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The USD/JPY forecast edges lower as the BoJ’s Ueda left hawkish remarks. The BoJ hinted at rate hikes to prevent a resurgence in inflationary pressure. With Fed easing, the central bank divergence continues to favor the USD/JPY bears in the near term. The USD/JPY forecast remains slightly lower on Monday as the pair slipped to mid-155.00 following hawkish signals from BoJ’s Ueda. His comments have strengthened the expectations that the central bank could raise interest rates in December or January, narrowing the yield spread that drove the yen weakness throughout the year. –Are you interested to learn more about day…
The Indian Rupee (INR) posts a fresh low against the US Dollar (USD) after a flat opening at the start of the week. The USD/INR pair jumps to near 90.00 as the Indian Rupee struggles to attract bids, with consistent foreign outflows offsetting the impact of robust India’s Q3 Gross Domestic Product (GDP) growth.Foreign Institutional Investors (FIIs) have turned out to be net sellers in the last five months starting July, dumping stakes in the Indian stock market worth Rs. 1,49,718.16 crore.Currencies from developing economies are significantly impacted by diminishing confidence of overseas investors in their economy.On Friday, India’s Ministry…
The Japanese Yen (JPY) jumps to a one-and-a-half-week top against a broadly weaker US Dollar (USD) during the Asian session on Monday. The latest comments from Bank of Japan (BoJ) Governor Kazuo Ueda reaffirmed bets for an imminent interest rate hike, pushing Japanese government bond (JGB) yields to their highest levels in years. The resultant narrowing of the rate differential between Japan and other major economies provides a goodish lift to the JPY at the start of a new week.Apart from this, a softer tone around the equity markets is seen as another factor that benefits the JPY’s safe-haven status.…
US President Donald Trump confirmed that he recently spoke by telephone with Venezuelan President Nicolas Maduro, but declined to reveal details, Reuters reported on Sunday.Key quotesConsiders Venezuela not to be a friendly country.Don’t read anything into me closing Venezuela airspace.Doesn’t mean airstrike imminent.Market reactionAt the time of press, the WTI price is up 0.71% on the day at $59.45. WTI Oil FAQs WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because…
The Indian rupee, which has been under pressure for a host of reasons, is unlikely to depreciate further in the near term, Union Bank of India said in a report, providing a rationale that the rupee has already weakened by roughly 4 per cent this year.”Given that the rupee has already weakened by roughly 4 per cent this year, we do not expect significant further depreciation in the near term,” the report read. The Indian rupee vis-a-vis the US dollar is currently trading in a tight range, under pressure from a mix of domestic strength and external challenges, including US…
The U.S. dollar was heading for its worst weekly performance since late July on Friday as traders increased bets that the Federal Reserve will cut rates again next month. The dollar has dropped this week as traders conclude that weakening labor data will lead to more rate cuts, even as many Fed policymakers express concern about still-elevated inflation. “It feels like with the post-shutdown run of releases, it’s generally been soft … the data overall definitely leaned towards a cut,” said Eric Theoret, FX strategist at Scotiabank in Toronto.The U.S. federal government is releasing a backlog of economic data after…
EUR/USD steadies during Friday’s North American session set to finish the week and November’s in positive territory with gains o 0.81% and 0.59%, respectively as traders seem certain that the Federal Reserve will cut rates in December. The pair trades at 1.1601 after bouncing off daily lows of 1.1555.Euro ends week and month higher as dovish Fed signals outweigh mixed US dataThe US Dollar treads water amid growing speculation for a rate cut. Data from the CME FedWatch Tool shows that the odds for a 25-basis points reduction to the fed funds rate at 87% for the December meeting. The…
Gold (XAU/USD) rises over 1% on Friday amid a scarce economic docket, but traders are pricing further easing by the Federal Reserve (Fed) at the next meeting, pushing the non-yielding metal past the $4,200 mark for the first time in the last ten days.Bullion surges over 1% in thin holiday trade as easing expectations climb toward 87% despite mixed US dataExpectations that the Federal Reserve would continue its easing cycle increased as the CME FedWatch Tool shows odds for a 0.25% reduction at the December 9-10 meeting at 87%,. Meanwhile, Fed officials remained muted since Wednesday, heading for Thanksgiving, as…
Silver (XAG/USD) climbs to a fresh all-time high on Friday, buoyed by dovish Federal Reserve (Fed) expectations alongside strong industrial and investment demand. At the time of writing, XAG/USD is trading around $56.40, with prices up over 12% this week and on track to log a seventh straight monthly gain.A tightening supply backdrop is adding further support to the rally, with reports indicating that inventories at Shanghai Futures Exchange warehouses have dropped to their lowest level since 2015. Market data also show that physical Silver turnover on the Shanghai Gold Exchange has slipped to a nine-year low.According to the Silver…
West Texas Intermediate (WTI) US Oil trades around $59.30 on Friday at the time of writing, posting a 0.50% daily gain as investors adopt a cautious stance while monitoring ongoing efforts toward a Russia-Ukraine peace agreement.Market participants note that any potential breakthrough could eventually ease sanctions on Russian Crude Oil and release some restricted supply, although meaningful changes would likely be gradual and contingent on a concrete deal.Russian President Vladimir Putin indicated that proposals conveyed by US President Donald Trump could help shape a future security framework, expressing openness to further negotiations. On the Ukrainian side, President Volodymyr Zelenskiy confirmed…