“The US dollar’s role as a global reserve currency is secure,” Federal Reserve’s Vice Chairman Richard Clarida said on Monday, as reported by Reuters. Additional takeaways “Getting demand and supply of workers into balance may take some time.” “Central bank digital currency is under an active study to get a sense of both benefits and costs.” “Upgrades
FX
Metals on fire at monthly highs, even as yields hold steady. XAG/USD heads for the third highest daily close since September. After a correction, metals resumed the upside and jumped to monthly highs. Silver rose to $28.15, reaching the highest level since February. It is rising 2.60% on Monday. Gold is also sharply higher, above
The Bank of England’s (BoE) monetary policy will focus on returning inflation sustainably to the target over the medium term, BoE policymaker Gertjan Vlieghe said on Monday, as reported by Reuters. Additional takeaways “Growth this year should not be viewed as a boom but as a return to normal.” “Temporary bottlenecks and base effects are likely to
Gold takes the bid after two consecutive weekly run-ups. Risk-on mood favors gold buyers amid downbeat US dollar, Treasury yields. Sluggish US data cools down inflation concerns, helps Fed to defend easy money policies. Geopolitical, covid headlines can offer intermediate moves but nothing major to keep a tab on. Gold bulls keep the reins around
AUD/USD rebounds after dropping to 0.7730 area earlier in the day. US Dollar Index loses traction in the American session. Risk-averse market environment limits AUD/USD’s upside ahead of RBA meeting minutes. The AUD/USD pair dropped to a daily low of 0.7731 during the European trading hours but managed to stage a rebound in the second
GBP/JPY remains bullish, testing recent highs, eyes 155.00. Under 153.90, a deeper correction seems likely, next support at 153.40. The pound remains near the highest level in years versus the Japanese yen, hovering around 154.30. A consolidation above 154.40 would strengthen the pound, suggesting further gains. The next resistance could be seen at 154.80, before
The White House said on Monday that they take inflation very seriously and added that the US Federal Reserve is responsible for monitoring it, as reported by Reuters. “Inflation has not changed the view that more need to be done to reduce unemployment,” the White House added. Market reaction These remarks don’t seem to be
“In the first two months of our administration, we have seen more jobs created than any in history,” US President Joe Biden said on Friday, as reported by Reuters. Additional takeaways “There is still a long way to go.” “New economic strategy deserves the credit for growth.” “By April 7, more than 130 million households
Traders added around 2.2K contracts to their open interest positions in Gold futures markets on Thursday, reversing six consecutive daily pullbacks, according to flash data from CME Group. Volume, instead, went down for the third session in a row, this time by nearly 41K contract. Gold now looks to $1,760 Gold prices staged a strong
Spot gold is back above its 21DMA and within last week’s $1720-$1745ish ranges. The US dollar has been weakening and US bond yields dropping; this is behind gold’s recovery. Spot gold prices (XAU/USD) have broken back to the north of the 21-day moving average, which currently resides at $1720.59, in recent trade to hit session
USD/IDR picks up bids after Indonesia Inflation drops below consensus and prior during March. Covid fears, geopolitical tension also weigh on Indonesian currency. US response to infrastructure spending, ISM Manufacturing PMI will be the key. USD/IDR bulls attack the $15,000 threshold, after an initial pullback from November high, during early Thursday. While the US dollar
Data released on Wednesday showed the real GDP in Canada expanded at a rate of 0.7% in January. Analysts at the National Bank of Canada point out that the highly uneven economic recovery extended into January. They expect growth to remain strong for the remainder of the year. Key Quotes: “While the monthly figure was
GBP/JPY stays firmer around two-week top amid bullish MACD. 13-day-old horizontal area guards immediate upside ahead of the early month’s multi-day high. One-week-long support line, key SMAs restrict short-term downside. GBP/JPY wavers around 152.15-20, up 0.33% intraday, ahead of Wednesday’s London open. In doing so, the pair attacks the key horizontal resistance that holds the
Atlanta Federal Reserve President Raphael Bostic said on Tuesday that he does not anticipate the Federal Reserve will have to do much in response to rising US Treasury bond yields, as reported by Reuters. “Bankers are saying that credit market risk is low with repayment far better than expected when the pandemic began,” Bostic further noted.
AUD/USD trims intraday gains, stays below key hurdles. Fortnight-old horizontal area, monthly resistance line test recovery moves. Bears need to break 0.7557 for confirmation, monthly top adds to the upside barriers. AUD/USD steps back from 0.7664 while trimming intraday gains to 0.24% ahead of Tuesday’s European session. In doing so, the quote fades upside momentum
EUR/USD has continued to struggle to get close to the 1.1800 level, with gains petering out around the 1.1790 area. Continued concerns about lockdown and the Coivd-19 pandemic in the Eurozone mean that it is unsurprising to EUR struggle. EUR/USD has continued to struggle to get close to the 1.1800 level, with gains petering out
EUR/USD is on the defensive as the DXY holds ground amid risk-aversion. Macro-economic divergence continues to weigh on the common currency. The spot to remain at the mercy of the USD dynamics amid a quiet start. The recovery attempts in EUR/USD remain capped below 1.1800, as the traders remain on the defensive starting out a holiday-shortened US
What you need to know on Monday, March 29: The American dollar eased on Friday but finished the week with gains against most major rivals. Stocks were up, weighing on demand for the greenback, also affected by profit-taking ahead of the close. The EUR/USD pair finished the week sub-1.1800, and near its 2021 low at