The U.S. dollar drifted lower Thursday on growing expectations of further interest rate cuts by the Federal Reserve this year, while signs of French political accord helped the euro. At 04:45 ET (08:45 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower to 98.342, headed for a weekly decline of 0.3%. More Fed cuts ahead?Market participants are becoming increasingly convinced that the U.S. central bank will follow last month's interest rate cut with more monetary easing as data points to growth slowing in the world's largest...
The Australian dollar (AUD) weakened slightly against the US dollar (USD) following the release of a number of economic data, but then stabilized on Friday. Recent data showed that business activity in Australia is slowing. The Composite Purchasing Managers' Index (PMI) fell to 52.4 in September, from 55.5 in August. This indicates that economic growth is still ongoing, but at a slower pace, marking the lowest level since June. The services sector also slowed, although it continued to grow for 20 consecutive months. Furthermore, Australia recorded a decline in its trade surplus. In August,...
Gold edges higher in early Asian trade, aided by risks that the U.S. government shutdown may weaken the economy, potentially prompting more Fed rate cuts that would bolster the appeal of the non-interest-bearing precious metal. Treasury Bessent said in an interview with CNBC on Thursday that the shutdown has the potential to chip away at U.S. economic growth. Gold prices are supported by expectations of easier monetary policy, central bank demand and a weak U.S. dollar, says Fawad Razaqzada, market analyst at City Index and FOREX.com, in an email. Spot gold is 0.1% higher at...
Oil was on track for the biggest weekly decline since late June, ahead of an OPEC+ meeting that's expected to result in the return of more idled barrels, exacerbating concerns around oversupply. West Texas Intermediate futures traded below $61 a barrel, down almost 8% for the week. Brent closed near $64 on Thursday. The alliance is scheduled to meet on Sunday to make a decision on output for November, and could discuss fast-tracking supply hikes as the group seeks to reclaim market share. There are already early signs that global oversupply may be emerging in the...
The Australian dollar (AUD) moved cautiously as markets weighed the effects of the US government shutdown, which delayed the release of important macro data and obscured visibility ahead of the Fed's decision. The lack of data has led market participants to rely again on signals from Treasury yields and the direction of the DXY; if US yields soften and the dollar loses traction, the AUD has room to strengthen, but any risk-off episodes tend to pressure high-beta currencies like the Aussie. Domestically, the focus is on the RBA early next week to read the latest policy tone: whether the...
Oil prices fell about 2% to their lowest in four months on Thursday, extending a run of declines into a fourth day, due to concerns about oversupply in the market ahead of a meeting of the OPEC+ group over the weekend. Brent crude futures fell $1.20, or 1.8%, to $64.15 a barrel by 2:45 p.m. ET (1845 GMT), the lowest since June 2. U.S. West Texas Intermediate crude dropped $1.30, or 2.1%, to settle at $60.48 a barrel, the lowest since May 30. OPEC+ could agree to raise oil production by up to 500,000 barrels per day in November, triple the increase for October, as Saudi Arabia seeks to...
Gold (XAU/USD) trades with a negative bias on Thursday, trimming recent gains after posting a fresh all-time high near $3,895 on Wednesday. At the time of writing, XAU/USD trades around $3,820 during the American session, down over 1.0% after briefly retesting the record peak. The fundamental backdrop still leans supportive. The United States (US) government shutdown is stoking safe-haven interest, while growing conviction that the Federal Reserve (Fed) will cut interest rates later this month is keeping Treasury yields subdued, which bolsters the case for holding the non-yielding...
The dollar weakened near a one-week low on Thursday as traders weighed the impact of the US government shutdown, while poor jobs data raised expectations that the Federal Reserve would cut interest rates twice more this year. The dollar index, which measures the greenback against a basket of six currencies, fell 0.14% to 97.59. It suffered the sharpest decline against the safe-haven yen, which fell 0.3% to 146.69. After four consecutive days of declines, traders considered how long the US government shutdown would last, its impact on economic data releases, and how it would influence the...
Gold rallied – after a five-day rally that reached a new record – as the US government shutdown deepened and traders increased bets on a Federal Reserve interest rate cut following weak private payroll data. Gold traded near $3,880 an ounce, about $15 below its high reached on Wednesday, with the suspension of federal operations threatening to delay crucial economic data needed by the Fed to make interest rate decisions. This has left economists, traders, and policymakers more reliant on non-government data, such as Wednesday's ADP Research report, which showed a sharp decline in private...
Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst...
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....