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USD/JPY retreats after a two-day rally that pushed it to its highest level in eight weeks.US core PCE inflation rose 0.2% MoM in August, in line with forecasts.The US Dollar Index eases from three-week highs as traders react to US PCE and tariff headlines.The Japanese Yen (JPY) firms against the US Dollar (USD) on Friday, with USD/JPY taking a breather after a sharp two-day rally that had propelled it to its strongest level since August 1 on Thursday. At the time of writing, the USD/JPY pair is trading around 149.50, as the Greenback’s recent rally loses momentum. The US Dollar…

In an op-ed published in The Times, Bank of England (BoE) policymaker Swati Dhingra argued that shocks driving the UK’s high inflation will fade and that they should not be overly cautious about cutting interest rates.Dhingra further added that the UK is not suffering from more food inflation than it’s peers and noted that earnings play a smaller role in the services’ Consumer Price Index (CPI).Market reactionThese comments received a dovish score of 2.0 from FXStreet BoE Speech Tracker. Nevertheless, GBP/USD clings to daily recovery gains near 1.3400 in the Americn session. Source

NATO warns Russia after airspace incursion in Estonia, raising geopolitical risks that pressured the Euro.ECB Consumer Expectations Survey shows inflation forecast of 2.8% for one year, while the five-year projection rises modestly.Traders eye UK budget details and Eurozone inflation data, alongside Trump’s new tariffs targeting key European exports.The Euro (EUR) reverses its course against the British Pound (GBP) amid a scarce economic docket in Europe and the UK on Friday, although geopolitics could be the reason that pushed the shared currency lower. EUR/GBP trades at 0.8729, down 0.14% at the time of writing.Shared currency drops 0.14% as geopolitics overshadow light…

There is scope for US Dollar (USD) to test 7.1500 before a pullback can be expected; 7.1600 is unlikely to come into view. In the longer run, upward momentum continues to increase; if USD breaks above 7.1500, the next ‘level to watch is 7.1600, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. Upward momentum continues to increase24-HOUR VIEW: “USD soared to a high of 7.1400 on Wednesday. Yesterday, Thursday, when USD was at 7.1340, we stated that ‘while the sharp rise appears to be overdone, there is scope for USD to test 7.1420 before the risk of…

The price jump in Copper, temporarily rising by almost 5% in reaction to the news that the operator of the important Grasberg mine in Indonesia has declared force majeure on contracted supplies, demonstrates how fragile market sentiment is regarding the supply situation. The production at the mine had to be halted due to an accident at the beginning of the month. At least since the treatment and refining charges at Copper smelters had virtually collapsed – indicating a shortage of raw materials – concerns about a supply shortage have increased, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen…

The rupee rebounded from its all-time low to close 4 paise higher at 88.72 (provisional) against the US dollar on Friday, tracking a weak greenback against major currencies overseas and a drop in global crude oil prices.Unabated foreign capital outflows and risk-off sentiment in the domestic equity market prevented a sharp rise in the local unit, while hopes of a breakthrough in the India-US trade talks supported the domestic currency, according to forex traders.At the interbank foreign exchange, the rupee opened at 88.72 and traded in a narrow range of 88.67-88.73 before settling at 88.72 (provisional), 4 paise higher than…

The rupee rebounded from its all-time low, rising 6 paise to 88.70 against the US dollar in early trade on Friday amid a weaker greenback and hopes of an India-US trade deal breakthrough. However, FII outflows, coupled with a rise in international crude oil prices limited gains for the local unit, according to forex traders. At the interbank foreign exchange, the rupee opened at 88.72 before rising to 88.70, higher by 6 paise from its previous close. The rupee had slipped 1 paisa to close at a fresh lifetime low of 88.76 against the American currency on Thursday. “Markets await…

Gold pressured by profit-taking as US Initial Jobless Claims and GDP surprise on the upside.Durable Goods Orders beat forecasts, reinforcing the resilience of the US economy.Fed officials Miran and Bowman lean dovish, while Schmid and Goolsbee warn inflation risks remain elevated.Gold price trimmed earlier gains after reaching a daily high of $3,761 on Thursday, following the release of a US jobs report that showed signs of strength, contrary to the main reason for cutting rates last week. Also, traders are eyeing the release of inflation data on Friday. The XAU/USD pair trades at $3,733, down 0.05% at the time of…

The US Dollar (USD) picked up strong pace on Thursday, advancing to three-week highs as investors assessed firmer US data releases while Fed officials gave mixed remarks regarding the Fed’s rate path.Here’s what to watch on Friday, September 26:The US Dollar Index (DXY) added to Wednesday’s gains and rose to three-week highs past the 98.00 mark, helped by solid results from the US docket and higher US yields across the curve. The PCE will take centre stage, seconded by Personal Income, Personal Spending, and the final U-Mich Consumer Sentiment gauge. In addition, the Fed’s Hammack, Barkin, Bowman and Musalem are…

Federal Reserve (Fed) Bank of Dallas President Lorie Logan stated on Thursday that the Fed needs to modernize how it approaches setting interest rates, acknowledging that the central bank may need to allow for more volatility in the underlying repo rate and noted that the Fed has overhauled its rate-setting schemes in the past.Key highlightsFed should move to target tri-party general collateral rate.Time has arrived for Fed to modernize interest rate target system.Repo market is center of money markets, makes sense to target.Modernizing rate control system is technical in nature.Best to update rate control system when markets are calm.Some volatility…