Forex News
- The Pound Sterling extends its upside to near 1.3535 against the US Dollar, the highest level seen in three months.
- Preliminary US GDP annualized expanded at a strong pace of 4.3% in the third quarter this year.
- Investors expect the BoE to deliver at least one interest rate cut by the first half of 2026.
The Pound Sterling (GBP) revisits the three-month high around 1.3535 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair trades firmly as the Greenback underperforms, with unexpectedly stronger flash United States (US) Q3 Gross Domestic Product (GDP) data failing to diminish Federal Reserve (Fed) dovish expectations.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh 11-week low near 97.75.
The US Bureau of Economic Analysis (BEA) reported on Tuesday that the economy grew by 4.3% compared to the same quarter of the previous year, faster than 3.8% in the second quarter this year.
Meanwhile, the CME FedWatch tool shows that traders see a 70.6% that the Fed will reduce interest rates by at least 50 bps in 2026. The expected scope of interest rate cuts is higher than the single cut projected for next year by officials in the monetary policy announcement last week.
Federal Reserve (Fed) dovish expectations for 2026 remain upbeat as the US GDP report released on Tuesday lacks evidence of strong job creation despite robust growth. The report showed that businesses invested heavily in equipment and Artificial Intelligence (AI).
Economists have stated that the strong GDP growth appears to be more of a K-shaped recovery, with household spending remaining heavy in recreational activities. The demand by low and middle-income households remains weak due to high inflation and a sluggish job market.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.15% | -0.30% | -0.13% | -0.20% | -0.13% | -0.22% | |
| EUR | 0.09% | -0.06% | -0.22% | -0.04% | -0.11% | -0.04% | -0.14% | |
| GBP | 0.15% | 0.06% | -0.15% | 0.02% | -0.04% | 0.02% | -0.07% | |
| JPY | 0.30% | 0.22% | 0.15% | 0.20% | 0.11% | 0.17% | 0.09% | |
| CAD | 0.13% | 0.04% | -0.02% | -0.20% | -0.09% | -0.03% | -0.10% | |
| AUD | 0.20% | 0.11% | 0.04% | -0.11% | 0.09% | 0.06% | -0.07% | |
| NZD | 0.13% | 0.04% | -0.02% | -0.17% | 0.03% | -0.06% | -0.09% | |
| CHF | 0.22% | 0.14% | 0.07% | -0.09% | 0.10% | 0.07% | 0.09% |
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).
Pound Sterling trades higher ahead of US Initial Jobless Claims data
- The Pound Sterling trades broadly higher against its major currency peers ahead of Christmas Eve on Wednesday. The British currency has remained firm since the monetary policy announcement by the Bank of England (BoE) last Thursday, as it maintained the gradual monetary easing stance.
- At the meeting, the BoE reduced interest rates by 25 bps to 3.75% with a tight 5:4 vote, and guided that monetary policy will remain on a gradual downward path. The BoE refrained from supporting aggressive easing as inflation is still well higher than the 2% target despite cooling down in the last two months.
- The United Kingdom (UK) headline inflation has decelerated to 3.2% YoY in November after peaking at 3.8% in the July-September period.
- The BoE kept the door open for further interest rate cuts as UK labor market conditions have remained weak.
- Meanwhile, investors seek fresh cues about how much the BoE will cut interest rates in 2026. According to a report from Reuters, traders expect the central bank to deliver at least one 25-bps interest rate cut in the first half of next year.
- In Wednesday’s session, the GBP/USD pair will be influenced by the US Initial Jobless Claims data, which will be published at 13:30 GMT.
Technical Analysis: GBP/USD aims to stabilize above 61.8% Fibonacci retracement level at 1.3496
On the daily chart, GBP/USD trades at 1.3513. The pair holds above the rising 20-day EMA at 1.3364, keeping the short-term bias pointing higher.
The 14-day Relative Strength Index (RSI) at 70.12 is overbought and warns of stretched momentum. Measured from the 1.3794 high to the 1.3014 low, the 61.8% Fibonacci retracement level at 1.3496 has been reclaimed, while the 78.6% retracement at 1.3627 is the next resistance.
