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GBP/JPY rebounds on Thursday, supported mainly by broad-based weakness in the Japanese Yen (JPY) rather than strength in the British Pound (GBP), as traders assess the monetary policy outlooks of the Bank of Japan (BoJ) and the Bank of England (BoE). At the time of writing, the cross trades around 210, recovering from an intraday low of 208.78.While the BoJ is gradually raising borrowing costs, the inflationary impact of the Middle East war is keeping other central banks hawkish, keeping Japan’s interest-rate gap wide and weighing on the Yen.The BoJ raised its policy rate by 25 basis points (bps) to…
The rupee fell to a one-week low on Thursday as a jump in oil prices and little progress in U.S.-Iran talks raised concerns that inflation could prompt further global rate hikes.Dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, limited losses and kept the rupee above 96 per dollar.The currency ended at 95.9550 per dollar, down 0.2% for the day. Earlier in the day, the currency had slipped to 95.96, its lowest level since September 17.The Iran conflict has weighed on emerging market currencies as elevated oil prices fan inflation in energy-importing economies and strain…
New York Federal Reserve (Fed) Bank John Willams said during the European trading session on Thursday that downside employment risks have eased and the economy is showing a strong demand from Artificial Intelligence (AI). Williams warn that the major challenge for the central bank is coming from high inflation.RemarksWe have seen remarkable resilience in US economy.Downside risks to achieving maximum employment have receded.Big challenge is on inflation.We are seeing pretty strong demand from AI.We need to get inflation back to target in timely manner.Reasonable to see another rate hike by end of year.Time for explicit, very direct forward guidance is…
The NZD/USD pair flatlines around the 0.5675 region, trading just above its lowest level since early July, set the previous day, as investors await a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping. The incoming headline will influence sentiment surrounding antipodean currencies, including the Kiwi, and provide some impetus.In the meantime, the US Dollar (USD) pauses for a breather following the previous day’s strong move up to a fresh high since July 29 and acts as a tailwind for the NZD/USD pair. However, rising US Federal Reserve (Fed) rate hike expectations, along with persistent geopolitical uncertainties,…
The dollar clung to a two-month high on Thursday after a strong manufacturing reading reignited inflation fears and rate-hike bets, while a weak Treasury auction sent yields higher across the curve, providing fresh impetus to the US currency.The broad dollar strength pushed the euro to $1.1378, a two-month low, while sterling languished near a three-month nadir at $1.3231. The dollar index, which measures the US currency against a basket of peers, held near a two-month high at 101.1.A stronger-than-expected purchasing managers’ report overnight fanned new price concerns and a poorly received auction of five-year U.S. Treasury notes triggered a fresh…
US Treasury Secretary Scott Bessent said that the United States (US) and China have agreed to extend a bilateral trade truce that was set to expire in November through January 10, Blomoberg reported on Wednesday. This move came after Bessent and China’s Vice Premier He Lifeng held an unscheduled meeting in Washington.“We will extend what we call the ‘Busan Agreement’ — the economic détente between the two countries that was scheduled to end on Nov. 10 — that is going to be extended until Jan. 10,” said Bessent.Bessent further stated that it’s possible a larger economic package will be agreed…
Fed Governor Barr made the case for more rate increases, saying the risks to getting inflation back to 2% have grown while the risks to jobs have eased. His remarks followed S&P Global’s flash Purchasing Managers Index (PMI) surveys, the earliest monthly read on US business activity, which came in well above forecast. The surveys’ measures of prices rose to the highest since October 2022. Brent Crude Oil rose back above $100 a barrel after five straight daily falls, as Iranian President Pezeshkian used his United Nations (UN) speech to rule out negotiating under pressure. Rate futures, the contracts traders…
India rupee on Wednesday snapped a four-day gaining streak to close at 95.74 a dollar, 15 paise weaker than the previous close amid rising dollar demand from importers ahead of the end of the second quarter.The broad-based dollar strength also weighed on the local currency.The rupee opened the day a tad stronger at 95.56 a dollar as concerns over crude supply eased driven by reports that the Strait of Hormuz could reopen soon. However, local dollar demand put pressure on the currency, traders said.”Markets are also beginning to price in a rate hike from the RBI, HDFC Securities said in…
Silver (XAG/USD) slides nearly 3% on Wednesday as the hawkish Federal Reserve (Fed) outlook pushes the US Dollar (USD) to a two-month high and weighs on non-yielding metals. Gold (XAU/USD) is also down more than 1%. At the time of writing, XAG/USD trades around $65.Despite the fundamental headwinds, the white metal remains within the range it has held since mid-August. Momentum indicators on the daily chart show neither buyers nor sellers in clear control, while the 100-day Simple Moving Average (SMA) near $66 continues to cap the upside.The Relative Strength Index (RSI) is hovering near the 50 line and the…
The rupee fell 12 paise to close at 95.74 (provisional) against the US dollar on Wednesday, weighed down by the broad strength of the American currency and a slight recovery in crude oil prices from lower levels.Forex traders said the dollar strengthened on hawkish comments from US Federal Reserve officials, raising expectations of a rate hike by the US Fed in 2026. However, positive domestic markets supported the rupee at lower levels.At the interbank foreign exchange market, the rupee opened at 95.58 against the US dollar, then gained ground and touched an intraday high of 95.57 against the American currency…