Forex News
The comments from Swiss National Bank (SNB) policymaker Petra Tschudin released during the European trading session on Wednesday indicate that medium-term inflation pressures remain unchanged and the central bank is ready to intervene in the FX market if necessary.
Market reaction
No immediate action was seen in the Swiss Franc (CHF) following comments from SNB's Tschudin. At press time, USD/CHF trades 0.35% higher to near 0.8125 due to the US Dollar's strength.
SNB FAQs
The Swiss National Bank (SNB) is the country’s central bank. As an independent central bank, its mandate is to ensure price stability in the medium and long term. To ensure price stability, the SNB aims to maintain appropriate monetary conditions, which are determined by the interest rate level and exchange rates. For the SNB, price stability means a rise in the Swiss Consumer Price Index (CPI) of less than 2% per year.
The Swiss National Bank (SNB) Governing Board decides the appropriate level of its policy rate according to its price stability objective. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame excessive price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Yes. The Swiss National Bank (SNB) has regularly intervened in the foreign exchange market in order to avoid the Swiss Franc (CHF) appreciating too much against other currencies. A strong CHF hurts the competitiveness of the country’s powerful export sector. Between 2011 and 2015, the SNB implemented a peg to the Euro to limit the CHF advance against it. The bank intervenes in the market using its hefty foreign exchange reserves, usually by buying foreign currencies such as the US Dollar or the Euro. During episodes of high inflation, particularly due to energy, the SNB refrains from intervening markets as a strong CHF makes energy imports cheaper, cushioning the price shock for Swiss households and businesses.
The SNB meets once a quarter – in March, June, September and December – to conduct its monetary policy assessment. Each of these assessments results in a monetary policy decision and the publication of a medium-term inflation forecast.
- The Indian Rupee slides further against the US Dollar amid hawkish Fed bets.
- Lower oil prices are expected to limit the Indian Rupee’s downside.
- Investors await the US PCE Inflation data, which will be released on Thursday.
The Indian Rupee (INR) trades lower against the US Dollar (USD) on Wednesday, with the USD/INR pair rising to near 94.85. The pair gains as the US Dollar posts a fresh annual high amid firm expectations that the Federal Reserve (Fed) will deliver at least two interest rate hikes this year.
At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near 101.55.
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.23% | 0.12% | 0.08% | 0.09% | 0.18% | -0.36% | 0.23% | |
| EUR | -0.23% | -0.11% | -0.17% | -0.14% | -0.05% | -0.31% | 0.00% | |
| GBP | -0.12% | 0.11% | -0.04% | -0.06% | 0.06% | -0.47% | 0.10% | |
| JPY | -0.08% | 0.17% | 0.04% | 0.00% | 0.09% | -0.16% | 0.13% | |
| CAD | -0.09% | 0.14% | 0.06% | -0.01% | 0.09% | -0.17% | 0.15% | |
| AUD | -0.18% | 0.05% | -0.06% | -0.09% | -0.09% | -0.26% | 0.02% | |
| INR | 0.36% | 0.31% | 0.47% | 0.16% | 0.17% | 0.26% | 0.31% | |
| CHF | -0.23% | -0.00% | -0.10% | -0.13% | -0.15% | -0.02% | -0.31% |
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).
Hawkish Fed bets strengthen US Dollar
According to the CME FedWatch tool, the odds of the Fed hiking interest rates this year are almost 86%. While the possibility of at least two interest rate hikes is 48.3%. This is a sharp turnaround from two interest rate cuts projected before the onset of the Middle East war, which led to a significant increase in inflationary pressures.
The latest United States (US) Consumer Price Index (CPI) report showed that the core inflation – which excludes volatile food and energy items – accelerated to 2.9% in May, the highest level seen in seven months.
For more cues on the current status of inflation, investors await the US Personal Consumption Expenditure Price Index (PCE) data for May, which will be released on Thursday. The US core PCE inflation data, which is the Fed’s preferred inflation gauge, is expected to arrive at 3.4% Year-on-Year (YoY), higher than the previous reading of 3.3%.
Lower oil prices to limit Indian Rupee’s downside
Oil prices extend their decline on hopes that traffic through the Strait of Hormuz, a vital passage to almost 20% of global energy supply, has started normalizing amid continued progress in technical talks between the US and Iran.
