Forex News
- NZD/USD trades in the mid-0.5900s at the time of writing, its strongest level since early June.
- July trade figures showed exports just above imports, but the data barely moved the pair.
- Focus turns to the Reserve Bank of New Zealand (RBNZ) meeting next month, where another hike is priced but no longer certain.
The New Zealand Dollar (NZD) is holding near the top of its recent range against the US Dollar (USD), sitting in the mid-0.5900s at the time of writing after touching its best level since early June. The pair is little changed on the day, but the direction of the past two weeks is clear, and the reason is mostly on the United States (US) side.
A soft US retail sales report trimmed bets on a Federal Reserve (Fed) rate hike next month, pulling the Greenback lower and letting the Kiwi extend its rebound.
New Zealand Exports are expected, at NZ$8.09 billion, leaving only a slim monthly surplus, while the annual balance stayed in deficit near NZ$3.74 billion. The numbers were not the story, and price action confirmed it.
Short-term technical analysis:
On the 4-hour chart, NZD/USD trades at 0.5943, retaining a constructive bullish bias as it holds above both the 20-period Simple Moving Average (SMA) at 0.5909 and the 100-period SMA at 0.5878. The pair is pressing into a nearby cluster of overhead supply, while the Relative Strength Index (RSI) around 66 stays in positive territory but shy of overbought, suggesting upside momentum remains firm though increasingly stretched.
On the topside, immediate resistance emerges at 0.5947, ahead of a stronger cap at 0.5955 On the downside, initial support is seen at 0.5938, followed by 0.5935, while deeper pullbacks would look to the 20-period SMA at 0.5909 and the 100-period SMA at 0.5878 to underpin the broader bullish structure.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
- USD/JPY bounces back toward the 159.00 zone, recovering most of the prior day's slide as the US Dollar steadies.
- A rebound in US Treasury yields and a solid jobless claims print are behind the Dollar's recovery.
- The Yen is the day's weakest major currency, pressured by high Oil prices, with Japan's inflation data and flash PMIs due Friday.
USD/JPY trades north of the 159.00 barrier at the time of writing on Thursday, higher on the day and clawing back most of the previous session's losses. The move owes more to a steadier US Dollar (USD) than to anything out of Japan, with the Greenback recovering after slipping to a three-month low.
The US Dollar's footing improved as United States (US) Treasury yields bounced back from Wednesday's sharp drop, following the US Treasury's decision to expand its liquidity-support buybacks of longer-dated debt. Firmer labor data helped as well, with weekly Initial Jobless Claims coming in below expectations and keeping the case for the Federal Reserve (Fed) to hold rates next month intact. The US Dollar Index (DXY) recovered back toward the 98.90 area after touching its weakest level since mid-May.
The bigger drag, though, is a broadly soft Japanese Yen (JPY), the weakest of the majors on the day. Elevated Oil prices are the immediate headwind, since Japan imports almost all of its energy. July trade figures underlined the strain, with imports surging on higher energy costs and the country running a sizeable trade deficit. Longer term, fiscal worries and still-low interest rates remain weights on the currency.
Yet the rebound sits awkwardly against the policy backdrop. The Bank of Japan (BoJ) is expected to raise rates in September, just as recent US data nudge the Fed toward holding a narrowing gap that argues against chasing USD/JPY much higher. Analysts at Societe Generale remain constructive on the Yen over the medium term but caution that a durable turn lower in the pair may need either fresh FX intervention or a meaningful drop in oil to remove the growth headwind.
Short-term technical analysis:
On the 4-hour chart, USD/JPY trades at 159.12, holding a mildly bullish near-term bias as it remains above both the 20-period Simple Moving Average (SMA) at 159.10 and the 100-period SMA at 159.09. The latest 14-period Relative Strength Index (RSI) at 52.67 sits in neutral territory with a slight positive tilt, suggesting steady upside pressure while the pair consolidates just under nearby resistance.
