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Dual central bank interest rate decisions from the U.S. Federal Reserve and the Bank of Canada on Wednesday top the week’s calendar, with the BoC expected to hold rates, while a third consecutive 25 basis point cut from the Fed looks highly likely, RBC’s economists Nathan Janzen and Claire Fan report. Trade data key for Canada ahead of rate decision”Our base case forecast a month ago did not assume a December cut from the Fed, given inflation in the U.S. remains above the central bank’s 2% target, and Chair Jerome Powell’s comments at the last meeting about cautiously proceeding in…
The Euro (EUR) trims earlier gains against the US Dollar (USD) on Friday as the Greenback firms following the latest set of US economic releases. At the time of writing, EUR/USD is trading around 1.1635, easing from the daily high of 1.1628, though the pair remains on track for a second straight weekly gain as markets grow increasingly confident that the Federal Reserve (Fed) will cut interest rates next week.The delayed US Personal Consumption Expenditures (PCE) report for September kept the overall inflation picture steady. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate…
The US Dollar’s (USD) sharp H1 2025 drop could push investors toward broader portfolios, though geopolitics and Fed risks may keep the currency unsettled. Analysts now expect EUR/USD to swing widely in 2026, trimming the 12-month target to 1.18 while keeping a modestly bullish bias, Rabobank’s FX analyst Jane Foley reports. Geopolitics to drive EUR/USD volatility”The sharpness of the USD’s plunge in H1 2025 could itself encourage investors to favour a more diversified portfolio going forward into 2026. That said, issues related to trade tensions, geopolitics, Fed independence and US growth and inflation risks can all be expected to impact…
The FOMC is expected to deliver a 25bp rate cut with potential dissents, reflecting the tension between inflation risks and weakening employment. Federal Reserve (Fed) Gov. Jerome Powell is likely to emphasize data-dependence heading into January, while the new dot plot may still underplay the policy influence of the incoming Trump administration, Rabobank’s Senior US Strategist Philip Marey reports. Powell expected to downplay policy split”We expect the FOMC to make a 25 bps cut to the target range for the federal funds rate to 3.50-3.75% from 3.75-4.00%. We also expect dissents, possibly in opposite directions.””At the press conference, Powell will…
GBP/USD resumes its uptrend on Friday, trimming some of Thursday’s losses as the US Dollar (USD) recovers some ground. Inflation data in the US kept steady the chances of a Federal Reserve (Fed) cut at the December meeting, weighing on the Greenback. At the time of writing, the pair trades at 1.3349, up 0.19%.GBP/USD rallies as US Core PCE reaffirms Fed rate cut in DecemberThe Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite inflation gauge, which excludes food and energy, rose by 0.2% MoM in September, unchanged from August and aligned with estimates. In the twelve months to…
The RBI’s stated policy has always been that it allows the market to determine the Rupee’s value and it does not target any price level or band, according to Governor Sanjay Malhotra.The aforementioned observation comes in the backdrop of the Rupee breaching the 90 to the Dollar mark a couple of days back.“We believe that the markets in the long run are very efficient. It is a very deep market. We saw this earlier in February — the rupee to dollar had climbed up to almost 88 and within a period of three months, it came back to below 84,”…
The rupee closed little changed on Friday after the Reserve Bank of India cut policy rates, logging a quiet close to a week which saw the currency fall below 90 per dollar for the first time on worries about dwindling dollar inflows into the economy.The rupee closed at 89.98 against the U.S. dollar, little changed from its close in the previous session. Over the week, the currency depreciated by nearly 0.6%.A wider trade gap and anaemic investment flows alongside concerns over stalled trade talks with the U.S. have sapped dollar inflows into the world’s fifth-largest economy and made the rupee…
Saudi Arabia has reduced its official selling prices for January Oil deliveries, with Asian customers now paying only $0.60 per barrel above the Oman/Dubai benchmark. The move, the lowest premium in five years, reflects subdued demand and may prompt other OPEC nations to lower their prices as well, Commerzbank’s commodity analyst Carsten Fritsch notes. OPEC likely to follow Saudi pricing lead”Saudi Arabia has further reduced its official selling prices (OSPs) for Oil deliveries in January. Customers in Asia now only need to pay a premium of 60 US cents per barrel on top of the Oman/Dubai benchmark for Arab Light.”…
The rupee on Friday gave up its initial gains and settled for the day lower by 5 paise at 89.94 (provisional) against US dollar, after the Reserve Bank cut key benchmark interest rate for the first time in six months. Forex traders said the Reserve Bank of India’s (RBI) rate cut will weigh on the rupee, but RBI’s decision to purchase government bonds worth up to ₹1 lakh crore through open market operations (OMO), combined with a $5 billion buy-sell swap, will support the local currency. At the interbank foreign exchange market, the rupee opened at 89.85 against the US…
The rupee, which opened on a positive note, gave up its initial gains and breached the psychological 90-to-a-dollar level after the Reserve Bank cut key benchmark interest rate for the first time in six months on Friday. Forex traders said the Reserve Bank of India’s (RBI) rate cut will push the rupee even lower until foreign portfolio investors return in a big way. The RBI on Friday cut the key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a “goldilocks” economy amid high US tariffs. At the interbank foreign exchange…