According to a Bloomberg report, more ships are openly signaling their intention to traverse the Strait of Hormuz, pointing to growing confidence among shipowners and traders about sending vessels through the chokepoint as tensions ease.
In the opening session, the MCX Crude Oil contract expiring on July 20 is down 0.7% to near 6,900, the lowest level seen in three months.
Lower oil prices bode well for currencies from economies, such as India, which rely heavily on oil imports to meet their energy needs.
Indian stock markets struggle to lure foreign investors
Despite the signing of the US-Iran Memorandum of Understanding (MoU) and continued progress in nuclear talks, the Indian stock market appears to be failing to get a positive response from Foreign Institutional Investors (FIIs). Overseas investors seem less enthusiastic towards the Indian equity market, investing on an irregular basis.
On Tuesday, FIIs turned out to be net buyers, but increased their stake merely by Rs. 17.86 crore. The amount was significantly lower than the selling of Rs. 635.91 crore worth of their stake on Monday.
RBI's Malhotra rules out interest rate hike fears
Reserve Bank of India's (RBI) Governor Sanjay Malhotra pushes back fears of interest rate hikes in the near term, while speaking to ET Now. Malhotra said that it is "premature" to discuss interest rate hikes, citing that the central bank doesn't shift its stance due to elevated uncertainty.
Technical Analysis: USD/INR struggles to return above 20-day EMA
USD/INR trades higher at around 94.85, extending a corrective phase below a key band of moving-average and trendline resistance. The 20-day exponential moving average (EMA) at 94.9877 now caps the pair at the margin, while the broader downward-sloping resistance line traced from 97.1183, with an intermediate reference at the prior break area around 95.2926, reinforces a bearish near-term bias.
The Relative Strength Index (RSI) at 47.84 hovers just below the neutral 50 line, hinting that downside pressure persists but without clear oversold conditions.
On the topside, immediate resistance is located at the 20-day EMA near 95.00, followed by the former break zone around 95.29, where sellers are likely to re-emerge if a bounce develops, before the more distant trendline origin at 97.12. Looking down, the May 7 low at 94.03 is the key support zone; a downside move below the same would expose it to the April 15 high at 93.46.
(The technical analysis of this story was written with the help of an AI tool.)
- Qatar is launching a diplomatic process with Oman to organise talks between Iran, the Gulf states and Iraq on the future of the Strait of Hormuz.
- The Gulf states are expected to uphold the principle of free passage through this strategic waterway.
- Iran could propose new charges relating to security, navigation and environmental protection.
Discussions on the future of the Strait of Hormuz could soon gain momentum. According to Reuters, Qatar's Prime Minister is in Muscat on Wednesday to initiate, alongside Oman, a dialogue process involving Iran, the Gulf states and Iraq on the reopening and future operation of the strategic waterway.
According to a diplomat briefed on the talks, Gulf states are expected to push for fee-free transit through the strait. While tolls are reportedly not being considered at this stage, Iran is expected to propose charges related to security, navigation and environmental protection. Markets are closely monitoring the discussions given the Strait of Hormuz's critical role in global energy exports.
Key takeaways
Qatari PM in Muscat Wednesday to initiate process with Oman for Iran-GCC-Iraq talks on reopening and future operation of Hormuz Strait.
Gulf states expected to push for no fees to transit the strait.
Tolls not on the table but Iran is expected to propose environmental, navigation and security fee.
Iran-GCC-Iraq talks over Hormuz are separate from US-Iran peace talks and arrangements to de-mine the strait, and are focused on future operation of Hormuz.
Plans underway for separate regional reconciliation talks between Iran and Gulf states to be held in Riyadh.
Market reaction
Oil prices remain under pressure on Wednesday, with West Texas Intermediate (WTI) US Oil trading around $71.80 at the time of writing, down 1.49% on the day.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- NZD/USD depreciates 5.3% in the last six days and hits fresh seven-month highs below 0.5650.
- A selloff in stock markets and rising hopes of Fed rate hikes are boosting the US Dollar this week.
- The measured target of May's double top, at 0.5625, might provide some support for the Kiwi.