On the topside, initial resistance appears at the horizontal barrier at 159.19, where a clear break would open the way for further gains. On the downside, immediate support is clustered around the short-term averages at 159.10 and 159.09, followed by layered horizontal floors at 158.98, 158.85 and 158.66, which together underpin the constructive tone while price holds above them.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
- USD/MXN holds near 16.95 as Banxico keeps a cautious tone.
- Mexico activity improves annually, boosted by World Cup momentum.
- Solid US claims and higher yields limit Peso upside.
The Mexican Peso (MXN) holds firm versus the US Dollar (USD) on Thursday as the Bank of Mexico (Banxico) adopted a cautious stance regarding monetary policy, while jobs data in the US showed that the labor market is stable. The USD/MXN pair exchanges hands at 16.95, virtually unchanged, near two-year lows.
USD/MXN steadies as cautious Banxico signals offset solid US jobs data
Market sentiment shifted positively despite the lack of progress in the Middle East conflict. Data from Mexico showed the economy grew a modest 0.1% in July, according to the national statistics agency, INEGI.
INEGI reported that the Timely Indicator of Economic Activity forecast that the economy will slow in Q3, given that the growth estimate for June is 0.2% MoM.
Annually, the Mexican economy grew 2.7% YoY in July, up from June’s 2% growth, boosted by the hosting of the FIFA World Cup.
On Friday, the Mexican economic docket will feature the release of Retail Sales, expected to rise from -0.6% in May to 0.1% MoM in June, while over the 12 months to June, they are projected to almost double from 1.6% to 3.1%.
Regarding the USMCA trade agreement, the Canadian Prime Minister Mark Carney and Mexico’s President Claudia Sheinbaum discussed on Thursday the importance of renewing the agreement as soon as possible.
In the US, US Treasury yields trimmed some of Wednesday’s losses following the US Treasury Department's bond buyback announcement, with the 30-year yield up nearly six basis points to 5.348%.
On the data front, jobless claims for the week ending August 15 came in better than expected at 206K, below forecasts for a 210K jump and the previous print of 212K.
Fed officials had crossed the wires, with St. Louis Fed President Alberto Musalem remaining hawkish, recommending a rate hike at the July meeting. For the September meeting, he is not pre-committed to a stance, but, given recent speeches, he remains in the hawkish camp.
San Francisco Fed's Mary Daly said rising long-term bond yields are a global issue, limiting their signal usefulness for the Fed. She doesn’t see Fed credibility at risk, noting the short end reacts to data.
USD/MXN Price Forecast: Technical outlook
In the daily chart, USD/MXN trades at 16.9568, keeping a bearish near-term tone as spot holds clearly below the cluster of the 50-, 100- and 200-day simple moving averages (SMA), grouped around 17.3454. The Moving Average Triple resistance overhead suggests the broader trend remains under pressure, while the Relative Strength Index (RSI) at 28.98 slips into oversold territory, hinting that the latest slide may be stretched even as sellers retain control beneath the dominant descending trend lines.
On the topside, initial resistance is seen at the Triple SMA cluster near 17.3454, with further barriers aligned along the shorter-term downtrend resistance line drawn from 18.1651 through the 17.3871 break area, and higher up at the longer-term descending trend line anchored at 21.0808. On the downside, momentum support is reflected by the oversold RSI reading around 28.98, which could slow the pace of losses but would need a sustained recovery above the moving averages and nearby trend-line caps to signal a more durable bullish reversal.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Mexican Peso FAQs
The Mexican Peso (MXN) is the most traded currency among its Latin American peers. Its value is broadly determined by the performance of the Mexican economy, the country’s central bank’s policy, the amount of foreign investment in the country and even the levels of remittances sent by Mexicans who live abroad, particularly in the United States. Geopolitical trends can also move MXN: for example, the process of nearshoring – or the decision by some firms to relocate manufacturing capacity and supply chains closer to their home countries – is also seen as a catalyst for the Mexican currency as the country is considered a key manufacturing hub in the American continent. Another catalyst for MXN is Oil prices as Mexico is a key exporter of the commodity.
