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The rupee depreciated 9 paise to 85.96 against the US dollar in early trade on Thursday, weighed down by dollar demand from foreign investors, oil companies, and importers. Forex traders said market participants are now keenly awaiting the outcome of the Reserve Bank of India’s monetary policy meeting for further cues. The Reserve Bank’s rate-setting panel started its three-day brainstorming on monetary policy on Wednesday, and the outcome is scheduled to be announced on June 6. At the interbank foreign exchange, the rupee opened at 85.86 and slipped further by 9 paise to 85.96 against the American currency in early…

Gold price struggles to capitalize on the previous day’s modest gains amid mixed fundamental cues. A modest USD uptick caps the commodity, though a combination of factors helps limit the downside. Fed rate cut bets, US fiscal concerns, geopolitical risks, and trade uncertainties favor the XAU/USD bulls.Gold price (XAU/USD) edges lower following an Asian session uptick to the $3,384 area amid a slight US Dollar (USD) bounce, though the near-term bias seems tilted firmly in favor of bullish traders. Weaker-than-expected US economic data released on Wednesday boosted market expectations that the Federal Reserve (Fed) will lower borrowing costs further in…

WTI price declines to around $62.00 in Thursday’s early Asian session. Fears of a global oil oversupply undermine the WTI price. Oil inventories fell by 4.304 million barrels in the week ended May 30, according to the EIA. Heightened geopolitical risks and expectations that Iran will reject a US nuclear deal might cap the WTI’s downside. West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.00 during the Asian trading hours on Thursday. The WTI price edges lower as Saudi Arabia signals it may push for a large production increase, raising fears of a global oil oversupply.On Saturday, the Organization of the Petroleum…

Bank of Canada Governor Tiff Macklem provides insights into the central bank’s policy outlook while responding to enquiries from reporters. This follows the bank’s decision to maintain its policy rate at 2.75%, a move that was widely expected by markets.BoC press conference key highlightsWe will be looking carefully at the next two CPI reports.There is some underlying volatility in inflation.I don’t want to focus too closely on one month’s data.Uncertainty around US tariffs remains elevated.Comments about the need for a possible future rate cut are not forward guidance.The recent strengthening of CAD has had some effect on inflation.The economy is…

Private sector employment in the US rose by 37,000 in May and annual pay was up 4.5% year-over-year, the Automatic Data Processing (ADP) reported on Wednesday. This reading followed the 60,000 (revised from 62,000) increase recorded in April and missed the market expectation of 115,000 by a wide margin.Assessing the report’s findings, “after a strong start to the year, hiring is losing momentum,” said Dr. Nela Richardson, chief economist, ADP. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”Market reaction to ADP employment dataThe US Dollar (USD) came under bearish pressure with…

Rupee registers second consecutive session of fall and has lost 51 paise over US dollar. The rupee depreciated for the second consecutive session and settled for the day lower by 29 paise at 85.90 (provisional) against the US dollar on Wednesday, dragged down by risk-averse sentiments and foreign fund outflows.Forex traders said the local unit remained under pressure on geopolitical tensions between Russia-Ukraine and elevated crude oil prices.Moreover, investors are also awaiting cues from the Reserve Bank’s monetary policy announcements, they said.The Reserve Bank’s rate-setting panel started its three-day brainstorming on monetary policy on Wednesday and the outcome is scheduled…

 UBS suggests reallocating funds into assets like the euro, Swiss franc, yen, gold, or even emerging market currencies, depending on individual risk appetite.  | Photo Credit: REUTERS/Jason Lee The global investors holding too much cash in US dollars may face increasing risks, and it might be the right time to consider shifting some of that money into other currencies or assets, according to a report by UBS.The report stated that the US dollar had been a popular choice in the past few years due to strong US economic growth, high interest rates, and strong performance of US stock markets. However,…

The USD/CAD forecast points south as the loonie strengthens ahead of a likely BoC pause. Market participants are waiting to see developments in trade negotiations. The US is set to release the nonfarm payrolls report on Friday. The USD/CAD forecast points south as the loonie strengthens ahead of a likely BoC pause. At the same time, the US dollar was fragile as traders watched developments in  trade negotiations. Moreover, market participants were cautious ahead of the crucial nonfarm payrolls report. –Are you interested to learn more about MT5 brokers? Check our detailed guide- After stronger than expected economic data from…

The Indian rupee declined for the sixth time in seven sessions on Wednesday, slipping briefly past 86 to the U.S. dollar, as traders unwound bullish positions amid persistent demand for the greenback. The rupee weakened to 86.0225 on Thursday before recovering marginally to end the day 0.4% lower at 85.90. The Indian currency has declined nearly 1.5% from a high of 84.78 it touched last Monday, making it one of the worst-performing Asian currencies over this period.”There is no real let-up in dollar demand from corporates and it would seem that dollar/rupee shorts are done for now, both in onshore…

EUR/GBP moves little as HCOB Eurozone Services PMI fell to 49.7, though it remains above the expected 48.9 reading.Germany Composite PMI edged lower to 48.5 in May, slightly below the expected 48.6.BoE Governor Andrew Bailey said that monetary policy is likely to ease, though he cautioned that the outlook remains uncertain.EUR/GBP moves little after registering losses in the previous session, trading around 0.8420 during the European hours on Wednesday. The currency cross remains steady after the Purchasing Managers’ Index (PMI) data was released from the Eurozone and Germany.HCOB Eurozone Composite PMI came in at 50.2 in May, slightly lower than…