Trend support remains defined by the ascending 20-day EMA, with dips expected to test that area. The previously mentioned RSI would need to cool to ease upside pressure and allow consolidation. A close below the 50% Fibonacci retracement level at 1.3404 would dent the bullish tone and expose the 38.2% retracement at 1.3312. If the latter is breached, it would open the room to a further extension of the recovery.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
BoE Interest Rate Decision
The Bank of England (BoE) announces its interest rate decision at the end of its eight scheduled meetings per year. If the BoE is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Pound Sterling (GBP). Likewise, if the BoE adopts a dovish view on the UK economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for GBP.
Read more.Last release: Thu Dec 18, 2025 12:00
Frequency: Irregular
Actual: 3.75%
Consensus: 3.75%
Previous: 4%
Source: Bank of England
- USD/CHF falls further to near 0.7830 amid weakness in the US Dollar.
- The Greenback underperforms despite strong US Q3 GDP data.
- The Swiss Franc trades higher in a holiday-shortened week.
The USD/CHF pair extends its losing streak for the third trading day on Wednesday. The Swiss Franc pair posts a fresh three-month low at 0.7860 during the European trading session as the US Dollar (USD) continues to underperform its peers despite surprisingly upbeat United States (US) Q3 Gross Domestic Product (GDP) data.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.63% | -0.93% | -1.12% | -0.88% | -1.51% | -1.75% | -0.99% | |
| EUR | 0.63% | -0.30% | -0.51% | -0.26% | -0.89% | -1.12% | -0.36% | |
| GBP | 0.93% | 0.30% | -0.13% | 0.04% | -0.60% | -0.83% | -0.06% | |
| JPY | 1.12% | 0.51% | 0.13% | 0.28% | -0.34% | -0.58% | 0.05% | |
| CAD | 0.88% | 0.26% | -0.04% | -0.28% | -0.55% | -0.87% | -0.10% | |
| AUD | 1.51% | 0.89% | 0.60% | 0.34% | 0.55% | 0.06% | 0.54% | |
| NZD | 1.75% | 1.12% | 0.83% | 0.58% | 0.87% | -0.06% | 0.78% | |
| CHF | 0.99% | 0.36% | 0.06% | -0.05% | 0.10% | -0.54% | -0.78% |
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).
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades close to the three-month low of 97.75 posted during the day.
The data showed on Tuesday that the US economy grew strongly at an annualized pace of 4.3%. Economists expected the GDP growth to come in lower at 3.3% from 3.8% seen in the second quarter this year.
The US Dollar has remained under pressure due to firm expectations that the Federal Reserve (Fed) will deliver more than one interest rate cut, as projected by officials in the monetary policy announced last week.
Meanwhile, the Swiss Franc (CHF) trades higher against its major peers ahead of Christmas Eve.
USD/CHF technical analysis
USD/CHF trades lower to near 0.7860. It extends its slide below a declining 20-day Exponential Moving Average (EMA) at 0.7966, with the average turning lower and capping rebounds. The bearish alignment continues to put pressure on the pair.
The 14-day Relative Strength Index (RSI) at 31 (near oversold) confirms weak momentum.
Bearish momentum would persist while price remains beneath the 20-day EMA, and a daily close below the September 17 low of 0.7830 would elevate downside pressure.
(The technical analysis of this story was written with the help of an AI tool.)
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.
- USD/JPY surrenders its entire gains made on the BoJ policy announcement day, and retraces to near 155.80.
- Investors are in vogue over the outlook of the BoJ’s monetary tightening campaign.
- The Fed is expected to cut interest rates by at least 50 bps next year.
The USD/JPY pair trades 0.23% lower to near 155.80 during the European trading session on Wednesday. The pair extends its losing streak for the third trading day on Wednesday, which started after failing to gain further above an almost 11-month high near 158.00.
