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Markets will be watching closely on Thursday, when the United Kingdom’s (UK) Office for National Statistics (ONS) will release the advance estimate of Q4 Gross Domestic Product (GDP).If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year. If forecasts match, it would suggest a steady but uninspiring outcome, hinting that momentum is starting to level off. On a QoQ basis, GDP is expected to show a modest expansion of 0.2%, slightly above the 0.1% in Q3, reinforcing the idea of an…
The Indian rupee is likely to open Thursday with an upside bias, after Asian currencies were largely rangebound despite a rise in US Treasury yields following robust US jobs data.The 1-month non-deliverable forward indicated the rupee will open in the 90.66-90.70 range versus the US dollar, having settled 0.14 per cent weaker at 90.70 on Wednesday.Asian currencies were mixed and largely range-bound on Thursday, reflecting a muted reaction to January’s upside surprise in US nonfarm payrolls.The dollar index initially climbed alongside higher US Treasury yields, as the strong jobs data tempered expectations of US Federal Reserve rate cuts, before retreating…
A resurgent yen, runaway Aussie and steadily rising yuan had the dollar under pressure on Thursday and drifting toward a weekly drop, as investor focus turned to the next batch of U.S. labour and inflation data. A stronger-than-expected U.S. jobs report overnight briefly lifted the greenback. But traders are taking recent signs of U.S. economic resilience as cues for a broader brightening in global growth and are laying bets on Japan as a likely winner.The yen is up more than 2.6% since Prime Minister Sanae Takaichi’s Liberal Democratic Party swept to a landslide victory at Sunday’s election and a mood…
Gold price (XAU/USD) trades in positive territory near $5,060 during the early Asian session on Thursday. The precious metal edges higher despite stronger-than-expected US employment data. The release of the US Consumer Price Index (CPI) inflation report will take center stage later on Friday. The rally of the yellow metal is bolstered by safe-haven demand amid uncertainty and tensions between the United States (US) and Iran. US President Donald Trump said he insisted talks with Iran continue during a meeting with Israeli Prime Minister Benjamin Netanyahu. Trump also warned that he may take action against Tehran if a nuclear deal is…
Standard Chartered’s Dan Pan argues that while cheaper imported goods and a stronger Brazilian Real have sharply reduced goods inflation and allowed BCB to signal rate cuts from March, persistent services inflation near 5–6% is likely to keep core and headline inflation above target. The bank expects BCB to ease cautiously and potentially undershoot current market pricing for 2026.Services inflation threatens disinflation progress”Strong currency appreciation and lower input prices lowered Brazil’s goods inflation significantly in 2025, prompting BCB to signal that it will start an easing cycle in March. However, goods disinflation may soon run out of steam if the…
The Indian rupee slipped in late trading on Wednesday as dollar bids from foreign banks picked up, sparking modest pressure in a session that otherwise saw the rupee trade on a quiet note. The rupee closed at 90.70 per dollar, down 0.1% from its close in the previous session. Traders pointed to mixed corporate interest in the earlier half of the session, which kept the rupee on an even keel but dollar demand from overseas lenders, likely on behalf of custodial clients, weighed on the currency in afternoon trading.India’s benchmark equity indexes, the BSE Sensex and Nifty 50, were little…
The Euro (EUR) nudges up against the US Dollar (USD) on Wednesday but remains within the previous days’ range, trading at 1.1910 at the time of writing, more than 1% above last week’s lows. Downbeat US data increased concerns about the economic outlook ahead of the release of January’s delayed Nonfarm Payrolls (NFP) report, and increased negative pressure on an already weak USD.US Retail Sales remained flat in December, against expectations, suggesting that consumption, which accounts for nearly 70% of the GDP, will have a weaker contribution to US growth in the last quarter of 2025.Beyond that, labour costs slowed…
The rupee depreciated 14 paise to close at 90.70 (provisional) against the US dollar on Wednesday, on dollar demand from importers and geopolitical tensions. Forex traders said the rupee is trading with a slight negative bias amid geopolitical tensions and elevated crude oil prices. Dollar demand from importers may also pressurise the rupee. However, FPI inflows may support the local unit at lower levels. At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, and touched a low of 90.75 and a high of 90.46 against the greenback in intraday trade. The rupee eventually settled…
MUFG’s Michael Wan notes that softer US data have pushed US 10-year Treasury yields lower and led Fed fund futures to fully price a June rate cut. Wan highlights that this repricing has been most visible in USD/JPY, which slipped below 155, while broader Dollar performance and risk sentiment have shown a more mixed pattern ahead of US Non-Farm Payrolls.Yield drop drives Dollar-Yen adjustment”US 10-year Treasury yields fell to around 4.15% while the Fed Fund futures priced in more US rate cuts, with the next cut now fully priced in for the June meeting, and coming ahead of non-farm payrolls…
The rupee depreciated 6 paise to 90.62 against the US dollar in early trade on Wednesday as geopolitical tensions and dollar demand from importers weighed on investor sentiments.At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, then lost some ground to touch 90.62, registering a loss of 6 paise over its previous close.In the initial trade, the rupee also touched 90.46 against the American currency.On Tuesday, the rupee pared initial losses and settled on a positive note, higher by 10 paise at 90.56 against the US dollar.Forex traders said that while markets initially welcomed…