FX

Markets now expect the Federal Reserve (Fed) to hike its policy rate by a total of 150 bps at the next two meetings. Economists at TD Securities believe that gold and risk markets alike could be set-up for a short-squeeze. Sell-the-news rally could catalyze a counter-intuitive knee-jerk reaction in gold “Careful: this Fed day, a
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AUD/USD turned lower for the third straight day in reaction to stronger US inflation figures. The latest US CPI report reaffirmed hawkish Fed expectations and boosted the greenback. The risk-off impulse further underpinned the buck and weighed on the risk-sensitive aussie. The AUD/USD pair witnessed aggressive selling during the early North American session and turned
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GBP/USD is likely to witness more downside as stable US inflation forecasts have underpinned the risk-off impulse. There is no visible impact on the US CPI despite balance sheet reduction and two rate hikes by the Fed. The inflation in the UK economy is expected to kiss the double-digit mark. The GBP/USD pair is balancing
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DXY teases recovery after reversing from a fortnight’s high. US Treasury yields rebound, stock futures retreat as growth fears join geopolitical headlines during sluggish Asian session. WB’s Malpass, US Treasury Secretary Yellen allowed USD bulls to take breather. Fed’s September rate hike depends upon Friday’s US CPI while ECB, risk catalysts are important too. US
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