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The US Bureau of Labor Statistics (BLS) will publish the July Consumer Price Index (CPI) data on Wednesday. The report is expected to show a small decline in consumer inflation and core inflation. The monthly CPI is forecast to rise by 0.1%, following the 0.4% decrease recorded in June, while the annual reading is seen retreating to 3.4% from 3.5% reported in the previous month. Core CPI figures, which exclude volatile food and energy prices, are expected to post an increase of 0.2% and 2.5%, on a monthly and yearly basis, respectively. Following a nearly 16% drop in May, Crude Oil prices…
The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.1% at 99.89. | Photo Credit: REUTERS/EVGENIA NOVOZHENINA The dollar nudged a little higher in Asian trade on Wednesday, receiving limited additional strength after renewed attacks on shipping in critical waterways in the Middle East, as currency markets anxiously awaited the release of inflation data later in the global day.The yen was 0.1% weaker against the dollar at 159.44 yen, reaching its softest levels of the month despite the recent joint intervention by U.S. and Japanese authorities to strengthen the Japanese currency, while…
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending gains for the third successive day and trading around 99.90 during the Asian hours on Wednesday. Traders are likely observing the upcoming inflation report closely due later in the day, as it is expected to play a major role in shaping the Federal Reserve’s (Fed) next interest rate decision.Dollar outlook hinges on US inflation and Fed rate stanceAnalysts at Commerzbank highlight that, in the US, the key issue for markets is “whether inflation is falling quickly enough to prevent the…
The GBP/JPY ended Tuesday’s session unchanged at 215.17 as buyers remained reluctant to test the 50-day Simple Moving Average (SMA) at 215.43, seen as the first resistance level on its way to re-test yearly peaked at around 219.61.GBP/JPY Price Forcast: Technical outlookPrice action suggests the GBP/JPY is facing key resistance that could cap the advance, which could open the door for sideways trading. Further confirmation of this, is the Relative Strength Index (RSI): The RSI shifted flat exactly at the 50-neutral level, an indication that neither buyers nor sellers are fully committed to push the cross above or below familiar…
The Dow Jones Industrial Average broke the three-session coil that had pinned it beneath its record, traded up through 54,200, and has since surrendered the entire move. The index sits just beneath 54,000, flat against yesterday’s close, on a session range of close to 370 points that has delivered no net change at all. The 53,800 area has now been tested and held three days running.The breakout ran into TehranHopes that the Strait of Hormuz would reopen faltered through the session, and the equity market surrendered its gains alongside them. Iranian officials told wires on Tuesday that an agreement with…
USD/JPY treads water on Tuesday as the Japanese Yen (JPY) struggles to find its footing, facing headwinds from a firmer US Dollar (USD) and elevated Oil prices. At the time of writing, the pair trades around 159.24 after hitting an intraday low of 158.92.Rabobank’s strategists observe that “the joint Japanese-US intervention in the JPY exchange rate is starting to lose its grip on the currency.” While “the prospect of further FX interventions continues to provide some support,” they point out that “USD/JPY is gradually drifting higher, and the currency has reversed about half of the peak-to-trough move versus both EUR…
The rupee declined 13 paise to settle at 95.43 (provisional) against the US dollar on Tuesday, tracking a sharp rise in global crude oil prices amid geopolitical uncertainties.However, recent foreign capital inflows provided some support to the local unit, forex traders said.At the interbank foreign exchange market, the rupee opened at 95.38 against the US dollar and traded in a very narrow range of 95.37-95.45. Eventually it settled at 95.43 (provisional), down 13 paise from its previous close.The rupee declined 13 paise to settle at 95.30 against the US dollar on Monday.”The rupee declined on a surge in crude oil…
The Indian rupee slipped to its weakest level in nearly two weeks on Tuesday as oil prices jumped on fading hopes for a U.S.-Iran deal to end the war and reopen the Strait of Hormuz.Likely dollar selling intervention by the Reserve Bank of India, though, helped limit the currency’s losses, traders said.Wedged between the competing forces, the currency closed out the day’s session at 95.4350 per dollar, down 0.15% from its previous close.The worries also dented equities, with the Nifty 50 down 0.5% and the benchmark 10-year bond sliding, pushing its yield 3 basis points higher.India is seen as particularly…
TD Securities’ Prashant Newnaha and Alex Loo note that the Reserve Bank of Australia left the cash rate at 4.35% in a unanimous decision, with the Statement and updated forecasts sounding less hawkish than expected. However, Governor Bullock emphasized that another hike remains possible if upside inflation risks materialize, leaving the Australian Dollar sensitive to incoming data and RBA communications.Hawkish hold with upside inflation risks”The RBA kept the cash rate on hold at 4.35% as expected in a unanimous decision. The Statement read less hawkishly than anticipated and the revised forecasts imply a less hawkish stance too. However, the Press…
EUR/JPY depreciates after registering modest gains in the previous day, trading around 183.80 during the Asian hours on Tuesday. The Relative Strength Index (14) at 47.63 sits just below the neutral 50 line, hinting at ongoing bearish momentum without yet reaching oversold conditions.The EUR/JPY cross is holding a mildly bearish near-term bias as it remains below the 50-day Exponential Moving Average (EMA) while it is positioned just above the nine-day EMA. This configuration suggests the cross is caught between short-term support and overhead trend resistance, with price action vulnerable to further downside while the longer EMA caps the topside.The initial…