Author: FX
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,…
Rates are now at neutral rateEconomy doesn’t need stimulusExpects economy to continue growing above trend, boosted by fiscal policyExpects inflation to decline to 2% but sees risk it could remain aboveFurther cuts only needed if jobs market were to decay or inflation fallsHawkish stuff from Musalem and the market thinks Warsh is a hawk deep down. Are we slowly going to price out the Fed easing that’s in the market this year?The market is pricing in 52 bps in easing through year end, which is a touch more than at the start of the week. We saw the GDP trackers…
Gold price (XAU/USD) extends its losses on Friday, plunges nearly 10% to sink below $4,900 after US President Donald Trump revealed his pick for Fed Chair, while a hot inflation reading in the US justified the Federal Reserve’s (Fed) decision on Wednesday to keep rates steady. The XAU/USD trades around the top/bottom of the $5,000 mark.Bullion plunges over 7% as a hawkish Fed chair nomination and stubborn inflation crush easing hopesOn Friday morning, Trump revealed that he chose Kevin Warsh to become the new Chair of the US central bank. Warsh wasknown as a hawk in his previous period as…
Trump may not carry out Bombardier threats but analysts see investor sentiment hurting shares Source link
These are some breathtaking moves in precious metals today.Gold is now at the session low, down 10.0%, or $837, to $4855. It’s an incredible reversal on the daily chart and a textbook three-candle top.gold dailyAs amazing as that is, silver is something else. It’s down 26%, or $29 to $86.57. Note that less than a year ago, an ounce of silver traded for $27 so this is equal to its entire value at the time. However just yesterday it traded at $121 and a 26.5% decline would be the worst percentage drop ever, worse than the post-Hunt brothers bust.This certainly…
Oil prices are marginally higher today as we watch and wait on Iran.Trump is out once again reminding everyone that an ‘armada’ is heading towards Iran and it’s even bigger than the one that went to Venezuela. That’s obviously a threat and will hang over any negotiation.This is the kind of thing that can get ugly fast and that’s why oil has rallied steadily from $59 on Jan 22 to $65.73 last. We’re at the point where there are two-way risks because this could also de-escalate or US attacks could avoid hitting oil infrastructure. Iran could also refrain from closing…
Kevin Warsh was a Fed Governor during the financials crisis and thanks to rules that release transcripts six years after the meetings, we can see exactly what he argued for and why.They highlight an overly-hawkish plicymaker that was flat-out wrong about the inflation risks. It’s also in stark contrast to his recent turn towards being an unabashed dove, something that seems politically expedient given that he has lobbied for the Fed Chair job for at least 9 years.Warsh was an FOMC governor from 2006 to 2011. Here are some revealing comments.FOMC transcript, Jan 30–31, 2007:“The trends appeared supportive of strong,…