Forex News
Asian equities trade high on Monday, while the Nikkei 225, Japan’s benchmark, soars to a fresh record high following a historic election victory by Japan’s Prime Minister Sanae Takaichi.
The Nikkei 225 climbed 4.45% to 56,660. The coalition led by Takaichi’s Liberal Democratic Party (LDP) has won 352 of 465 seats in Japan's House of Representatives, figures collated by public broadcaster NHK suggest, with the LDP alone securing a majority of 316.
"The coalition's win will give Takaichi more freedom in policy decisions and strengthen her ability to pursue economic and foreign policy goals," said ING analysts.
Meanwhile, the Kospi Index jumped 4.2% to 5,305 as risk appetite improved across financial markets after US stock indexes rebounded strongly on Friday.
China and Hong Kong stock markets gained momentum on Monday, with the SHANGHAI, China’s main stock market index, rose by 1.25% to 4,115. Hong Kong Stock Exchange jumped by 1.57% to 26,975.
India’s Nifty50 was up 0.66% to trade at 25,869 on Monday. In Taiwan, the Taiex surged 1.96% to 32,405. Other markets in Southeast Asia were higher. Australia's S&P/ASX 200 gained 1.85% to 8,870.
AsianStocks FAQs
Asia contributes around 70% of global economic growth and hosts several key stock market indices. Among the region’s developed economies, the Japanese Nikkei – which represents 225 companies on the Tokyo stock exchange – and the South Korean Kospi stand out. China has three important indices: the Hong Kong Hang Seng, the Shanghai Composite and the Shenzhen Composite. As a big emerging economy, Indian equities are also catching the attention of investors, who increasingly invest in companies in the Sensex and Nifty indices.
Asia’s main economies are different, and each has specific sectors to pay attention to. Technology companies dominate in indices in Japan, South Korea, and increasingly, China. Financial services are leading stock markets such as Hong Kong or Singapore, considered key hubs for the sector. Manufacturing is also big in China and Japan, with a strong focus on automobile production or electronics. The growing middle class in countries like China and India is also giving more and more prominence to companies focused on retail and e-commerce.
Many different factors drive Asian stock market indices, but the main factor behind their performance is the aggregate results of the component companies revealed in their quarterly and annual earnings reports. The economic fundamentals of each country, as well as their central bank decisions or their government’s fiscal policies, are also important factors. More broadly, political stability, technological progress or the rule of law can also impact equity markets. The performance of US equity indices is also a factor as, more often than not, Asian markets take the lead from Wall Street stocks overnight. Finally, the broader risk sentiment in markets also plays a role as equities are considered a risky investment compared to other investment options such as fixed-income securities.
Investing in equities is risky by itself, but investing in Asian stocks comes along with region-specific risks to be taken into account. Asian countries have a wide range of political systems, from full democracies to dictatorships, so their political stability, transparency, rule of law or corporate governance requirements may diverge considerably. Geopolitical events such as trade disputes or territorial conflicts can lead to volatility in stock markets, as can natural disasters. Moreover, currency fluctuations can also have an impact on the valuation of Asian stock markets. This is particularly true in export-oriented economies, which tend to suffer from a stronger currency and benefit from a weaker one as their products become cheaper abroad.
- USD/INR weakens after US and India unveil an interim framework to cut tariffs and deepen economic ties.
- The Indian Rupee gains as Goldman Sachs sees effective US tariffs on Indian imports about 20% lower than the earlier 34%.
- Markets watch foreign inflows as investors buy nearly $900 million in Indian equities after January’s $4 billion outflows.
USD/INR depreciates as the Indian Rupee (INR) finds support from the United States (US)–India interim trade framework. New Delhi and Washington on Friday unveiled an interim framework aimed at lowering tariffs, reshaping energy ties, and deepening economic cooperation. The announcement follows a breakthrough in prolonged negotiations earlier last week and helped lift the Rupee to its strongest weekly gain in more than three years, according to Reuters.
Analysts at Goldman Sachs noted that the effective tariff rate imposed by the US on Indian imports could be around 20% lower than the earlier 34%. However, the US-India joint statement did not refer to India’s purchases of Russian oil and did not include any formal commitment from New Delhi to halt them.
Market participants are also monitoring signs of a revival in foreign portfolio inflows. Foreign investors have been net buyers of nearly $900 million in Indian equities so far in February, marking a sharp reversal from the roughly $4 billion outflow recorded last month.
US Dollar declines as market caution emerges ahead of looming labor data
- The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, loses ground for the second successive session and is trading near 97.60 at the time of writing.
