Tag Archives: Forex
US dollar slips as inflation data points to rate cuts
Key points: This article is a follow up to: US dollar bullish in anticipation of the PCE inflation data release The US dollar index (Symbol: USDX) fell slightly after the latest inflation data suggested a decline in price pressures, reinforcing expectations that the Federal Reserve may start cutting interest rates this year. The personal consumptionContinue Reading
Euro climbs following France’s first-round vote, yen falters
Key points: On Monday, the euro rose following the first round of France’s snap election, which put Marine Le Pen’s far-right National Rally (RN) party in the lead. However, the margin was smaller than initially projected. This development came as a relief to markets concerned about potential expansionary and unsustainable fiscal policies from a strongerContinue Reading
Mexican peso nears 15-month low following economic data and political uncertainty
Key points: The Mexican peso weakened to 18.4 per USD, approaching its fifteen-month low of 18.75. Markets are reacting to the latest rate decision by Banxico and recent economic data. The central bank, Banxico, maintained its interest rate at 11% during its June meeting, aligning with market expectations and underscoring its commitment to controlling inflation,Continue Reading
Rupee likely to find support from expected inflows as US yields rise
Key points: The Indian rupee is anticipated to open slightly higher on Thursday, driven by expected inflows from the inclusion of Indian bonds in a major emerging market index. This inclusion, effective from June 28, is likely to attract passive fund inflows, providing support to the rupee. Picture: Indian rupee trading at 83.562 on theContinue Reading
Japanese yen nears 38-year low as markets eye intervention and US inflation data
Key points: This article is a follow-up to: JPY plummets with silence on rate hike timeline from the BoJ The Japanese yen remained near a 38-year low against the US dollar, trading just below 160.88, its weakest level since 1986. The decline of the Japanese yen, about 12% for the year, highlights the widening interestContinue Reading
Aussie rallies on inflation surprise and rate hike speculations
Key points The Australian dollar surged higher on Wednesday after data revealed that inflation accelerated much more than expected in May. This development impacted bonds as investors priced in a greater risk of another increase in interest rates. Inflation surges to 4.0% in MayThe monthly consumer price (CPI) report showed annual inflation rose to 4.0%Continue Reading
China’s yuan hits 7-month low due to weak PBOC guidance
Key points: China’s yuan eased to a fresh seven-month low against the dollar on Tuesday, signaling its sixth consecutive monthly decline as the central bank, the People’s Bank of China (PBOC), continued to set weaker official fixings. Despite the dollar’s overnight retreat, the yuan remained close to the lower end of its daily trading band,Continue Reading
Rupee expected to struggle as positive US data strengthens dollar
Key points: The Indian rupee is likely to face pressure at the start of the week following a rise in U.S. business activity to a two-year high, which has bolstered demand for the dollar. Non-deliverable forwards indicate the rupee (USDINR) will open slightly weaker against the U.S. dollar from its previous close of 83.5325. TheContinue Reading
Chinese renminbi loses strength in the face of a strong US dollar
With a strong US dollar in the backdrop, the USDCNH currency pair is seeking to break above 7.30, despite efforts from the PBOC to counterbalance the US dollar.
Aussie surges as interest rate outlooks diverge
Key points: The Australian dollar experienced gains this week, buoyed by contrasting interest rate outlooks across major economies. As the Swiss National Bank and the Bank of England leaned towards more dovish policies, the Australian market showed resilience, hinting at a possible rate hike. This divergence has pushed the Australian dollar to impressive heights, reflectingContinue Reading
