Last week, investors were caught off guard by a series of surprises. However, the largest bank failure in the US since 2008 proved to be the most overwhelming for them. The risks of contagion from Silicon Valley Bank appeared to outweigh concerns about higher interest rates, inflation, and recession. Consequently, traders sought safety, resulting in
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Gold closed with a gain of nearly 0.70% in the week gone by, erasing steep losses made on Federal Reserve Chair Powell’s hawkish testimony. It ended the week at $1867.24. Gold gained on worries about the US banks as Silicon Valley Bank defaulted, which led to spillover concerns. Some softer than expected data in the
Here is one side of the argument: The reality is that the Fed and Treasury have a magic bullet here. They can back up the deposits and with the ‘held to maturity’ problem, they could exchange those bonds for cash and take them on their balance sheet in a kind of mini-QE. If either of
Gold prices edged up on Friday as the dollar eased after data showed that weekly U.S. jobless claims grew more than expected, spurring hopes that a softening labor market could pave the way for less-aggressive rate hikes from the Federal Reserve. FUNDAMENTALS * Spot gold was up 0.1% at $1,832.59 per ounce, as of 0103
The markets have been waiting for the jobs report what seems like forever. Not only was it delayed because February is a short month and the BLS felt that the 10th was doable – the 3rd was not, but the Fed Chair’s testimonies on Tuesday and Wednesday heightened market anxiety and anticipation. And then Silicone
Dollar experienced a significant fall during early US trading hours following a mixed non-farm payroll report. Although the headline job growth was strong, the increase in the unemployment rate and the slowdown in wage growth could give the Federal Reserve something to think about beyond March. Meanwhile, Canadian dollar did not receive much support from
Gold price jumped Rs 395 to Rs 55,540 per 10 grams in the national capital on Friday amid strong global trends, according to HDFC Securities. In the previous trade, the precious metal had ended at Rs 55,145 per 10 grams. Silver, however, declined Rs 115 to Rs 62,095 per kilogramme. “Spot gold prices in the
Here’s the crux of the problem. Banks have deposits and they need to do something with them. They can lend them out and often do, but you can’t lend it all out. What was seen as something safe to do with the rest was to invest it in the safest investments in the world: US
Investor sentiment is growing increasingly negative, as the steep selloff in US stocks carried over to the Asian session. Additionally, US 10-year yield is taking a significant plunge and is threatening 3.8 handle. Traders are bracing for more bearish developments, which could be sparked by today’s non-farm payroll report. Swiss Franc has surged broadly on
Oil prices were little changed on Friday as traders remained cautious about frequent and steeper rate hikes by the U.S. Federal Reserve, concerns that have triggered a rout in energy prices over the last three days. Brent futures, which fell about 5% over the last three days, were up marginally from near-three week lows at
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
Yen is gaining ground against its major counterparts today, as traders are probably lightening up short positions ahead of BoJ policy decision tomorrow. Sterling is also showing signs of strength. However, overall, market sentiment remains cautious, with Dollar retraces some of this week’s gains. The most significant upcoming events for the week are scheduled for
Oil rose on Thursday after a two-day decline as a weaker U.S. dollar, strike-disrupted fuel supply in France and a drop in U.S. crude inventories offset fears over the economic impact of rising interest rates. TotalEnergies was unable to make deliveries from its French refineries on Thursday because of continued strike action a day after
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
In the Asian session, forex markets are quiet with most pairs and crosses trading within yesterday’s range. Although Fed Chair Jerome Powell softened his hawkish tone slightly, noting that “no decision has been made” on the next rate move, the markets remain convinced of a 50bps rate hike later this month. Traders are holding off
Weakness in bullion continued for the third straight session on Thursday. April Gold futures fell by Rs 84 or 0.15% and were trading at Rs 54,826 per 10 gram on the MCX while the May Silver futures were down by over Rs 200 or 0.33% at 9:20 pm and trading at Rs 61,615 per kg.
That will make for quieter trading in the session ahead, especially since markets are honing their focus on the US jobs report tomorrow. The dollar is mildly lower as major currencies are still stuck in narrow ranges for the most part. USD/JPY is down 0.4% to 136.80, keeping below its 200-day moving average at 137.44
Dollar is currently taking a pause from its recent gains, with traders digesting the impact of Fed Chair Jerome Powell’s previous testimony. While Powell will appear again in front of Congress today, there shouldn’t be any more surprises. The market has also remained relatively unmoved by a stronger-than-expected ADP private job report, with many traders