The main objective of Mexico’s central bank, also known as Banxico, is to maintain inflation at low and stable levels (at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%). To this end, the bank sets an appropriate level of interest rates. When inflation is too high, Banxico will attempt to tame it by raising interest rates, making it more expensive for households and businesses to borrow money, thus cooling demand and the overall economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN.
Macroeconomic data releases are key to assess the state of the economy and can have an impact on the Mexican Peso (MXN) valuation. A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only does it attract more foreign investment but it may encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this strength comes together with elevated inflation. However, if economic data is weak, MXN is likely to depreciate.
As an emerging-market currency, the Mexican Peso (MXN) tends to strive during risk-on periods, or when investors perceive that broader market risks are low and thus are eager to engage with investments that carry a higher risk. Conversely, MXN tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
DBS strategist Chang Wei Liang reports that South Korean Won (KRW) strength has resumed, with USD/KRW dropping to the mid-1380s even as KOSPI fell nearly 6% on semiconductor-led losses. He attributes this to foreign investors using the equity correction to add Korean stocks, funded by USD selling, while warning that tech volatility and a less undervalued KRW justify some caution.
Foreign equity buying lifts korean won
"KRW rally picked up pace again, with USD/KRW tumbling to mid-1380 levels despite a KOSPI sell-off of close to 6% yesterday, led by semiconductors."
"Foreign investors are seemingly taking advantage of the correction to invest into Korean equities, with reports of custodian banks selling off USD to settle foreign purchases of equities."
"We have been optimistic on KRW with markets previously failing to appreciate Korea’s solid economic fundamentals and rising terms of trade due to surging memory prices, but volatility around tech stocks and a less undervalued KRW could be reason for some caution now."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Here is what you need to know on Friday, August 21:
The US Dollar Index (DXY) is hovering near 98.90, still short of 100.00, but grinding higher on Thursday. Hawkish commentary from Federal Reserve Bank of St. Louis President Alberto Musalem did much of the work: he called underlying inflation too high, saw a lower chance of returning it to target at current rates, and suggested that raising rates now could spare the Federal Reserve (Fed) more aggressive action later.
Heading into a data-heavy Friday dominated by flash Purchasing Managers Index (PMI) surveys across Europe, the United Kingdom (UK) and the United States (US), the Greenback carries a modest bid.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | -0.14% | 0.64% | -0.11% | 0.22% | -0.09% | 0.46% | |
| EUR | -0.03% | -0.17% | 0.61% | -0.13% | 0.18% | -0.13% | 0.43% | |
| GBP | 0.14% | 0.17% | 0.78% | 0.03% | 0.35% | 0.05% | 0.59% | |
| JPY | -0.64% | -0.61% | -0.78% | -0.75% | -0.41% | -0.73% | -0.19% | |
| CAD | 0.11% | 0.13% | -0.03% | 0.75% | 0.35% | 0.03% | 0.57% | |
| AUD | -0.22% | -0.18% | -0.35% | 0.41% | -0.35% | -0.30% | 0.24% | |
| NZD | 0.09% | 0.13% | -0.05% | 0.73% | -0.03% | 0.30% | 0.56% | |
| CHF | -0.46% | -0.43% | -0.59% | 0.19% | -0.57% | -0.24% | -0.56% |
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).
The Euro and the Pound held their ground, while a sharp jump in Oil prices lifted the commodity bloc, keeping the Canadian Dollar supported and limiting the Dollar's reach outside the Japanese Yen.
EUR/USD clung to the mid-1.1600s, ending little changed as traders stood aside ahead of the Eurozone flash PMIs.
GBP/USD edged higher, holding north of the 1.3600 mark despite the firmer Dollar, with a heavy UK data slate in focus on Friday.
USD/JPY pushed higher, reclaiming ground beyond the 159.00 barrier as hawkish Fed speak weighed on the Yen.
AUD/USD lost its grip, slipping back toward the 0.7100 area after soft domestic jobs data and ahead of Australia's flash PMIs.
Gold held steady near $4,520 per troy ounce, holding onto its recent gains.
West Texas Intermediate (WTI) Oil extended its advance, pushing toward $87.00 per barrel amid ongoing Middle East tensions.
