Author: admin

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its losses for the second successive session, trading around 97.50 during the Asian hours on Monday.The dollar index weakened against major currencies as persistent uncertainty around the United States (US) trade policy and disappointing economic data weighed on investor sentiment. Recent legal and policy developments have compounded confusion over the outlook for tariffs and growth.Global markets remain on edge after the US Supreme Court struck down most of President Donald Trump’s emergency tariff authority, limiting the use of emergency powers to…

US President Donald Trump is considering limited airstrikes on Iran, the New York Times reported on Sunday. Trump said that if diplomacy or any initial targeted US attack does not lead Iran to give in to his demands that it give up its nuclear program, he will consider a much bigger attack in coming months.The next round of talks between the US and Iran will be on Thursday in Geneva. However, Trump weighs options for US action if the negotiations fail.Market reactionAt the time of press, the US Dollar Index (DXY) was down 0.36% on the day at 97.40. Risk sentiment FAQs In…

For months, the U.S. dollar has looked tired. The U.S. Dollar Index has remained below the psychological 100 mark since November, slipping nearly 6.5% since what markets dubbed “Liberation Day”. The dollar, once the unquestioned king of currencies, suddenly found itself defending ground rather than gaining it.For a currency that typically strengthens during global uncertainty, this weakness felt unusual. But storms do not last forever. And now, the very concerns that dragged the dollar lower may slowly be turning into reasons for a rebound.Why the Dollar Was StrugglingThe dollar’s weakness was not random; it was built on a series of…

The dollar declined in volatile trading on Friday and was poised to snap a four-session streak of gains after the U.S. Supreme Court struck down President Donald Trump’s sweeping tariffs based on a national emergency law. The justices, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court’s decision that the Republican president’s use of this 1977 law exceeded his authority. The dollar was initially higher on the day after U.S. economic data showed a higher-than-anticipated inflation reading while economic growth fell well short of expectations. The Commerce Department said gross domestic product increased at…

DBS Group Research economist Chua Han Teng expects the People’s Bank of China to keep the 1-year Loan Prime Rate at 3.00% on February 24, as January data are still unfolding. The report says policy remains cautiously accommodative, reflected in a lower USD/CNY fixing below 7.0, with reliance on structural tools and broader easing anticipated toward the second half of 2026.Loan Prime Rate seen unchanged for now”The PBOC is expected to keep the 1-year Loan Prime Rate (LPR) unchanged at 3.00%, as January economic data have yet to fully unfold.””The central bank is maintaining a cautiously accommodative monetary policy stance…

MUFG analysts Lin Li, Michael Wan, Lloyd Chan and Khang Sek Lee highlight an Asia‑centric week dominated by geopolitics, inflation and monetary policy. They expect the Bank of Korea to keep rates on hold through 2026, the Bank of Thailand to cut by 25bps, and China’s loan prime rates to stay unchanged pending clearer policy guidance in March.Asia policy signals drive FX outlook”The coming week is heavily Asia‑centric, with geopolitics, inflation dynamics and monetary policy in focus across the region.””In particular, we expect the Bank of Korea to keep rates on hold with the tone likely to indicate an extended…

UOB Global Economics & Markets Research reports that Malaysia’s inflation remained stable in January, slightly below its own forecast and in line with consensus. Despite solid 4Q25 GDP, price pressures are seen as contained, reducing the urgency for policy changes. UOB therefore maintains its view that Bank Negara Malaysia will hold the Overnight Policy Rate at 2.75% throughout 2026.Contained inflation supports steady policy stance”Malaysia’s headline inflation remained stable at 1.6% y/y in Jan (Dec: 1.6%), in line with Bloomberg consensus but tad lower than our estimate (1.7%).””In our view, despite the strength in 4Q25 GDP, inflation remains contained, thus providing…

DBS Group Research’s Radhika Rao highlights that Bangko Sentral ng Pilipinas cut its policy rate by 25bps to 4.25%, citing weaker-than-expected recovery, softer confidence and delayed government spending. Official growth forecasts for 2026–27 were lowered, inflation projections nudged higher, and DBS still expects one more 25bps cut as BSP keeps the door open to further easing.BSP cuts with cautious forward guidance”The BSP lowered policy rate by 25bps, accompanied by a cautious guidance in light of weaker-than expected recovery, besides softer confidence indices, and delay in government spending on graft-led uncertainty.””Official growth forecasts were cut to 4.6% for 2026 and 5.9%…

The AUD/USD advances for the second straight day, up by 0.36% as the Greenback edges lower as US economic growth takes a toll while inflation accelerates towards the 3% threshold. At the time of writing, the pair trades at 0.7086, poised to end the week with gains of over 0.19%.AUD/USD Price Forecast: Technical outlookThe AUD/USD remains upward biased after buyers pushed the exchange rate past above the 20-day Simple Moving Average (SMA) of 0.7034. Following that, they cleared 0.7050 and seem poised to challenge the 0.7100 mark.Bullish momentum remains intact, with the Relative Strength Index (RSI) aiming higher, after bottoming…

Gold prices rally more than 1% on Friday after economic growth in the US decelerated, while inflation rose past the 3% threshold as depicted by the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) favorite inflation gauge. XAU/USD trades at $5,065 after bouncing off daily lows of $4,981.Bullion jumps as US growth slows and core PCE tops 3%, stagflation looming?Breaking news revealed that the US Supreme Court ruled against Trump’s tariffs, imposed under a law intended for national emergencies. This improved risk appetite, as US equities pared earlier losses and turned positive in the day. In the…