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US Dollar: Strong tone with yield curve support – ING
ING’s Chris Turner notes the Dollar is trading near this year’s highs after another hot US inflation print and hawkish comments from Fed member Chris Waller. ING argues that bearish yield curve flattening typically supports the Dollar versus procyclical currencies.
USD/CHF Price Forecast: Reaches highs near 0.8300 amid strong bullish traction
The US Dollar (USD) rallies Wednesday, fuelled by higher bets of a Federal Reserve (Fed) rate hike in December, with the Swiss Franc (CHF) crushed by higher appetite for risk and an unfavourable monetary policy divergence.
Japanese Yen: Domestic flows hint at medium-term support – MUFG
Derek Halpenny at MUFG highlights that USD/JPY has moved back toward 160 after US CPI, keeping intervention risks elevated. At the same time, JGBs have sold off but sentiment is improving, with stronger household demand and potential tax incentives.
Silver price today: Silver rises, according to FXStreet data
Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $52.92 per troy ounce, up 2.73% from the $51.52 it cost on Tuesday.
EUR/USD: Support holds but upside limited – ING
ING’s Chris Turner highlights that a key technical level at 1.1110 is providing a floor for EUR/USD, marking a 50% retracement of the prior rally. While some profit-taking on short positions is likely, ING sees a weak case for a sustained bounce.
Fed policy: Markets weigh larger December hike – BBH
Brown Brothers Harriman (BBH) reports that stronger US inflation data and hawkish comments from several Fed officials have shifted market focus toward the size of a December rate hike.
British Pound hangs near one-week low, eyes 1.3300 as Fed hike bets lift USD
The GBP/USD pair turns lower for the second straight day following an intraday uptick to the 1.3355 region on Wednesday, sliding back closer to a one-and-a-half-week low, which it touched the previous day.
Silver Price Forecast: XAG/USD surges to near $53 despite rising US bond Yields
Silver price (XAG/USD) is up almost 3% to near $53.00 during the European trading session on Wednesday.
Euro holds ground against Canadian Dollar amid weaker oil prices
EUR/CAD inches higher after posting minor losses in the previous day, trading around 1.5840 during European hours on Wednesday. The currency cross holds ground following the release of final German inflation data.
Fed repricing lifts US Dollar Index – Deutsche Bank
Deutsche Bank’s Henry Allen and colleagues note that a stronger US CPI print and hawkish Federal Reserve rhetoric triggered a sharp repricing of Fed expectations, lifting the Dollar Index and weighing on EUR/USD. Markets now fully price a 25 bp Fed hike in December and see some risk of 50 bp, while US yields surged across the curve, reinforcing Dollar strength.
British Pound turns lower as bulls shrug hawkish BoE; downside seems limited vs weak Yen
The GBP/JPY cross attracts fresh sellers following an intraday uptick to the 212.15-212.20 area on Wednesday, retreating to the lower end of its daily range during the first half of the European session.
US Treasuries: Bear flattening as markets price more hikes – TD Securities
TD Securities reports that US Treasuries bear flattened sharply after stronger US CPI and hawkish comments from Governor Waller led markets to price in additional Fed tightening.
Dow Jones futures surge as easing geopolitical risks, AI earnings revive market sentiment
Dow Jones futures gain 0.16% to trade around 52,400 during the European hours on Wednesday. Meanwhile, S&P 500 futures advance 0.60% to trade around 7,590 and Nasdaq 100 futures rise 1.45% to trade around 28,230.