The Asian session opens with Australia's preliminary S&P Global PMIs. After a weak employment report and firmer inflation expectations, a soft set of surveys would add to the pressure on the Aussie.
The European morning is the main event. UK Retail Sales for July kicks things off and is expected to slip on the month. Then the flash PMI cascade offers France, Germany and the Eurozone HCOB surveys, followed by the UK's own S&P Global PMIs.
Across the Atlantic, Canadian Retail Sales precede the US S&P Global flash PMIs, the pick of an otherwise light US calendar.
Beyond Friday, attention turns to next week's Jackson Hole Symposium, where new Fed Chair Kevin Warsh delivers his first keynote speech that might offer a glance at the September policy decision.
- DXY trades just short of 99.00, weakest since mid-May.
- Philadelphia Fed manufacturing 47.4 against 25 expected, a five-year high.
- Treasury doubling long-bond buybacks to 4 billion Dollars an operation.
The Dollar Index has spent Thursday building a floor just above 98.50 and defending it with everything the calendar had to offer, and the entire effort is worth roughly a tenth of a point. A five-year high in Philadelphia manufacturing, a jobless claims beat and a hawkish regional Fed voice have between them lifted the index 0.12% off a base last visited in the middle of May. The floor is real enough. What built it will not hold it.
The best data the Dollar could have asked for
The session low just above 98.50 printed in the London morning, hours before a single release, and the recovery off it was already underway when the 12:30 GMT block landed. Initial jobless claims came in at 206K against a 210K consensus and 212K the week before. The Philadelphia Fed's August manufacturing survey read 47.4 against a consensus of 25 and a 41.4 prior, which is less a beat than a different question being answered.
Underneath that headline the survey reads stronger still, with an employment index up 18 points to its highest since April 2022 in a summer when the national payroll count printed an outright contraction, and a six-month outlook index up 39 points to a level last seen in 1983. The Dollar Index still trades more than a point beneath its 50-day Exponential Moving Average (EMA) and roughly eight tenths of a point beneath the 200-day, with the 50-day rolling over toward it.
Two Fed voices and no vote between them
The 12:30 GMT appearance scored neutral against its own speaker average and read softer than that in substance. The message was that the bond market is signalling policy sits in a good place, that the Fed's credibility is not at risk, and that it is too early to judge how the Treasury's debt-management decisions bear on the central bank's work. The index eased back toward 98.75 through that interview window.
The 15:10 GMT appearance scored hawkish and scored exactly at its own speaker average, which is the tell. It came from a policymaker who favoured a quarter point in July, who still thinks inflation is more likely than not to stay above target and who argues that moving now spares a larger move later, then declined to commit to anything for September. The leg that carried the index to its session high just short of 99.00 began inside the quarter hour after those remarks, and neither speaker holds a vote on the Federal Open Market Committee (FOMC) this year.
The easing nobody on the committee voted for
What broke the Dollar this week did not come from the Fed at all. The Treasury said on Wednesday it would at least double its liquidity-support buybacks in the 10-year to 30-year sector, raising the ceiling to 4 billion Dollars per operation from 2 billion, effective September 9 through November 4. Long-end yields had run to their highest since 2006 in the days before that announcement. The index fell roughly eight tenths of a point on it, the sharpest single-session decline in three weeks.
A fiscal authority capping the long end delivers duration relief that no FOMC member voted on and that never shows up as a cut, and a currency prices that the way it prices a cut. Issuance shifts toward bills, the long end gets repurchased, and none of it touches the Fed's balance sheet. Futures pricing now has September hike odds beneath a third, down from an even split on August 10. A hawkish non-voter on television does not compete with that.
Friday's flash surveys, then Wyoming
Friday August 21 at 13:45 GMT brings the preliminary August S&P Global surveys, all three carrying red-band billing. The manufacturing consensus sits at 53.8 against a 53.9 prior and services at 54 against 54.6, with the composite last at 54.5. Consensus is looking for a flat-to-softer month from a national Purchasing Managers Index (PMI) panel, one day after a regional survey printed its best current-activity reading in five years.
