Author: FX

The final week of January 2026 delivered some of the most dramatic forex market action in recent memory, as currency traders navigated a perfect storm of policy uncertainty, precious metals carnage, and whiplash-inducing dollar volatility. What started as speculation about coordinated yen intervention evolved into a full-blown currency policy debate after President Trump’s eyebrow-raising comments about dollar weakness, only to reverse course spectacularly when his Fed Chair nomination triggered a massive unwind of the “debasement trade” that had punished the greenback earlier in the week. The five-day stretch showcased just how quickly sentiment can shift in modern currency markets.…

Markets:Gold down $530 to $4860Silver down $33 to $82.70WTI crude oil up 47-cents to $65.90S&P 500 down 0.4%Nasdaq down 0.9%US 10-year yields up 1.8 bps to 4.24%USD leads, AUD lagsIt was a day for the ages in the precious metals market as gold fell 10% and silver fell 30% in its worst-ever percentage drop. It’s been a parabolic run higher — particularly in silver — and the air came out of it today in a crushing decline. The selling started in Asia but silver was still at $104 early in US trade; it eventually fell as low as $77.80. Similarly,…

The United States (US) Federal Reserve (Fed) had a busy week. On Monday, the Fed asked local New York banks about their positions in USD/JPY, fueling speculation that the US may be preparing to work with Japan on the Japanes Yen’s (JPY) weakness. The news triggered a sharp US Dollar (USD) sell-off at the beginning of the week.Mid-week, the Fed had its monetary policy meeting. The central bank held its target range for the federal funds rate unchanged at 3.50%-3.75%, as expected. Chairman Jerome Powell’s press conference was focused on politics, Powell’s future, and the subpoena, topics he declined to…

The Canadian dollar is down against the US dollar but it’s actually outperforming every currency aside from the dollar. That’s a better read on how the loonie has reacted to the latest Trump tariff threats than USD/CAD alone, which is up 105 pips to 1.3594.Even with that pair, if you zoom out over a couple weeks, today’s climb is modest.USDCAD 1 hourTo recap, Trump threw a fit about Canadian certifications of some Gufstream jets and said he was decertifying Bombardier jets. The thing is, Bombardier jets are flown all over the United States and immediately grounding them would be disastrous…

Unconfirmed reports suggest that China may inject RMB 200 billion into large insurers to bolster their capital buffers, alongside an additional RMB 300 billion into major banks. This move aims to support the banking sector amid downward pressure on net interest margins. The PBoC’s USD/CNY fixing has remained below the 7.0000 level, aided by a weaker Dollar, note Lin Li, Asian Head of Global Markets Research and Khang Sek Lee, Research Associate at MUFG Bank.Government support for banking sector”If true, it is considered timely as the China Banking and Insurance News reported in November that more than two-thirds of the…

• Major indexes edged lower as investors digested Trump’s nomination of Kevin Warsh to succeed Fed Chair Powell in May.• Verizon surged on strong subscriber growth and upbeat 2026 guidance, while American Express fell despite a revenue beat.• Silver plunged over 17% in a dramatic reversal from record highs, triggering profit-taking across precious metals.• Despite Friday’s pullback, all three major averages posted solid gains for January, capping a strong start to 2026.The Dow Jones Industrial Average (DJIA) slipped around 200 points on Friday, falling 0.2% as investors weighed President Donald Trump’s nomination of former Federal Reserve (Fed) Governor Kevin Warsh…

DBS Bank’s Group Research discusses the upcoming Reserve Bank of India (RBI) monetary policy committee meeting scheduled for February 6, 2026. The report anticipates that the RBI will maintain its current interest rates, citing a firm growth impulse despite trade tensions and inflation that is off its lows. The Indian Rupee has faced depreciation pressures, and the RBI is expected to focus on liquidity and currency risks.RBI monetary policy outlook”The RBI monetary policy committee will decide on rates on 6-February. The MPC lowered rates in December 2025, along our expectations, but is expected to refrain from cutting rates further in…

Korea’s industrial production growth rebounded in December, indicating robust export growth. President Lee has signaled a potential supplementary budget to support various sectors, which could pose upside risks to Korea’s growth. The KRW has appreciated against the USD this week, reflecting positive sentiment, note Lin Li, Asian Head of Global Markets Research and Khang Sek Lee, Research Associate at MUFG Bank.Focus on supplementary budget potential”Separately, President Lee continued to release signal that a supplementary budget may be introduced this year, in part to support culture and arts sector and new startup incubation initiative.””While it is unclear whether it will ultimately…

Thankfully, there’s no triple-levered silver ETF, or at least one with any trading volume. With silver down 33% today, that would be an extinction-level event.We saw something similar in the VIX ETF implosion a few years ago as it was liquidated. This time, there’s only a twice-levered ETF to worry about. That’s the AGQ product from ProShares.Going into the day, it held about $5 billion in assets tied to silver and — needless to say — it’s going to be much less tomorrow. It’s trading down 66%, which should wipe out about $3 billion of that.This chart is actually telling…

Silver (XAG/USD) sinks sharply by more than 30% on Friday as the precious metals segment is being punished by the financial markets, with the grey metal falling more than $38 at the time of writing. XAG/USD trades at $76.91, after reaching a daily high of $118.46.XAG/USD Price Forecast: Technical outlookAs it plunges, Silver cleared key support levels like $100, $90, $80 and it seems on its way to challenge the $70.00 milestone if it wasn’t for the 50-day Simple Moving Average (SMA) standing at $73.51.The Relative Strength Index (RSI) fell on a parabolic form from around 83 level to 42,…