ECB policymaker Edward Scicluna said interest rates are “fine where they are,” with inflation projected slightly under 2% and risks balanced by the economy’s resilience and fiscal spending. He described policy as neutral, stressing there’s no urgency to adjust unless conditions change.
Kazaks said the ECB can live with inflation a bit under 2% and should avoid reacting at every meeting, with policy currently “in a good place” after eight cuts.
ECB Governing Council member Yannis Stournaras signalled the central bank is finished with rate cuts for now, saying only a major shift in inflation or growth would justify more easing. He stressed that another small cut would be symbolic at best and that policy will remain steady unless conditions change materially.
EUR/USD edges lower on Friday, late in the North American session, as the Greenback recovers after bouncing off three-year lows reached in the aftermath of the Federal Reserve’s (Fed) interest rate cut.
Gold price reverses its course on Friday after printing back-to-back bearish session, rises over 0.69% despite overall US Dollar strength across the board. Buyers emerged near the lows of the week at around $3,630 and drove the non-yielding metal higher.
West Texas Intermediate (WTI) Crude Oil remains under pressure on Friday, extending its losing streak for the third straight day. The US benchmark has surrendered all the gains it notched earlier in the week and is now poised to end the week in negative territory.
The British Pound (GBP) is under heavy pressure from the 'King Dollar' on Friday, down 0.52% even though the docket in the US is absent, with just Federal Reserve (Fed) officials crossing the newswires. UK data, although positive, failed to underpin Sterling in Retail Sales.
Silver (XAG/USD) extends its recovery on Friday, building on Thursday’s modest rebound after hitting its lowest level in over a week earlier this week.
With NVDA options expiry on deck and recent data showing implied vs actual moves often diverging, here’s what to expect from NVIDIA price action today.
Gold (XAU/USD) regains ground on Friday, snapping a two-day losing streak after a volatile midweek reaction to the Federal Reserve’s (Fed) interest rate decision. At the time of writing, XAU/USD is trading around $3,668 during the American session, up nearly 0.65%.
Further uptick in upward momentum may lead to US Dollar (USD) edging higher; any advance is unlikely to threaten the 7.1220 level. In the longer run, USD must break and hold below 7.0860 before further downside is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) could strengthen further; deeply overbought conditions suggest any advance may be limited to a test of 148.45. In the longer run, USD could continue to advance, but it is unclear for now if it can reach 149.15, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New Zealand Dollar (NZD) is likely to consolidate in a range of 0.5870/0.5920. In the longer run, slight increase in downward momentum suggests NZD is likely to trade with a downward bias, potentially testing 0.5850, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) has moved into a range-trading phase; softening underlying tone suggests it is likely to test the lower end of the 1.3470/1.3650 range first, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Gold found buyers at the $3,630 level to bounce up on Friday following a two-day reversal from all-time highs at $3,700 on Wednesday. The precious metal attracted some bids with the US Dollar recovery losing steam, and returned to levels past $3,650.
The US Dollar (USD) was given a helping hand yesterday by some positive data surprises, which prevented it, in our view, from giving up post-Fed gains. Jobless claims dropped back to 231k in the week ending 13 September, signalling the previous week’s spike to 264k might have been a fluke.
Pound Sterling (GBP) weakened following Bank of England decision to keep Bank Rate unchanged although that had been expected. GBP/USD was last at 1.3542 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
EUR/USD is expected to climb back to the 1.1850 handle in the coming days. Thursday morning’s rally in the pair shows momentum remains tilted to the bullish side, but also that the US jobs market data continues to have an outsized impact on USD crosses, ING's FX analyst Francesco Pesole notes.
EUR/USD is heading lower for the third day in a row, trading at 1.1765 at the time of writing on Friday, down from the four-year highs above 1.1900 hit earlier this week.
Gold erased the pre-FOMC gains as the Fed didn't match the very dovish expectations. The focus now turns back to the US data as a hawkish repricing in interest rates expectations could trigger a deeper pullback.
EUR/JPY retraces its recent gains from the previous session, trading around 174.00 during the early European hours on Friday. However, the currency cross trims its daily losses despite the weaker-than-expected German Producer Price Index (PPI) data for August.
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