- Traders will closely watch the delayed release of the US January employment report on Wednesday. The US economy is expected to add 70,000 jobs, while the Unemployment Rate is forecast to hold steady at 4.4%.
- Markets currently expect the Fed to keep interest rates unchanged in March, with potential rate cuts anticipated in June and possibly September. San Francisco Fed President Mary Daly said in a LinkedIn post on Friday that the economy may remain in a low-hiring, low-firing environment, though it could also shift toward a no-hiring, higher-firing phase.
- Michigan Consumer Sentiment Index unexpectedly rose to a six-month high. The index increased to 57.3 in February, marking a third straight monthly gain and exceeding expectations of 55.0.
- Fed Governor Phillip Jefferson said future policy decisions will be guided by incoming data and assessments of the economic outlook, adding on Friday that the labor market is gradually stabilizing. Meanwhile, Atlanta Fed President Raphael Bostic noted that inflation has remained elevated for too long, stressing in a Bloomberg interview on Friday that the Fed cannot lose sight of inflationary risks.
USD/INR falls toward 90.50 amid bearish momentum
USD/INR is trading around 90.60 at the time of writing. Daily chart analysis points to an ongoing bearish bias, with the pair trading within a descending channel pattern. The 14-day Relative Strength Index (RSI) is at 47, indicating the market is neither overbought nor oversold, with a slight bearish bias since it is below the 50 mid-point.
The immediate support lies at the 50-day Exponential Moving Average (EMA) of 90.48. A break below the medium-term price momentum will expose the lower boundary of the descending channel around 89.70. On the upside, the immediate resistance is seen at the nine-day EMA of 90.86. Further advances would lead the pair to approach the upper channel boundary around 91.80, followed by the January 28 all-time high of 92.51.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | INR | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | 0.06% | -0.28% | -0.00% | -0.12% | 0.02% | -0.12% | |
| EUR | 0.08% | 0.13% | -0.20% | 0.07% | -0.04% | 0.10% | -0.30% | |
| GBP | -0.06% | -0.13% | -0.36% | -0.07% | -0.18% | -0.05% | -0.16% | |
| JPY | 0.28% | 0.20% | 0.36% | 0.27% | 0.17% | 0.30% | -0.08% | |
| CAD | 0.00% | -0.07% | 0.07% | -0.27% | -0.11% | 0.03% | -0.37% | |
| AUD | 0.12% | 0.04% | 0.18% | -0.17% | 0.11% | 0.13% | -0.26% | |
| NZD | -0.02% | -0.10% | 0.05% | -0.30% | -0.03% | -0.13% | -0.14% | |
| INR | 0.12% | 0.30% | 0.16% | 0.08% | 0.37% | 0.26% | 0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
- US Dollar Index weakens as traders turn cautious ahead of key economic data delayed by the partial government shutdown.
- January US Nonfarm Payrolls are expected to show labor market stabilization, with 70,000 job gains and unemployment steady at 4.4%.
- Markets expect the Fed to hold rates in March, with cuts likely in June and possibly September.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its losses for the second successive session and is trading near 97.60 during the Asian hours on Monday.
The Greenback struggles as traders adopt caution ahead of looming key economic data delayed by the partial government shutdown. The January jobs report, due Wednesday, is expected to signal stabilization in the labor market, with the US Nonfarm Payrolls to add 70,000 jobs, while the Unemployment Rate is seen holding steady at 4.4%. The postponed January consumer price index reading is scheduled for Friday.
However, market sentiment improved on Friday after preliminary figures showed the Michigan Consumer Sentiment Index unexpectedly rose to a six-month high. The index increased to 57.3 in February, marking a third straight monthly gain and exceeding expectations of 55.0.
Markets widely expect the Fed to leave interest rates unchanged in March, with rate cuts likely in June and possibly September. San Francisco Fed President Mary Daly said on Friday that the economy may stay in a low-hiring, low-firing phase, though it could shift toward no hiring and higher layoffs.
Fed Governor Phillip Jefferson said future policy moves will depend on incoming data and the broader economic outlook, adding that the labor market is gradually stabilizing. Meanwhile, Atlanta Fed President Raphael Bostic warned that inflation has remained elevated for too long, emphasizing in a Bloomberg interview that the Fed must remain focused on inflation risks.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
- GBP/USD weakens near 1.3605 in Monday’s early European session.
- The major pair keeps the bullish bias in the medium term above the 100-day EMA.
- The initial support level emerges at 1.3580; the immediate resistance level to watch is 1.3870.