The New Zealand Dollar (NZD) is failing to find a bottom as rising hopes of monetary tightening by the US Federal Reserve (Fed) and dismal market mood are boosting the safe-haven US Dollar (USD) on Wednesday. The pair trades at seven-month lows at 0.5640 on Wednesday after a 3.2% sell-off in the last six days.
The risk-sensitive Kiwi remains under strong bearish pressure, weighed by the risk-off sentiment: Investors’ concerns about overspending in AI have triggered a sharp sell-off in tech shares, raising questions about the consequences of the AI bubble burst in a global economy still in shock amid the Middle East conflict.
Beyond that, the solid US macroeconomic figures and the stubbornly high inflation have prompted Fed policymakers to adopt a more hawkish rhetoric and traders to brace for upcoming rate hikes. All in all, an ideal background for the US Dollar, which has propelled the USD Index to 13-month highs.
Technical Analysis: Kiwi might find support above the 0.5600 line
NZD/USD trades at 0.5639, extending a clear bearish phase, yet with momentum indicators showing heavily oversold levels. The Relative Strength Index, around 14, and the Moving Average Convergence Divergence (MACD) line holding below zero with a flat, negative profile, suggest that scope for a corrective rebound is building.
Bears are nearing the measured target of May's double top at 0.5625 and the 0.5600 psychological level, where they might meet some support. In the current conditions, the next bearish target, at the November 2025 low of 0.5584, seems out of reach for today. Upside attempts, on the contrary, are likely to be tested at the previous support area near 0.5685, ahead of the trendline resistance, now around 0.5770.
(The technical analysis of this story was written with the help of an AI tool.)
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.35% | 0.31% | 0.10% | 0.17% | 0.44% | 0.63% | 0.36% | |
| EUR | -0.35% | -0.05% | -0.26% | -0.19% | 0.08% | 0.24% | 0.01% | |
| GBP | -0.31% | 0.05% | -0.21% | -0.15% | 0.13% | 0.28% | 0.05% | |
| JPY | -0.10% | 0.26% | 0.21% | 0.07% | 0.34% | 0.48% | 0.25% | |
| CAD | -0.17% | 0.19% | 0.15% | -0.07% | 0.27% | 0.40% | 0.20% | |
| AUD | -0.44% | -0.08% | -0.13% | -0.34% | -0.27% | 0.15% | -0.10% | |
| NZD | -0.63% | -0.24% | -0.28% | -0.48% | -0.40% | -0.15% | -0.23% | |
| CHF | -0.36% | -0.01% | -0.05% | -0.25% | -0.20% | 0.10% | 0.23% |
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 New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
- Germany’s stronger business sentiment supports the Euro, but fears of intervention from Japanese authorities are limiting the upside potential of the pair.
- European Central Bank officials continue to expect inflationary pressures to remain above the 2% target despite improving peace prospects in the Middle East.
- Markets remain focused on the Bank of Japan's signals and repeated warnings from Japanese officials regarding the weakness of the Japanese Yen.
EUR/JPY edges lower on Wednesday, trading around 183.55 at the time of writing, down 0.17%, as investors assess the impact of improving economic sentiment in Germany against rising intervention risks in Japan’s foreign exchange market.
Germany’s IFO Business Climate Index rose to 85.6 in June, in line with expectations, from a revised 85 in May. The Current Assessment Index increased to 87, above forecasts of 86.4, while the Expectations Index improved to 84.1 from a revised 83.9 previously, although it missed the 85 consensus estimate. The data confirms a gradual improvement in business confidence in the Eurozone’s largest economy.
The Euro (EUR) is also supported by the European Central Bank’s (ECB) still-cautious stance. ECB Chief Economist Philip Lane said on Tuesday that uncertainty remains elevated despite improving peace prospects in the Middle East and that inflation could stay above the 2% target into the first half of 2027. His comments reinforce expectations that restrictive monetary policy may remain in place for longer.
However, gains in the cross remain capped by developments in Japan. Traders remain on high alert following a discussion between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent, which has fuelled speculation about potential coordination regarding foreign exchange markets. Japan’s Chief Cabinet Secretary Minoru Kihara also reiterated that authorities would take appropriate action if excessive currency moves occur.
