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Gold slips below $3,750 after stronger US data lifts the Greenback and yields.Q2 GDP revised higher to 3.8% annualized, Durable Goods Orders surge 2.9% in August.Recent Fed remarks highlight a cautious stance, balancing inflation and labor market risks.Gold (XAU/USD) steadies on Thursday after briefly slipping on stronger-than-expected US economic data, as geopolitical risks lend support. Bloomberg reports that European diplomats privately warned Moscow they are prepared to shoot down Russian jets. At the time of writing, XAU/USD is trading around $3,740, holding above session lows as the US Dollar (USD) and Treasury yields remain firm.Initial Jobless Claims came in at…
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee acknowledged that interest rates are currently in restrictive territory, implying there may be room to move lower soon. However, Goolsbee pulled back from the cut-heavy brink shared by some other Fed policymakers, noting that the pace of interest rate cuts remains dependent on inflation figures.Goolsbee’s comments come as a follow-up to his observations earlier on Thursday that inflation appears to be going back up.Key highlightsFrontloading rate cuts before it’s clear inflation won’t be persistent runs the risk of a mistake.Labor market is largely stable with some mild cooling.Pace of rate cuts…
The selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit. | Photo Credit: istock.com The rupee moved in a tight range to settle 7 paise higher at 88.68 (provisional) against the American currency on Thursday due to suspected RBI intervention amid a strong US dollar and weak domestic markets.Forex traders said the H1-B visa fee hike and surge in crude oil prices pressured the rupee. However, the selling of greenbacks by exporters and reports of intervention by the RBI prevented a sharp fall in the domestic unit.Moreover, investors remained…
Standard Chartered India to launch US dollar clearance from GIFT city on October 7, CEO says. Source
The rupee recovered 15 paise from all-time low to 88.60 against the US dollar in early trade on Thursday, tracking the weakness of the American currency in the overseas market.Forex traders said the rupee is facing renewed strain this week, as multiple factors have combined to put pressure on the currency. Factors like H-1B visa fee hike, Trump tariffs and persistent foreign fund outflows further dented investors’ sentiments. At the interbank foreign exchange market, the rupee opened at 88.65 against the US dollar, then touched 88.60, registering a gain of 15 paise from its previous close. On Wednesday, the rupee…
The Yen slides to a three-week low against the US Dollar, with USD/JPY buoyed by broad Greenback strength.Japan’s Manufacturing PMI slipped deeper into contraction, while services activity held firm.Investors will look for further guidance from the BoJ minutes due on Thursday for clues on policy divisions.The Japanese Yen (JPY) weakens sharply against the US Dollar (USD) on Wednesday, with USD/JPY advancing to its highest level since September 3. At the time of writing, the pair is trading near 148.78, up almost 0.80% on the day, as renewed Greenback strength pushed the pair higher despite the absence of major US economic…
The Dow Jones backslid around 180 points on Wednesday.Market sentiment buoyancy is facing fresh challenges on multiple fronts.The AI tech rally has pushed key companies deep into overvalued territory, steepening pullback volatility.The Dow Jones Industrial Average (DJIA) followed the broader market lower on Wednesday, shedding 270 points at its lowest. Investors are taking profits and trimming their exposure to the AI-fueled tech rally ahead of the latest US employment figures and inflation data.The Dow Jones has eased lower for the second day in a row after punching in fresh all-time highs this week, punching a small hole through the 46,700…
During a speech at the Adam Smith Business School of the University of Glasgow, Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greenebroke away from “tradiitional” policy planning rhetoric, warning that global central banks need to pivot into a different perspective on managing supply shocks that have become the norm rather than the exception.Greene argued that central banks will now need to pay more attention to supply-side dynamics, not just “look through” supply chain and demand shocks, which has been the traditional central bank view of economic disruptions.Using the recent COVID-19 pandemic and the ongoing war in Ukraine,…
WTI extends gains for a second day, supported by a surprise draw in US crude stocks.EIA data showed inventories fell by 0.607M barrels, defying forecasts for a modest rise of 0.5M barrels.US President Donald Trump warns Europe at the UN General Assembly to halt Russian energy imports.West Texas Intermediate (WTI) Crude Oil extends its rebound for the second straight day on Wednesday, recovering from its weakest level in nearly two weeks, hit earlier on Monday.At the time of writing, WTI is trading around $64.55 per barrel, its highest level since September 3, up over 1.50% on the day. The bounce…
Powell says risks to jobs are rising, but inflation is “somewhat elevated,” keeping the Fed cautious despite easing bets.US New Home Sales surged 20.5% in August, countering PMI weakness and limiting Dollar downside.Australia CPI ticks up to 3%, reducing odds of RBA easing at the September 30 meeting to just 8%.The Australian Dollar (AUD) drops slightly versus the US Dollar (USD) on Wednesday amid the lack of catalysts following remarks by Federal Reserve (Fed) Chair Jerome Powell, who stated on Tuesday that the Fed would continue to balance the dual mandate of the central bank. AUD/USD trades at 0.6590, down…