Forex News
MUFG’s Senior Currency Analyst Michael Wan highlights that global and Asian rates have repriced since the Iran war, with the Reserve Bank of Australia’s 25 bps hike illustrating how domestic inflation and macro conditions drive policy paths. He notes markets initially saw a narrow 5–4 decision, but Governor Bullock’s comments were interpreted as hawkish, suggesting further tightening remains on the table.
RBA repricing reflects inflation starting point
"The broader picture we find ourselves in is that rates markets have repriced across global and Asian central banks since the Iran war, and perhaps for good reasons."
"Yesterday’s decision by the Reserve Bank of Australia to hike rates by 25bps was one good example, and highlights how the starting point of inflation and domestic macro setting is also key to the path moving forward."
"The decision was initially taken by the market as a split one with a 5-4 vote for a hike, but RBA Governor Bullock’s subsequent press statement seems hawkish suggesting that members were debating “when” rather than “whether” to hike rates during the meeting."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Australia’s Treasurer Jim Chalmers said on Wednesday that Iran war could add a further quarter of a percentage point to headline inflation and double the negative impact on Gross Domestic Product (GDP).
Key quotes
Treasury modelling two scenarios - oil stays at $100 per barrel for h1, or hits $120 and takes three years to get back to pre conflict price.
Compared to treasury modelling a week ago, latest figures suggest Iran war could add a further quarter of a percentage point to headline inflation and double the negative impact on GDP.
Latest estimates see headline inflation peaking 0.75 of a percentage point higher in the short term scenario and 1.25 percentage point higher in the prolonged one.
In the short term case, output would be 0.2% lower around the middle of this year.
In both scenarios prospect of inflation peaking in the high 4s or even higher this year is very real.
In prolonged scenario, gdp would be 0.6% lower in 2027 and even by 2029 would still be below where it would have been without the conflict.
Around half of the impact to GDP is due to the impact of higher oil. The other half is due to broader consequences.
Market reaction
At the time of writing, the AUD/USD pair is up 0.22% on the day at 0.7120.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Commerzbank’s Michael Pfister expects the Bank of Canada to leave rates unchanged, in line with Bloomberg consensus. He argues the Bank of Canada is one of the few G10 central banks that could still hike in 2026, given slightly expansionary real rates and hopes for stronger growth in the second half. Emphasis on upside inflation risks could support the Canadian Dollar.
BoC on hold but hike risk
"The Bank of Canada will kick things off this afternoon, European time, with all economists surveyed by Bloomberg expecting an unchanged interest rate."
"However, as we discussed on these pages on Monday, the Bank of Canada is likely one of the few G10 central banks that could really hike rates this year."
"The real interest rate is likely in slightly expansionary territory, while at the same time, there are legitimate hopes that the real economy will pick up in the second half of the year."
"If the monetary policymakers emphasize the significance of upside inflation risks today, discussions could gain momentum again - and the CAD could benefit."
"But Monday's inflation figures also made it clear that a rate hike is not a foregone conclusion; the headline rate even fell by 0.1 percentage points more than expected."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- GBP/USD gains to near 1.3370 as the US Dollar trades cautiously ahead of the Fed’s monetary policy.
- Both the Fed and the BoE are expected to hold interest rates steady this week.
- Analysts at JP Morgan expect the BoE to shift to an extended pause amid higher gas prices.
The Pound Sterling (GBP) extends its winning streak against the US Dollar (USD) for the third trading day on Wednesday. The GBP/USD pair trades 0.1% higher to near 1.3370 during the early European trading session as the US Dollar is under pressure ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
At the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades with caution near its three-day low around 99.50.
According to the CME FedWatch tool, traders are confident that the Fed will hold interest rates steady in the current range of 3.50%-3.75%. Traders see the Fed maintaining the status quo as higher oil prices due to energy supply concerns have de-anchored inflation expectations globally.
