Author: FX
Silver (XAG/USD) prices reclaim the $60.00 mark for the second straight day on Friday, extending their weekly gains to over 5.50% and trading at $62.42 amid broader US Dollar weakness, pushing the white metal to an eight-day high of $62.89. Source link
Gold (XAU/USD) price rises by more than 1% on Friday as investors digest a softer-than-expected US jobs report, trimming hawkish bets despite higher inflation. At the time of writing, the XAU/USD pair trades at $4,174, after bouncing off daily lows of $4,121.Bullion rises as soft jobs data weighs on Dollar outlookOn Thursday, US Nonfarm Payrolls for June missed estimates by a large margin, coming in at 57K instead of 110 K. The Unemployment Rate edged lower, but mostly due to a lower participation rate, which hit 61.5, the lowest since March 2021.Immediately, the swaps market adjusted interest rate expectations of…
ABN AMRO’s Bill Diviney expects the US Dollar to weaken broadly but notes slightly less upside for EUR/USD after revising the bank’s ECB outlook and incorporating French and US election risks. With the ECB seen delivering one more hike and the Fed staying more dovish than markets, ABN AMRO now projects EUR/USD at 1.18 for 2026 and 1.23 for 2027.Euro gains tempered by election risks”We still expect the US dollar to weaken more broadly.””However, we have made a modest adjustment to our EUR/USD forecasts because of two developments.””Taken together, these factors point to slightly less upside for EUR/USD this year…
BOE seeks to hit inflation target without damaging outputMarket pricing puts the odds of a hike in November at roughly 50%. If oil stays down here the effects of the war should be unwound quickly so we will see where inflation lands by Q4.The pound is up 6 pips to 1.3352 today and these comments won’t move it. In other UK news, Andy Burnham announced that he will keep the triple lock. This article was written by Adam Button at investinglive.com. Source link
British Pound holds weekly gains as Fed hike doubts deepenThe British Pound steadied against the US Dollar on Friday, but it is poised to end the week with gains of over 1% as investors turn skeptical that the Federal Reserve will raise interest rates at the September meeting. The GBP/USD consolidates at around 1.3350, unchanged. Read More…British Pound holds firm near 1.3380 amid broad-based US Dollar weaknessThe British Pound (GBP) appreciates against the US Dollar (USD) on Friday, on track for a 1.3% appreciation this week, its strongest weekly performance in three months. The GBP/USD pair is trading at 1.3370 with downside attempts limited, as the US…
Cereal and packaged food giant General Mills reported earnings this week and the read from the was unambiguous: the consumer is stressed, staying stressed, and the company is planning around it rather than hoping for a turn.The core messages is that they don’t assume any improvement.Dana McNabb (COO) laid it out directly: “What we are anticipating is that as we go into this new fiscal year, the consumer is going to continue to be pressured. And we do expect to see them continue to change their behavior because of that, being more deliberate in how and where they shop, buying…
Gold rallied in Asia and has held its gains since in quiet holiday trading. It’s up $53 to $4147 and looking to climb for the first week in five.The gain today came in a burst in Asia and topped out at $4194 before chopping sideways.Gold 10 minutesGold has struggled since topping at $5418 just before the outset of the Iran war. The event caused reserve drawdowns and a sovereign buyer’s strike as the spike in oil prices caused currency volatility. Even as the war has ended, that’s been slow to unwind, in part because of the on-again/off-again fighting and the…
ING analysts Warren Patterson and Ewa Manthey say LME Aluminium fell towards $3,000/t as markets unwound the geopolitical risk premium from earlier Middle East tensions. An update from Emirates Global Aluminium showed 7% of pots at Al Taweelah restarted, reinforcing expectations that Gulf supply disruptions are temporary and that lost production will gradually return, easing availability concerns.EGA restart eases supply fears”LME aluminium came under renewed pressure yesterday, with the three-month price falling towards $3,000/t as the market continued to unwind the geopolitical risk premium built up during the Middle East conflict.””Sentiment was weighed down by an update from Emirates Global…
FUNDAMENTAL OVERVIEWUSD:The US dollar has weakened across the board yesterday following the US NFP report. The data wasn’t bad, but it was enough to trigger a slightly dovish repricing in interest rate expectations. The chances for a July hike dropped to 17% vs 30% before the NFP release, and the probabilities for a move in September stand now around 50%. As mentioned previously, given the Fed’s focus on inflation, the US CPI will likely be more important. For now, the US dollar will likely stay under pressure until the US CPI release due on July 14th.JPY:On the JPY side, the…
Japan’s largest union group Rengo confirms that the final tally of the annual labour talk results showed that Japanese firms have agreed to raise pay by 5.01% on average this year. This figure is of course watered down from the 5.26% according to preliminary estimates, as is typically the case.That now makes it three years in a row that Japan’s wage hikes have topped the 5% mark. The figure above follows up from the 5.25% increase in the previous year and then the 5.10% figure in the year before.Overall, this continues to support a stronger growth trend and bolsters the…