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The Japanese Yen (JPY) recovers slightly from the lowest level since August, touched against its American counterpart earlier this Monday, though maintains its heavily offered tone through the first half of the European session. The outcome of Japan’s ruling Liberal Democratic Party (LDP) leadership election, which positions Sanae Takaichi to become the first female Prime Minister, could Bank of Japan’s (BoJ) task. In fact, Takaichi is expected to oppose any further monetary tightening by the BoJ. This, along with the prevalent risk-on environment, turns out to be a key factor weighing heavily on the JPY at the start of a…

Rupee rose five paise to 88.74 against the US dollar in early trade on Monday, tracking a positive trend in domestic equities and likely IPO-related inflows. Forex traders said the rupee is trading in a tight range as it remains under pressure due to continued capital outflows and geopolitical developments. At the interbank foreign exchange market, the rupee opened at 88.75 against the US dollar, then inched up to 88.74, registering a gain of five paise from its previous close. On Friday, the rupee depreciated eight paise to close at 88.79 against the US dollar. “We are entering a new…

The Australian Dollar (AUD) gains ground against the US Dollar (USD) following the release of the TD-MI Inflation Gauge data, suggesting that inflation may come in hotter than anticipated in the third quarter, despite the Reserve Bank of Australia’s (RBA) efforts to keep inflation within its 2–3% target range.TD-MI Inflation Gauge showed a 0.4% increase month-over-month in September, rebounding from a 0.3% fall in the prior month. Meanwhile, the annual inflation gauge rose 3%, following the previous 2.8% increase. Traders will likely observe speeches from Reserve Bank of Australia (RBA) officials this week, which are expected to provide further insight…

The Reserve Bank of India likely intervened to support the rupee on Monday as the currency was hovering just shy of its all-time low, pressured by persistent dollar demand from local importers, three traders told Reuters.The rupee was last at 88.7575 per U.S. dollar, little changed on the day but in touching distance of 88.80 hit last week. Traders said that state-run banks were spotted offering dollars, most likely on behalf of the RBI. The central bank has been frequently stepping in around the 88.80 mark to support the local unit, traders said.The dollar index was flat at 98 while…

EUR/USD consolidates on Friday amid a quiet trading session due to the lack of a fresh catalyst, sponsored by a US government shutdown that seems poised to extend beyond the current week. The pair trades at 1.1738, up 0.28%, at the time of writing.Shared currency consolidates with light data and split Fed rhetoric keeping traders cautiousThe US economic docket has been light, featuring speeches by Federal Reserve (Fed) officials, as the Nonfarm Payrolls report for September had been delayed. Vice-Chairman Philip Jefferson said that although it is not ideal not to get job data, they have enough information to do…

The Dow Jones Industrial Average (DJIA) caught a firm bid on Friday, rising 482 points, or 1.04%, bottom-to-top. The Dow briefly pierced the 47,000 major price handle for the first time ever, before easing back to a more sedate +250 points (0.55%) on the day. Broad-market index gains were trimmed by a late-session pullback in familiar tech names such as Palantir (PLTR), Tesla (TSLA), and Nvidia (NVDA). Equities climb despite key data going darkThe Dow has chalked up another bullish week, closing flat or in the green for a fourth consecutive trading week as bullish investor sentiment continues. Markets are shaking…

Federal Reserve (Fed) Board of Governors plant Stephen Miran doubled down on his belief that the Fed has a lot more room to cut its way to neutral interest rates. Miran also reiterated his opinion that Trump’s stark anti-immigration policies will entirely alleviate shelter price inflation, a policy approach that Miran has not backed up with any meaningful economic data thus far.Key highlightsI hope we’ll have the needed data by the October FOMC meeting.Policy has become much more restrictive this year.I believe my neutral rate view is consistent with others on the Fed.The economy is strong on policies boosting supply…

Federal Reserve (Fed) Vice President and Board of Governors member Phillip Jefferson acknowledged that ongoing risks to both sides of the Fed’s policy mandates are seeing growing risks. The labor market is showing fresh weakness, and inflation pressures continue to mount in underlying datasets, leaving the Fed in a difficult spot on rate policy-setting.Key highlightsLess than ideal not to get jobs report, but look across array of data to assess the economy.Trends across several data series suggest job market softening, could experience stress if not supported.Decline in net immigration a major factor preventing more significant rise in unemployment.Both sides of…

Gold price advances during the North American session on Friday, up by 0.70% for the day as the US government shutdown extends to three days, poised to end the week positively for the seventh straight week. At the time of writing, XAU/USD trades at $3,882 after hitting a daily low of $3,838.XAU/USD extends weekly winning streak as lack of US data and Fed remarks keep traders leaning toward dovish betsThe US economic docket remains light, with the release of the Purchasing Managers Index (PMI) for September. Figures were mixed, as the Institute for Supply Management (ISM) revealed that the services…

Federal Reserve (Fed) Bank of Dallas President Lorie Logan struck a nervous tone on Friday, warning that despite a rapidly-weakening labor market, a lot of potential policy moves could accidentally spark another round of renewed inflationary pressures.Key highlightsTariffs have been contributing to inflation.I’m worried about non-housing services inflation that’s been elevated and stuck there.There are both upside and downside risks to my inflation outlook.If labor market were to slow more than anticipate, could see more disinflation than currently expect.The risks that tariff effects are more prolonged increase risk of rise in long-term inflation expectations.Stimulating demand when labor market is broadly…