The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s (BoE) interest-rate cut weighs on the Pound Sterling (GBP) against the Greenback.
The BoE was widely expected to leave interest rates unchanged at 3.75%, but the number of Monetary Policy Committee (MPC) members supporting keeping rates unchanged was lower than the seven expected by markets.
“We continue to expect the next rate cut in March. After that, we think the BOE will deliver a prolonged pause before resuming policy normalization in early 2027 (we see a terminal rate of 3.00% by mid-2027),” said Dani Stoilova, UK and Europe economist at BNP Paribas Markets 360.
Technical Analysis:
In the daily chart, GBP/USD holds above the100-day EMA, preserving a bullish bias. Dips would find demand while above this average. Bollinger Bands show price tracking above the middle band as the envelopes widen, pointing to rising momentum. RSI at 52 (neutral) stabilizes above the 50 line, keeping a modest upside tilt.
Maintaining traction over the 20-day middle band at 1.3580 would keep the topside in focus, with the upper Bollinger Band capping at 1.3870. A pullback below that pivot would expose 1.3290 at the lower band as the next sizeable support.
(The technical analysis of this story was written with the help of an AI tool.)
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
- Gold scales higher for the second straight day and draws support from a combination of factors.
- China's gold buying, dovish Fed bets, and a modest USD weakness continue to underpin the bullion.
- A positive risk tone acts as a headwind for the safe-haven XAU/USD as traders await key US data.
Gold (XAU/USD) surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China (PBOC) extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve (Fed) expectations and concerns about the central bank's independence drag the US Dollar (USD) lower for the second straight day, providing an additional boost to the non-yielding yellow metal. Despite a combination of supporting factors, the commodity remains below last week's swing high.
Signs of easing tensions in the Middle East boost investors' appetite for riskier assets, which is evident from a generally positive tone around the equity markets. This, in turn, is seen acting as a headwind for the safe-haven Gold. Traders also seem reluctant to place aggressive directional bets and opt to wait for this week's important US macro releases – the delayed Nonfarm Payrolls (NFP) report on Wednesday and the latest consumer inflation figures on Friday. The crucial data will offer cues about the Fed's rate-cut path, which will drive the USD and the XAU/USD pair.
Daily Digest Market Movers: Gold benefits from sustained central bank buying, Fed rate cut bets, weaker USD
- Data from the People's Bank of China (PBOC) showed on Saturday that the central bank continued its gold purchases for the 15th straight month in January, highlighting steady demand amid fiscal concerns in major economies. China's gold holdings surged 40,000 troy ounces to 74.19 million last month, and the value of reserves increased to $369.58 billion.
- According to the CME Group's FedWatch Tool, traders are currently pricing in a greater possibility that the US Federal Reserve will lower borrowing costs at least more times in 2026. The bets were reaffirmed by last week's US data, which pointed to signs of weakness in the labor market and backed the case for further policy easing by the US central bank.
- US President Donald Trump said on Saturday that he might sue his newly selected Fed chair nominee, Kevin Warsh, if he didn’t lower rates. US Treasury Secretary Scott Bessent on Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh if he ends up refusing to cut interest rates, fueling concerns about the central bank's independence.
- Apart from this, the broader dedollarization trend drags the US Dollar lower for the second straight day, away from a two-week top touched last Thursday. This, in turn, drives some follow-through flows towards the non-yielding Gold at the start of a new week. However, the upbeat mood across the global equity markets acts as a headwind for the commodity.
- Despite differences over the agenda, indirect talks between the US and Iran on the future of the latter's nuclear program ended on Friday with a broad agreement to maintain a diplomatic path. This helps ease concerns about a military confrontation in the Middle East and boosts investors' appetite for riskier assets, capping the upside for the safe-haven precious metal.
- The XAU/USD bulls also seem reluctant ahead of the delayed release of the closely-watched US monthly jobs data – popularly known as the Nonfarm Payrolls (NFP) report on Wednesday. Apart from this, the US consumer inflation figures on Friday will play a key role in influencing the USD price dynamics and providing a fresh impetus to the XAU/USD pair.
Gold needs to find acceptance above 200-hour SMA to back case for further appreciating move
The precious metal is flirting with the 200-hour Simple Moving Average (SMA) pivotal resistance, and a sustained strength above will be seen as a fresh trigger for bullish traders. The Moving Average Convergence Divergence (MACD) line remains above the Signal line and above zero, while the positive histogram is contracting, suggesting fading upside momentum.
