All articles tagged with #forex
The dollar eased after the U.S. Supreme Court ruled that Trump overstepped his authority on sweeping tariffs, fueling policy uncertainty and potential litigation over duties, while euro and yen firmed modestly; analysts say the initial market moves are likely knee-jerk, with replacement tariff plans still unclear and geopolitical tensions in the Middle East adding to risk.
USD/JPY slid from around 159 to 152 after Japan’s election, fueling talk of a potential double-bottom near 152. A break below 152 could spark further downside, while 160 remains a key resistance with potential MOF intervention or jawboning. The weekly chart shows consolidation ahead of a possible test of 160, so traders should wait for a decisive breakout rather than chase moves.
Yen strength from Japan’s election and expectations of BoJ rate hikes dominates the week, boosting Yen crosses while the US dollar stays softer. Watch for potential long entries against the Yen around support at 152.14 and 151.61. The S&P 500 appears poised to extend gains above 7,025, Bitcoin shows a tentative reversal after a multi‑month drop but remains high-risk, and Gold is consolidating after a sharp slide and not yet a long setup until it makes a sustained multi‑month high close. Favored trades: long the S&P 500 on a daily close above 7,025 and long any Yen cross except CHF/JPY.
The dollar softens at the start of European trading as risk-on sentiment boosts overseas assets and a rally in US tech and Japan’s market backdrop supports risk assets; meanwhile, Chinese regulators warn against concentration risk in Treasuries. Traders await the January U.S. payrolls (NFP) data and CPI, which could reprice the Fed path. EUR steadies on potential European reform gains, while GBP remains pressured by UK political developments; in CEE, markets stay in ranges ahead of inflation and GDP data.
The dollar weakened broadly as IMM data showed speculative short positioning jumping to $16.82B ahead of an unusual Wednesday payrolls release and potential downward revisions to 2025 job data; EUR/USD rose and USD/JPY fell, with a China report urging banks to curb US Treasuries exposure failing to drive yields much higher, suggesting the move could fade as markets refocus on fundamentals.
The U.S. dollar has fallen for about a year, with the dollar index down roughly 3.2% since Jan 16 and 10.4% from Inauguration Day, as markets weigh fiscal deficits, expected rate cuts, and signals of a retrenchment in U.S. global leadership under Trump. Meanwhile equities ride on growth and AI, while safe-haven assets such as gold and the Swiss franc rally, signaling a shift in currency dynamics even as Treasury officials stress a strong-dollar policy.
Morning Bid suggests a softer dollar could buoy risk assets as pre-market trading shows a broad uptick in U.S. equities and cryptocurrencies, with notable moves among tech and industrial names, while investors await upcoming data and central-bank cues to gauge currency and market directions.
The U.S. dollar slid to a four-year low as Trump dismissed concerns about the decline, fueling debates over credibility and possible FX intervention, while analysts note a weaker dollar could boost exports but raise import costs and inflation, with mixed implications for Asia and global markets.
US dollar tumbles to a four-year low after President Trump downplayed worries about the currency’s slide, prompting a move into safe-haven assets like gold and the Swiss franc. The greenback fell about 1.3% on the day and extended a four-day decline, with the euro rising to roughly $1.20 and gold topping $5,200 an ounce. Analysts warn a weaker dollar can help multinational revenues but raises import costs and potential inflation, while markets await the Federal Reserve’s upcoming decision as Trump pressures for rate cuts and Powell’s leadership comes under scrutiny with his term ending in May.
Trump’s remark that he isn’t concerned about the dollar’s decline coincided with a sharp drop in the ICE U.S. Dollar Index, extending a three‑day slide to as much as 1.5% and leaving the dollar at its weakest since early 2022; analysts say a weaker dollar could raise import prices and inflation while potentially boosting U.S. exporters.
Silver breaks above $100 and targets $120, with Fibonacci-based targets supporting a medium-term upside move. The rally is aided by a weaker USD amid a Fed-rate decision week and political headlines, though a USD rebound could cap gains. Technical charts point to a parabolic rise, suggesting the upside could unfold quickly, potentially within days.
Robin J Brooks argues that 2026 will see renewed dollar weakness as markets finally price in policy chaos—from Greenland tensions and tariff clashes to attacks on the Fed—despite strong foreign inflows into US assets. He highlights a recent sharp dollar drop coinciding with a fall in the 2y2y forward rate differential, and notes that hedging flows, not outright selling, may keep USD under pressure even with buoyant asset demand.
The yen rose to its strongest level in over two months, gaining up to 1.5% to around 153.40 per dollar amid talk of coordinated intervention by Japan and the United States, as investors trim dollar exposure ahead of the Federal Reserve meeting and a possible new Fed chair, with broader dollar weakness lifting euro and sterling.
The yen surged on Friday after New York Fed rate checks and Japan’s pledge to act against speculative moves, fueling bets on potential official intervention. The dollar weakened to around 154.5–155 per yen as markets brace for possible U.S.–Japan action in thin Asia trading, with analysts noting room for further yen gains if intervention proves credible and officials caution against speculative moves.
The yen traded choppily as investors fretted about possible direct BOJ intervention after the central bank signaled a hawkish tilt and potential further rate hikes; 2-year Japanese government bond yields rose to about 1.25%, the highest since 1996, while global stocks were modestly higher and the dollar sagged toward its weakest levels of the year as Fed rate-cut expectations remained subdued.