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Dollar recovers mildly during today’s Asian trading session but remains generally weak. Concurrently, Japanese Yen has begun to pare back some of its late rally from last week, but there is no sign of sustained selling. Risk markets are showing a mixed performance, reacting minimally to China’s data that indicate escalating deflation risks. Notably, the

The market has quickly moved beyond strong US economic data and is shifting focus to softening CPI. The bond market is leading the shift with US 2-year yields down 9.8 bps to 4.91%. It’s a quick turnaround for the front end of the curve after hitting the highest since 2007 yesterday. There was something of

Spot gold fell to a four-month low, correcting more than seven percent from May, when it reached close to its all-time high. A steady US dollar and expectations of more rate hikes from the US Federal Reserve weighed on the prices of the yellow metal. A similar selloff was witnessed in domestic gold also. In

GBPUSD 4 hour chart The pound has extended today’s day to 100 pips, touching 1.2848 in a late-week push. As the 4-hour chart above shows, buyers ran into the June high of 1.2848 exactly before backing off a few pips. The bulls may try to make another push late or in low liquidity at the

The week ending July 7 turned out to be a week of whipsaws for the gold traders as, depending on the US data released through the week, the metal swung from one end to the other end of its current trading range of $1900-$1950. The US macroeconomic data released in the week were mixed. ISM

IATA chart Global air travel is perhaps the single-best indicator of covid impacts and the latest data shows that we’re on the cusp of a full retracement. The May report from IATA shows that passenger-kilometers are at 96.1% of the pre-pandemic level, which is up 39.1% year-over-year. I strongly suspect the job is completed in

A weaker than expected non-farm payroll data in the US enthused bullion as the yellow metal ended with sharp gains on Friday. But the outlook for bullion is expected to remain sideways over this week, investors can find buying opportunities on dips. While the unemployment rate retreated from its 7-month high, the numbers were far

Japanese Yen exhibited an impressive rally last week and ended as the strongest performer. The move was spurred by Japan’s substantial wage growth, which shot JGB yield higher and countered the impact of rising benchmark yields in the US and Eurozone. In light of these developments, signs are pointing towards a potential bullish reversal for

Markets: Gold up $13 to $1924 WTI crude oil up $1.86 to $73.66 US 10-year yields up 2.3 bps to 4.06% S&P 500 down 0.2% JPY leads, USD lags The initial reaction to the non-farm payrolls report was mixed as the softer headline competed with higher-than-anticipated wage growth. The dollar fell, then recovered most of

COMEX Gold prices are poised for the fourth consecutive weekly decline and are hovering near four-month lows, weighed down by higher treasury yields and steady greenback. The yellow metal started the week on a positive note, after the ISM Manufacturing PMI in the United States fell to 46 in June 2023, from 46.9 in May

S&P 500 daily chart Here’s what I wrote in my preview for non-farm payrolls: In terms of strategy, there’s plenty of talk of buying bonds on a strong non-farm payrolls print in anticipation of a lower CPI next week. The read-through into FX for that trade would be selling a dollar pop if non-farm payrolls

Gold prices declined by Rs 110 to Rs 59,240 per 10 grams in the national capital on Friday amid weak global cues, according to HDFC Securities. In the previous trade, the precious metal had ended at Rs 59,350 per 10 grams. Silver also plunged by Rs 600 to Rs 71,500 per kilogramme. “Gold edged lower

Dollar falls broadly after US non-farm payroll report didn’t provide any shock to the markets. Nevertheless, the headline job growth was still solid, with unemployment rate steady, and wages growth staying at a relatively high level. US 10-year yield dipped initially following the release by quickly recovered. Stocks futures attempted to pare earlier against but

Hot and cold. That was the dollar reaction yesterday after the ADP numbers and it’s going to be a tricky one in identifying which temperature the greenback will settle at after the NFP numbers today. The bond market continues to signal higher rates for longer though, and that’s weighing on equities as well this week.

MUFG, a major Japanese financial group, has discussed the recent hawkish repricing of the Bank of England’s (BoE) rate hike expectations. They believe that the UK fixed income market sell-off, which began in mid-May, is extending into July. However, MUFG maintains that the yields are currently overshooting to the upside. Key Points: Rate Hike Expectations: