FX

What just happened? August’s US Personal Consumption Expenditure Price Index (PCE), or PCEPI as the US Federal Reserve (Fed) refers to it, clocked in at an annualized rate of 2.2% YoY on September 27, the lowest print of the key inflation metric since March of 2021. This is an important step toward the Fed being

Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $31.74 per troy ounce, down 0.87% from the $32.02 it cost on Thursday. Silver prices have increased by 33.37% since the beginning of the year. Unit measure Silver Price Today in USD Troy Ounce 31.74 1 Gram 1.02 The Gold/Silver ratio, which

Room for the Pound Sterling (GBP) to edge higher, but any advance is unlikely to break above 1.3455. In the longer run, GBP must break and hold above 1.3455 to resume strength, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note. GBP must hold above 1.3455 to resume strength 24-HOUR VIEW: “Our

The Australian Dollar (AUD) could edge higher, but it is unlikely to be able to break above 0.6930. In the longer run, AUD has to break and remain above 0.6930 before an advance to 0.6980 can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note. AUD has to remain above

Mexican Peso declines as USD/MXN climbs over 1.80%, driven by expectations of further Banxico rate cuts. Cooling inflation in early September bolsters the case for a Banxico rate reduction at the September 26 meeting. Bloomberg survey: 20 of 25 analysts expect Banxico to cut 25 bps to 10.50%, with some predicting a 50 bps reduction.

The Pound Sterling faces pressure near 1.3400 against the US Dollar, while the latter’s outlook remains vulnerble. BoE Governor Andrew Bailey sees a gradual decline in interest rates. Investors await the US PCE inflation data for August on Friday for fresh clues on the Fed’s interest rate prospects. The Pound Sterling (GBP) drops from the crucial

Mexican Peso strengthens after US Consumer Confidence deteriorated. Mexico’s inflation fell below estimates in September, with core inflation easing under 5%, boosting expectations for a 25 bps rate cut by Banxico on Thursday. Analysts expect Banxico to lower rates from 10.75% to 10.50%, citing falling inflation, weaker economic activity and Fed easing. The Mexican Peso

AUD/USD pulls back after touching a fresh YTD peak, albeit the downside remains limited. The divergent RBA-Fed policy expectations act as a tailwind amid the upbeat market mood. China announces a range of stimulus measures and also underpins the China-proxy Aussie. The AUD/USD pair struggles to capitalize on its modest intraday gains to the 0.6870

The Greenback remains off-kilter following the Fed’s recent pivot into a rate-cutting cycle. Last week, the US central bank delivered a jumbo 50 bps rate cut. The US Dollar remains under pressure, but markets have quickly pivoted to more impatient waiting for the next rate call. Here is what you need to know on Tuesday,

UK Services PMI ticks down to 52.8 in September, beats estimates. Manufacturing PMI in the UK declines to 51.5 in September. GBP/USD sticks to losses near 1.3250 after downbeat UK business PMIs. The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) eased from 52.5 in August to 51.5 in September. The market forecast

The NZD/USD upside seems to be limited as buying and selling forces struggle for dominance. The RSI suggests a neutral outlook, while the MACD indicates declining selling pressure. A crossover between the 100 and 200-day SMA might propel the pair upwards. The NZD/USD traded mostly flat on Friday’s session and failed to hold gain which

US Dollar is gaining strength after Fed decision volatility. New York Fed’s Nowcast model predicts robust economic growth in third and fourth quarters. Fed expects financial conditions to remain loose, supporting the economy. The US economy is experiencing a moderate slowdown, but indicators suggest that economic activity remains robust overall. The Federal Reserve (Fed) has

Gold surges to new all-time high above $2,600, fueled by expectations of further Fed rate cuts. Safe-haven demand spikes due to escalating tension between Israel and Hezbollah. Fed Governor Waller backs 50 bps rate cut; however, dissenting Fed member Michelle Bowman prefers a smaller cut to guard against declaring an early win on inflation. Gold

Federal Reserve (Fed) Board of Governors member Michelle Bowman clarified on Friday why the policymaker voted against the Fed’s 50 bps jumbo rate cut this week. Fed Governor Waller goes down in the books as the first Fed Governor to vote against both the consensus and the Fed Chair since 2005. Key highlights I agreed it was appropriate

Mexican Peso continues to weaken, recording losses for three consecutive days amid increasing risk aversion. Fed Governor Waller supports the recent 50 bps rate cut, pointing to easing inflation and hinting at further cuts if labor conditions deteriorate. Banxico anticipated to lower rates by 25 bps next week, potentially sustaining an appealing interest rate differential

Speaking at the post-policy meeting press conference on Friday, Bank of Japan (BoJ) Governor Kazuo Ueda said that the Bank “will analyze the impact of whether Yen’s strengthening since August will impact prices by the same degree as previous Yen weakness had on prices.” The BoJ left the benchmark interest rate at 0.15%-0.25% following its September policy meeting.

Mexican Peso softens after Fed’s 50 bps rate cut. Fed projects federal funds rate at 4.4% for 2024, balancing price stability and employment goals. Investors await Banxico’s upcoming decision with a 0.25% rate cut expected on September 26. The Mexican Peso softens slightly against the US Dollar during the North American session on Thursday after

The Bank of England is set to hold its interest rate at 5.0% on Thursday. United Kingdom’s annual inflation was stable at 2.2% in August. BoE policy announcements are likely to rock the Pound Sterling. After a close call in August, the Bank of England’s (BoE) September interest rate decision is keenly awaited for fresh