FX

EUR/USD reverses intraday losses on softer-than-expected US PCE inflation report for August.  Flash French CPI (EU norm) and Spain’s HICP fell below 2% year-on-year in September. Softer-than-expected inflation data from France and Spain has prompted ECB rate cut bets in October. EUR/USD recovers the majority of its intraday losses and returns above 1.1150 in Friday’s New York session. The

Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index. Gold price (XAU/USD) extended its record-breaking run for the fifth straight day

AUD/USD recovers sharply from 0.6820 as the Australian Dollar strengthens. Investors await Fed Powell’s speech for fresh interest rate guidance. The core PCE inflation is expected to have accelerated to 2.7% in August. The AUD/USD pair bounces back strongly from Wednesday’s low of 0.6820 to near the round-level resistance of 0.6900 in Thursday’s North American session.

The Australian Dollar gains ground as the RBA and Fed adopt different policy outlooks. The Reserve Bank of Australia is highly expected to keep interest rates unchanged in the near future. The US Federal Reserve may deliver more rate cuts by the end of this year. The Australian Dollar (AUD) retraces its recent losses against

AUD/USD struggles to extend its upside above 0.6900, while its upside remains firm. The Australian Dollar remains firm as the RBA is expected to keep interest rates steady at their current levels for the entire year. Firm Fed large rate cut bets weigh on the US Dollar. The AUD/USD pair edges lower after posting a

Australia’s monthly Consumer Price Index (CPI) declined by 2.7% in the year to August, compared to a 3.5% increase seen in July, according to the data published by the Australian Bureau of Statistics (ABS) on Wednesday. The market forecast was for 2.8% growth in the reported period. Market reaction to the Australia’s monthly CPI inflation At the time of writing,

The Pound Sterling moves higher to near 1.3380 against the US Dollar on expectations of BoE’s shallow policy-easing cycle. UK’s overall business activity grew at a slower pace in September, according to a flash estimate. Traders raise Fed 50 bps rate cut bets for November. The Pound Sterling (GBP) gains further against its major peers

The benchmark interest rate in Australia is likely to remain at 4.35% for the seventh straight meeting in September. The Reserve Bank of Australia Governor Michele Bullock’s press conference will hog the limelight. The RBA’s policy statement and Bullock’s words are set to inject volatility around the Australian Dollar. The Reserve Bank of Australia (RBA)

The Pound Sterling drops as the preliminary UK S&P Global PMI came in lower than expected. Traders expect the BoE to deliver one more interest rate cut this year. The US Dollar bounces back on dismal market mood. The Pound Sterling (GBP) recovers its intraday losses and rises above the round-level resistance of 1.3250 against the US

EUR/USD remains stable ahead of the Purchasing Managers Index data release from Eurozone and Germany. The US Dollar may struggle due to the rising likelihood of more Fed rate cuts by the end of the year. ECB President Lagarde emphasized that monetary policy needs to stay adaptable. EUR/USD maintains its position around 1.1160 during the

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

The US Dollar further consolidates on Friday after weakening further on Thursday. Traders have devalued the US Dollar a touch, amidst the Bank of Japan and Bank of England’s decisions to keep rates on hold.  The US Dollar Index falls outside its tight bandwidth, a sign that could dive lower next week.  The US Dollar (USD)

The Bank of Japan is anticipated to maintain its policy rate unchanged. Investors’ focus should remain on the bank’s rate path for the next few months. BoJ Governor Kazuo Ueda is seen sticking to the recent hawkish narrative. The Bank of Japan (BoJ) is expected to keep its short-term interest rate target between 0.15% and

Natural Gas undergoes technical rejection and sees rally fading.  European Gas reserves are 93% full while the Russian transit deal ends.   The US Dollar Index eases after the Fed delivers a 50 basis point rate cut with more to come.  Natural Gas futures trade softer for a third day in a row on Thursday after

The Australian Unemployment Rate is foreseen unchanged at 4.2% in August. Employment Change is expected at 25K, more than halving the 58.2K posted in July. AUD/USD stands below 0.6800, with a bullish bias in the Federal Reserve’s aftermath.  The Australian Bureau of Statistics (ABS) will release the monthly employment report at 1:30 GMT on Thursday.