Tag Archives: accommodative

EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook

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The post EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook appeared com. EUR/JPY trades around 178. 30 on Tuesday at the time of writing, up 0. 10% for the day, as markets digest the latest economic indicators from Germany and the ongoing uncertainty surrounding Japan’s monetary policy. In Germany, the ZEW Economic Sentiment Index fell to 38. 5 in November from 39. 3 in October, disappointing expectations for an improvement to 40. 0. The Current Situation Index improved slightly to -78. 7 but missed forecasts of -77. 5, confirming investors’ cautious stance amid weak domestic demand and subdued growth prospects. Across the Eurozone, however, sentiment improved more than expected, providing modest support to the Euro (EUR). In this context, comments from Martin Kocher, European Central Bank (ECB) Governing Council member and Governor of the Austrian National Bank, lent slight support to the single currency. He reiterated that the ECB’s monetary policy remains well-positioned and that no further adjustments are needed in the near term. In Japan, the Japanese Yen (JPY) remains under pressure following remarks from Takuji Aida, economic adviser to Prime Minister Sanae Takaichi, who warned that it would be “risky” for the Bank of Japan (BoJ) to raise interest rates as soon as December, suggesting instead a possible hike in January if growth prospects for fiscal 2026 strengthen. These comments reinforced expectations of a prolonged period of accommodative monetary policy. Markets also remain focused on Japan’s Producer Price Index (PPI) data, due on Friday, which could provide further clues on the BoJ’s next policy steps. In the meantime, mounting risk appetite and easing pressure on the BoJ to tighten policy continue to limit demand for the Japanese Yen, allowing EUR/JPY to hold firmly above the 178. 00 level. Euro Price Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound. USD EUR GBP JPY. Continue reading EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook→

Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand

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The post Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand appeared com. Gold price advances on Thursday after reaching a daily high of $4,019, but retreats below the $4,000 mark even though the US Dollar and US Treasury yields tumbled. At the time of writing, XAU/USD trades with gains of over 0. 10% at around $3,985. Bullion steadies after brief pullback, supported by weaker Dollar, falling yields, and renewed political and trade uncertainty US Dollar weakness was the main driver that kept the yellow metal underpinned during the day, as the US government shutdown could extend further, said the Republican House Leader Mike Johnson, who added that he’s less optimistic about the shutdown ending. Markets were also shaken by the release of the Challenger report, which revealed that companies slashed over 150, 000 jobs in October, marking the biggest reduction for the month in more than 20 years. The news triggered a reprice of a rate cut by the Federal Reserve (Fed) at the December meeting. Meanwhile, the US Supreme Court is growing skeptical about US President Donald Trump’s tariffs, as reported by Bloomberg, that added, “Businesses and countries suffering from the duties and looking for resolution, though, are set for months of uncertainty.” Consequently, Bullion seems poised to resume its uptrend as it usually performs well in uncertain and low-interest-rate environments. Aside from this, Federal Reserve (Fed) officials are crossing the wires, led by Cleveland’s Fed Beth Hammack, sticking to her hawkish rhetoric. At the same time, Fed Governor Michael Barr was slightly more neutral, echoing some comments by New York Fed John Williams, who said that neutral rates would be around 1%. Daily market movers: Gold surges as US yields drop The US Dollar Index (DXY), which tracks the performance of the American currency against six other currencies, slumps 0. 42% down to 99. 73. US Treasury yields are also plunging, with the 10-year. Continue reading Gold steadies near $4,000 as US shutdown, layoffs concerns lift demand→