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USD/JPY trades lower around 158.00 on Friday at the time of writing, down 0.40% on the day, as the Japanese Yen (JPY) regains some traction against the US Dollar (USD). The move reflects increased caution among investors, with intervention risks from Japanese authorities returning to the forefront after several weeks of persistent Japanese Yen weakness.On the US side, the US Dollar continues to be supported by still-robust fundamentals. Recent macroeconomic data confirm the resilience of the US economy, particularly in the labor market and consumer spending. Weekly Initial Jobless Claims published by the US Department of Labor fell to 198,000…
West Texas Intermediate (WTI) US Oil trades around $59.80 per barrel on Friday at the time of writing, up 1.60% on the day. The Crude Oil is recovering part of the ground lost over the previous two sessions as investors reassess geopolitical risks in the Middle East following more cautious remarks from the White House regarding Iran.US President Donald Trump said he had stepped back from the threat of military action after receiving assurances that no further executions would take place and that violence would subside. According to several sources cited by Reuters, Israel and other regional allies also urged…
Federal Reserve (Fed) Vice Chair Michelle Bowman said that, given the risks, the Fed should not signal a pause in its rate-cutting campaign, in a speech at the New England Economic Forum in Foxborough, Massachusetts, on Friday.Key takeawaysGiven risks, Fed should not signal a pause in rate-cutting campaign.US Central Bank should stand ready to cut interest rates again given labor market risks.Risk to Fed’s mandates is asymmetric, with job risks outweighing inflation concerns.Monetary policy is moderately restrictive right now.Inflation pressures are easing as tariff influences abate.Fed policymaking should be forward looking and driven by forecasts.Given risks, Fed policy should be…
The Euro (EUR) turns lower against the US Dollar (USD) on Friday, surrendering intraday gains as renewed demand for the Greenback keeps the pair on the defensive. At the time of writing, EUR/USD is trading flat near 1.1600, after briefly sliding to its lowest level since November 28.The US Dollar draws support from stronger-than-expected US economic data, which has reinforced the view that the Federal Reserve (Fed) can afford to hold off on cutting interest rates in the near term.Further supporting the US Dollar, comments from White House National Economic Council Director Kevin Hassett helped ease investor concerns over recent…
The price of Silver continued its upward trajectory this week, reaching a record high of $93.75 per troy ounce on Thursday morning. As a result, the Gold/Silver ratio briefly slipped below the 50 mark for the first time since March 2012. Since the beginning of the year, Silver has risen in price by around 30%. By comparison, the price of Gold rose by ‘only’ 7% over the same period. Last year, Silver had already significantly outperformed Gold with a price increase of almost 150%, Commerzbank’s commodity analyst Carsten Fritsch notes. Trump talks ease tariff fears, Silver pulls back 7%”Now, US…
OPEC+ production fell short of targets by 720,000 bpd in December, with Russia and Kazakhstan contributing most to the shortfall amid ongoing disruptions. Ukrainian drone attacks on key Kazakh export terminals have sharply reduced output, suggesting that global Oil oversupply could be lower than anticipated, Commerzbank’s commodity analyst Carsten Fritsch notes. Ukrainian drone strikes disrupt Kazakh Oil output”According to the OPEC monthly report, OPEC+ Oil production in December was 42.83 million barrels per day. Countries bound by production targets produced a good 720,000 barrels per day less than agreed. A survey by S&P Global Energy came to a similar result.…
The British Pound (GBP) trades sideways against the US Dollar (USD) on Friday during the North American session, after reaching a daily high of 1.3413, but solid US data released this week capped Sterling’s advance. GBP/USD trades at 1.3380 and continues to distance from the 200-day SMA key technical level at 1.3405.Dollar supported by solid US jobs data, traders trimming Fed cut betsThis week, economic data in the US revealed that inflation on the consumer side stabilized, but not so on the producer front. Annually, the Consumer Price Index (CPI) hit 2.7% in December, unchanged from November’s print, but the…
US Dollar (USD) retreated slightly after probing yesterday its highest level since December 2, BBH FX analysts report. Dollar faces pressure despite goldilocks US data”The run of goldilocks-type US economic data – neither too hot nor too cold – continues to underpin USD, and US stocks. Still, we doubt the dollar index (DXY) will sustain a break above 100.00 because easing US inflation pressures and weak labor demand leave plenty of room for the Fed to deliver additional rate cuts.””Initial jobless claims for the week ending January 10 unexpectedly dropped under 200k to the lowest level since November, confirming there’s…
The Indian rupee slid to its worst one-day fall in nearly two months on Friday, as elevated dollar demand from importers alongside maturing positions in the non-deliverable forwards market hurt the South Asian currency.Intermittent dollar sales from state-run banks, most likely on behalf of the Reserve Bank of India, helped limit the currency’s fall, traders said.The rupee closed at 90.8650 per dollar, down 0.6% on the day to log its worst drop since mid-November last year and inching closer to its all-time low of 91.0750 hit in December. The currency was down about 0.7% week-on-week.The local currency’s weakness also contributed…
The rupee tumbled for the third straight session and lost 50 paise to settle near its lowest level at 90.84 (provisional) against the US dollar on Friday, amid rising crude oil prices and sustained outflow of foreign funds. Volatile global sentiment and a firm American currency accelerated the withdrawal of foreign institutional investors, even as domestic investors resorted to value buying, forex traders said. According to traders rupee faced pressure after data released on Thursday showed India’s trade deficit widened slightly to $25.04 billion in December 2025, compared to $24.53 billion in November and $22 billion in December 2024. At…