This week, major triggers for the British currency will be the United Kingdom (UK) employment data for three months ending in January and the Bank of England’s (BoE) interest rate decision on Thursday.
According to a report from JP Morgan, the BoE will keep interest rates steady during the entire year, citing that price pressures are unlikely to return to the 2% target amid higher gas prices.
GBP/USD technical analysis
GBP/USD rises to near 1.3370 in the European trade. However, the pair remains broadly in a clear bearish territory after repeated failures at the descending resistance trend line plotted from the January 29 high of 1.3847 and a sustained close below the 20-day Exponential Moving Average (EMA), which now caps the upside near 1.3410.
Price action has carved out a sequence of lower highs and lower lows, confirming the dominance of sellers despite the latest stabilization above 1.3320. The RSI has recovered from the negative territory, ranging from 20.00 to 40.00, to the 40.00-60.00 neutral zone, signaling fading downside momentum but not yet a shift to bullish control.
Initial resistance is aligned at 1.3410, where the 20-day EMA converges with the broken 1.3400 trend-line area, and a break above this zone would expose the 1.3500 region next. On the downside, immediate support emerges at 1.3320, ahead of last week’s trough near 1.3220, which guards a deeper slide toward 1.3100. As long as the price trades below 1.3410, rallies are vulnerable to selling pressure, and the broader short-term structure favors renewed tests of 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.
- USD/CAD posts modest gains near 1.3700 in Wednesday’s early European session.
- Markets expect the Fed to leave interest rates unchanged at its March meeting.
- The Bank of Canada is likely to hold interest rates steady on Wednesday.
The USD/CAD pair trades with mild gains around 1.3700 during the early European trading hours on Wednesday. Markets turn cautious ahead of critical interest rate decisions from both the Federal Reserve (Fed) and the Bank of Canada (BoC) later on Wednesday. Traders will closely monitor Fed Chair Jerome Powell’s remarks after the rate decision.
The Fed is widely expected to keep interest rates unchanged at its current target range of 3.50%–3.75% at the conclusion of its two-day policy meeting on Wednesday. Escalating tensions in the Middle East and oil price spikes have complicated the inflation outlook, making a rate cut highly unlikely at this time. Traders scaled back Fed easing expectations, with markets now assigning about 25 basis points (bps) of cuts this year, according to a Reuters poll.
Markets will take more cues from Fed’s Powell speech, as it might offer some hints about the US interest rate path. Any hawkish comments from Fed officials could underpin the Greenback against the CAD in the near term.
The BoC is likely to hold interest rates steady at 2.25% for a third straight meeting on Wednesday as policymakers weigh the inflation risk of higher oil prices against a string of weak economic numbers. “The Bank of Canada won’t rush to respond without clarity on the size and duration of the oil price shock,” said Claire Fan, an economist with the Royal Bank of Canada.
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.
- AUD/USD rises to near 0.7115 as the Australian Dollar gains on hawkish RBA bets.
- The RBA hiked its OCR by 25 bps to 4.1% on Tuesday to contain accelerated inflationary pressures.
- The Fed is expected to leave interest rates unchanged on Wednesday.
The AUD/USD pair trades 0.15% higher at around 0.7115 during the late Asian trading session on Wednesday. The Aussie pair rises as the Australian Dollar (AUD) trades broadly firm, following the Reserve Bank of Australia’s (RBA) monetary policy announcement on Tuesday, in which it raised its Official Cash Rate (OCR) by 25 basis points (bps) 4.1%.
The RBA was anticipated to tighten its monetary conditions as the Iran conflict-led increase in the oil price has prompted price pressures globally. However, the major trigger behind AUD’s strength appears to be confirmation from Governor Michele Bullock that “inflation was already high,” even before the Middle East conflict, and the “cash rate was not high enough to bring inflation back to target”.