The Relative Strength Index (RSI) prints 64 (bullish) without reaching overbought. The 200-hour SMA slopes lower, keeping the intraday tone offered and acting as immediate resistance. A sustained close back above the 200-period SMA would improve the near-term outlook, whereas rejection there would keep sellers in control.
(The technical analysis of this story was written with the help of an AI tool.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- Japanese Yen refreshes a two-week low as Takaichi's landslide win revives fiscal concerns.
- Intervention warning prompts some intraday JPY short covering amid the USD weakness.
- A fall in Japan’s real wages tempers bets for an immediate BoJ rate hike and caps the JPY.
The Japanese Yen (JPY) sticks to its recovery gains through the Asian session on Monday as Japan’s Finance Minister Satsuki Katayama stepped up intervention warnings and confirmed close coordination with the US against disorderly FX moves. This, along with some follow-through US Dollar (USD) selling, triggers an intraday USD/JPY turnaround from the 157.65 region, or over a two-week top, touched in reaction to Prime Minister Sanae Takaichi's landslide win in Sunday's election.
The outcome paves the way for further fiscal stimulus and fuels concern about Japan's high public debt levels. Moreover, data released earlier today showed that Japan’s real wages shrank in December for a 12th straight month as nominal pay growth slightly undershot slowing consumer inflation. This keeps pressure on the Bank of Japan (BoJ) to move cautiously after raising rates to a three-decade high in December. Apart from this, the upbeat market mood caps the safe-haven JPY.
Japanese Yen bears remain on the sidelines amid intervention fears
- Japanese Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) sailed past the 233 seats needed for a majority in the lower house, marking a landmark victory in Sunday's election. The outcome, in turn, paves the way for promised tax cuts and a stronger defence system, shifting focus squarely to Japan's already strained public finances.
- Japan's Finance Minister Satsuki Katayama said that she will communicate with markets on Monday if needed to stabilize the Japanese Yen. Katayama reiterated that she was keeping in close contact with US Treasury Secretary Scott Bessent and stressed that Japan retains the right to intervene against moves that deviate from fundamentals.
- Japan Chief Cabinet Secretary Minoru Kihara said on Monday that he is concerned over one-sided foreign exchange (FX) moves. Meanwhile, top currency diplomat Atsushi Mimura stated that he will closely watching foreign exchange moves with a high sense of urgency, providing a goodish lift to the Japanese Yen at the start of a new week.
- The Labour ministry reported this Monday that Japan’s nominal wages rose 2.4% YoY in December 2025, up from a revised 1.7% gain in the previous month. The reading, however, fell short of market expectations. Moreover, inflation-adjusted real wages fell 0.1% in December from a year ago, marking the 12th straight month of contraction.
- The data temper bets for an immediate rate hike by the Bank of Japan as policymakers have indicated that further monetary tightening will depend on sustained, broad-based wage gains. This, along with the prevalent upbeat mood across the global equity markets, keeps a lid on the JPY's intraday recovery from over a two-week trough.
- Indirect talks between the US and Iran on the future of the latter's nuclear program ended on Friday with a broad agreement to maintain a diplomatic path. This helps ease concerns about a military confrontation in the Middle East and boosts investors' appetite for riskier assets at the start of a new week, despite the latest US sanctions on Iran.
- The US Dollar attracts some sellers for the second straight day amid bets that the Federal Reserve will lower borrowing costs two more times in 2026. This marks a significant divergence in comparison to expectations that the BoJ will stick to its policy normalization path and caps the upside for the USD/JPY pair, warranting caution for bulls.
- The market focus now shifts to this week's release of the closely-watched US monthly jobs data – popularly known as the Nonfarm Payrolls (NFP) report on Wednesday. Apart from this, the latest US consumer inflation figures on Friday will drive the USD and provide a fresh impetus to the USD/JPY pair during the latter half of the week.
USD/JPY awaits acceptance below 100-hour SMA before the next leg down
The USD/JPY pair shows some resilience at the 100-hour Simple Moving Average (SMA) and stalls its intraday retracement slide near the 156.20 region. The latter should now act as a key pivotal point for intraday traders. The Moving Average Convergence Divergence (MACD) shows a bearish crossover near the zero line as momentum turns negative, hinting at building downside pressure. The Relative Strength Index (RSI) sits at 46, below the 50 midline, reflecting subdued momentum.
Meanwhile, the USD/JPY pair holds above the 100-hour SMA, currently pegged around the 156.55-156.50 region, keeping the near-term bias tilted upward and offering nearby dynamic support. A recovery in MACD back above the zero line and an RSI push through 50 would improve the tone and could pave the way for continuation. Conversely, a decisive close beneath the average would weaken the setup and open room for a deeper pullback.
