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Consumer confidence in the US improved slightly to start the year, with the University of Michigan’s Consumer Sentiment Index rising to 54 in January’s preliminary reading, from 52.9 in December. This print came in slightly better than the market expectation of 53.5.The Consumer Expectations Index rose to 55 from 54.6 in this period, while the 1-year Consumer Inflation Expectation remained unchanged at 4.2%. Finally, the 5-year Consumer Inflation Expectation edged higher to 3.4% from 3.2%.Market reactionThe US Dollar Index gains traction following this report and trades at its highest level in a month at 99.25, rising 0.4% on the day.…
The Pound Sterling (GBP) is soft, down a modest 0.2% but underperforming most of the G10 currencies as we head into Friday’s NA session, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. BoE signals dovish stance amid uncertainty on neutral rates”This week’s price action has been mixed, and broadly driven by external developments in the absence of high-level domestic data. Domestic risk returns next week as we look to industrial production and trade, as well as scheduled appearances from BoE MPC members Taylor and Ramsden. Comments from the BoE have been limited in the new year, though messaging…
The US Dollar Index (DXY) extends gains for the fourth consecutive day on Friday, reaching levels right above the 99.00 level for the first time in the last four weeks. The Greenback is drawing support from a cautious market, with US President Donald Trump’s tariffs and December’s payrolls report on focus.The US Dollar is on track for a 0.60% rally this week and a more than 1% appreciation in the last two weeks, showing the stronger performance among the major currencies so far in 2026. A mild risk-off tone amid growing geopolitical tensions in different regions of the world has…
India’s foreign exchange reserves declined by USD 9.809 billion to USD 686.801 billion in the week ending January 2, the Reserve Bank of India (RBI) reported on Friday. | Photo Credit: JASON LEE/Reuters India’s forex reserves dropped by USD 9.809 billion to USD 686.801 billion in the week to January 2, the Reserve Bank of India (RBI) said on Friday. In the previous reporting week, the forex reserves had jumped by USD 3.293 billion to USD 696.61 billion. For the week ended January 2, foreign currency assets, a major component of reserves, decreased by USD 7.622 billion to USD 551.99…
The rupee declined 26 paise to settle at 90.16 (provisional) against the US dollar on Friday, weighed down by elevated global crude oil prices and persistent foreign fund outflows amid rising geopolitical tensions. A stronger greenback and weak sentiment in domestic equity markets are putting further pressure on the local unit, according to forex traders. At the interbank foreign exchange, the rupee opened higher at 89.88 but lost ground through the day to settle at 90.16 (provisional) against the US dollar, down 26 paise from its previous close. During the day, the local currency traded between 89.88 and 90.25. On…
The Indian rupee slipped on Friday, pressured by dollar demand linked to maturing non-deliverable forward positions and corporate hedging as global markets awaited a key U.S. Supreme Court ruling on trade tariffs. The currency closed at 90.1625 against the U.S. dollar, down 0.1% on the day but little changed week-on-week. Weakness in local stocks also weighed, with the BSE Sensex and Nifty 50 logging their steepest weekly falls since late September. (link)Traders pointed to heightened dollar demand at the central bank’s daily reference rate and hedging activity from companies, which weighed on the local unit on Friday.State-run banks were intermittently…
The Euro is trading flat in the area of 0.8675 on Friday’s early European session, halfway through the weekly range, following mixed macroeconomic data from Germany. From a wider perspective, the pair is on track for a 0.3% weekly loss and a 1.5% sell-off from mid-November highs above 0.8800.German data released earlier on Friday revealed that Industrial Production grew 0.8% in November, following a 2.0% increase in the previous month, against market expectations of a 0.4% decline.The trade surplus, on the other hand, narrowed to €13.1 billion in November, from €16.9 billion in October, below the €16.5 surplus anticipated by…
The Indian rupee was little changed in early trade on Friday, caught between strong dollar demand at the daily reference rate and caution over betting against the currency following the central bank’s recent interventions. The rupee was at 90.04 against the U.S. dollar as of 10:15 a.m. IST, down marginally from its close at 90.0175 in the previous session. Multiple interventions by the Reserve Bank of India this month have blunted appetite for wagers against the currency even as several factors – including the risk of fresh U.S. tariffs, weak portfolio flows and a persistent skew in hedging activity -…
he apprehension of further tariffs by the US and weak sentiments at the domestic equity markets fuelled selling of equities by foreign investors, putting more pressure on the local unit, forex traders said. | Photo Credit: bluebay2014 The rupee fell 7 paise to 89.97 against the US dollar in early trade on Friday amid sustained FII outflows and a rise in global crude oil prices. The apprehension of further tariffs by the US and weak sentiments at the domestic equity markets fuelled selling of equities by foreign investors, putting more pressure on the local unit, forex traders said. At the…
The Australian Dollar (AUD) declines against the US Dollar (USD) on Friday, remaining subdued for the third successive session. The AUD/USD pair remains subdued following the release of key economic data from China, a key trading partner of Australia.China’s Consumer Price Index (CPI) rose 0.8% year-over-year (YoY) in December, up from 0.7% in November but below the 0.9% forecast. On a monthly basis, CPI increased 0.2%, reversing November’s -0.1% reading. Meanwhile, China’s Producer Price Index (PPI) fell 1.9% YoY in December, improving from a 2.2% decline previously and slightly beating expectations of a -2.0% print.The Australian Bureau of Statistics (ABS)…