The larger date is August 27-29 in Jackson Hole, where the chair delivers a first symposium keynote. Nothing between now and then forces the front end to reprice, which leaves Friday's surveys setting the tone for a week rather than the direction for the quarter. A firm PMI print argues this floor holds into the symposium. A soft one hands the sellers the 98.50 area.
Dollar Index levels
Resistance: The 99.00 handle caps the session and has not been reclaimed since Wednesday's break. Above it, the 200-day EMA near 99.75 is the first line that matters, with the declining 50-day just above 100.00 behind it.
Support: The 98.50 area is the base this session built, and the last structure beneath it is the May low just short of 98.00. Daily Stochastic Relative Strength Index (Stoch RSI) near 18 has the index oversold without turning, which reads as basing rather than as a low.
Bias: Bearish while 99.00 caps. Objectives are the 98.50 area and then the 98.00 handle, with invalidation on a daily close above 99.75.
DXY daily chart
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.
OCBC strategists Sim Moh Siong and Christopher Wong note that Indonesian Rupiah (IDR) should find some relief from a softer Dollar and lower long-end US yields, with BI keeping its policy rate at 5.75% and focusing on currency stability. BI is increasingly relying on non-rate tools like FX hedging incentives and SRBI. USD/IDR shows bearish momentum, with support at 17760 and 16630 and resistance at 17940.
BI holds rates, uses non-rate tools
"IDR is likely to find some relief from the softer USD and pullback in long-end US Treasury yields. Yesterday, BI kept its policy rate unchanged at 5.75% and maintained its focus on IDR stability, while reiterating measures to attract foreign inflows and deepen FX markets."
"The decision also reinforces policy continuity under acting Governor Destry Damayanti. BI appears increasingly inclined to rely on non-rate tools, including FX hedging incentives and SRBI, rather than pushing domestic rates materially higher."
"Near term, a sustained USD pullback would ease some external pressure on IDR, although elevated oil prices remain a constraint for Indonesia."
"USD/IDR last closed at 17830 levels. Bearish momentum on daily chart intact while RSI is flat for now. 2-way trades likely."
"Support at 17760, 16630 levels (100 DMA, 38.2% fibo retracement of 2026 low to high). Resistance at 17940 (21, 50 DMAs)."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note that USD/SGD extended its overnight slide as the US Dollar (USD) sell-off pushed the pair back toward the 1.27 area. Short-term signals remain oversold, but they still see scope for further weakness toward 1.2695 and potentially 1.2670, while resistance is now marked at 1.2740 and 1.2770 over the coming days.
Dollar slide keeps downside pressure
"24-HOUR VIEW: In an abrupt move during the early NY session yesterday, USD plunged, reaching a low of 1.2708 before closing 0.59% lower at 1.2709. While the sharp decline appears to be excessive, there is no sign of stabilisation just yet. Today, as long as USD holds below 1.2740, it could drop further toward 1.2695. Given the deeply oversold conditions, a continued decline below this level appears unlikely. The next support at 1.2670 is also unlikely to come into view."
"1-3 WEEKS VIEW: We have held the view that the “risk for USD is on the downside” since early this month. In our most recent narrative from two days ago (18 Aug, spot at 1.2775), we highlighted that USD “could decline toward 1.2740.” We added, “the downside risk will remain intact as long as 1.2810 (‘strong resistance’ level) is not breached.” Yesterday, USD broke below 1.2740, plunging to a low of 1.2708. While the risk for USD remains on the downside, oversold conditions could slow the pace of any further decline. The next level to monitor is 1.2670. On the upside, the ‘strong resistance’ level is now at 1.2770."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- XAG/USD rises over 1.70%, extending short-term bullish momentum.
- 100-day SMA near $68.51 becomes an immediate upside test.
- Break above $70.00 exposes the 200-day SMA and $75.00.
Silver (XAG/USD) price extended its gains on Thursday, up more than 1.70%, even as US yields recovered some ground following the US Treasury bond buyback announcement. The XAG/USD pair trades at $68.18 at the time of writing, its highest level since June 18.
