Dollar weakened notably against European majors and Yen as markets transitioned into US session, despite subdued overall trading activity. The decline was largely driven by extended fall in US 10-year Treasury yield, which hit its lowest level since mid-December. Beyond geopolitical and trade war concerns, market focus has turned toward whether slowing US consumption and […]
The forex markets remain rather indecisive today. Traders are paring back expectations for BoE rate cuts after UK inflation surged to a 10-month high. A March rate cut is now off the table, and markets are no longer fully pricing in two BoE cuts this year. However, this shift has provided only minimal support for
Dollar rallied sharply in early US trading after inflation data came in hotter than expected, reinforcing expectations that Fed will maintain its restrictive policy stance for longer than previously anticipated. 10-year Treasury yield surged past 4.6%, extending its strong rebound from earlier in the week. US equity futures plunged, with DOW futures down around -1%
Yen struggled in the Asian session and stayed weak, with renewed selling pressure driven by a combination of rising US Treasury yields and ongoing concerns over trade policy developments. Market participants are still digesting the implications of US President Donald Trump’s decision to reintroduce tariffs on steel and aluminum imports, with Canada and the EU
Dollar faced significant volatility last week as shifting trade policy signals from the White House left investors scrambling for clarity. Initially, tariffs on Canadian and Mexican imports were imposed, only to be quickly suspended for 30 days following new agreements on border security and fentanyl control. Now, the focus turns to “reciprocal tariffs,” a move
The British Pound weakened significantly after BoE delivered a 25bps rate cut. The policy decision was more dovish than anticipated, primarily due to the unexpected shift in the MPC voting split. Catherine Mann, previously one of the most hawkish members of the committee, reversed course and joined Swati Dhingra in voting for a more aggressive
EUR/USD rebounds sharply to near 1.0350 as US President Trump postpones his orders of tariffs on Canada and Mexico for 30 days. Trump’s intentions to impose tariffs on China remain intact. The ECB is expected to cut interest rates three times more this year. EUR/USD bounces back from the intraday low of 1.0270 and rebounds
EUR/USD declines to near 1.0370 as inflation in six states of Germany decelerates in January. Donald Trump threatens to impose 100% tariffs on BRICS and 25% on Mexico and Canada. The Fed kept interest rates at their current levels on Wednesday. EUR/USD faces selling pressure and declines to near 1.0370 in Friday’s European session. The major
Euro is trading slightly higher following the ECB’s widely expected 25bps rate cut, though the move lacks strong momentum. In her post-meeting press conference, President Christine Lagarde reinforced the bank’s “gradual easing path”. She stated that a larger 50bps cut was not even considered today, making it clear that an aggressive rate-cutting cycle is off
The US Dollar traded in a positive fashion after the Fed left its interest rates unchanged, as widely anticipated, and Chief Powell delivered a neutral message at his press conference. Here is what you need to know on Thursday, January 30: The US Dollar Index (DXY) kept the weekly bid bias in place helped by
Despite being pressured in the past few days, Dollar remains relatively resilient, refusing to drop despite renewed selling pressure earlier today. US President Donald Trump’s tariff rhetoric is having a diminishing effect on markets, as traders shift their attention back to fundamental and intermarket dynamics. The first significant market reaction to tariffs is likely to
New Zealand Dollar softened mildly today as Q4 inflation data reinforced the case for continued monetary easing by RBNZ. The central bank has ample room to swiftly bring interest rate from the current 4.25% to neutral, with inflation staying at around mid-point of 1-3% target range for the second straight quarter. Another 50bps rate cut
EUR/JPY scales higher for the fourth straight day amid the emergence of some JPY selling. The divergent BoJ-ECB policy expectations should keep a lid on the upside for the cross. Traders now look to ECB President Christine Lagarde’s speech for short-term opportunities. The EUR/JPY cross attracts follow-through buyers for the fourth straight day on Wednesday
Dollar weakened broadly in early US session as reports from The Wall Street Journal indicated that Donald Trump, during his inauguration, will only outline his trade vision but avoid imposing new tariffs for now. While this temporarily calms market fears of immediate disruptions, the situation remains dynamic, and unexpected developments could trigger sharp reversals, especially
Dollar is trading slightly lower today as markets await Donald Trump’s inauguration as the 47th US President. Attention is focused on his inaugural speech, expected to confirm his policy priorities. However, the real market-moving event is likely to be the series of executive actions Trump has promised to enact immediately. Over 200 directives are anticipated,
Global markets are buzzing in anticipation of Donald Trump’s inauguration on January 20, yet the latest developments suggest investors may already be looking past the immediate impact. Despite speculation surrounding Trump’s policies—particularly tariffs—various benchmarks and asset classes are charting their own directions based on localized drivers and monetary policy expectations. In the US, the strong
Sharp selloff in commodity currencies against Dollar is dominating market action as the US session unfolds. While broader trading remains subdued, the sudden weakness in these currencies appears tied to trader caution ahead of President-elect Donald Trump’s inauguration on Monday. Concerns over tariff policies could be the main driver of the moves, in the absence
