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Gold (XAU/USD) advances during the North American session on Friday, poised to finish the week almost flat above the $4,200 figure as market participants brace for the Federal Reserve (Fed) monetary policy meeting next week. At the time of writing, XAU/USD trades at $4,216 after bouncing off daily highs of $4,259.XAU/USD trades flat; markets eye Federal Reserve’s expected rate cutThe week ends with the release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index for September, which remained virtually unchanged, slightly closer to the 3% threshold than the Fed’s 2% goal. Although the print would…

The Australian Dollar (AUD) extends its advance against the US Dollar (USD) on Friday, with AUD/USD climbing to its highest level since September 18 as traders are almost certain the Reserve Bank of Australia (RBA) will leave interest rates unchanged on December 9.At the time of writing, AUD/USD is trading around 0.6637, on track for a second straight weekly gain.The fundamental backdrop remains supportive for the Aussie, with markets also beginning to factor in the possibility that the RBA could revisit tightening next year if domestic conditions stay firm.This stands in sharp contrast to the Federal Reserve’s (Fed) dovish outlook,…

Gold (XAU/USD) erases earlier gains on Friday as a firmer US Dollar (USD) tempers bullish momentum, with the metal oscillating within the familiar range that has defined price action this week. At the time of writing, XAU/USD is trading near $4,215, with dovish Federal Reserve (Fed) expectations continuing to offer a supportive backdrop, helping limit downside despite the intraday pullback.The US Dollar bounced off earlier lows after the delayed US Personal Consumption Expenditures (PCE) report for September offered no surprises. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate eased to 2.8% from 2.9%.Headline…

Dual central bank interest rate decisions from the U.S. Federal Reserve and the Bank of Canada on Wednesday top the week’s calendar, with the BoC expected to hold rates, while a third consecutive 25 basis point cut from the Fed looks highly likely, RBC’s economists Nathan Janzen and Claire Fan report. Trade data key for Canada ahead of rate decision”Our base case forecast a month ago did not assume a December cut from the Fed, given inflation in the U.S. remains above the central bank’s 2% target, and Chair Jerome Powell’s comments at the last meeting about cautiously proceeding in…

The Euro (EUR) trims earlier gains against the US Dollar (USD) on Friday as the Greenback firms following the latest set of US economic releases. At the time of writing, EUR/USD is trading around 1.1635, easing from the daily high of 1.1628, though the pair remains on track for a second straight weekly gain as markets grow increasingly confident that the Federal Reserve (Fed) will cut interest rates next week.The delayed US Personal Consumption Expenditures (PCE) report for September kept the overall inflation picture steady. Core PCE, the Fed’s preferred gauge, rose 0.2% MoM, matching expectations, while the annual rate…

The US Dollar’s (USD) sharp H1 2025 drop could push investors toward broader portfolios, though geopolitics and Fed risks may keep the currency unsettled. Analysts now expect EUR/USD to swing widely in 2026, trimming the 12-month target to 1.18 while keeping a modestly bullish bias, Rabobank’s FX analyst Jane Foley reports. Geopolitics to drive EUR/USD volatility”The sharpness of the USD’s plunge in H1 2025 could itself encourage investors to favour a more diversified portfolio going forward into 2026. That said, issues related to trade tensions, geopolitics, Fed independence and US growth and inflation risks can all be expected to impact…

The FOMC is expected to deliver a 25bp rate cut with potential dissents, reflecting the tension between inflation risks and weakening employment. Federal Reserve (Fed) Gov. Jerome Powell is likely to emphasize data-dependence heading into January, while the new dot plot may still underplay the policy influence of the incoming Trump administration, Rabobank’s Senior US Strategist Philip Marey reports. Powell expected to downplay policy split”We expect the FOMC to make a 25 bps cut to the target range for the federal funds rate to 3.50-3.75% from 3.75-4.00%. We also expect dissents, possibly in opposite directions.””At the press conference, Powell will…

GBP/USD resumes its uptrend on Friday, trimming some of Thursday’s losses as the US Dollar (USD) recovers some ground. Inflation data in the US kept steady the chances of a Federal Reserve (Fed) cut at the December meeting, weighing on the Greenback. At the time of writing, the pair trades at 1.3349, up 0.19%.GBP/USD rallies as US Core PCE reaffirms Fed rate cut in DecemberThe Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite inflation gauge, which excludes food and energy, rose by 0.2% MoM in September, unchanged from August and aligned with estimates. In the twelve months to…

The RBI’s stated policy has always been that it allows the market to determine the Rupee’s value and it does not target any price level or band, according to Governor Sanjay Malhotra.The aforementioned observation comes in the backdrop of the Rupee breaching the 90 to the Dollar mark a couple of days back.“We believe that the markets in the long run are very efficient. It is a very deep market. We saw this earlier in February — the rupee to dollar had climbed up to almost 88 and within a period of three months, it came back to below 84,”…

The rupee closed little changed on Friday after the Reserve Bank of India cut policy rates, logging a quiet close to a week which saw the currency fall below 90 per dollar for the first time on worries about dwindling dollar inflows into the economy.The rupee closed at 89.98 against the U.S. dollar, little changed from its close in the previous session. Over the week, the currency depreciated by nearly 0.6%.A wider trade gap and anaemic investment flows alongside concerns over stalled trade talks with the U.S. have sapped dollar inflows into the world’s fifth-largest economy and made the rupee…