Japanese Yen Price This week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.66% | -0.95% | -1.11% | -0.88% | -1.51% | -1.75% | -0.95% | |
| EUR | 0.66% | -0.29% | -0.51% | -0.23% | -0.87% | -1.11% | -0.31% | |
| GBP | 0.95% | 0.29% | -0.11% | 0.06% | -0.58% | -0.81% | -0.01% | |
| JPY | 1.11% | 0.51% | 0.11% | 0.28% | -0.35% | -0.59% | 0.07% | |
| CAD | 0.88% | 0.23% | -0.06% | -0.28% | -0.56% | -0.87% | -0.07% | |
| AUD | 1.51% | 0.87% | 0.58% | 0.35% | 0.56% | 0.05% | 0.57% | |
| NZD | 1.75% | 1.11% | 0.81% | 0.59% | 0.87% | -0.05% | 0.82% | |
| CHF | 0.95% | 0.31% | 0.00% | -0.07% | 0.07% | -0.57% | -0.82% |
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).
The pair has given up its entire gains made following the monetary policy announcement by the Bank of Japan (BoJ) on Thursday, in which it raised interest rates by 25 basis points (bps) to 0.75%. The Japanese Yen (JPY) fell sharply as the BoJ didn’t provide guidance on the scope and timeframe for further interest rate hikes.
Meanwhile, the Yen has been gaining higher this week due to threats of intervention by Japan’s Finance Minister (FM) Satsuki Katayama against excessive one-sided moves.
Going forward, the Japanese Yen will be influenced by the Tokyo Consumer Price Index (CPI) data for December, which will be released on Friday. Tokyo CPI ex. Fresh Food is expected to have grown at an annualized pace of 2.5%, slower than 2.8% in November.
In addition to Yen’s recovery, persistent weakness in the US Dollar (USD) due to firm Federal Reserve (Fed) dovish expectations for 2026 has also strengthened the pair. The CME FedWatch tool shows the odds of the Fed reducing interest rates at least 50 bps in 2026 are 70.6%.
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.
- The Euro-Dollar trades in a narrow range around 1.1800 as volumes thin ahead of Christmas
- The US Dollar struggles to gain traction despite solid US growth and robust macro data
- Diverging monetary policy expectations help keep a constructive bias for the Euro
EUR/USD trades around 1.1800 on Wednesday at the time of writing, up 0.10% on the day, after reaching its highest level since late September earlier in the day. The pair is consolidating its recent gains in a low-liquidity environment, with investors remaining cautious ahead of the Christmas holidays.
The US Dollar (USD) remains under pressure despite the release of strong US Gross Domestic Product data. The Bureau of Economic Analysis reported that the US economy expanded at an annualized rate of 4.3% in the third quarter, following 3.8% growth in the previous quarter, well above market expectations. However, the data provided only temporary support to the Greenback, as investors judge that this pace of growth is not accompanied by sufficient momentum in the labor market.
Comments from US President Donald Trump also weigh on the currency. By openly criticizing monetary policy and calling for lower interest rates when markets are performing well, the president has revived concerns about the independence of the Federal Reserve (Fed), limiting the appeal of the US Dollar. Against this backdrop, the US Dollar Index (DXY), which tracks the Greenback against a basket of major currencies, trades near a multi-week low.
Monetary policy expectations continue to guide market sentiment. According to the CME FedWatch tool, investors are now pricing in a high chance of cumulative rate cuts by the Federal Reserve in 2026, a more accommodative outlook than suggested by the central bank’s latest official projections. This view is reinforced by the composition of US growth, which reflects strong corporate investment, particularly in artificial intelligence, but weaker demand from lower- and middle-income households constrained by inflation and a softer labor market.
On the European side, the European Central Bank (ECB) left its three key interest rates unchanged at its latest meeting. ECB President Christine Lagarde emphasized that the institution is in a good position and that all options remain open. Money markets assign only a limited chance to an ECB rate cut in early 2026, a factor that could help limit downside pressure on the Euro against the US Dollar.
