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Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/JPY testing key support at its 200-day moving average as Japanese data firm. Haddad notes private sector growth at a six-month high and July Consumer Price Index (CPI) in line with consensus but still below Bank of Japan’s (BoJ) 2026 core forecasts. Markets price an 82% chance of a September BoJ hike, yet he doubts significantly more tightening, while seeing scope for USD/JPY to grind lower on a dovish Fed repricing.BOJ path and Fed repricing risks”USD/JPY is testing key support at its 200-day moving average (158.34). Japan private sector growth strengthens to a…
India’s forex reserves rose $9.905 billion to $716.907 billion in the week ended August 14, with foreign currency assets and gold reserves recording strong gains. | Photo Credit: LEE JAE WON India’s forex reserves jumped USD 9.905 billion to USD 716.907 billion during the week ended August 14, the Reserve Bank of India (RBI) said on Friday.In the previous reporting week ended August 7, the overall kitty had jumped USD 14.136 billion to USD 707.002 billion.Reserves had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the Middle…
United Overseas Bank’s (UOB) Quek Ser Leang notes USD/JPY at 159.00 rebounded sharply from 158.00, but now looks set to trade between 158.50 and 159.35 intraday. Source
The rupee was bolstered by dollar weakness in overseas markets | Photo Credit: Mayur Kakade The rupee gained 9 paise to 95.65 against the US dollar in early trade on Friday, supported by the weakening of the American currency in the overseas markets.Forex traders said for India, a softer dollar is being offset by another challenge elevated crude oil prices.Meanwhile, RBI Governor Sanjay Malhotra has indicated that the central bank expects at least $80 billion of foreign currency inflows.According to forex traders, while the RBI Governor’s statement offered some reassurance, elevated oil prices, persistent geopolitical uncertainty, and a structurally reduced…
EUR/JPY remains stronger for the second successive day, trading around 186.00 during the Asian hours on Friday. The technical analysis of a daily chart indicates that the spot is moving higher within the ascending channel pattern, signaling a persistent bullish bias.The EUR/JPY cross is retaining a bullish near-term bias as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs). The 14-day Relative Strength Index (RSI) around 60.85 suggests constructive upside momentum rather than overbought conditions.The primary resistance lies at the upper boundary of the ascending channel around 187.00. A break above the channel would strengthen the bullish…
The dollar was on shaky ground and set for a weekly loss on Friday, as investors viewed the U.S. Treasury’s bond buyback gambit as merely a temporary fix, while raising fresh concerns about officials’ increasingly interventionist approach.U.S. Treasury Secretary Scott Bessent said overnight he may further increase the government’s repurchases of Treasuries, a day after the department announced it would double the size of buybacks on longer-dated securities over the next quarter in an attempt to stem a sharp rise in yields.Bessent also said he and White House budget director Russell Vought will be embarking on a new fiscal consolidation…
US Treasury Secretary Scott Bessent said that the US President Donald Trump administration’s plan to crush Iran’s economy will likely negate the need for major US military operations against the Islamic Republic, CNBC reported on Thursday.“If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart,” said Bessent.The remarks came after Trump’s declaration on Truth Social that the Washington plans to choke Iran’s economy by levying major penalties against any country that provides “any type of lifeline” to Tehran.Iranian Foreign Minister Abbas Araghchi dismissed Trump’s announced sanctions campaign as a…
The Pound Sterling (GBP) advances on Thursday during the North American session, up 0.25% after US economic data showed that the labor market remains solid, despite a weaker Nonfarm Payrolls in July. The GBP/USD pair trades at 1.3639 after reaching a daily high of 1.3659, its highest level since February.GBP/USD rises as UK inflation offsets solid US labor dataThe Greenback has recovered some ground after posting losses, following the US Department of the Treasury’s announcement of a bond buyback program. The Treasury’s goal is to provide liquidity for the long end of the curve, but markets interpreted the move as…
ING’s Padhraic Garvey analyses how the US Treasury’s decision to double buybacks in 10-30 year maturities affects long-end US Treasuries. He stresses that while the programme is sizeable and could be expanded again, it mainly mutes, rather than reverses, upward pressure on long yields. Garvey still sees scope for higher 10-year yields, but expects resistance to levels above 5%.Treasury buybacks reshape long-end dynamics”The Treasury’s decision to increase buybacks in longer durations smacks of discomfort with the sell-off seen in longer tenor Treasury securities of late. It’s been impactful, with the 10-30-year yields down 5-10bp to begin with. The official genesis…
The US 10-year Treasury yield attempts to stabilize on Thursday, edging higher to 4.672% at the time of writing after hitting a low of 4.635% on Wednesday. The move comes after Treasury yields fell sharply following the United States (US) Department of the Treasury’s surprise announcement regarding its long-dated debt buybacks.The Treasury announced on Wednesday that, starting September 9, it will double the size of its liquidity-support buyback operations for maturities ranging from 10 to 30 years, increasing them from $2 billion to at least $4 billion per operation. The announcement helped interrupt the recent surge in yields, which had…