(The technical analysis of this story was written with the help of an AI tool.)
Bank of Japan FAQs
The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%.
The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance.
The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance.
A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.
- EUR/USD trades near a flattening nine-day EMA, while a rising 50-day EMA supports a mild bullish bias.
- The 14-day Relative Strength Index at 54 rises from neutral levels, signaling improving bullish momentum.
- A break below the nine-day EMA at 1.1822 could expose the 50-day EMA near 1.1746.
EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) momentum indicator at 54 (neutral) is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.
The technical analysis of the daily chart shows that the pair hovers around a flattening nine-day Exponential Moving Average (EMA), while the 50-day EMA trends higher, underpinning a mild bullish bias. Holding above the rising 50-day EMA would preserve the upward tone.
With the short-term average still above the medium-term average, trend context favors dips being supported, though consolidation may persist while the nine-day EMA remains flat. A daily close above that short-term average at 1.1822 could unlock continuation higher toward the region around 1.2082, the highest level since June 2021.
Whereas a break back below the short-term average would expose the 50-day EMA at 1.1746 and shift focus to deeper supports toward the three-month low at 1.1578, set on January 19.
(The technical analysis of this story was written with the help of an AI tool.)
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 | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.12% | -0.24% | 0.02% | -0.08% | 0.06% | 0.04% | |
| EUR | 0.02% | 0.14% | -0.24% | 0.04% | -0.06% | 0.10% | 0.06% | |
| GBP | -0.12% | -0.14% | -0.36% | -0.09% | -0.20% | -0.05% | -0.08% | |
| JPY | 0.24% | 0.24% | 0.36% | 0.25% | 0.15% | 0.28% | 0.27% | |
| CAD | -0.02% | -0.04% | 0.09% | -0.25% | -0.10% | 0.03% | 0.02% | |
| AUD | 0.08% | 0.06% | 0.20% | -0.15% | 0.10% | 0.13% | 0.12% | |
| NZD | -0.06% | -0.10% | 0.05% | -0.28% | -0.03% | -0.13% | -0.02% | |
| CHF | -0.04% | -0.06% | 0.08% | -0.27% | -0.02% | -0.12% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Gold prices rose in India on Monday, according to data compiled by FXStreet.
The price for Gold stood at 14,628.42 Indian Rupees (INR) per gram, up compared with the INR 14,439.99 it cost on Friday.
The price for Gold increased to INR 170,622.60 per tola from INR 168,425.20 per tola on friday.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 14,628.42 |
10 Grams | 146,283.10 |
Tola | 170,622.60 |
Troy Ounce | 455,007.00 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
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- USD/CAD trades with mild gains near 1.3660 in Monday’s early European session.
- Fed officials send diverging signals for rate cuts.
- Canada unexpectedly lost 24,800 jobs in January, but the Unemployment Rate dipped to a 16-month low of 6.5%.
The USD/CAD pair posts modest gains around 1.3660 during the early European session on Monday. Traders weigh mixed Canadian January employment data. Key US labor market data will be the highlight later on Wednesday.
Federal Reserve (Fed) Vice Chair Philip Jefferson stated on Friday that current interest rates are "roughly in the range of neutral," with the job market stabilizing and policy well-positioned to handle risks, emphasizing that future actions will be data-dependent. Meanwhile, San Francisco Fed President Mary Daly said that she thinks one or two more interest rate cuts may be needed to address the weakening labor market.
Traders will take more cues from the speeches from Fed officials later on Monday, including Christopher Waller, Stephen Miran and Raphael Bostic. Any dovish comments from policymakers could weigh on the Greenback against the CAD in the near term.
The attention will shift to the US January employment report on Wednesday for some hints about the Fed's monetary policy path. The report was delayed from last week due to a four-day partial government shutdown that ended earlier in February. Markets forecast the US economy will add 70,000 jobs in January, while the Unemployment Rate is projected to remain unchanged at 4.4% during the same period.
On the Loonie front, Statistics Canada reported on Friday that Canada unexpectedly lost 24,800 jobs in January, but the losses were all part-time. However, the Unemployment Rate in Canada fell to 6.5%, the lowest since September 2024, better than the expectations of 6.8%. This report has reduced the downside risk to Canada’s growth and policy outlook, narrowing expectations for aggressive Bank of Canada (BoC) easing. This, in turn, could underpin the CAD and act as a headwind for the pair.
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
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