Overall, the year-end environment, combined with more accommodative US monetary policy expectations and a cautious stance in the Eurozone, favors a phase of consolidation for EUR/USD around 1.1800 following the gains recorded in recent days.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.16% | -0.28% | -0.13% | -0.19% | -0.13% | -0.18% | |
| EUR | 0.08% | -0.08% | -0.22% | -0.05% | -0.11% | -0.05% | -0.10% | |
| GBP | 0.16% | 0.08% | -0.13% | 0.03% | -0.02% | 0.04% | -0.01% | |
| JPY | 0.28% | 0.22% | 0.13% | 0.15% | 0.11% | 0.15% | 0.11% | |
| CAD | 0.13% | 0.05% | -0.03% | -0.15% | -0.08% | -0.03% | -0.06% | |
| AUD | 0.19% | 0.11% | 0.02% | -0.11% | 0.08% | 0.06% | -0.03% | |
| NZD | 0.13% | 0.05% | -0.04% | -0.15% | 0.03% | -0.06% | -0.05% | |
| CHF | 0.18% | 0.10% | 0.01% | -0.11% | 0.06% | 0.03% | 0.05% |
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).
- The Indian Rupee edges down against the US Dollar as FIIs continue to pare stake in the Indian equity market.
- Indian Rupee’s forward premiums correct after the RBI announces 3-year $10 billion USD/INR buy-sell swap.
- The US Q3 GDP unexpectedly expanded at a robust pace of 4.3%.
The Indian Rupee (INR) faces selling pressure against the US Dollar (USD) on Wednesday. The USD/INR pair recovers to near 90.20, but is broadly in the corrective phase, following the Reserve Bank of India’s (RBI) intervention last week.
The RBI sold US Dollars in the spot and Non-Deliverable Forward (NDF) market in two trading days: Wednesday and Friday, last week to support the Indian Rupee against one-way depreciation.
However, investors refrain from relying on the Indian Rupee’s recovery as Foreign Institutional Investors (FIIs) continue to offload their stake in the Indian stock market. So far in December, FIIs have remained net sellers in 14 out of 17 trading days, and have sold shares worth Rs. 22,109.51 crore.
Market experts believe that overseas investors are unlikely to return to the Indian equity market until a bilateral deal between the United States (US) and India is announced.
Meanwhile, the USD/INR January month-end forward premium has eased to 41 paisa from a peak of 58 paisa seen on Tuesday after the Reserve Bank of India (RBI) announced on Tuesday that it would conduct a 3-year $10 billion USD/INR buy-sell swap next month, Reuters reported.
The table below shows the percentage change of Indian Rupee (INR) against listed major currencies today. Indian Rupee was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | INR | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.07% | -0.17% | -0.28% | -0.12% | -0.19% | 0.34% | -0.18% | |
| EUR | 0.07% | -0.10% | -0.24% | -0.05% | -0.12% | 0.41% | -0.11% | |
| GBP | 0.17% | 0.10% | -0.13% | 0.04% | -0.02% | 0.51% | -0.01% | |
| JPY | 0.28% | 0.24% | 0.13% | 0.19% | 0.11% | 0.64% | 0.11% | |
| CAD | 0.12% | 0.05% | -0.04% | -0.19% | -0.08% | 0.46% | -0.07% | |
| AUD | 0.19% | 0.12% | 0.02% | -0.11% | 0.08% | 0.54% | -0.03% | |
| INR | -0.34% | -0.41% | -0.51% | -0.64% | -0.46% | -0.54% | -0.52% | |
| CHF | 0.18% | 0.11% | 0.01% | -0.11% | 0.07% | 0.03% | 0.52% |
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 Indian Rupee from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent INR (base)/USD (quote).
Fed dovish bets for 2026 remain firm despite strong US Q3 GDP data
- The Indian Rupee falls marginally against the US Dollar, even as the latter trades vulnerably due to firm expectations that the Federal Reserve (Fed) will deliver at least 50 basis points (bps) reduction in interest rates in 2026.
- In Asian trading hours, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh 11-week low at 97.75.
- The CME FedWatch tool shows that the odds of the Fed reducing interest rates at least 50 bps in 2026 are 70.6%. Market speculation towards the scope of US interest rate cuts is higher than what the Fed signaled in its dot plot last week. The Fed’s dot plot showed that policymakers collectively see the Federal Funds Rate heading to 3.4% by the end of 2026, indicating that there won’t be more than one interest rate cut.