Meanwhile, traders expect the RBA to raise interest rates further in the near term. Markets imply a 50-50 chance the Australian central bank will hike again at its next meeting in May, and rates of 4.35% are fully priced by August, Reuters reports.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades cautiously near its three-day low around 99.50 ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT. Investors expect the Fed to leave interest rates unchanged in the current range of 3.50%-3.75%.
AUD/USD technical analysis
AUD/USD trades higher to near 0.7113 during the press time. The pair holds a modest bullish near-term bias as it continues to trade above the 20-day Exponential Moving Average, which has flattened, but still runs beneath price and cushions shallow pullbacks. The 14-day Relative Strength Index (RSI) is inside the 40.00-60.00 zone after retracing from the 60.00-80.00 range, indicating a balanced momentum with a positive tone.
Initial support emerges near 0.7065, where the 20-day EMA aligns with recent intraday lows, and a break below this area would expose the 0.7020 region as the next downside level. On the topside, immediate resistance stands at 0.7150, the recent local high that capped last week’s advance, followed by a more significant hurdle around 0.7200, where prior supply is likely to reappear if the current recovery extends.
(The technical analysis of this story was written with the help of an AI tool.)
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named 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 during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
- EUR/GBP softens to around 0.8635 in Wednesday’s early European session.
- ECB is likely to leave its benchmark deposit rate unchanged at 2.00% on Thursday.
- BoE is expected to hold rates in March.
The EUR/GBP cross loses ground to near 0.8635, snapping the four-day winning streak during the early European session on Wednesday. Markets are in a "wait-and-see" mode ahead of the European Central Bank (ECB) and the Bank of England (BoE) interest rate decisions later on Thursday.
The ECB is expected to maintain its benchmark deposit rate at 2.0%. Traders will closely monitor the press conference for guidance from policymakers. Hawkish remarks from ECB officials could boost the Euro (EUR) against the Pound Sterling (GBP) in the near term.
Interest rate futures are fully pricing a rate hike by the end of July and about a 55% chance of a second one by the end of December. But economists polled by Reuters March 9-13 stuck to their long‑held view of steady rates.
On the UK front, the BoE is anticipated to keep its key interest rate unchanged at 3.75% at the March meeting on Thursday. Analysts said that the size and persistence of the energy price shock will determine its ultimate impact on inflation, inflation expectations, and the BoE’s response. Bank of America economists now expect two Bank Rate cuts in June and September, delayed from its previous forecast of March and June.
The UK jobs data will also be in the spotlight on Thursday. The ILO Unemployment Rate is projected to rise to 5.3% in January from 5,2% in December. Any signs of strength in the UK labor market could lift the Pound Sterling against the Euro in the near term.
ECB FAQs
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
- USD/CHF appreciates as the US Dollar steadies on market caution ahead of the Fed decision.
- Traders await Powell’s guidance on how rising oil prices may shape the Fed’s policy outlook.
- The Swiss National Bank is expected to leave its policy rate unchanged at 0% on Thursday.
USD/CHF gains ground after two days of losses, trading around 0.7850 during the Asian hours on Wednesday. The pair holds ground as the US Dollar (USD) remains steady on market caution ahead of the Federal Reserve’s (Fed) policy decision.
According to the CME FedWatch Tool, markets widely expect the Federal Reserve to keep its benchmark interest rate unchanged at 3.50%–3.75% on Wednesday. If the Fed opts to hold rates steady, it would mark the second consecutive pause, reflecting a cautious stance amid increasing economic and geopolitical uncertainty.
Traders await Fed Chair Jerome Powell’s remarks to gain impetus regarding how the recent surge in oil prices may influence the central bank’s policy outlook. Energy prices may further appreciate on following recent US military strikes on Iranian coastal sites near the Strait of Hormuz, citing threats from anti-ship missiles to global shipping, according to Reuters. Meanwhile, the BBC reported that Israel claimed responsibility for strikes that killed senior Iranian officials, including Ali Larijani and Basij chief Gholamreza Soleimani.
