Major currency pairs continue to trade in familiar ranges midweek as investors’ search for the next catalyst continues. Later in the day, Fed Chairman Jerome Powell will deliver the Semi-Annual Monetary Policy Report and respond to questions before the House Financial Services Committee in the second day of his Congressional testimony. Several other Fed policymakers … Read more
The EURUSD extended its recovery to 1.0740 in Tuesday’s European trading, with the major currency pair rising as growing optimism for the Fed to reduce interest rates twice this year has increased investors’ risk appetite. The US Dollar Index (DXY), which tracks the greenback’s value against six major currencies, has dropped to 105.40 as demand … Read more
GBPUSD is hovering around 1.2560 in Asian trading on Tuesday following the improved risk appetite. The UK economy expanded by 0.6% in Q1, surpassing expectations and signaling the end of the country’s brief recession. Fed officials emphasize the importance of maintaining higher rates due to elevated inflation. US consumers foresee a widespread acceleration in inflation over the next year. Investors are closely watching the Producer Price Index (PPI) on Tuesday.
The Japanese Yen is having one of its best weeks in history against the US Dollar, with the USDJPY pair dropping from roughly 160.00 to 153.00 due to interventions. The US Dollar Index is holding around 105.00, and there is speculation on how long the effects of the interventions will last. Japanese companies are facing issues due to the weak Yen, and tourism is boosting local inflation. The US Jobs Report data for April is expected to influence the market on Friday. The rate differential between the US and Japan is not likely to sustain the JPY appreciation.
Gold is trading around ,370 per troy ounce due to caution amidst geopolitical tensions in the Middle East. The US Dollar Index is losing ground, making Gold less expensive for investors using other currencies. Federal Reserve officials have acknowledged that inflation has surpassed expectations. Fed Chair Jerome Powell’s recent comments suggest a potentially hawkish stance on upcoming monetary decisions.
The EURUSD fell to a near five-month low around 1.0660 due to speculation that the European Central Bank will begin reducing interest rates from the June meeting.
Gold hit a new all-time high above ,350 at the weekly opening after gaining over 4% in the previous week, reaching a record high of ,330 on Friday.
The US Dollar Index (DXY) continued to push lower on Thursday due to a negative shift in risk sentiment.