Last week was dominated by developments out of the US and UK, not just because of monetary policy decisions, but also the unexpected announcement of a US-UK trade deal. Fed’s hold and BoE’s cut were were largely overshadowed by the surprise trade breakthrough. Importantly, the structure of the agreement offered valuable insights into the US […]
The forex markets are quiet today, with major pairs largely consolidating after yesterday’s modest directional movement. Dollar and British Pound remain the strongest performers overall, bolstered earlier in the week by the announcement of the US-UK trade agreement. However, both currencies are now struggling to extend their momentum. Canadian Dollar continues to lag after today’s
AUD/USD wobbles around 0.6420 as the US Dollar struggles to extend its upside despite the Fed guiding no rush for interest rate cuts. Fed Powell warns that risks to higher inflation and unemployment have risen. Investors await US-China trade talks in Switzerland on Saturday. The AUD/USD pair trades flat around 0.6420 during North American trading
Trading in the forex markets remains subdued. Fed’s policy announcement overnight triggered minimal market reaction, as it delivered a widely expected hold at 4.25–4.50%. While Fed acknowledged that risks of both higher unemployment and higher inflation have increased, Chair Jerome Powell made it clear that rate cuts are not imminent. “It’s not a situation where
Treasury yields ease after Powell says the Fed can be patient and policy remains appropriate. DXY edges down to 99.51 after peaking at 99.63; the Greenback is under pressure from falling yields. Powell warns tariffs may hinder progress on Fed’s goals, adding to uncertainty over policy path. US Treasury yields edged lower across the whole
The forex markets are treading water ahead of today’s FOMC decision. While the announcement typically acts as a volatility trigger, the lack of suspense surrounding this meeting could mean muted price action even after Chair Jerome Powell’s press conference. Markets are pricing in a near-certainty, 99% probability, that Fed will hold the policy rate steady
Positive developments out of Asia offered some encouragement to global investors today, though market responses remained muted. China unveiled a wide-ranging stimulus package, cutting both its seven-day reverse repo rate and the reserve requirement ratio to inject liquidity to stabilize the economy. In parallel, officials from the US and China announced plans to hold a
Gold price struggles to capitalize on its weekly gains registered over the past two days. The optimism over US-China trade talks is seen weighing on the safe-haven commodity. Investors now look to the crucial FOMC policy decision for a fresh directional impetus. Gold price (XAU/USD) recovers slightly from the Asian session low, around the $3,360
GBP/USD rallied on Tuesday, bolstered by headlines of an incoming US-UK trade agreement. Specific details remain limited, but GBP markets were buoyed by hopes to avert US tariffs. The Pound Sterling settled 0.4% higher against the Greenback after testing 1.3400. GBP/USD rose on Tuesday, climbing four-tenths of one percent on the day and testing the
The Japanese Yen attracts some intraday sellers on Tuesday, though the downside risk remains limited. Trade-related uncertainties and geopolitical risks continue to act as a tailwind for the safe-haven JPY. The divergent BoJ-Fed expectations further contribute to capping USD/JPY ahead of the FOMC meeting. The Japanese Yen (JPY) reverses an Asian session dip against its
Dollar drifted lower in subdued trading, with many Asian markets closed for holidays. Movements in the currency markets elsewhere were mixed. Traditional safe havens like Yen and Swiss Franc inching higher. But at the same time, risk-sensitive currencies such as Australian and New Zealand Dollars also advanced. Overall risk sentiment lacking clear direction. This lack
Global risk sentiment continued to improve last week, with major equity indices staging robust rallies as investor anxiety over the fallout from tariffs eased. The solid US non-farm payroll data was a key turning point, reassuring markets that the early economic impact of the trade shock was not as damaging as initially feared. Added to
April Nonfarm Payrolls beat consensus at 177K; Unemployment Rate steady at 4.2%, easing recession concerns. Trump pressures Fed to cut rates despite upbeat data; CBOT shows 88 bps of easing priced in. Apple and Amazon fall on China sales miss and cloud growth slowdown despite beating EPS forecasts. The Dow Jones Industrial Average (DJIA) rallied
There’s a cautious tone of optimism in Asian markets today, though gains are largely concentrated in Japan, South Korea, and Hong Kong. This moderate rally is being supported by a handful of headlines suggesting incremental movement in global trade diplomacy, even if concrete progress remains limited. One of the more notable developments comes from a
Markets are treading water in the Asian session today, with most asset classes trading mixed and within familiar ranges. While US equities closed higher overnight, much of the early gains were pared back, signaling the fragility of the current risk-on mood. The price action reflects what is often seen during a relief rally—short-lived optimism that
GBP/USD is pressured by upbeat US PMIs and growing confidence in the US Dollar amid trade de-escalation signals. Trump eases market jitters by confirming no intention to fire Powell, lifting risk appetite and USD. The Pound Sterling holds above key support at 1.3250; a break below could open the door to test 1.3152 (50-day SMA).
US stock staged a strong rebound overnight, erasing all of Monday’s steep losses as risk sentiment recovered on signs of potential de-escalation in US-China trade conflicts. The sharp reversal in equities was driven by multiple headlines suggesting a thaw in relations, including comments from US Treasury Secretary Scott Bessent and President Donald Trump that tariffs