However, the USD/CHF came under pressure as the Swiss Franc (CHF) gained on safe-haven demand amid persistent geopolitical risks. However, CHF’s upside may be limited after the Swiss National Bank (SNB) signaled a stronger willingness to intervene in FX markets, citing concerns that continued currency strength could trigger deflationary pressures.
Meanwhile, surging energy prices linked to the Iran conflict pose risks to the global economy by fueling inflation and increasing the likelihood of higher interest rates. The Swiss National Bank is widely expected to keep its policy rate unchanged at 0% on Thursday.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame 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.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
- EUR/USD consolidates its strong recovery gains registered over the past two days.
- Traders opt to wait on the sidelines ahead of the key Fed and ECB policy updates.
- The technical setup warrants some caution before placing aggressive bullish bets.
The EUR/USD pair struggles to capitalize on this week's goodish recovery move from the 1.1415-1.1410 area, or its lowest level since August 2025, and oscillates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1500s, nearly unchanged for the day, as traders opt to wait for the key central bank event risks before placing fresh directional bets.
The US Federal Reserve (Fed) is scheduled to announce its decision at the end of a two-day meeting later today, which will be followed by the European Central Bank (ECB) policy update on Thursday. Investors will look for cues about the interest rate path going forward amid concerns that a war-driven surge in energy prices would negative impact on economic growth and revive inflationary pressures.
The EUR/USD pair holds below the 200-hour Simple Moving Average (SMA) around 1.1547, capping recovery attempts. The Relative Strength Index (RSI) around 62 stays in positive territory but below overbought conditions, indicating moderate upside momentum without strong follow-through. The Moving Average Convergence Divergence (MACD) line has slipped marginally below the signal line near the zero mark, reinforcing a loss of bullish impulse and aligning with the rejection from the longer-term average.
Immediate resistance emerges at the 50.0% retracement level at 1.1539, measured from the 1.1666 high to the 1.1413 low, with a clear break higher needed to expose the 61.8% Fibonacci retracement level at 1.1569 and then the 100-period SMA zone near 1.1580.
On the downside, initial support stands at the 38.2% Fibo. retracement level at 1.1509, ahead of the 23.6% level at 1.1473, where a confluence with prior intraday lows would strengthen the floor. A decisive drop below 1.1473 would open the way toward the 1.1413 swing low, while sustained trading above 1.1569 would neutralize the current bearish tone and shift focus back to the 1.1612–1.1666 resistance band.
(The technical analysis of this story was written with the help of an AI tool.)
EUR/USD 1-hour chart
Euro Price This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.99% | -0.89% | -0.40% | -0.20% | -1.72% | -1.19% | -0.62% | |
| EUR | 0.99% | 0.12% | 0.53% | 0.79% | -0.70% | -0.20% | 0.37% | |
| GBP | 0.89% | -0.12% | 0.55% | 0.67% | -0.83% | -0.32% | 0.31% | |
| JPY | 0.40% | -0.53% | -0.55% | 0.22% | -1.31% | -0.77% | -0.24% | |
| CAD | 0.20% | -0.79% | -0.67% | -0.22% | -1.56% | -0.98% | -0.42% | |
| AUD | 1.72% | 0.70% | 0.83% | 1.31% | 1.56% | 0.52% | 1.11% | |
| NZD | 1.19% | 0.20% | 0.32% | 0.77% | 0.98% | -0.52% | 0.54% | |
| CHF | 0.62% | -0.37% | -0.31% | 0.24% | 0.42% | -1.11% | -0.54% |
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 fell in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 14,888.97 Indian Rupees (INR) per gram, down compared with the INR 14,941.65 it cost on Tuesday.
The price for Gold decreased to INR 173,662.40 per tola from INR 174,276.40 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 14,888.97 |
10 Grams | 148,890.00 |
Tola | 173,662.40 |
Troy Ounce | 463,106.90 |
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.
(An automation tool was used in creating this post.)
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