NEW DELHI: Gold prices were trading marginally higher but in a tight range on Tuesday as investors maintained a cautious stance ahead of this week’s policy meeting by the Federal Reserve. The US central bank is expected to hike rates aggressively in an effort to curb inflation. Inflation concerns have prompted other central banks across
News
The forex markets are overall mixed. Dollar retreated overnight following the rebound in stocks, but regained some ground in Asian session. Traders are holding their bets for now, ahead of the meetings of four major central banks later in the week, including Fed, BoE, SNB and BoJ. Canadian inflation data, nevertheless, could trigger some volatility
The dollar is now lower on the day on just above every front (JPY and NZD the exceptions). That’s a stark turnaround from early in the day when USD was running higher. The turnaround comes at an interesting time. The dollar is on the cusp of some major breakouts on many fronts. That’s something Greg
Oil fell by more than 2% on Monday, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline. Central banks around the world are certain to increase borrowing costs to tame high inflation this week and there is some
The markets are relatively quiet today with Japan and the UK on holiday. Sentiment is on risk-off side, ahead of central bank rate hikes later in the week. The more notable moves are found in selloff in cryptocurrencies. Dollar is standing firm, together with Swiss Franc and Euro. Aussie and Kiwi are softer together with
The PBOC has been trying to pump the brakes on the recent decline in the yuan but they’re now struggling to draw a hard line on that with USD/CNY breaching past 7.00 once again today. The yuan fixing today was also one of the strongest positive bias for the local currency (relative to estimate) but
NEW DELHI: Gold prices continued to remain under pressure on Monday as investors braced for aggressive rate hikes by major central banks this week, especially from the US Federal Reserve, to tame high inflation. The US Fed’s Federal Open Market Committee is expected to begin its two-day meeting on interest rates on September 20 and
Dollar is trading with a slightly firmer tone in quiet Asian session. But overall, most major pairs and crosses are stuck inside Friday’s range. Trading would likely remain subdued with Japan and UK on holiday, and the calendar is light. Nevertheless, the week ahead is ultra busy with four central bank meetings and some important
Tehreum is trading down $59 to $1378 today as the relentless selling around the ‘merge’ to a proof-of-stake model results in a heavy round of ‘sell the fact’ trading. It’s something I warned about last week: “Crypto has a bad habit of ‘sell the fact’ trades around events and this one is another risk”. I
Despite prices falling back to levels seen before Russia’s invasion of Ukraine, crude oil remains volatile due to ongoing uncertain market fundamentals. The G7 leaders proposed a price cap on Russian oil with a view to keeping down Russian oil revenue. A possible decline in non-OPEC supply and Europe’s ongoing energy crisis continues to keep
A Goldman Sachs note from later Friday (info via Reuters) has analysts at the bank making more pessimistic forecasts ahead due to a more aggressive Federal Reserve tightening policy through the rest of this year: “higher rates path combined with recent tightening in financial conditions implies a somewhat worse outlook for growth and employment next
From a macro perspective, hawkish comments from Fed Chair and other US Fed officials at the Jackson Hole meeting have been keeping upside limited in base metals. The recent inflation data unexpectedly beat market expectations and renewed fears that the markets could witness a hefty rate hike in September has also been pressurizing markets. At
Markets: WTI crude oil up $0.21 to $85.30 US 10-year yields down 1 bps to 3.45% Gold up $10 to $1673 S&P 500 down 28 points to 3873, or 0.7% — down 4.8% on the week NZD leads, GBP lags It could have been worse. The FedEx warning late yesterday boosted the dollar and weighed
Oil prices edged upwards in early Asian trade on Thursday, as supply concerns and a looming rail stoppage in the United States, the world’s biggest crude consumer, supported markets. Brent crude futures rose 38 cents, or 0.4%, to $94.48 a barrel by 0013 GMT, while U.S. West Texas Intermediate crude rose 46 cents, or 0.5%,
The stronger than expected consumer inflation data from the US basically sealed the case for a 75bps hike by Fed next. Dollar ended as the strongest one last week, as supported by risk aversion too. But the greenback could only close above prior week’s high against Canadian and New Zealand Dollar, suggesting that momentum was
The Canadian dollar is at an interesting spot on the global spectrum of risk assets at the moment. Domestically, it’s been a good year with strong GDP growth as the economy reopened from covid. Commodity investment has picked up and terms of trade have improved. For much of the year, that kept the loonie neck-and-neck
Oil prices dipped in early trade on Friday, extending the week’s losses as concern over tight supply was outweighed by escalating fear of sharp interest rate hikes slamming global growth and hitting fuel demand. Brent crude futures fell 22 cents, or 0.2%, to $90.62 a barrel as at 0052 GMT after sliding 3.5% to a
Bloomberg reports that UK businesses will get their energy bills cut in half in a government bailout package. The market has been assuming that some kind of business bailout was coming and I’m not sure this is good enough. Consumer bills will be capped at £2500 and that same largess was never going to come