- Fed dovish expectations are intensified due to weak job market conditions and hopes that tariffs won’t de-anchor inflation expectations.
- Meanwhile, surprisingly upbeat US Q3 Gross Domestic Product (GDP) data has failed to deliver a material impact on Fed dovish speculation. The GDP report showed on Tuesday that the economy grew at an annualized pace of 4.3%, stronger than 3.8% in the second quarter. Economists expected the GDP growth to come in lower at 3.3%.
- Going forward, the US Dollar is expected to trade on the sidelines amid holidays in the FX market on account of Christmas and Boxing Day.
Technical Analysis: USD/INR strives to return above 20-day EMA
-In the daily chart, USD/INR trades at 90.2085. It holds above the 20-day EMA at 90.1621, though the average has begun to flatten after a steady climb, preserving a mild bullish bias. RSI at 53 (neutral) reflects cooled momentum from prior overbought readings. The rising trend line from 83.9428 underpins the setup, with support aligning near 89.1667. Holding above the average keeps the bias positive, while a close below trend support would turn the tone lower.
Momentum has eased, yet the broader uptrend remains anchored by trend support. RSI near the midline lacks directional impulse; a push back into the 60s would reinforce bullish appetite. While the structure holds, pullbacks would attract buyers, and the pair could extend higher. A break of the supporting line would open the door to a deeper retracement.
(The technical analysis of this story was written with the help of an AI tool.)
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.
Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $71.66 per troy ounce, up 0.19% from the $71.53 it cost on Tuesday.
Silver prices have increased by 148.02% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 71.66 |
1 Gram | 2.30 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 62.59 on Wednesday, down from 62.88 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.)
- EUR/JPY may rebound toward the all-time high of 184.95.
- The 14-day Relative Strength Index stands at 62.20, supporting positive momentum.
- The immediate support is seen at the nine-day EMA of 183.37.
EUR/JPY extends its losses for the third successive session, trading around 183.70 during the European hours on Wednesday. The currency cross remains within the ascending channel pattern, suggesting a persistent bullish bias. Additionally, the 14-day Relative Strength Index (RSI) sits at 62.20, easing from overbought yet still supportive of positive momentum.
The EUR/JPY cross holds above the nine-day Exponential Moving Average (EMA) and the 50-day EMA, with both averages rising and confirming a bullish structure. The short-term average remains above the medium-term gauge, keeping the upside bias in place. The broader tone favors dip-buying while price holds over the rising 50-day EMA.
The EUR/JPY cross may rebound toward the all-time high of 184.95, which was recorded on December 22, aligned with the psychological level of 185.00. Further advances would support the currency cross to test the upper boundary of the ascending channel around 185.70.
The immediate support lies at the nine-day EMA of 183.37, followed by the lower ascending channel boundary. A break below the channel would weaken the bullish bias and put downward pressure on the pair to test the two-week low of 181.57, recorded on December 17. Further declines would open the doors for the currency cross to explore the region around the 50-day EMA at 180.15.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.17% | -0.36% | -0.11% | -0.17% | -0.12% | -0.16% | |
| EUR | 0.08% | -0.09% | -0.29% | -0.04% | -0.09% | -0.04% | -0.08% | |
| GBP | 0.17% | 0.09% | -0.21% | 0.04% | -0.00% | 0.05% | 0.00% | |
| JPY | 0.36% | 0.29% | 0.21% | 0.26% | 0.19% | 0.24% | 0.21% | |
| CAD | 0.11% | 0.04% | -0.04% | -0.26% | -0.07% | -0.02% | -0.04% | |
| AUD | 0.17% | 0.09% | 0.00% | -0.19% | 0.07% | 0.05% | -0.02% | |
| NZD | 0.12% | 0.04% | -0.05% | -0.24% | 0.02% | -0.05% | -0.04% | |
| CHF | 0.16% | 0.08% | -0.01% | -0.21% | 0.04% | 0.02% | 0.04% |
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).
(The technical analysis of this story was written with the help of an AI tool.)
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