USD/JPY recovers modest intraday losses, retakes 135.00 amid risk-on/rising US bond yields

A combination of factors assisted USD/JPY to attract some buying near the 134.35 area on Friday. The risk-on impulse, widening of the US-Japanese yield differential weighed on the safe-haven JPY. The Fed-BoJ policy diversion suggests that the pullback from a 24-year high has run its course. The USD/JPY pair attracted some buying near the 134.35 … Read more

Higher inflation opens the door to MAS tightening – UOB

Senior Economist at UOB Group Alvin Liew reviews the latest inflation figures in Singapore. Key Takeaways “Singapore’s headline CPI rose slightly faster than expected, at 1.0% m/m, 5.6% y/y in May (from 0.1% m/m, 5.4% y/y in Apr). Core inflation (which excludes accommodation and private road transport) also rose at a faster clip, up by … Read more

Fed to tighten aggressively amid ‘key upside risk’ to inflation expectations – Goldman Sachs

Analysts at Goldman Sachs believe that the Fed could be forced to tighten aggressively, in the wake of upside risks to inflation expectations. An upcoming barrage of political advertisements point to high inflation. Key quotes “Potential further increases in food and gas prices are the main upside risk to consumer inflation expectations.” “But another key … Read more

XAU/USD sees exhaustion around $1,820 after a downside move, DXY skids

Gold price is expected to rebound as a retest of Wednesday’s low shows a loss of downside momentum. The hawkish commentary from Fed Powell has put the gold prices on tenterhooks for a prolonged period. The DXY is performing lackluster on the downbeat US PMI. Gold price (XAU/USD) is hoping for a rebound as the … Read more

US Dollar Index rebound seeks acceptance near 104.50, focus on inflation, recession

DXY struggles to extend the first daily gains in four amid market’s inactions. Fears of economic slowdown tighten the grip over risk appetite. Fed’s Powell, downbeat US PMIs add to the sour sentiment but Wall Street closed positive on softer yields. Yields rebound, stock futures print mild losses as traders await more clues. US Dollar … Read more

XAU/USD eases below $1,850 as traders await US PMI, Fed’s Powell

Gold fades bounce off weekly low, takes offers to refresh intraday low. Market sentiment dwindles after Fed’s Powell defends current monetary policy outlook. Yields remain pressured, stock futures print mild losses amid lack of clarity. Powell’s Testimony 2.0, US PMIs for June will be important to watch for fresh impulse. Gold Price (XAU/USD) remains on … Read more

USD/JPY juggles above 136.00 ahead of PMI figures, Japan Inflation in focus

USD/JPY is holding itself above 136.00 as investors are focusing on PMI figures. Costly oil and food prices contaminate Japan’s inflation figure near 3%. Fed Powell is expected to dictate a consecutive 75 bps interest rate hike in July. The USD/JPY pair is displaying back and forth moves in a narrow range of 136.10-136.30 in … Read more

Recession and inflation, the perfect storm

What you need to take care of on Thursday, June 23: The dollar finished Wednesday against most major rivals, although the slide was limited. Most major pairs remain within familiar levels, with volatility limited. The main event of the day was US Federal Reserve chief Powell’s testimony before Congress. Powell kick-started his speech, saying that … Read more