Author: admin

The Australian Dollar extends gains due to the Israel-Iran ceasefire.Australia’s Monthly Consumer Price Index increased by 2.1% YoY in May, against the expected 2.3% rise and the 2.4% prior.Fed Chair Powell advocated for delaying rate cuts, likely until sometime in the fourth quarter.The Australian Dollar (AUD) extends its gains for the third successive session on Wednesday. The AUD/USD pair remains stronger following the release of Australia’s Monthly Consumer Price Index (CPI), which climbed by 2.1% year-over-year in May. The inflation came in softer than market expectations of a 2.3% rise and the 2.4% prior, easing after remaining consistent for three…

The US Dollar Index edges lower to around 97.90 in Wednesday’s early European session. The negative outlook of the index remains in play below the 100-day EMA with a bearish RSI indicator. The first support level to watch is 97.75; the immediate resistance level is seen at 99.16.The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, extends the decline to near 97.90 during the early European session on Wednesday. Growing optimism that a ceasefire between Israel and Iran will hold after it was touted by US President Donald Trump weighs on the safe-haven currency like the…

Markets continue to price a low probability of rate cut next month | Photo Credit: Baris-Ozer The Indian rupee is expected to open higher on Wednesday, sustaining its rally past the 86 level, supported by a fall in demand for the safe-haven dollar and upbeat risk appetite following the Israel-Iran ceasefire.The 1-month non-deliverable forward indicated an open in the 85.92-85.96 range, versus 85.9750 in the previous session. The rupee rallied 0.9% on Tuesday, logging its best single-day performance in a month.Rupee to hold above 86 as safe haven premium in dollar erodesBrent crude declined 13.2 per cent over the last…

Federal Reserve (Fed) Chair Jerome Powell added further comments during his testimony before the congressional budget committee on Tuesday, building out his case for holding off on rate cuts, likely until sometime in the fourth quarter.Key highlightsWhen the time is right, expect rate cuts to continue.Data suggests at least some of tariff will hit consumer.I think we’ll start to see more tariff inflation starting in June.We will be learning as we go through the summer.I’m perfectly open to the idea that tariff-inflation pass through will be less than we think.We don’t need to be in any rush.If it turns out…

The Indian Rupee gains for a second day, supported by softer crude Oil prices and a weaker US Dollar.US President Donald Trump announces a “complete and total” ceasefire between Iran and Israel, calming global energy markets.S&P Global Ratings raises India’s FY2025 growth forecast to 6.5% and sees moderate inflation ahead.The USD/INR pair falls on Tuesday for a third consecutive day, as a pullback in global Crude Oil prices and a weaker Greenback improved the outlook for India’s trade balance. Sentiment improved after US President Donald Trump announced on social media that Iran and Israel have agreed to a ceasefire, easing…

The rupee closed 78 paisa stronger from its previous close at 85.97 per dollar – its biggest single-day rise in a month, as oil prices fell to $69 per barrel. The rupee had closed at 86.75/$1 on Monday. The renewed sentiment comes after a ceasefire between Israel and Iran went into effect, reviving demand for risk assets in the emerging markets.Oil prices fell at $69 per barrel, down more than 15% from a five-month high of $80 per barrel hit just a day earlier, according to Reuters.The rupee traded in the range of 86.27/$1 and 85.91/$1, LSEG data showed. “Anchor…

Intraday, the Indian unit tested a high/low of 85.9125/86.2625 per dollar. | Photo Credit: REUTERS The rupee posted its biggest single-day gain in a month on Tuesday, closing up 77 paise against the US dollar, amid a steep fall in global crude oil prices, after US President Donald Trump said in a social media post that ceasefire between Israel and Iran is in effect.Government Securities (G-Secs) too rallied with the yield of the benchmark 10-year paper closing 6 basis points lower at 6.25 per cent (previous close: 6.31 per cent) even as its price rose by about 40 paise.The rupee,…

Federal Reserve (Fed) Chairman Jerome Powell testifies about the Semi-Annual Monetary Policy Report before the House Financial Services Committee.Powell testimony key takeaways”US not in recession.””Many paths are possible.””Could see inflation come in not as strong as expected.””If that’s the case that would suggest cutting sooner.””Also, weakening labor market would suggest cutting sooner.””If inflation, labor market remain strong, could cut later.””We don’t bless individual forecasts as a Committee.””Fed projections are for inflation to move up because of tariffs.””What will happen with rates will depend on economy.””Significant majority of policymakers feels will be appropriate to reduce rates later this year.””Projections are subject…

The AUD/USD outlook is bullish as the pair quickly recovered after a ceasefire. The US dollar and crude oil lost all the gains accumulated after Middle East escalation. Market participants expect Fed’s easing to begin as soon as July. The AUD/USD price rebounded sharply, staging recovery from the losses posted on Monday due to escalated tension in the Middle East. The announcement of a ceasefire weighed on the US dollar that picked strength after America’s attack on Iran’s three nuclear sites. The AUD/USD pair quickly reversed the course as the fear of escalation subsided. –Are you interested in learning more…

The rupee recovered from record low level and closed with a steep gain of 75 paise at 86.03 (provisional) against the US dollar as global crude oil prices went down following hopes of deescalation in Middle East tensions. A weak greenback and positive sentiments in the domestic equity markets further boosted the local unit, according to forex traders. Brent crude, the global oil benchmark, plummeted 3.19 per cent to $69.20 per barrel in futures trade as US President Donald Trump announced that Iran and Israel agreed to a ceasefire. At the interbank foreign exchange, the local unit opened at 86.07…