Forex News
Commerzbank strategists note that Taiwan’s October CPI eased to 2.33% year-on-year, below expectations but still above the Central Bank of the Republic of China’s (CBC) 2% alert threshold. Meanwhile, PPI surged 19.7%, raising concerns over future consumer price pressures. The CBC intervened to support the Taiwan Dollar (TWD) amid heavy foreign equity outflows, while foreign exchange reserves fell to USD596.4bn.
Soft CPI, record PPI pressures
"October consumer price index (CPI) rose 2.33% yoy (Bloomberg consensus: 2.60%) vs an upwardly revised 2.74% in September. Core CPI came in at 2.23% yoy, also below the 2.30% consensus. The softer headline print offers some near-term relief on the inflation front, though it marks the sixth consecutive month that CPI has remained above the Central Bank of the Republic of China’s (CBC) 2% alert threshold, keeping the policy debate alive."
"The lower CPI reading was led by softer food and energy price pressures. However, the producer price index told a starkly different story, surging 19.7% yoy in October, the fastest pace on record. The disconnect between softening consumer prices and surging upstream costs suggests that margin compression at the producer level remains acute. As such, pass-through to final consumer prices cannot be ruled out in the months ahead."
"Compounding the inflation picture, Taiwan’s foreign exchange reserves fell USD4.3bn to USD596.4bn at end-October, as the CBC confirmed it intervened in the currency market to cushion the TWD against heavy foreign equity outflows. The CBC’s FX department reported a net foreign outflow of approximately USD28bn for the month. The central bank also disclosed it used USD proceeds from the swap market to purchase US Treasuries in October, a mechanism that helped limit the drawdown in reserves."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- XAG/USD forms consecutive dojis, signaling indecision around the $52.00 level.
- Bearish RSI flattens, suggesting consolidation despite persistent downside risks.
- A break below $48.96 exposes $48.62, followed by $45.56 and $45.00.
Silver (XAG/USD) price consolidates near $52.00, up a minimal 0.19% on Friday as the Greenback rallies sharply, posting strong US data. Back-to-back ‘doji’ candles indicate that neither buyers nor sellers are in control.
XAG/USD Price Forecast: Technical outlook
Silver’s technical view remains downward-biased, with bulls finding key resistance at the $55.00 figure. Momentum remains bearish, as indicated by the Relative Strength Index (RSI), which has turned flat, hinting at further sideways trading.
If XAG/USD drops below Wednesday’s low of $48.96, it could open the door to a drop toward Thursday's low of $48.62. A breach of the latter will expose the October 28, 2025, swing low of $45.56, before testing the psychological $45.00 figure.
On the other hand, if Silver is headed for a bullish reversal, investors must clear the $55.00 figure. The next area of interest is $60.00, where the 50-day Simple Moving Average (SMA) lies. Once that key resistance area is surpassed, up next is the 100-day SMA at $60.73, followed by the $65.00 milestone.
XAG/USD Price Chart – Daily
(This story was corrected on November 6 at 21:00 GMT to say that $48.96 is Wednesday's low, not Thursday's.)
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.
MUFG reports Indonesia’s Q3 GDP growth beat expectations at 5.47% year-on-year, helped by stronger exports and solid domestic demand. Private consumption and investment remained robust, reducing the urgency for Bank Indonesia to support activity. However, lingering investor confidence issues and weak portfolio flows mean the Indonesian Rupiah is still seen struggling to achieve a sustained recovery.
Growth surprise but FX outlook cautious
"Indonesia’s Q3 GDP growth surprised to the upside, accelerating to 5.47%yoy from 5.29% in Q2, beating the 5.2% consensus."
"Domestic demand is holding up better than expected, with private consumption largely the same at 5.04%yoy and investment expanded 6.06%yoy."
"While stronger growth reduces the urgency for BI to support economic activity, it does little to address lingering investor confidence concerns."
"We remain cautious on IDR, with domestic risks and weak portfolio flows likely to constrain any sustained recovery."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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