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The Indian Rupee (INR) remains steady against the US Dollar (USD) on Monday, after registering losses in the previous session. The USD/INR pair hovers around 88.70 during the Asian hours, with the Reserve Bank of India’s (RBI) frequent interventions preventing the INR from breaching its record low of 88.87, last seen on September 24.Traders will be watching the annual India Consumer Price Index (CPI) data for September later in the day. The Indian Rupee could face pressure as September’s inflation is expected to ease to 1.7%, below the RBI’s 2–6% target, fueling expectations of rate cuts.The INR gained ground in…
Gold price (XAU/USD) extends the rally to around $4,040 during the early Asian session on Monday. The escalating trade tensions between the United States (US) and China provide some support to the precious metal. Traders await signs on when the US government will reopen and release data that will shape Federal Reserve (Fed) policy.The rally in the yellow metal is bolstered by US President Donald Trump’s decision to impose fresh 100% tariffs on Chinese imports starting November 1. China warned the US that it would retaliate if Trump fails to back down on his threat to impose levies on Chinese imports.…
US President Donald Trump hit markets with a fresh tariff threat on Friday, continuing his lashout at China over their decision to impose even stricter export licensing requirements on foreign entities trying to move critical rare earths minerals out of China.Donald Trump declared via social media post that he will be imposing a new 100% tariff on all exports bound for the US from China, as Trump’s bespoke playbook of hammering his own constituents to punish foreign nations continues to play out.How the Trump administration will achieve a new import tariff remains to be solved by other people within the…
The EUR/USD pair recovers some ground on Friday, climbing above 1.1600 as the Greenback plunges, driven by an escalation of the trade war between the US and China. However, gains seem capped by the political turmoil and weaker-than-expected data in the Eurozone (EZ). The pair trades at 1.1606, up 0.37% at the time of writing.Dollar slumps on renewed tariff threats; France’s leadership reset relieved Euro’s bullsOn Friday, the Euro (EUR) recovered after four days of consecutive losses, despite the ongoing political turmoil in France. Recently, the French President Emmanuel Macron reappointed Se´bastien Lecornu as Prime Minister, after he quit the…
The Dow Jones Industrial Average (DJIA) soured sharply on Friday, plummeting to its lowest bids in nearly three weeks and declining over 1,000 points top-to-bottom after US President Donald Trump pulled out of upcoming trade talks with Chinese President Xi Jinping and vowed to sharply increase import tariffs on all Chinese goods. According to Trump, China is holding the rest of the world hostage with its protectionist rare earth materials policies.Market-wide expectations of a potential tariff-easing trade deal between the US and China were demolished by Trump’s fresh tariff proclamation, sending investors scurrying into safe havens to cap off an…
Gold price rises during the North American session on Friday amid an escalation of the trade war between the US and China. This, the US government shutdown and expectation for further easing by the Federal Reserve (Fed) keep the yellow metal bid. XAU/USD trades at $3,997, up 0.60%, at the time of writing.Bullion’s boosted by escalating tariff threats and prolonged Washington deadlock reigniting risk aversionRisk aversion is the name of the game after US President Donald Trump warned of possible fresh duties on China, as the latter threatens to impose export controls on rare earths. Trump added that there is…
West Texas Intermediate (WTI) US Crude Oil prices collapsed below $60.00 per barrel on Friday, tumbling over 4% in Oil’s worst single-day performance since June’s sharp pullback. Hopes for a cooling of tariffs between the US and China were swept off the table to end an otherwise unremarkable week, souring already-weak investor sentiment amidst an extending US government shutdown.More tariffs incoming?US President Donald Trump publicly pulled out of an upcoming trade meeting between himself and Chinese President Xi Jinping, and vowed via social media proclamation to impose additional steep import tariffs on all goods being imported into the US from…
The Australian Dollar (AUD) slumps against the US Dollar (USD) on Friday, with AUD/USD plunging to over one-month lows after US President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies.Given Australia’s close trade ties with China, the comments weighed heavily on the Aussie as traders trimmed exposure to risk-sensitive currencies. At the time of writing, AUD/USD trades around 0.6484, down nearly 1.0% on the day and on track to post a weekly loss.At the same time, the Greenback also fell against its major counterparts,…
Federal Reserve (Fed) Bank of St. Louis President Alberto Musalem spoke about the United States (US) economy and monetary policy at a fireside chat before the Springfield Area Chamber of Commerce and Public policy speakers, stating that inflation is running high. He added that the labor market is showing signs of potential weakness and that a balanced approach to monetary policy only works if inflation expectations are anchored.Key QuotesFed’s goals are in tension.A balanced approach to monetary policy only works if inflation expectations are anchored.Less able to respond to short-term labor market fluctuations if inflation expectations become unanchored.Right now, inflation…
The Euro (EUR) extends its pullback against the Japanese Yen (JPY) on Friday, with EUR/JPY losing 0.35% to 176.40 at the time of writing, after reaching an all-time high of 177.94 in the previous session. The European currency remains under pressure amid political instability in France, where the resignation of Prime Minister Sébastien Lecornu has reignited concerns about the government’s ability to contain its fiscal deficit.French President Emmanuel Macron, under pressure to appoint a new head of government before the end of the day, struggles to secure a consensus after a series of unproductive meetings with opposition parties. The lack…