Gold prices hit a record high, injecting new momentum into the precious metal’s years-long rally, amid expectations of interest rate cuts by the Federal Reserve and growing concerns about the future of central banks. Spot gold rose as much as 0.9% to $3,508.73 an ounce, surpassing the previous high set in April, but gave back […]
Hedge funds have begun to bet that the yen will break out of its narrow trading range and rise against the US dollar. Data from the Chicago Mercantile Exchange shows that leveraged investors are building positions in the options market. If the yen breaks out of its current narrow trading range of around 147 against […]
Emerging market currencies rose on Thursday, rebounding after two consecutive days of declines, as US data indicated economic resilience and the world’s largest economy was about to release a key inflation report. The South Korean won, the Malaysian ringgit and the Chinese yuan led the gains. As the euro rose, currencies in Central and Eastern […]
Citigroup strategists recommend increasing bets on the poor performance of long-term US bonds and the decline of the US dollar, as President Donald Trump may undermine the political independence of the Federal Reserve. Strategists including Adam Pickett and Dirk Willer wrote in a Wednesday report that investors should “lightly increase” their existing bets at Citigroup […]
Driven by the weakening of the US dollar and the rise of the domestic stock market, the exchange rate of the RMB against the US dollar has risen to its highest level since November last year. In the onshore market, the yuan rose as much as 0.1% to 7.1447 against the US dollar before giving […]
After President Donald Trump removed Fed governor Lisa Cook, the US dollar weakened and traditional safe-haven assets rose, raising concerns about the independence of the Federal Reserve. The dollar index dropped 0.3%, then narrowed its losses as Trump posted on his Truth Social account that Cook would be immediately fired. Gold rose as much as […]
Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole symposium, hinting at a possible rate cut in September, are expected to boost sentiment in Asian markets. This shift has sparked expectations of improved risk appetite and strong performances in Asian stocks and bonds. The weakening of the US dollar is also one of […]
In August this year, the volatility in the foreign exchange market broke historical patterns. Instead of the usual seasonal rebound, it dropped to the lowest level in a year. The summer market remains sluggish, and investors are waiting for the Federal Reserve (FED) to send clearer signals before making large bets in this market with […]
This year, buying emerging market currencies with the US dollar has delivered the most attractive returns in a decade, and a Citigroup strategist says there is still room for this trade to develop – at least in the short term. Luis Costa, the head of emerging markets strategy at Citigroup, said in an interview that […]
Guan Tao, the global chief economist of BOCOM International Securities, said that factors that might push up the RMB exchange rate include the weakness of the US economy, the Federal Reserve’s interest rate cuts and the general decline in market confidence in the US dollar. Mr. Guan said in an interview last week that another […]