Policy divergence supports against US Dollar – Rabobank
Rabobank’s Senior Macro Strategist Teeuwe Mevissen notes that divergence between the Federal Reserve (Fed) and European Central Bank (ECB) is becoming more important for EUR/USD. The Fed has dropped its easing bias and kept rates at 3.50–3.75%, while the ECB has resumed tightening with a 25 bp hike. Mevissen argues these relative rate dynamics could […]
Euro slips against British Pound after UK Prime Minister Starmer steps down
EUR/GBP comes under pressure on Monday as markets react positively to UK Prime Minister Keir Starmer’s resignation, with the British Pound (GBP) outperforming most of its major peers. At the time of writing, the cross trades around 0.8659, retreating from a one-month high of 0.8689 touched earlier in the day. Speaking outside 10 Downing Street, […]
Indonesian Rupiah declines as MSCI’s warning triggers capital outflows
USD/IDR rebounds after registering modest losses in the previous trading day, hovering around 17,870 during the Asian hours on Monday. The Indonesian Rupiah (IDR) struggles against the US Dollar (USD) after Morgan Stanley Capital International’s (MSCI) warning directly triggers capital flight and complicates the central bank’s efforts to stabilize the currency. However, traders expect the […]
Australian Dollar holds gains against Japanese Yen following PBoC rate decision
AUD/JPY gains ground after posting minor losses in the previous day, trading around 113.30 during the Asian hours on Monday. The currency cross holds ground as the Australian Dollar (AUD) remains stronger following China’s latest monetary policy update. On Monday, the People’s Bank of China (PBOC) opted to keep its benchmark one-year and five-year Loan […]
WTI rises nearly 2% on Strait of Hormuz closure, shaky peace talks
West Texas Intermediate (WTI) – the US oil benchmark – opened Monday’s Asian trading with an over $1 bullish gap, retesting the $78 mark, nearly up 2% in early dealings. The black gold is still up 1.15%, as of writing, holding above $77 as oil supply concerns resurface after Iran closed the Strait of Hormuz […]
XAG slides below 200-day SMA, bears target $61
Silver (XAG/USD) price tumbles for the third consecutive trading day, down over 3.32% on Friday, courtesy of broad US Dollar (USD) strength and rising US Treasury yields, which have aimed higher since Wednesday amid the Fed‘s hawkish tilt. XAG/USD Price Forecast: Technical Outlook Silver price continued to trend lower after clearing the 200-day Simple Moving […]
US Dollar loses momentum ahead of key US inflation data
The week ahead will bring a fresh test for major currency pairs as investors digest the first Federal Reserve (Fed) policy decision under Chair Kevin Warsh and look ahead to the United States (US) Personal Consumption Expenditures (PCE) data, global PMI releases, and central-bank commentary. The US Dollar Index (DXY) trades near the 100.70 price […]
The US Dollar remembers how to rally
The US Dollar Index (DXY) spent the back half of this week doing something most desks had written off six months ago: rallying on the prospect of a Federal Reserve (Fed) rate hike. The index pushed to a fresh 13-month high before easing back; the move owed less to safe-haven flight than to a cold […]
Gold answers to the Fed, not the fear
Gold is supposed to be the asset you want when the world looks dangerous, which makes this week’s price action quietly remarkable. Bullion ended the week down close to 1.5%, its sixth straight week of lower or flat closes, even as a Middle East war ran into its fourth month and an unsigned ceasefire kept […]
The Australian Dollar looks for an excuse to break ranks
The Australian Dollar spent this week as a passenger in someone else’s trade. A hawkish Federal Open Market Committee (FOMC) and a surging US Dollar dragged the Aussie down to the 0.7000 handle, with the pair’s sharp mid-week drop owing more to events in Washington than to anything out of Canberra. Yet the Aussie is […]