According to Takeru Yamamoto, a trader at Sumitomo Mitsui Trust Bank in New York, the discussions between the United States (US) and Japan may have been intended to signal that the threshold for intervention remains relatively low. Meanwhile, the Bank of Japan’s (BoJ) Summary of Opinions from its June meeting showed that a majority of board members support raising interest rates, arguing that inflation risks are broadening and underlying inflation is moving sustainably toward the 2% target.
OCBC analysts Sim Moh Siong and Christopher Wong noted that USD/JPY’s move back above 160 remains constrained by intervention risks, while MUFG’s Lee Hardman believes that fears of official action and the prospect of a faster pace of monetary tightening from the BoJ are preventing a renewed sharp depreciation of the Japanese Yen (JPY). This combination continues to limit EUR/JPY upside despite a relatively supportive backdrop for the Euro.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | 0.22% | 0.10% | 0.16% | 0.41% | 0.55% | 0.31% | |
| EUR | -0.31% | -0.09% | -0.20% | -0.16% | 0.09% | 0.21% | -0.00% | |
| GBP | -0.22% | 0.09% | -0.13% | -0.09% | 0.18% | 0.29% | 0.08% | |
| JPY | -0.10% | 0.20% | 0.13% | 0.05% | 0.29% | 0.40% | 0.19% | |
| CAD | -0.16% | 0.16% | 0.09% | -0.05% | 0.25% | 0.34% | 0.16% | |
| AUD | -0.41% | -0.09% | -0.18% | -0.29% | -0.25% | 0.11% | -0.11% | |
| NZD | -0.55% | -0.21% | -0.29% | -0.40% | -0.34% | -0.11% | -0.21% | |
| CHF | -0.31% | 0.00% | -0.08% | -0.19% | -0.16% | 0.11% | 0.21% |
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).
Societe Generale analysts note AUD/USD remains under pressure, converging on the 0.69 area and the March–April trough near 0.6833, despite a sharp tightening in the 2‑year spread to 39bp. The pair lags bond spreads, while softer Australian inflation and structural selling from lower FX hedge ratios by superannuation funds keep the Australian Dollar vulnerable near term.
Spot lags spreads as risks build
"One footnote to the bullish dollar playbook is that tactical valuations are getting stretched. This usually occurs when currencies are not keeping up with bonds spread."
"It is less so for AUD/USD where the 2y spread tightened to 39bp, completing a whopping retracement of more than 80bp since March. Spot lags the 2y bond spread by a significant margin."
"The pullback in industrial metals (iron ore) doesn’t help and puts the AUD in jeopardy of testing the March–April trough at 0.6833. Inflation Down-under surprisingly slowed to 4.0% yoy in May from 4.2% according to data published overnight. Core however accelerated more than expected to 3.6% from 3.4%. "
"On more inflation print for June is due before the next RBA meeting in August but the hot core almost certainly guarantees another hawkish pause. The reaction in money markets was muted. The implied odds of another 25bp hike by year-end hangs in balance at around 55%. Employment data will be published tomorrow."
"One cannot overlook the structural headwinds from declining FX hedge ratios among Australian superannuation funds. APRA data show offshore equity hedging decreased by 0.4pp to 23.2% in Q1. A reduction in hedging reflects the view that investors are happy to stay unhedged to capture FX gains if the AUD weakens. Until Fed pricing turns less hawkish, flow dynamics could continue to weigh on the currency near term."
"AUD/USD has extended its phase of pullback after slipping below its 50-DMA (now at 0.7130) earlier this month. The pair is gradually drifting toward the March low around 0.6850/0.6830. While the decline appears somewhat stretched, it will be important to observe whether the pair finds support in this zone. Should a rebound materialize, the high achieved earlier this week near 0.7020 could act as a short-term resistance."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
MUFG’s Lee Hardman notes that EUR/USD has broken below its long-held 1.1400–1.1800 range as diverging ECB and Fed policy expectations weigh on the Euro. Softer Euro-zone data and easing energy prices are reducing pressure on the ECB to hike further, while the Fed is priced for multiple hikes. MUFG still expects one final ECB rate increase in September.
Diverging ECB-Fed paths pressure Euro
"The US dollar’s upward momentum has continued at the start of this week resulting in EUR/USD falling to a low of 1.1361 overnight. The pair has now broken out of the 1.1400 to 1.1800 trading range that had been in place over the past year providing a bearish technical signal."
