The dollar index held around 97.8 on Wednesday after firming in the prior session, as investors awaited key inflation reports that could influence the Federal Reserve's policy stance. The producer price index is due later today, followed by the consumer price index on Thursday. On Tuesday, the Bureau of Labor Statistics said the economy likely created 911,000 fewer jobs in the 12 months through March, or roughly 76,000 fewer jobs per month, pointing to a softer labor market than previously estimated. Combined with last week's weak August jobs report, the data bolstered expectations for a...
The dollar index held its recent advance to above 108.5 on Wednesday, supported by higher Treasury yields as strong US economic data diminished the likelihood of further Federal Reserve interest rate cuts. Growth in the US services sector accelerated in December, boosting business activity and pushing prices to their highest levels since early 2023. Job openings also rose by 259,000 to 8.098 million in November, surpassing expectations and reaching a six-month high. Investors are now focused on Friday's monthly jobs report, one of the last major data releases before the Fed's upcoming...
Gold price (XAU/USD) stabilizes following the previous day's late pullback from the $2,665 hurdle as traders opt to move to the sidelines ahead of Wednesday's release of the FOMC Minutes later during the US session. In the meantime, the prospects for slower rate cuts by the Federal Reserve (Fed) continue to push the US Treasury bond yields higher and act as a headwind for the non-yielding yellow metal. Apart from this, the underlying strong US Dollar (USD) bullish tone turns out to be another factor that contributes to capping the commodity. The downside for the Gold price, however, remains...
The Australian dollar (AUD) remained weak for the second straight session against the US dollar (USD), with the AUD/USD pair losing ground despite stronger-than-expected monthly inflation data released on Wednesday (8/1). However, the trimmed mean, a closely watched measure of core inflation, fell to 3.2% year-on-year from 3.5%, closer to the Reserve Bank of Australia's (RBA) target range of 2% to 3%. Traders are currently pricing in a 55% probability that the RBA will cut the cash rate by 25 basis points to 4.35% in February, with a full quarter-point cut expected in April. Australia's...
The Japanese Yen (JPY) languishes near a six-month low against its American counterpart and seems vulnerable to prolonging a one-month-old downtrend amid uncertainty about the timing of the next rate hike by the Bank of Japan (BoJ). Adding to this, the recent widening of the US-Japan yield differential, bolstered by reduced bets for further rate cuts by the Federal Reserve (Fed), validates the near-term negative outlook for the lower-yielding JPY. That said, a combination of factors might hold back the JPY bears from placing fresh bets. Japan's Finance Minister Katsunobu Kato weighed in...
Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened, while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand. Brent crude was up 32 cents, or 0.42%, to $77.37 a barrel at 0135 GMT. U.S. West Texas Intermediate crude rose 42 cents, or 0.57%, to $74.67. Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increase, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains...
The Japanese yen fell past 158 per dollar on Tuesday, marking its lowest point in more than five months and prompting fresh verbal intervention from a top Japanese official. Finance Minister Katsunobu Kato reiterated his warning against speculative and unilateral currency moves, signaling the government's readiness to take action if excessive volatility persists. The comments came as the yen weakened toward the 160 per dollar level, which had previously prompted intervention six months ago. The yen has come under pressure recently amid growing uncertainty over the timing of an interest...
Oil prices settled higher on Tuesday, driven by concerns over limited supply from Russia and Iran because of Western sanctions and expected higher Chinese demand. Brent crude futures settled at $77.05 a barrel, up 75 cents, or 0.98%. U.S. West Texas Intermediate (WTI) crude finished at $74.25 a barrel, up 69 cents, 0.94%. Traders were looking to the Chinese stimulus plans to drive growth as supplies are tight following the Christmas and New Year's holidays, said Forex market analyst Razan Hilal. Concern over sanctions tightening supply has translated into increased demand for Middle...
Gold prices trimmed earlier gains, trading below $2,650 per ounce on Tuesday after a 1% rise earlier in the session. The strengthening dollar and rising Treasury yields pressured gold as U.S. job openings indicated lower chances of significant rate cuts by the Federal Reserve. Stronger-than-expected job openings and solid services sector data pointed to a resilient economy, likely keeping the Fed cautious about easing rates. The dollar rebounded from a one-week low, further weighing on gold, which typically benefits from lower interest rates. Investor concerns that proposed U.S. tariffs...
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....