many market participants expected. What caught investors off guard, however, was Fed Chair Jerome Powell’s press conference that struck an even more cautious note than usual. Before…
GBP/USD drops more than 0.35% on Wednesday, below the 1.3250 mark, as the Bank of England (BoE) rate cut expectations for the November meeting rise while traders await the Federal Reserve (Fed) monetary policy decision.The GBP/USD pair trades at 1.3219 at the time of writing, as sellers pushed the spot price below the 200-day Simple Moving Average (SMA) at 1.3237.Sterling weakens as soft UK data and fiscal concerns weigh ahead of key central bank meetingsData in the UK showed signs that the labor market is weakening and inflation remained unchanged at 3.8% in September. Also, an article published by the…
The Pound Sterling (GBP) posts a fresh almost three-month low at around 1.3200 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair slumps as the US Dollar Index (DXY) trades higher ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT and the continued underperformance from the British currency. At the time of writing, the US Dollar Index trades 0.2% higher to near 99.00.Investors keenly await the Fed’s policy announcement to get cues on the interest rate outlook, while remaining confident that the United States (US) central bank will reduce borrowing rates…
The rupee appreciated eight paise to close at 88.21 (provisional) against the US dollar on Wednesday, on strong domestic markets and optimism over the trade deal between India and the US. Forex traders said upbeat market sentiment, driven by trade deal optimism and easing crude oil prices, enthused investor sentiment, even as importer demand for dollars capped sharp gains. Moreover, investors remain cautious ahead of the US FOMC meeting decision. At the interbank foreign exchange market, the rupee opened at 88.21, and later traded in a range of 88.15 to 88.35 during the day. The local unit finally settled at…
Gold (XAU/USD) climbs to the $4,000 psychological mark during the early European session on Wednesday, and for now, seems to have snapped a three-day losing streak to an over three-week low, touched the previous day. The growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs later today and deliver another rate cut in December drives flows towards the non-yielding yellow metal. Any further move up, however, seems limited as traders might opt to wait for the outcome of a two-day FOMC meeting.Heading into the key event risk, some repositioning trade assists the US Dollar (USD) to gain…
The Australian Dollar (AUD) advances against the US Dollar (USD) on Wednesday following the release of Australia’s Consumer Price Index (CPI) data. Additionally, the AUD/USD pair receives support from decreasing bets on rate cuts by the Reserve Bank of Australia (RBA).Australia’s Consumer Price Index rose 1.3% quarter-over-quarter (QoQ) in the third quarter (Q3), compared with the 0.7% increase seen in the second quarter. The market consensus was for a growth of 1.1% in the reported period. CPI inflation climbed to 3.2% year-over-year (YoY) in Q3, versus 2.1% prior and above the market consensus of 3.0%.The RBA Trimmed Mean CPI for…
The GBP/JPY plunged sharply on Tuesday, close to 200 pips or 0.97% as the cross-pair slides below the 202.00 milestone, for the first time since last Friday. At the time of writing, the pair trades at 201.94 virtually unchanged, as Wednesday’s Asian session begins.GBP/JPY Price Forecast: Technical outlookThe GBP/JPY technical picture shows that the uptrend remains in place, but the pair could test lower prices after it cleared the 20-day SMA at 202.43. A further extension lower looms if the cross clear September’s 18 high at 201.27, opening the door for further downside.The next key support levels are the 50-day…
GBP/USD dives more than 0.50% on Tuesday as market participants digested news of the UK’s Office for Budget Responsibility (OBR), which plans to cut productivity, leading to a huge hole in the public finances. At the time of writing, the pair trades at 1.3280 after hitting 1.3247, its lowest level since August 1.Pound tumbles over 0.50% after OBR warns of £20B hit to public financesThe US Dollar is downbeat during the North American session amid a lack of catalysts linked to the Greenback. The US Dollar Index (DXY), which tracks the USD performance against a basket of six currencies, is…