Global silver prices have the potential to trend upward today, amid pressure from a strengthening US dollar and changing market expectations regarding the Fed's interest rate policy. Market participants have begun to reduce expectations of an interest rate cut at the December meeting, after several Fed officials struck a more cautious tone regarding the need for policy easing. As the chances of an interest rate cut narrow, yields on interest-bearing assets become relatively more attractive, and precious metals like silver are under pressure. On the other hand, silver is not only viewed as a...
The dollar rose versus all Group-of-10 peers except the Swedish krona, and stayed in tight ranges on aggregate, as traders waited for a new set of US economic data this week. The Bloomberg Dollar Spot Index rises as much as 0.2% before paring gains; the Bureau of Labor Statistics will release the September jobs report Thursday. One-week volatility comes under pressure as traders went long gamma last week, focusing on post Nov. 19 expiries. Hedging costs reflect little market concern for now over China escalating its confrontation with Japan over Prime Minister Sanae...
Oil prices fell Monday, handing back some of the strong gains seen at the end of last week, after Russia's Novorossiysk port resumed crude loadings, easing immediate concerns over supply disruption. At 04:35 ET (09:35 GMT), Brent Oil Futures expiring in January fell 0.7% to $63.97 per barrel and West Texas Intermediate WTI crude futures slipped 0.7% to $59.52 per barrel. Brent and WTI had surged more than 2% on Friday after Ukraine launched a high-profile attack on Novorossiysk and a nearby Caspian Pipeline Consortium terminal, causing damage and halting exports equivalent to roughly 2% of...
The Australian dollar fell to around $0.652 on Monday (November 17) after the US dollar strengthened sharply. The greenback's strengthening occurred because several Fed officials began to doubt the need for a December interest rate cut, with some even rejecting the possibility outright. The market, which previously estimated a 25 bps cut at nearly 88%, has now lowered it to around 46%. This global sentiment has also put pressure on the AUD. Domestically, Australian investors have also begun to lower their expectations for interest rate easing by the RBA. Stronger-than-expected employment...