Fed’s Daly: Inflation bridles the economy

Reuters has reported that San Francisco Federal Reserve Bank President Mary Daly on Tuesday said she believes the US economy will slow to below 2% annual growth as the Fed raises interest rates, but there’s enough momentum that it won’t stop growing. “I do expect the unemployment rate to rise slightly, but nothing (like)…. what … Read more

There is optionality to raise by more in September

European Central Bank (ECB) President Christine Lagarde delivers the Introductory speech on Day 2 of the ECB Forum on Central Banking in Sintra, Portugal. Her speech is titled ‘Price stability and policy transmission in the euro area.’ Further comments Commitment to rate hikes is data-dependent. Intend to raise rates by 25 bps in July. There … Read more

USD/CNH slumps to one-week low below 6.6700 as China eases covid restrictions for travelers

USD/CNH plummets almost 200 pips on upbeat headlines from China. China reduces quarantine time for international travelers, vows timely policy measures to cope with economic risks. Sellers remain as G7 updates challenge riskon mood. US CB Consumer Confidence, Fedspeak eyed for fresh impulse. USD/CNH takes offers to renew intraday low around 6.6685 as sellers cheer … Read more

USD/TRY dribbles around 16.50 as Turkish President Erdogan teases wage increase

USD/TRY struggles for clear directions after bouncing off three-week low. Turkish Erdogan signals to review minimum wage to battle inflation. US dollar weakenss, risk-on mood could entertain traders ahead of key data/events. USD/TRY seesaws around 16.50 as traders seek more clues to extend the latest recovery of the Turkish lira (TRY). In doing so, the … Read more

Policy support aims to boost credit than lowering interest rates

In an exclusive interview conducted by China Global Television Network on Monday, People’s Bank of China (PBOC) Governor Yi Gang said that the central bank’s monetary policy support prioritizes boosting credit over cutting interest rates lower, per Bloomberg. Key quotes “Will continue to be accommodative to support economic recovery in an aggregate sense.” China’s “real … Read more

GBP/USD stays firm around 1.2270s ahead of US Consumer confidence

The lack of a fresh catalyst kept the pound within familiar ranges. A mixed market mood, spurred by higher global bond yields, put a lid on GBP/USD gains. GBP/USD Price Forecast: Remains tilted to the downside, but a test towards 1.2300 is on the cards. The British pound remains to trade in a narrow range … Read more

Indian rupee dribbles near record high of 78.46 despite RBI intervention

USD/INR picks up bids towards all-time high marked earlier in the day. RBI intervention fails to underpin INR rebound amid firmer oil prices, hawkish hopes from Fed. Indian equities managed to cheer optimistic optimism on downbeat US inflation expectations, softer US data. USD/INR adds strength to overcome the 78.50 hurdle after witnessing the second retreat … Read more

XAU/USD retreats towards $1,807 support with eyes on central bankers

Gold fades bounce off one-week low, reverses from 2.5-month-old resistance line. Sour sentiment can renew US dollar demand amid calls for faster rate hikes. Concerns surrounding China, Russia adds strength to the risk-off mood. Key central bankers’ debate at ECB Forum will be crucial for fresh impulse. Gold Price (XAU/USD) retreats to $1,830 while reversing … Read more