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GBP/USD drops more than 0.35% on Wednesday, below the 1.3250 mark, as the Bank of England (BoE) rate cut expectations for the November meeting rise while traders await the Federal Reserve (Fed) monetary policy decision.The GBP/USD pair trades at 1.3219 at the time of writing, as sellers pushed the spot price below the 200-day Simple Moving Average (SMA) at 1.3237.Sterling weakens as soft UK data and fiscal concerns weigh ahead of key central bank meetingsData in the UK showed signs that the labor market is weakening and inflation remained unchanged at 3.8% in September. Also, an article published by the…
The Pound Sterling (GBP) posts a fresh almost three-month low at around 1.3200 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair slumps as the US Dollar Index (DXY) trades higher ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT and the continued underperformance from the British currency. At the time of writing, the US Dollar Index trades 0.2% higher to near 99.00.Investors keenly await the Fed’s policy announcement to get cues on the interest rate outlook, while remaining confident that the United States (US) central bank will reduce borrowing rates…
The rupee appreciated eight paise to close at 88.21 (provisional) against the US dollar on Wednesday, on strong domestic markets and optimism over the trade deal between India and the US. Forex traders said upbeat market sentiment, driven by trade deal optimism and easing crude oil prices, enthused investor sentiment, even as importer demand for dollars capped sharp gains. Moreover, investors remain cautious ahead of the US FOMC meeting decision. At the interbank foreign exchange market, the rupee opened at 88.21, and later traded in a range of 88.15 to 88.35 during the day. The local unit finally settled at…
Gold (XAU/USD) climbs to the $4,000 psychological mark during the early European session on Wednesday, and for now, seems to have snapped a three-day losing streak to an over three-week low, touched the previous day. The growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs later today and deliver another rate cut in December drives flows towards the non-yielding yellow metal. Any further move up, however, seems limited as traders might opt to wait for the outcome of a two-day FOMC meeting.Heading into the key event risk, some repositioning trade assists the US Dollar (USD) to gain…
The Australian Dollar (AUD) advances against the US Dollar (USD) on Wednesday following the release of Australia’s Consumer Price Index (CPI) data. Additionally, the AUD/USD pair receives support from decreasing bets on rate cuts by the Reserve Bank of Australia (RBA).Australia’s Consumer Price Index rose 1.3% quarter-over-quarter (QoQ) in the third quarter (Q3), compared with the 0.7% increase seen in the second quarter. The market consensus was for a growth of 1.1% in the reported period. CPI inflation climbed to 3.2% year-over-year (YoY) in Q3, versus 2.1% prior and above the market consensus of 3.0%.The RBA Trimmed Mean CPI for…
The GBP/JPY plunged sharply on Tuesday, close to 200 pips or 0.97% as the cross-pair slides below the 202.00 milestone, for the first time since last Friday. At the time of writing, the pair trades at 201.94 virtually unchanged, as Wednesday’s Asian session begins.GBP/JPY Price Forecast: Technical outlookThe GBP/JPY technical picture shows that the uptrend remains in place, but the pair could test lower prices after it cleared the 20-day SMA at 202.43. A further extension lower looms if the cross clear September’s 18 high at 201.27, opening the door for further downside.The next key support levels are the 50-day…
GBP/USD dives more than 0.50% on Tuesday as market participants digested news of the UK’s Office for Budget Responsibility (OBR), which plans to cut productivity, leading to a huge hole in the public finances. At the time of writing, the pair trades at 1.3280 after hitting 1.3247, its lowest level since August 1.Pound tumbles over 0.50% after OBR warns of £20B hit to public financesThe US Dollar is downbeat during the North American session amid a lack of catalysts linked to the Greenback. The US Dollar Index (DXY), which tracks the USD performance against a basket of six currencies, is…
As on September end, of the total FCA of $579.18 billion, $489.54 billion was invested in securities, $46.11 billion was deposited with other central banks and the Bank of International Settlements (BIS), and the balance $43.53 billion comprised deposits with commercial banks overseas | Photo Credit: India’s forex reserves increased by $31.76 billion between April-September to $700.09 billion, while the share of gold in the overall forex reserves rose to 14 per cent from 12 per cent in the same period, according to the Reserve Bank of India’s (RBI) half yearly forex reserves report.Although both US dollar and euro are…
Gold (XAU/USD) extends losses on Tuesday as investors rotate out of safe-haven assets amid renewed risk-on sentiment. At the time of writing, XAU/USD is trading around $3,925, down nearly 1.3% on the day, after briefly slipping below the $3,900 level, marking its lowest level in three weeks.The risk-on tone is underpinned by optimism around a potential US-China trade truce, with attention firmly on the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday at the sidelines of the APEC summit in South Korea.The precious metal has now corrected roughly 10% from last week’s all-time…
The rupee depreciated by 8 paise to close at 88.27 against the US dollar on Tuesday on weak domestic stock markets and foreign fund outflows. Forex traders said a weak US dollar and softening of crude oil prices cushioned the downside. Investors are also keeping a watch on the Federal Reserve’s policy decision on Wednesday for further cues.At the interbank foreign exchange market, the rupee opened at 88.34, and later traded in a range of 88.23 to 88.40 during the day. The local unit finally settled at 88.27 (provisional) against the greenback, registering a fall of 8 paise from its…