PBOC sets USD/CNY reference rate at 6.7928 vs. 6.7911 previous
PBOC sets USD/CNY reference rate at 6.7928 vs. 6.7911 previous
Market narrative
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PBOC sets USD/CNY reference rate at 6.7928 vs. 6.7911 previous
Forex
Gold declines despite easing concerns over inflation, interest rate hikes
The US dollar shrugged off crude oil's sharp decline following reports of renewed US-Iran negotiations, highlighting underlying demand for the greenback ahead of this week's FOMC meeting. With markets pricing a growing chance of further Fed tightening, attention now turns to Chair Kevin Warsh's guidance and whether DXY and USD/JPY can extend their bullish trends.
Silver shows early signs of a short-term bounce, but the broader downtrend remains intact as price approaches key resistance and faces confirmation hurdles.
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Chinese Gold imports surged to 2-Year high in june
EUR/JPY Price Forecast: Range holds as intervention fears bite
It's difficult for the US Dollar to go anywhere without at least some participation from the Euro. After all, the single currency is a whopping 57.6% of the DXY basket and the second largest component, the Japanese Yen, is a mere 13.6% composition.
USD/CHF Price Forecast: Bulls eye 0.8200 as rally extends
Gold rises toward $4,070 as falling US yields support Bullion
Silver Price Forecast: Could Fed decision trigger a break from $55-$62 range?
Silver and platinum also moved higher at the start of the week.
Lower oil gives silver room to recover, but the Fed, GDP and PCE data keep the silver market locked in wait mode.
Gold & Oil: The chart knew first
Summary:EUR/USD traded near 1.1370 as the euro remained under pressure against a resilient US dollar. The pair continues to consolidate after a steady decline from May's highs, with traders awaiting fresh economic catalysts.
XAU/USD Price forecast: Gold struggles to extend gains beyond $4,100
Pound Sterling Price News and Forecast: GBP/USD tumbles as risk-off mood boosts the US Dollar
Falling oil prices put some pressure on the American currency as demand for safe-haven assets declined.
Bank of America remains short EUR/USD and forecasts a fall to 1.12 as US yield support and renewed energy pressures continue to favour the Dollar. Foreign exchange analysts at Bank of America remain tactically short the Euro against the US Dollar, arguing that calm conditions across G10 foreign exchange markets are masking much larger.