The dollar index held its recent decline around 106.1 on Thursday, with trading volumes remaining low due to the Thanksgiving holiday in the US. The index fell 0.8% on Wednesday after US PCE inflation data matched expectations, suggesting little change in the Federal Reserve's interest rate outlook. Markets are currently pricing in a 66.5% chance that the Fed will cut rates by 25 basis points in December, up from 55.7% a week earlier. The dollar also faced pressure earlier this week following the nomination of Scott Bessent as US Treasury Secretary, which provided a sense of stability to...
The Australian Dollar (AUD) holds steady against the US Dollar (USD) following the release of stronger-than-expected Private Capital Expenditure on Thursday. Australia's total new capital expenditure rose by 1.1% quarter-on-quarter in the third quarter, surpassing market expectations of a 0.9% increase and rebounding from a 2.2% decline in the previous quarter. However, the AUD/USD pair may face downward pressure as the United States (US) is set to unveil additional measures on Monday aimed at curbing China's ability to advance in artificial intelligence technology. Given the close trade...
The Japanese Yen (JPY) weakens slightly against its American counterpart during the Asian session on Thursday and erodes a part of the recent strong gains to a five-week top touched the previous day. In the absence of a fresh fundamental catalyst, the intraday JPY slide is more likely to remain limited amid speculation that the Bank of Japan (BoJ) may hike interest rates again in December. Furthermore, US President-elect Donald Trump's tariff threats and geopolitical risks could underpin the safe-haven JPY. Meanwhile, traders have been dialling back on the so-called "Trump trades"...
Silver price (XAG/USD) extends its losses for the second consecutive day, trading around $29.90 per troy ounce during the Asian session on Thursday. The decline in Silver prices can be attributed to safe-haven flows diminishing amid easing geopolitical tensions in the Middle East. A ceasefire between Israel and the Lebanese armed group Hezbollah was successfully upheld on Wednesday, following a deal mediated by the United States (US) and France. This truce has allowed people in the border areas, devastated by 14 months of conflict, to begin returning to their homes. Source: FXStreet
Gold fell below $2,630 an ounce on Thursday (11/28), paring recent gains as investors continued to assess the latest U.S. economic data. Both PCE and core PCE prices showed that inflation has stalled, reinforcing the Federal Reserve's cautious stance on further interest rate cuts. Additional data suggested the economy remains strong, with the release of the second estimate of third-quarter GDP, while employment data pointed to continued resilience in the labor market, with the number of Americans filing for unemployment benefits falling below expectations. The data further limits the Fed's...