Dollar extended its rebound today, though upside momentum remains restrained. Price action suggests markets are still digesting recent shifts in policy expectations rather than embracing a full risk-off move. Attention remains on the implications of Kevin Warsh being lined up as the next chair of the Fed. While Fed rate cut probabilities have barely shifted,
Headlines: Markets: Gold down 2% to $4,792 but well off 10% drop earlier Silver down 1.8% to $83.68 but well off 16% drop earlier S&P 500 futures -0.3%, Nasdaq futures -0.6%; Nvidia pulls OpenAI investment European equities higher after weak start, DAX +0.9% USD leads, CHF lags on the day WTI crude oil down 5.3%
The UK manufacturing sector strengthened in January with growth in both output and new orders accelerating, final data from S&P Global showed Monday. The final manufacturing Purchasing Managers’ Index rose to a 17-month high of 51.8 in January from 50.6 in December and exceeded the earlier flash estimate of 51.6. Manufacturing output increased for the
Wild dollar swing upended FX options hedges – FX Markets Skip to main content End of drawer navigation content Banks chased vol higher as last week’s EUR/USD surge knocked out barrier trades The selloff in the US dollar last week against the yen and euro forced many foreign exchange options dealers to hurriedly buy back
Gold price extends correction to fresh monthly lows near $4,400 in European trading on Monday, pressured by some profit-taking. The precious metal continues its downtrend after reaching historic highs last week as Kevin Warsh’s nomination as the next Fed chair eases concerns over the US central bank’s independence, bolstering the US Dollar recovery. US ISM PMI Manufacturing PMI data
Several media reports have highlighted that US President Trump’s official announcement to nominate ex-Fed governor Kevin Warsh as the new Fed Chair is likely the driver that triggered the rampant sell-off in gold and silver due to his past remarks on his preference for a smaller US Federal Reserve’s balance sheet, which may lead to
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Yen came under renewed pressure today after comments over the weekend from Japanese Prime Minister Sanae Takaichi suggested a softer stance on currency weakness. The shift in tone has been interpreted as reducing the near-term threat of official intervention, reopening the door for Yen sellers. In a campaign speech on Saturday, Takaichi highlighted the benefits
Fitch said India’s budget underscores macro stability and fiscal credibility, with growth seen steady. Summary: Fitch Ratings said India’s latest budget reinforces its commitment to macro stability, even as fiscal consolidation slows. The agency views the FY27 deficit target of 4.3% of GDP as modest progress, reflecting the growing difficulty of further consolidation. Fitch described
Warsh nomination sparks volatility and shifts policy expectations United States (US) equity markets finished lower on Friday after a session of volatility, triggered by President Trump’s nomination of Kevin Warsh to succeed Jerome Powell as Federal Reserve (Fed) Chair. The move sparked a strong rally in the heavily shorted US dollar, and a brutal flash crash in
USD/JPY holds ground after three days of gains, trading around 155.20 during the Asian hours on Monday. The upside of the pair could be limited as the Japanese Yen (JPY) remains calm following the Bank of Japan’s (BoJ) January Summary of Opinions. BoJ Summary of Opinions suggested the risk of falling behind the curve has
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The manufacturing sector in Japan bounced up into expansion territory in January, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 51.5. That’s up from 50.0 in December, which marked stagnation as being right non the line that separates expansion from contraction. Helping to push the headline PMI back
Japan’s election-driven fiscal debate is keeping bond and FX markets on edge, with any hint of looser policy risking renewed volatility. Summary: Japanese markets remain highly sensitive to fiscal policy signals ahead of the February 8 snap election, according to a former senior currency official. Any expansion of tax relief risks renewed selling pressure in
The manufacturing sector in Australia continued to expand in January, and at a faster pace, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 52.3. That’s up from 51.6 in December and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Manufacturing production expanded
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As is usual for a Monday morning, market liquidity is very thin until it improves as more Asian centres come online … prices are liable to swing around, so take care out there. Not too much change from late Friday, USD mostly a tiny bit higher: I’ll be back with some weekend news soon …
