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Indian business man counting newly launched indian five hundred rupees. Money counting background concept with copy space. | Photo Credit: Avijit Sadhu Foreign exchange reserves (forex) jumped $6.992 billion to $692.721 billion in the week ending May 23, official data released by the Reserve Bank of India showed.Estimates suggest that the country’s foreign exchange reserves sufficiently cover approximately 10-12 months of projected imports.With this weekly jump, the forex kitty is quite close to its all-time high of $704.89 billion, reached in September 2024.The latest RBI data showed that India’s foreign currency assets (FCA), the largest component of foreign exchange reserves,…

The Dow Jones tested lower on Friday after Donald Trump aimed at China once again.Equity markets remain hesitant following this week’s legal snag for Trump’s tariffs.US PCE inflation came in as expected, albeit with upside revisions to previous data.The Dow Jones Industrial Average (DJIA) stumbled on Friday as investors continue to get pummeled with new trade concerns from the White House. United States (US) President Donald Trump has pivoted once again to focus on China, claiming that their preliminary trade arrangements have been “violated”. Despite a general cooling off of key US Personal Consumption Expenditure Price Index (PCE) inflation figures…

The Canadian Dollar climbed 0.7% against the Greenback in Friday.Upbeat Canadian GDP growth figures sent Loonie traders scrambling for the buy button.The CAD is back in sight range of six-month highs.The Canadian Dollar (CAD) found some room on the top side on Friday, spurred higher by a better-than-expected print in Canadian Gross Domestic Product (GDP) growth figures for the first quarter. Ongoing trade turmoil from the Trump administration has kept the US Dollar (USD) hobbled near multi-year lows, giving the Loonie a chance to gain fresh ground.The Canadian economy grew by 2.2% through the first quarter, soundly thumping median market…

AUD/USD whipsaws on mixed economic data and expectations for monetary policy.Australia’s Retail Sales miss forecasts, but declining US inflation limits the losses.AUD/USD looks toward technical levels from historical moves for direction.The Australian Dollar (AUD) is consolidating against the US Dollar on Friday as fresh domestic data and monetary policy expectations for the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed) continue to drive price action.At the time of writing, the AUD/USD pair is struggling to find direction, held back by a combination of soft economic fundamentals and a technically capped range.Australia’s economy shows signs of weakness as…

USD/CHF stuck between 0.8180–0.8300 as buyers fail to sustain breakout above resistance.RSI remains bearish; a break below 0.8200 could expose the May 7 low and YTD trough at 0.8034.Bulls must reclaim 0.8250 to retest 0.8300 and challenge the 50-day SMA at 0.8376.USD/CHF trades subdued on Friday after a US report showed that inflation is approaching the Federal Reserve’s (Fed) 2% goal. Meanwhile, US President Trump complained about the slow negotiations between Beijing and Washington, which have roiled the markets. However, he stated that he would speak with China’s President Xi Jinping to help resolve the issue. The pair is trading…

EUR/USD is lifted by softer US PCE, but core inflation remains sticky between 2%–3%.Trump reignites China tensions, appeals tariff ruling; “Sell America” trade gains traction.German retail sales plunge, while ECB rate cut odds rise ahead of June 5 policy meeting.The Euro (EUR) remains steady against the US Dollar (USD) on Friday after a softer-than-expected US Personal Consumption Expenditures (PCE) Price Index, which was close to the Federal Reserve’s (Fed) 2% goal, lifted the pair from daily lows of 1.1312. EUR/USD is trading at 1.1361, virtually unchanged on the day.Market mood remains fragile, shifted between optimism and pessimism, keeping US equities…

EUR/GBP steadies on German Retail Sales and Inflation data.The Eurozone faces pressure as the ECB reassesses its potential interest rate path.The British Pound fails to extend gains despite rising inflation and a positive growth outlook.The Euro (EUR) is firming against the British Pound (GBP) on Friday, with EUR/GBP holding above the 100-day Simple Moving Average (SMA) near 0.8415.This week has seen notable contrasts between the United Kingdom and the Eurozone, particularly as markets factor in how the Bank of England (BoE) and the European Central Bank (ECB) are likely to approach the coming months.Germany’s Retail Sales figures send mixed signals…

Yields of the 10-year benchmark climbed four basis points higher at 6.29%, as traders increased bets on a shallower rate easing cycle after Friday’s data showed the economy expanded 6.5% for FY25.Many traders now believe the terminal policy rates would be higher – at 5.50%-5.75%.Soon after trading ended, the Reserve Bank of India (RBI) also announced Rs 25, 000 crore of bond buybacks – a measure aimed at infusing durable liquidity in the system.A section of money market traders had factored a terminal policy rate of 5% – 5.25% on expectation that GDP would grow at 6.3%. The repo rate,…

The concept of ‘US exceptionalism’ covers many specific themes. For academics it may have referred to the US’s ability to attract bright minds from around the world and generate cutting edge research. Combined with the country’s entrepreneurial culture and venture capital infrastructure, this has helped it to spawn and grow most of the world’s largest tech companies. In turn tech has enabled US labour productivity in the US to grow at a faster pace than its peers, Rabobank’s FX analyst Jane Foley reports. Creditor countries gain as ‘Sell America’ theme takes hold”In recent years, strong labour productivity has helped the…

CTAs will continue to sell crude and industrial metals (x-copper) in most scenarios for prices by this time next week. In the imminent term, CTA selling activity will continue to weigh on price action into the OPEC meeting, TDS’ Senior Commodity Strategist Daniel Ghali notes. Energy demand remains resilient”While markets will struggle to absorb additional barrels from OPEC+, energy demand remains resilient, US shale production is peaking, Venezuelan export licenses have expired, and geopolitical risks surrounding Iran remain elevated— all of which will likely act as a shock absorber to lower prices for the time being.””Beyond the seasonally strong summer…