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Gold remains under pressure as risk-on sentiment continues to influence market trends.Fed Chair Powell and President Trump clash over the timing of interest rate cuts. A September rate cut is priced in but a rate cut in July could help drive Gold out of its range.XAU/USD hovers near the 50-day Simple Moving Average near $3,325.Gold is retreating on Thursday despite persistent US Dollar (USD) weakness as traders continue to favour risk assets.With XAU/USD trading near $3,330 in the American session at the time of writing, the yellow metal continues to display signs of resiliency despite a minor pullback.The risk-on tone…

EUR/JPY holds firm near 169.00 with the 170.00 psychological level currently holding bulls at bay.The Euro benefits from the return of risk-on sentiment, but momentum indicators suggest that the pair may still be overbought.The safe-haven Japanese Yen struggles against its G10 counterparts, with Japan’s low-interest rate environment limiting its gains.The Euro (EUR) is experiencing a modest pullback against the Japanese Yen (JPY) on Thursday, after surging over 3% this month.EUR/JPY is trading slightly below the 169.00 mark, with Thursday’s low of 168.56 providing imminent support at the time of writing.With bulls still eager to retest the next big level of…

EUR/USD hits its highest level since September 2021 and extends its rally for a sixth straight session.ECB’s De Guindos flags data-driven approach, warns of trade and geopolitical risks to Eurozone outlook.US GDP revised lower to -0.5% in Q1, the first contraction in three years. Jobless Claims ease but remain elevated.The Euro (EUR) extends its winning streak against the US Dollar (USD) for a sixth consecutive day on Thursday, with EUR/USD soaring past the 1.1700 handle for the first time since September 2021, marking a nearly four-year high.At the time of writing, EUR/USD is trading near 1.1700 during the American trading…

The Indian rupee strengthened to a fortnightly peak on Thursday, bolstered by broad weakness in the dollar on the back of concerns over the future independence of the US Federal Reserve.The rupee rose 0.4 per cent to close at 85.7050 per US dollar, tracking gains in its regional peers.The dollar index fell to its lowest level since March 2022 and was last quoted at 97.1, down 0.3 per cent on the day.While the dollar had perked up on the back of safe-haven demand during the Iran-Israel conflict, the ceasefire has deflated the geopolitical risk premium.Its troubles were compounded by the…

EUR/GBP tumbles to around 0.8525 in Thursday’s early European session.The strong UK PMI data underpin the Pound Sterling and create a headwind for the cross. BoE’s Bailey sees more signs of a softening labor market. The EUR/GBP cross loses traction to near 0.8525 during the early European session on Thursday, pressured by a stronger Pound Sterling (GBP) broadly. Traders will closely monitor the Bank of England’s (BoE) Governor Andrew Bailey speech later on Thursday.UK business activity expanded modestly in June, which provides some support to the GBP. The S&P Global UK Composite PMI rose to 50.7 in June versus 50.3 prior, stronger…

The Indian Rupee jumps higher against the US Dollar as Trump attacks Fed’s independence.Fed’s Powell stated that tariffs-driven inflation could be persistent.The RBI monthly bulletin shows that the Indian economy remained resilient in May.The Indian Rupee (INR) gains sharply against the US Dollar (USD) on Thursday. The USD/INR pair slides to near 85.65 during European trading hours, the lowest level seen in 10 days. The pair weakens as the US Dollar (USD) renewed its three-year low after United States (US) President Donald Trump lashed out on Federal Reserve (Fed) Chair Jerome Powell for not supporting interest rate cuts in the…

“Federal financial policy, debt, doesn’t affect our month-to-month policy decisions,” Federal Reserve (Fed) Chairman Jerome Powell said while testifying about the Semi-Annual Monetary Policy Report before the Senate Banking Committee on Wednesday.Key takeaways”Ample reserves enable banks to keep lending through stress.””Return to scarce reserves would not save money.””Unwinding ample reserves would take years.””Enormous benefits of having the Dollar as the global reserve currency.””Dollar remains reserve currency, it’s a durable equilibrium, expect it to last for a long time to come.””Bond market is functioning well.””Inflation expectations have come down a bit from April.””On USD weakness, markets have been digesting an unusually…

Federal Reserve Bank of Boston President Susan Collins said on Wednesday that the US economy is solid overall and added that the monetary policy is well-positioned, per Reuters.Key takeaways”Time for patience and care.””Supported Fed’s decision to hold steady on rates last week.””Tariffs likely to push up inflation, lower growth and hiring.””Expecting to see more tariff impact over coming months.””Expecting it to be appropriate to lower rates later this year but much depends on tariffs.”Market reactionThese comments failed to trigger a noticeable market reaction. At the time of press, the US Dollar (USD) Index was up 0.15% on the day at…

USD/CAD edges higher as markets await further clues from Fed Chair Powell.US New Home Sales data for May at 14:00 GMT is expected to provide additional insight into the current health of the US housing market. The Loonie pair remains vulnerable to risk sentiment and developments from the United States, which could provide further insight into interest rate expectations.The Canadian Dollar (CAD) is softening against the US Dollar (USD) on Wednesday as the currency pair attempts to break free from a consolidation phase.With USD/CAD trading near 1.3750 at the time of writing, the release of US New Home Sales data for…

The rupee gave up its gains and settled for the day lower by 2 paise at 86.07 (provisional) against the US dollar on Wednesday, on recovery in global crude oil prices and the US Dollar index. A strong show in the domestic equity markets prevented steep losses in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 86.00 against the US dollar and traded in the range of 85.79-86.14 before settling at 86.07 (provisional), down 2 paise from its previous close. Rupee opened in the positive on a surge in domestic markets and improved…