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The Japanese Yen (JPY) treads water against the US Dollar (USD) on Thursday, as USD/JPY lacks strong follow-through buying amid lingering intervention risks tied to excessive Yen weakness.At the time of writing, the pair trades around 158.50, little changed on the day, remaining near its highest level since July 2024.Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 99.41, its highest level since December 3, as stronger-than-expected US economic data reinforced the view that the Federal Reserve (Fed) can remain patient on further policy easing, even as markets continue…

UK economic growth surprised on the upside in November, with real GDP rising 0.3% month-on-month, led by gains in services and manufacturing despite continued weakness in construction, BBH FX analysts report. BOE rate cuts priced in as policy room remains”UK economic growth overshot expectations in November. Real GDP rose 0.3% m/m (consensus: 0.1%) vs. -0.1% in October, driven by services and production. Services output increased 0.3% m/m vs. -0.3% in October while production output increased 1.1% m/m vs. 1.3% in October on a solid pick-up in manufacturing activity. The construction sector remains a drag on the economy falling -1.3% m/m…

The USD/CAD price analysis remains firm above 1.3900, supported by a stronger US dollar and a softer Canadian backdrop. US PPI and retail sales data maintain an upside bias for the greenback. US unemployment claims and FedSpeak could provide fresh impetus to the markets. USD/CAD is trading firmly around 1.3900 in the early European session, supported by a firm US dollar and a softer Canadian backdrop. Recent US data have stayed strong, with November retail sales rising 0.6% MoM after a 0.1% dip in October. Meanwhile, producer prices increased 3.0% YoY for both headline and core measures. –Are you interested…

NZD/USD has pared its recent gains from the previous session, trading around 0.5740 during the European hours on Thursday. The pair depreciates as the US Dollar (USD) gains ground after stronger-than-expected US economic data reinforced expectations that the US Federal Reserve will keep interest rates on hold in the coming months. Traders will also watch the weekly US Initial Jobless Claims data later in the day.The US Census Bureau reported on Wednesday that Retail Sales rose more than expected to $735.9 billion in November, up 0.6%, following a 0.1% contraction in October and beating market expectations of a 0.4% increase.…

Silver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday. The white metal retraced from its all-time high of $93.51 posted on Wednesday after United States (US) President Donald Trump said that Iran assured it will stop killings of protesters, and has no plans of large-scale civil executions, resulting in a decline in appeal of safe-haven demand.Market sentiment remained risk-averse as US President Trump threatened military action against the government of Supreme Leader Ayatollah Ali Khamenei for executing protestors amid civil unrest in Iran. The assurance from Tehran that it will stop executions of civilians…

US President Trump said that he would impose a 25% tariff on select semiconductors, including the Nvidia H200 AI processor and a similar semiconductor from AMD called the MI325X, Reuters reported on Wednesday.The proclamation, which cited national security as a justification, is part of a broader attempt to create incentives for chipmakers to produce more semiconductors in the United States and decrease reliance on chip manufacturers in other countries like Taiwan.Market reactionAs of writing, the AUD/USD pair is down 0.04% on the day at 0.6680. Tariffs FAQs Tariffs are customs duties levied on certain merchandise imports or a category of products.…

The RBI said the proposed guidelines are aligned with Basel Committee standards and aim for uniform implementation across regulated entities. | Photo Credit: The Reserve Bank on Wednesday proposed changes to rules governing banks’ foreign exchange positions.The amendments to net open position (NOP) were made following a comprehensive review of the existing instructions, according to an official statement.NOP refers to the difference between banks’ total foreign currency assets and liabilities, revealing their exposure to currency fluctuations or exchange rate risk.Alignment with Basel standardsThe proposed guidelines are more closely aligned with the Basel Committee on Banking Supervision (BCBS) standards, the RBI…

The British Pound (GBP) extends its gains on Wednesday as the Greenback is punished by investors due to threats to the Federal Reserve’s (Fed) independence and a verbal intervention by Japanese officials, which boosted the Yen. At the time of writing, GBP/USD trades at 1.3461, up by 0.30%.Sterling extends gains as political pressure on the Federal Reserve outweighs strong US data releasesThe US Dollar reversed course on Wednesday amid threats to the Fed’s independence from the Trump administration. On Sunday, Fed Chair Jerome Powell argued that the accusations are “pretexts” by the White House, which is unhappy that the central…

The USD/CAD pair trades flat around 1.3885 during the European trading session on Wednesday. The Loonie pair consolidates ahead of the United States (US) Producer Price Index (PPI) data for October and November, and the Retail Sales data for November.However, the impact of the data is expected to be limited as they are not the latest, and it seems unlikely to influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.According to the CME FedWatch tool, the Fed is certain to hold interest rates steady in the current range of 3.50%-3.75% in the policy meeting later this month.Meanwhile, the…

The rupee pared initial gains and settled for the day 6 paise lower at 90.29 (provisional) against the US dollar on Wednesday, as the likely central bank intervention was negated by a strong dollar, foreign outflows from capital markets, and elevated crude oil prices.Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and geopolitical tensions, however, rising odds of a rate cut amid softening inflation and any intervention by the central bank may support the rupee at lower levels.At the interbank foreign exchange, the rupee opened at 90.26 and touched…