XAG/USD Price Forecast: Technical Outlook
The uptrend remains intact in the short-term, with the white metal approaching the 100-day Simple Moving Average (SMA) at $68.51. Momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is above its 50-neutral level and approaching overbought territory.
To cement the bullish bias, XAG/USD must reclaim the 100-day SMA. Once done, the next resistance is the $70.00 milestone, ahead of the 200-day SMA, which is seen as the next ceiling level at $71.97. If buyers clear that level, the psychologically significant $75.00 level becomes the next area of interest.
On the flip side, the XAG/USD first support is the low of the day at $65.64. Below, the next support is the August 19 swing low of $62.19, followed by the 50-day SMA at $61.35.
XAG/USD Price Chart – Daily
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.
- USD/JPY rebounds as the Japanese Yen underperforms across the board.
- Stronger US Jobless Claims data and a rebound in Treasury yields support the US Dollar.
- Traders await Japan’s inflation data and preliminary PMI reports from Japan and the US.
USD/JPY rebounds on Thursday, recovering most of the previous day’s losses as the US Dollar (USD) stages a modest recovery after falling to a three-month low. At the time of writing, USD/JPY trades around 159.05, up roughly 0.55% on the day.
The Greenback finds support as US Treasury yields rebound from Wednesday’s sharp pullback, which was triggered by the US Treasury Department’s announcement that it would increase its liquidity-support buybacks for longer-dated government securities. Both the 10-year and 30-year yields are up around 6 basis points on Thursday.
The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 98.90, bouncing from an intraday low of 98.56, its weakest level since May 14. Weekly US labour-market data also offer some support, with Initial Jobless Claims falling to 206K in the week ending August 15, below expectations of 210K and the upwardly revised previous reading of 212K.
Meanwhile, the Japanese Yen (JPY) is underperforming all its major peers, with elevated Oil prices acting as a major near-term headwind, while broader fiscal concerns and relatively low interest rates remain longer-term drags on the currency.
Data released on Thursday showed that Japan’s imports and exports both climbed to record highs in July. Imports surged 27.8% YoY, driven by rising energy costs, while exports increased 23.2%. The country recorded a trade deficit of ¥634.5 billion.
Strategists at Societe Generale remain constructive on the medium-term outlook for the Yen but stress that any meaningful rebound is likely to be conditional. They argue that “in due course, a yen recovery” is possible, yet only “with the caveat that it will probably take another round of FX intervention to turn USD/JPY lower, unless oil prices fall significantly and remove that headwind from the growth outlook.”
On the monetary policy front, the Bank of Japan (BoJ) is expected to raise interest rates in September. In contrast, recent US economic data have strengthened expectations that the Federal Reserve (Fed) will keep rates unchanged next month.
St. Louis Fed President Alberto Musalem said on Thursday that, given the current level of interest rates, he sees a lower probability of inflation returning to the 2% target. Musalem added that “hiking rates now could save more aggressive action later.”
Looking ahead, Japan’s National Consumer Price Index (CPI) and the preliminary Purchasing Managers Index (PMI) reports for both Japan and the US are due on Friday.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | -0.15% | 0.57% | -0.15% | 0.18% | -0.12% | 0.44% | |
| EUR | -0.04% | -0.18% | 0.54% | -0.17% | 0.13% | -0.16% | 0.39% | |
| GBP | 0.15% | 0.18% | 0.72% | -0.00% | 0.32% | 0.04% | 0.57% | |
| JPY | -0.57% | -0.54% | -0.72% | -0.72% | -0.39% | -0.69% | -0.15% | |
| CAD | 0.15% | 0.17% | 0.00% | 0.72% | 0.34% | 0.05% | 0.58% | |
| AUD | -0.18% | -0.13% | -0.32% | 0.39% | -0.34% | -0.28% | 0.23% | |
| NZD | 0.12% | 0.16% | -0.04% | 0.69% | -0.05% | 0.28% | 0.56% | |
| CHF | -0.44% | -0.39% | -0.57% | 0.15% | -0.58% | -0.23% | -0.56% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
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.
