Author: FX
XAG/USD depreciates for the third successive day, trading around $56.90 per troy ounce during the Asian hours on Thursday. Silver price is facing steady headwinds as market expectations shift toward tighter monetary policy from the Federal Reserve (Fed). This hawkish momentum gained traction after Fed Chairman Kevin Warsh emphasized a strict commitment to curbing inflation, noting that the broader economy remains on a stable footing. Reflecting this shift, the CME FedWatch tool indicates that markets are now pricing in an 83.1% probability of a rate hike by December.These rising Fed interest rate expectations have completely overshadowed the deflationary progress seen…
GBP/JPY has formed higher lows and lower highs to consolidate inside a symmetrical triangle. Now that it’s testing support, will we see a breakout next? Source link
The market’s muted response to both the BOJ hike and the Katayama-Bessent alignment language is the most telling signal in MUFG’s note: verbal intervention and policy tightening are doing the job of slowing yen weakness but neither is reversing it, which leaves Tokyo increasingly reliant on the credibility of the threat rather than its execution. USD/JPY remaining below 161.95 shows the threshold is being respected, but the inability of 16 basis points of priced October hikes to generate a meaningful yen recovery suggests structural selling pressure is overwhelming the rate differential story. The joint intervention angle is the wildcard: Washington’s…
EUR/JPY’s recent pullback is nearing key support, raising the question of whether buyers step in or sellers extend the move. Source link
BNY’s Geoff Yu notes that despite a bear market in the Hong Kong China Enterprises Index and 15–16% declines in Chinese equities this year, institutional investors continue to add exposure. Holdings remain elevated versus longer history, and Yu argues that cheaper valuations, resilient exports and potential policy support underpin a buy-the-dip mentality in major China benchmarks and ETFs.Institutional investors keep adding China”Despite this weakness, our data shows institutional investors continue to buy Chinese equities, with inflows outperforming the rest of Asia (Exhibit 2) where sentiment has been weighed down by outflows from South Korea and Taiwan. However, Chinese equities have…
Both gold and silver continue to cool off, falling to new 2026 lows and their weakest levels since the fourth quarter of 2025.Why Gold and Silver Have Fallen to New LowsHigher U.S. Treasury yields: Rising bond yields increase the opportunity cost of holding non-yielding assets like gold and silver, encouraging investors to move money into fixed income. Stronger U.S. dollar: The more hawkish Federal Reserve has boosted the dollar, making precious metals more expensive for foreign buyers and reducing demand. Reduced safe-haven buying: Geopolitical concerns have eased somewhat, while stock markets have remained resilient, leading investors to trim defensive positions…
EUR/USD extends its decline on Wednesday and trades around 1.1340 at the time of writing, down 0.39% on the day, as the US Dollar (USD) benefits from renewed support driven by expectations of additional monetary tightening in the United States (US). The move follows last week’s Federal Reserve (Fed) meeting, which signaled a more hawkish stance from policymakers amid persistent inflationary pressures.The US Dollar remains supported by a repricing of interest rate expectations. The Fed’s projections released last week showed that a growing number of policymakers now see the need for higher rates before year-end. According to the CME FedWatch…
Medium-term inflation pressures are unchangedReady to intervene in the FX market if necessaryFull report hereSNB policymaker Petra Tschudin published a report on global economic developments and monetary policy in Switzerland. She noted that the inflation outlook remains broadly under control despite recent energy-driven price pressures. Tschudin said medium-term inflation pressures are unchanged, reinforcing the SNB’s view that the recent pickup in inflation is largely a short-term phenomenon rather than the start of a sustained inflation problem.As a reminder, the SNB left the policy rate unchanged at 0.00% while slightly raising their near-term inflation forecasts following higher global energy prices. The…
Societe Generale’s technical analysts observe EUR/GBP has formed a lower peak around 0.8690 below its 200‑day moving average and is pulling back towards the neckline of a Head and Shoulders pattern. The formation points to potential downside, with resistance at 0.8690/0.8700 and projected downside objectives at 0.8565 and 0.8535/0.8520 if the rebound fails.Pattern targets lower projections”EUR/GBP formed a lower peak around 0.8690 (below its 200-DMA) and has pulled back towards the neckline of the Head and Shoulders pattern.””The formation points towards potential downside.””If a brief rebound develops, recent pivot high of 0.8690/0.8700 may serve as an important hurdle.””An inability to…
Some Bank of Japan members call for faster rate hikes, summary shows Source link