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Gold pressured by profit-taking as US Initial Jobless Claims and GDP surprise on the upside.Durable Goods Orders beat forecasts, reinforcing the resilience of the US economy.Fed officials Miran and Bowman lean dovish, while Schmid and Goolsbee warn inflation risks remain elevated.Gold price trimmed earlier gains after reaching a daily high of $3,761 on Thursday, following the release of a US jobs report that showed signs of strength, contrary to the main reason for cutting rates last week. Also, traders are eyeing the release of inflation data on Friday. The XAU/USD pair trades at $3,733, down 0.05% at the time of…
The US Dollar (USD) picked up strong pace on Thursday, advancing to three-week highs as investors assessed firmer US data releases while Fed officials gave mixed remarks regarding the Fed’s rate path.Here’s what to watch on Friday, September 26:The US Dollar Index (DXY) added to Wednesday’s gains and rose to three-week highs past the 98.00 mark, helped by solid results from the US docket and higher US yields across the curve. The PCE will take centre stage, seconded by Personal Income, Personal Spending, and the final U-Mich Consumer Sentiment gauge. In addition, the Fed’s Hammack, Barkin, Bowman and Musalem are…
Federal Reserve (Fed) Bank of Dallas President Lorie Logan stated on Thursday that the Fed needs to modernize how it approaches setting interest rates, acknowledging that the central bank may need to allow for more volatility in the underlying repo rate and noted that the Fed has overhauled its rate-setting schemes in the past.Key highlightsFed should move to target tri-party general collateral rate.Time has arrived for Fed to modernize interest rate target system.Repo market is center of money markets, makes sense to target.Modernizing rate control system is technical in nature.Best to update rate control system when markets are calm.Some volatility…
Gold slips below $3,750 after stronger US data lifts the Greenback and yields.Q2 GDP revised higher to 3.8% annualized, Durable Goods Orders surge 2.9% in August.Recent Fed remarks highlight a cautious stance, balancing inflation and labor market risks.Gold (XAU/USD) steadies on Thursday after briefly slipping on stronger-than-expected US economic data, as geopolitical risks lend support. Bloomberg reports that European diplomats privately warned Moscow they are prepared to shoot down Russian jets. At the time of writing, XAU/USD is trading around $3,740, holding above session lows as the US Dollar (USD) and Treasury yields remain firm.Initial Jobless Claims came in at…
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee acknowledged that interest rates are currently in restrictive territory, implying there may be room to move lower soon. However, Goolsbee pulled back from the cut-heavy brink shared by some other Fed policymakers, noting that the pace of interest rate cuts remains dependent on inflation figures.Goolsbee’s comments come as a follow-up to his observations earlier on Thursday that inflation appears to be going back up.Key highlightsFrontloading rate cuts before it’s clear inflation won’t be persistent runs the risk of a mistake.Labor market is largely stable with some mild cooling.Pace of rate cuts…
The selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit. | Photo Credit: istock.com The rupee moved in a tight range to settle 7 paise higher at 88.68 (provisional) against the American currency on Thursday due to suspected RBI intervention amid a strong US dollar and weak domestic markets.Forex traders said the H1-B visa fee hike and surge in crude oil prices pressured the rupee. However, the selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit.Moreover, investors remained…
Standard Chartered India to launch US dollar clearance from GIFT city on October 7, CEO says. Source
The rupee recovered 15 paise from all-time low to 88.60 against the US dollar in early trade on Thursday, tracking the weakness of the American currency in the overseas market.Forex traders said the rupee is facing renewed strain this week, as multiple factors have combined to put pressure on the currency. Factors like H-1B visa fee hike, Trump tariffs and persistent foreign fund outflows further dented investors’ sentiments. At the interbank foreign exchange market, the rupee opened at 88.65 against the US dollar, then touched 88.60, registering a gain of 15 paise from its previous close. On Wednesday, the rupee…
The Yen slides to a three-week low against the US Dollar, with USD/JPY buoyed by broad Greenback strength.Japan’s Manufacturing PMI slipped deeper into contraction, while services activity held firm.Investors will look for further guidance from the BoJ minutes due on Thursday for clues on policy divisions.The Japanese Yen (JPY) weakens sharply against the US Dollar (USD) on Wednesday, with USD/JPY advancing to its highest level since September 3. At the time of writing, the pair is trading near 148.78, up almost 0.80% on the day, as renewed Greenback strength pushed the pair higher despite the absence of major US economic…
The Dow Jones backslid around 180 points on Wednesday.Market sentiment buoyancy is facing fresh challenges on multiple fronts.The AI tech rally has pushed key companies deep into overvalued territory, steepening pullback volatility.The Dow Jones Industrial Average (DJIA) followed the broader market lower on Wednesday, shedding 270 points at its lowest. Investors are taking profits and trimming their exposure to the AI-fueled tech rally ahead of the latest US employment figures and inflation data.The Dow Jones has eased lower for the second day in a row after punching in fresh all-time highs this week, punching a small hole through the 46,700…