Author: FX

Spot prices for lithium have experienced significant volatility to begin 2026, with Scotiabank analysts characterizing the recent surge as disconnected from underlying market fundamentals.Domestic Chinese lithium carbonate prices have risen 34% year-to-date, while spodumene prices have increased by 46%. The rapid rise has seen lithium carbonate move from approximately $18,000 per metric tonne to $23,000 per metric tonne in a single week. Futures markets have reacted similarly, trading at even higher premiums.Scotiabank’s analysis suggests this rally is not currently driven by end-user EV demand, but rather by regulatory changes in China. Specifically, Beijing’s decision to roll back value-added tax export…

The US Dollar (USD) lacked directional momentum this week amid geopolitical and local uncertainty. On the one hand, the United States (US) President Donald Trump continued threatening Iran with military interventions, taking down the tone by the week’s end, but noting that all options are still on the table. On the other hand, the Federal Reserve (Fed) is facing problems stemming from the lawsuit against Chairman Jerome Powell, keeping the USD unattractive to investors.USD Index: the US Dollar Index (DXY) ended the week with modest gains and is trading near 99.30, reaching a monthly high.On the datafront, the US will…

JasonDoiyNetflix’s (NFLX) fourth-quarter earnings report on Tuesday is likely to get overshadowed by the Warner Bros. Discovery (WBD) deal, amid the streaming giant’s heated battle with Paramount to take control of one of the ‌iconic studios in Hollywood. Netflix, in December, first Source link

USD/JPY trades lower around 158.00 on Friday at the time of writing, down 0.40% on the day, as the Japanese Yen (JPY) regains some traction against the US Dollar (USD). The move reflects increased caution among investors, with intervention risks from Japanese authorities returning to the forefront after several weeks of persistent Japanese Yen weakness.On the US side, the US Dollar continues to be supported by still-robust fundamentals. Recent macroeconomic data confirm the resilience of the US economy, particularly in the labor market and consumer spending. Weekly Initial Jobless Claims published by the US Department of Labor fell to 198,000…

West Texas Intermediate (WTI) US Oil trades around $59.80 per barrel on Friday at the time of writing, up 1.60% on the day. The Crude Oil is recovering part of the ground lost over the previous two sessions as investors reassess geopolitical risks in the Middle East following more cautious remarks from the White House regarding Iran.US President Donald Trump said he had stepped back from the threat of military action after receiving assurances that no further executions would take place and that violence would subside. According to several sources cited by Reuters, Israel and other regional allies also urged…

GBP/USD flat near 1.3380 as strong data boosts the US DollarThe British Pound (GBP) trades sideways against the US Dollar (USD) on Friday during the North American session, after reaching a daily high of 1.3413, but solid US data released this week capped Sterling’s advance. GBP/USD trades at 1.3380 and continues to distance from the 200-day SMA key technical level at 1.3405. Read More…GBP/USD returns above 1.3400 as the US Dollar rally loses steamThe Pound is trimming losses against the US Dollar on Friday, with price action returning above 1.3400 ahead of the US session opening, up from Thursday’s lows near 1.3360.…

Federal Reserve (Fed) Vice Chair Michelle Bowman said that, given the risks, the Fed should not signal a pause in its rate-cutting campaign, in a speech at the New England Economic Forum in Foxborough, Massachusetts, on Friday.Key takeawaysGiven risks, Fed should not signal a pause in rate-cutting campaign.US Central Bank should stand ready to cut interest rates again given labor market risks.Risk to Fed’s mandates is asymmetric, with job risks outweighing inflation concerns.Monetary policy is moderately restrictive right now.Inflation pressures are easing as tariff influences abate.Fed policymaking should be forward looking and driven by forecasts.Given risks, Fed policy should be…

The Euro (EUR) turns lower against the US Dollar (USD) on Friday, surrendering intraday gains as renewed demand for the Greenback keeps the pair on the defensive. At the time of writing, EUR/USD is trading flat near 1.1600, after briefly sliding to its lowest level since November 28.The US Dollar draws support from stronger-than-expected US economic data, which has reinforced the view that the Federal Reserve (Fed) can afford to hold off on cutting interest rates in the near term.Further supporting the US Dollar, comments from White House National Economic Council Director Kevin Hassett helped ease investor concerns over recent…

The price of Silver continued its upward trajectory this week, reaching a record high of $93.75 per troy ounce on Thursday morning. As a result, the Gold/Silver ratio briefly slipped below the 50 mark for the first time since March 2012. Since the beginning of the year, Silver has risen in price by around 30%. By comparison, the price of Gold rose by ‘only’ 7% over the same period. Last year, Silver had already significantly outperformed Gold with a price increase of almost 150%, Commerzbank’s commodity analyst Carsten Fritsch notes. Trump talks ease tariff fears, Silver pulls back 7%”Now, US…

We haven’t heard much from Bowman since she was ruled out as a candidate for Fed Chair.US economy has been resilientWage growth consistent with 2% inflationFed has made considerable progress in lowering inflationUnderlying inflation levels closer to Fed’s 2% targetSays she is concerned about labor market fragilityFirms may start shedding workers unless there is demand improvementExpects ‘solid’ growth, lower inflation and stabilizing job marketGiven risks, Fed policy should be focused on supporting job marketFed policymaking should be forward looking and driven by forecastsInflation pressures are easing as tariff influences abateMonetary policy is ‘moderately restrictive’ right nowRisk to Fed’s mandates is…