Gold prices fell sharply on Tuesday as the U.S. dollar continued to strengthen despite the pullback seen in U.S. yields. XAU/USD fell to $1,835 an ounce, recording its lowest level in three months. Still, comments from Federal Reserve Cleveland President Loretta Mester stating that 75 bps rate hike is not out of the table “forever” and the risk-off mood helped to...
The U.S. dollar index, which measures the value of the dollar against a basket of currencies, struck its highest level since 2002 at 104.18 on Monday as the greenback benefited from risk aversion and higher bond yields. The DXY printed its third gain in a row and rose past 104.00 to hit its highest in nearly two decades before losing momentum during the New York...
The EUR/USD managed to advance modestly on Friday following the US nonfarm payrolls data release as the greenback pulled back across the board. At the time of writing, the EUR/USD pair is trading at the 1.0550 area, holding on to slight daily and weekly gains after pulling back from a daily high of 1.0598. US nonfarm payrolls came out in line with market...
The EUR/USD pair reversed Wednesday’s gains and fell to retest weekly lows as a bout of risk aversion halted the Fed decision-led spike. The pair dropped from a high of 1.0641 to a low of 1.0492 before stabilizing at the 1.0550s. The Federal Reserve decided on Wednesday to hike the Fed funds rate range by 50 bps to 0.75%-1.00%, the biggest increase in 22 years....
The EUR/USD pair pushed higher as the dollar weakened across the board following the Federal Reserve's decision to raise the Fed funds target range by 50 bps to 0.75-1.00% as expected. This was the first 50-basis point hike by the Fed in 22 years. The EUR/USD climbed to a daily high of 1.0631 during the subsequent press conference by Chair Jerome Powell. With the...
The EUR/USD pair has entered into a consolidation phase around the 1.0500 level after hitting a fresh five-year low of 1.0470 on Thursday. The pair seems to have found a new comfort zone as investors prepare for the Federal Reserve decision on Wednesday and the nonfarm payrolls report on Friday. The Fed is expected to hike rates by 50 basis points when it...
Gold slumped below $1,900 to a 11-week low on Monday as U.S. Treasury yields and the dollar pushed higher, dragging down the yellow metal price. With the Federal Reserve decision around the corner, the yield on the U.S. 10-year note reached a fresh cycle high at 3.01%, while the yield on the 30-year bond peaked at 3.049%. The Fed is expected to increase its main...
The U.S. dollar is facing some profit-taking into the week (and the month) end, with the DXY pulling back after hitting a two-decade high just below 104.00. After six consecutive days of gains, the DXY reached its highest level since December 2002 at 103.92 on Thursday, underpinned by risk aversion and expectations the Federal Reserve will hike its main rate by...
The EUR/USD pair broke below the 1.0500 mark and hit a fresh five-year low on Thursday as the U.S. dollar continued to outperform its peers on expectations the Federal Reserve would hike rates more aggressively in upcoming meetings. The pair bottomed out at 1.0470 but managed to briefly climb back above the 1.0500 psychological level after the U.S. reported an...
The EUR/USD pair extended its free fall on Wednesday and hit its lowest level since March 2017 at 1.0514 as the greenback remained firm. Still, the pair managed to recover some losses during the New York session as market sentiment improved slightly. The main driver behind the EUR/USD slump seems to be divergent monetary policy stances between the Federal...
The U.S. Dollar Index extended gains on Tuesday and reached fresh two-year highs above the 102.00 level. The greenback continues to strengthen across the board amid risk aversion and geopolitical concerns, along with prospects of a more aggressive tightening move by the Federal Reserve next week. Analysts expect a 50 bps rate hike on May 4, especially after Chair...
The EUR/USD pair plunged during the European session and struck a fresh two-year low of 1.0707 before recovering modestly, as risk aversion continues to dominate markets at the beginning of the week. The United States 10-year / Germany 10-Year government bond yield spread widened on Monday, adding further pressure on the EUR/USD. The euro remains on the back...
The GBP/USD pair tumbled on Friday and hit its lowest level since October 2020, pressured by comments from Bank of England Governor Andrew Bailey and a stronger dollar across the board. The pair lost more than 200 pips, falling from a daily high of 1.3035 to an 18-month low of 1.2822 during the New York session. BoE Governor Andrew Bailey said on Thursday that...
The EUR/USD pair failed to secure early intraday gains and finished Thursday lower as hawkish comments from Fed Chair Jerome Powell lifted Treasury yields and the greenback during the American afternoon. The shared currency had risen on the back of comments from European Central Bank Vice President Luis de Guindos who hinted at the possibility of a first rate...
The EUR/USD pair extended the bounce from two-year lows on Wednesday, but has been unable to consolidate above the 1.0850 area, keeping the short-term bearish bias alive. Hawkish comments from ECB's member and the pullback in US yields have been the main drivers behind the EUR/USD recovery. Member of the ECB Governing Council Martins Kazaks said that a rate hike...
The U.S. Dollar Index (DXY) is rising for the fourth consecutive day on Tuesday, having hit its highest level in over two years above 101.00 during the New York session. The U.S. currency continues to appreciate versus its major rivals, underpinned by a stunning rally seen in Treasury yields across the curve. The expectations of the Federal Reserve switching to...
The EUR/USD pair extended its decline on Monday, recording its third daily loss in a row, with the dollar strengthening across the board on the back of higher U.S. yields. The EUR/USD slid back below 1.0800 to 1.0769 but managed to hold a few pips above the low set last week at 1.0756. The yield on the US 10-year note reached a high of 2,884% while the one on the...
The EUR/USD reversed early gains and turned negative for the day following the European Central Bank decision on monetary policy. The ECB left rates unchanged, as widely anticipated, and ratified that its Asset Purchase Programme (APP) will end in the third quarter, saying that the calibration of net purchases for the third quarter will be data-dependent and...