At Jackson Hole last weekend, Governor Ueda spoke about wage growth spreading from large enterprises to SMEs and barring a major negative demand shock, he expects labour market in Japan to remain tight and to continue to exert upward pressure on wages.
President Trump’s firing of Fed Governor Lisa Cook and the broad view that this marks further politicisation of the Fed are negative for the dollar. Yet, the FX reaction has been muted and may only play out in the longer run, likely for two reasons.
Another indication that French politics is having a limited FX impact is EUR/GBP, which has faced only limited downside pressure since the start of the week, ING’s FX analyst Francesco Pesole notes.
Dow Jones futures remain steady near 45,500 during European hours on Wednesday, ahead of the opening of the United States (US) regular markets. Moreover, the S&P 500 futures and the Nasdaq 100 futures hold ground near 6,480 and 23,590, respectively.
US Dollar (USD) continued to trade on the backfoot, from news of Trump removing Fed Governor Lisa Cook from her position. DXY last at 98.65 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The Euro (EUR) is not actively trading on the French political turmoil, but it’s likely facing some degree of restraint from it. French equities had another bad day, but what matters is OAT's performance.
The EUR/JPY cross gains traction to near 171.85 during the early European session on Wednesday. The Japanese Yen (JPY) softens against the Euro (EUR) amid the improved risk sentiment, which undermines the safe-haven currency.
US dollar declines as President Trump fires Fed Governor Lisa Cook, sparking a legal battle over central bank independence. Markets cautious amidst concerns of political interference and potential board manipulation.
The Euro posted a significant reversal from the 0.8670 area on Monday, printing a bearish engulfing candle on the daily chart. This figure has strongly negative connotations and has shifted the pair’s focus towards the key support area around 0.8600.
EUR/HUF remains under pressure after failing to reclaim the 200-day moving average. A rebound is testing the 399/400 resistance zone, but inability to break higher risks extending the decline toward 389.90 support, Société Générale's FX analysts note.
US Dollar (USD) is expected to trade in a range between 146.70 and 148.00. In the longer run, outlook is mixed; USD could trade in a range between 146.40 and 148.40, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Gold‘s rally from Monday’s lows at $3,350 has been capped on Tuesday after hitting fresh two-week highs at $3,385. The Precious metal has stalled below $3,380, as the US Dollar regains lost ground, following Fed Governour Lisa Cook’s rejection of President Trump’s calls to fire her.
One of the main developments at the start of this week has been the announcement from French Prime Minister Francois Bayrou that he has agreed with President Emmanuel Macron to call parliament back into session early in order to allow the government to present its budget plan and hold a confidence m
Australian Dollar (AUD) is likely to trade in a range of 0.6455/0.6505. In the longer run, slight increase in upward momentum is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) is likely to trade in a range between 1.3440 and 1.3520. In the longer run, further GBP strength is not ruled out, but it is unclear if there is enough momentum for it to reach 1.3595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) is likely to trade in a range of 1.1600/1.1690. In the longer run, EUR is expected to trade in a range between 1.1580 and 1.1745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Bank of Japan remains convinced that rising wage growth will lead to sustainably higher inflation. Meanwhile, lower inflation regarding food prices is pushing down the overall rate. Excluding energy and food, inflation has been below 2% for some time now.
EUR/JPY extends its losses for the second successive session, trading around 171.50 during the European hours on Tuesday. The technical analysis of the daily chart suggests the emergence of a bearish market bias as the currency cross is remaining slightly below the ascending channel pattern.
The US Dollar (USD) briefly sold off 0.6% in Asia after news broke that US President Donald Trump was dismissing Lisa Cook, a member of the Federal Reserve's governing board. This follows allegations of mortgage application irregularity.
US Dollar (USD) fell this morning, in knee-jerk reaction to headline that Trump removed Fed Governor Lisa Cook from her position. DXY last at 98.43 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Euro (EUR) fell overnight. French PM Bayrou said he would call for a confidence vote on budget on 8 September in an effort to force political parties to take a position on the government’s budget proposals in parliament rather than through street protests planned for later that week.
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The New Zealand Dollar is giving away previous gains against the US Dollar, and returns to the lower range of the 0.5800s after retreating from Monday’s highs in the area of 0.5880.
The GBP/USD pair edges lower to near 1.3450 during the early European session on Tuesday. The potential downside for the major pair might be limited after US President Donald Trump announced he was firing a Federal Reserve (Fed) Governor, Lisa Cook.
USD/CHF advances for the first time of the week, up by over 0.20%, trading at 0.8059 as the Greenback recovers following last Friday’s plunge, as probabilities for a Fed rate cut settled at around 86%.
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