EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair trades at 1.1736, virtually unchanged. Euro ends week modestly higher as soft US data cements rate cut bets, narrowing policy divergence with ECB US economic data continued to drive price action on Friday as Consumer Sentiment in September deteriorated, while inflation expectations remain above the Fed's 2% goal. This, and the payrolls revision...
Gold (XAU/USD) price pops over 1% on Monday and hits $3,243 at the time of writing, with three main themes at play on Monday. Tensions are brewing in the Middle East with Israel embarking on another massive ground offensive. The military action comes just days after United States (US) President Donald Trump visited the Middle East, though he didn't visit Israel. The second main driver is the bond market, where several pension funds and Fixed Income (Bonds) investors will need to reshuffle their holdings after rating agency Moody's downgraded the US's sovereign debt credit rating after the...
The dollar index fell by about 0.7% to 100.1 on Monday, retreating further from the one-month highs reached last week, as growing concerns over the US fiscal outlook triggered a shift away from dollar-denominated assets. On Friday, Moody's downgraded the US credit rating from Aaa to Aa1, citing rising government debt and a widening budget deficit. Fiscal concerns were further exacerbated by the approval of President Trump's tax-cut legislation by a key congressional committee on Sunday. The bill includes hundreds of billions of dollars in new tax cuts without corresponding spending...
The Pound Sterling (GBP) trades higher against its major peers, except the Euro (EUR), at the start of the week. The British currency moves higher ahead of the European Union (EU)-United Kingdom (UK) trade summit in London on Monday. Investors will pay close attention to a potential trade deal as it will strengthen economic ties between the economies since the announcement of Brexit. According to comments from the Head of Trade Policy at the British Chamber of Commerce, William Bain, in a Jefferies-hosted session over the weekend, the potential deal between the UK and the EU would benefit...
Oil slipped on Monday, weighed down by Moody's downgrade of the U.S. sovereign credit rating and official data that showed slowing growth in China's industrial output and retail sales. Both developments raised concerns over the outlook for the world's two biggest economies and oil consumers a week after Beijing and Washington's agreement to roll back most tariffs on each other's goods pushed oil prices higher. "The timing is damaging," John Evans of oil broker PVM said of the U.S. rating cut. "The change may see limited impact and its effect might be a creep of monetary disease rather than...
Gold prices climbed on Monday as a softer dollar and renewed trade concerns, following U.S. Treasury Secretary Scott Bessent's reaffirmation of President Donald Trump's tariff threats, fuelled safe-haven demand. Spot gold was up 0.8% at $3,228.47 an ounce, as of 0632 GMT. U.S. gold futures gained 1.4% to $3,232.10. Gold shed more than 2% on Friday and posted its worst week since last November, as increased risk appetite from the U.S.-China trade agreement weighed. The dollar (.DXY), opens new tab slipped 0.5% on Monday, making greenback-priced gold cheaper for overseas currency...
The US dollar index fell slightly to around 100.7 on Monday, following a surprise downgrade of the US government's credit rating. Moody's Ratings announced late Friday that it had stripped the US of its top credit rating, lowering it to Aa1, due to concerns about the nation's growing $36 trillion debt, in a move that could complicate President Trump's efforts to cut taxes. Treasury Secretary Scott Bessent dismissed the cut's significance on Sunday, saying the administration would spur economic growth that would outpace the national debt. He also warned trade partners that they would face the...
The GBP/USD pair recovered from prior session losses, trading near the 1.3300 level during Asian session on Monday. The rebound is largely driven by renewed pressure on the US Dollar (USD) after Moody's Investors Service downgraded the US credit rating by one notch, from Aaa to Aa1. The agency cited escalating debt levels and a growing burden from interest payments as primary concerns. This move aligns with previous downgrades by Fitch Ratings in 2023 and Standard & Poor's in 2011. Moody's now forecasts US federal debt to rise to approximately 134% of GDP by 2035, up from 98% in 2023....
Oil prices ticked lower in Asian trading on Monday after weekly gains, as oversupply concerns persisted amid U.S.-Iran nuclear talks, while investors assessed Chinese factory data showing resilience despite the effect of U.S. tariffs. Investors were also cautious as the global ratings agency Moody's downgraded its investment grade rating on the U.S. As of 23:23 ET (03:23 GMT), Brent Oil Futures expiring in June inched 0.3% lower to $65.20 per barrel, while West Texas Intermediate (WTI) crude futures also fell 0.3% to $61.77 per barrel. Both contracts gained more than 1% last week, driven...
Gold (XAU/USD) is extending its decline on Wednesday for a second consecutive day as the US Dollar (USD) and US Treasury yields firm ahead of the release of the Federal Open Market Committee (FOMC)...
Oil extended declines after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.
Brent...
The Japanese Yen (JPY) weakened against its US counterpart and reversed part of Friday's recovery from the lowest level since July 23 following Bank of Japan (BOJ) Governor Kazuo Ueda's remarks....