"The combination of weaker growth in the euro-zone and lower energy prices is helping to ease pressure on the ECB to hike rates further. President Lagarde stated at the start of this week that “we see no evidence yet of de-anchoring of inflation expectations or second-round effects that warrant a more forceful policy response at this stage”."
"We are still sticking to our forecast for one final ECB hike in September, although acknowledge that balance of risks has shifted recently in favour of less rather more hikes."
"Recent comments from ECB Chief Philip Lane have indicated that they want to keep the door open for at least one final hike. He warned yesterday that a “range of forward-looking signals point to inflationary pressures in the coming months” and that “in this environment, our focus remains clear: to ensure that inflation stabilizes at our 2% target in the medium-term”."
"The divergence in monetary policy expectations between the ECB and Fed is likely to continue to encourage a lower EUR/USD in the near-term, although we doubt it will be sustained if the Fed does not follow through with rate hikes this year."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- Silver remains on the defensive near $61.00, weighed by Fed hiking hopes and risk-off markets
- A rout in tech stocks has soured market sentiment further, increasing demand for the safe-haven US Dollar.
- XAG/USD is consolidating losses, with the bearish trend still in play.
Silver (XAG/USD) nurses marginal losses, trading a few cents above the $61.00 level on Wednesday’s European trading session. The pair remains on the defensive following a 5.3% sell-off on Tuesday, as investors brace for Federal Reserve (Fed) interest rate hikes and reports from the Middle East conflict cloud hopes of a durable peace deal.
Precious metals continue bleeding as traders position for higher interest rates in the US. Recent US data has shown a resilient economy with inflation steady well above the Fed’s target, and the central bank’s rhetoric pivoting towards the hawkish side. The CME’s Fed Watch Tool shows a 36% chance of a rate hike in July and 68% in September, up from 28% and 50%, respectively, last week, before the latest monetary policy meeting.
Apart from that, the US Dollar is drawing additional support from investors’ scepticism about the outcome of the US trade deal and a sell-off in stock markets. Investors are taking profits amid growing concerns about the massive spending in the sector.
Technical Analysis: Below $60.00, the next target is the $58.00 area
XAG/USD hit fresh 2026 lows at $60.74 earlier on the day, but so far it is failing to find acceptance below the $61.00 level. Momentum indicators are approaching oversold levels in most timeframes, which should act as a warning for sellers.
The Relative Strength Index (14) in 4-hour charts is hovering around 30, flirting with oversold territory, while the Moving Average Convergence Divergence (MACD) remains below zero, hinting that selling pressure still dominates despite the stretched conditions.
Below session lows at the mentioned $60.74 and the psychological level at $60.00, bears might be attracted by the 161.8% Fibonacci extension of last week's decline, at $58.25, before the December 4 low, at $56.47. Upside attempts remain shallow so far, with previous support at $63.31 and Monday's highs at the $67.00 area likely to pose a significant challenge for bulls.
(The technical analysis of this story was written with the help of an AI tool.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $61.15 per troy ounce, down 0.72% from the $61.60 it cost on Tuesday.
Silver prices have decreased by 13.97% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 61.15 |
1 Gram | 1.97 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 66.58 on Wednesday, down from 66.74 on Tuesday.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
(An automation tool was used in creating this post.)
OCBC’s Sim Moh Siong and Christopher Wong highlight that recent AI-related equity weakness has boosted safe-haven demand and supported the Dollar. They now forecast EUR/USD at 1.11 and USD/JPY at 163 by year-end, revising up their US Dollar (USD) outlook from rangebound to modest strength, with US Dollar Index (DXY) seen having 2–3% upside unless Oil or US growth surprise sharply.
Revised year-end levels and DXY upside
"Hawkish Fed signals lift USD, shifts our view to modest strength from rangebound."
"New USD forecast: EUR/USD at 1.11 (previous: 1.18) and USD/JPY at 163 (previous: 155) by year-end. "
"DXY breakout targets 2 to 3 percent upside; 5 percent move requires oil surge or US overheating scenario. A firmer USD alongside widening rate differentials tends to weigh most on low-yielders such as CHF and JPY."
"Procyclical carry can still perform, but trade resilience will depend on selecting appropriate funding currencies"
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
