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The Euro (EUR) weakens further against the US Dollar (USD) on Friday, with EUR/USD slipping to a three-month low. The pair remains under pressure as the Greenback draws support from the Federal Reserve’s (Fed) hawkish tone after delivering a widely expected 25-basis-point rate cut earlier this week.At the time of writing, EUR/USD is trading around 1.1523, extending losses for the third consecutive day and on track to post its first monthly decline in three months.Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is hovering near three-month highs around 99.80. The index…

GBP/USD extends its downward momentum, touching a new seven-month low of 1.3097 on Friday. The pair remains under persistent selling pressure as investors continue to favor the US Dollar (USD) amid reduced expectations of further Federal Reserve (Fed) easing.This latest decline underscores the fragile sentiment surrounding the Pound Sterling (GBP), which has been unable to find support despite oversold conditions, reflecting broader market skepticism over the United Kingdom’s (UK) economic and fiscal outlook.The US Dollar Index (DXY), which tracks the Greenback’s performance against six major currencies, holds near a three-month high at 99.80 after Fed Chair Jerome Powell downplayed the…

West Texas Intermediate (WTI) US Oil price rises to $60.50 per barrel on Friday, up 0.65% on the day, extending its rebound after two sessions of subdued trading. Despite the modest recovery, Crude Oil prices remain on track for their third consecutive monthly decline as persistent oversupply concerns limit upside potential ahead of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on Sunday.According to recent reports relayed by Reuters, eight OPEC+ members are preparing to increase their combined output by 137,000 barrels per day (bpd) in December as part of their effort to regain lost market…

Federal Reserve (Fed) Bank of Cleveland President Beth Hammack is due to participate in a fireside chat at the Evolving Landscape of Bank Funding Conference hosted by the Federal Reserve Bank of Dallas on Friday. She said that she would not have cut rates and that all of us would go out into the districts, getting a robust picture of the economy. Key QuotesWould not have cut rates.Challenged on both sides of mandate.Some emerging signs of softness in labor, including layoffs.Now around estimate of neutral.Barely restrictive.Need to maintain some restriction to bring down inflation.Tariffs just one piece of inflation puzzle; also…

Federal Reserve Bank of Atlanta President Raphael Bostic is scheduled to participate in a fireside chat at the Evolving Landscape of Bank Funding Conference, hosted by the Federal Reserve Bank of Dallas on Friday. Bostic said that he supported the cut because he still feels the economy is in restrictive territory and that “we have to see more progress before comfortable getting rates to neutral.”Key TakeawaysEventually got behind the cut this week.Mandates are in tension.Supported cut because still feel we are in restrictive territory.Need to get inflation to 2%. Less than half of upward price pressures being reported as from…

United States (US) Treasury Secretary Scott Bessent said on Friday that he thinks the Chinese leadership was slightly alarmed by the global backlash to their export controls and that “everything’s ironed out in terms of the permissions, and we should see a transaction very soon.”Key QuotesChina made a real mistake by firing shots on rare earths.US and Chinese leaders had reached an “equilibrium” but warned that China would not be able to keep using its critical minerals as a coercive tool.I think the Chinese leadership were slightly alarmed by the global backlash to their export controls.There’s an agreement that, ceteris…

The Japanese Yen (JPY) steadies against the US Dollar (USD) on Friday, with USD/JPY pausing its two-day winning streak despite the Greenback’s broader strength, as renewed verbal warnings from Japanese officials revive intervention concerns.Japan’s new Finance Minister Satsuki Katayama said the government is “closely monitoring FX with a high sense of urgency,” a remark that offered the Yen some intraday support after the pair touched fresh multi-month highs on Thursday.At the time of writing, USD/JPY is trading around 154.00, holding firm near an eight-and-a-half-month high and on track for its biggest monthly gain since June.Meanwhile, the US Dollar Index (DXY),…

India’s forex reserves fell by $6.9 billion on-week to $695.53 billion for the week ended October 24, according to Reserve Bank of India (RBI) data. In the preceding week, forex reserves jumped by $4.49 billion week-on-week to $702.28 billion. Foreign currency assets (FCA)–which include investment in securities, deposits with other central banks and the BIS, and deposits with commercial banks overseas—stood at $566.54 billion, down $3.86 billion compared to last week. Expressed in dollar terms, the FCA include effect of appreciation or depreciation of non-US units like the euro, pound and yen.During the week ended October 24, gold reserves fell…

EUR/GBP trades slightly lower on Friday, around 0.8780 at the time of writing, down 0.13% on the day, reverting early daily gains, but maintaining a solid weekly uptrend of about 0.60%. The Euro continues to find support against the British Pound (GBP), which remains under pressure due to mounting concerns over the United Kingdom’s (UK) public finances, while upbeat remarks from the European Central Bank (ECB) bolster investor confidence.On Thursday, the ECB left all three key interest rates unchanged, confirming that monetary policy is now “well-calibrated.” President Christine Lagarde emphasized that the central bank is “in a good place” and…

The Canadian Dollar (CAD) remains under pressure against the US Dollar (USD) on Friday, weighed down by renewed demand for the Greenback after the Federal Reserve’s (Fed) cautious guidance tempered expectations of another rate cut this year.At the time of writing, USD/CAD is trading around 1.4009, near a one-week high after briefly dipping to a one-month low on Wednesday in the aftermath of the Bank of Canada’s (BoC) hawkish rate cut. The central bank lowered its benchmark rate by 25 basis points (bps) to 2.25% but signaled that the move could mark the end of its easing cycle.The Loonie came…