OMFIF survey shows central banks planning to cut US Dollar exposure for first time ever

The post Australian Dollar falls amid cautious Fedspeak appeared on BitcoinEthereumNews.com. AUD/USD declines toward 0.6940 as the Australian Dollar (AUD) loses momentum, while the US Dollar (USD) remains supported by cautious remarks from the Federal Reserve (Fed) and lingering uncertainty over inflation. The latest United States (US) labor data showed that the ADP Employment Change 4-week average eased to 21K from 24.25K, pointing to a softer pace of private hiring. The figure suggests that labor market momentum is cooling, which could normally weigh on the Greenback. However, the USD held firm as investors remained cautious ahead of more important US data and continued to price in a data-dependent Fed stance. New York Fed President John Williams said the US economy is showing steady trend-like growth and that the job market remains stable. However, he warned that inflation is still quite high, keeping pressure on the Fed to maintain a restrictive policy stance. Williams added that m

The post Swiss Franc eases as hawkish Fed outlook supports US Dollar appeared on BitcoinEthereumNews.com. USD/CHF holds modest gains on Tuesday as traders balance softer US labor market data against hawkish Federal Reserve (Fed) expectations, keeping the US Dollar (USD) range-bound. At the time of writing, the pair is trading around 0.8066, remaining on the front foot for a second consecutive day. Recent US labor market data have come in softer than expected, pointing to a gradual cooling after showing signs of improvement earlier this year. The four-week average of the ADP Employment Change eased to 21K from 24.25K. This follows last week’s disappointing June Nonfarm Payrolls (NFP) report, which showed the US economy added just 57K jobs, well below market expectations of 110K. The softer labor market data have prompted traders to scale back expectations of a near-term Fed rate hike. However, Fed officials continue to stress that inflation remains a concern. New York Fed President John

The post Japanese Yen: Near historic lows against US Dollar – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret highlight the Japanese Yen (JPY) as the best-performing G10 currency on the day, though gains versus the US Dollar (USD) are marginal. Wage data disappointed but remains historically elevated, while USD/JPY trades just below its highest level since 1986 around 162.80. The RSI has eased from overbought territory but stays firmly bullish near 60, underscoring still-strong upside momentum. Yen stabilizes but trend still strong “The yen is outperforming all of the G10 currencies into Tuesday’s NA session, despite its marginal 0.1% gain vs. the USD.” “The stabilization is welcome following Monday’s decline that had had almost fully retraced last week’s (allegedly intervention-driven) rally.” “Labor cash earnings (wage) data released overnight disappointed relative to expectations while remaining elevated at the upper end of their

The post Euro: ECB cautious as euro area outlook stays fragile – BNY appeared on BitcoinEthereumNews.com. BNY’s Geoff Yu cites European Central Bank (ECB) Governing Council member Fabio Panetta, who describes a fragile Euro area outlook with upside inflation risks and downside growth risks. Panetta stresses that policy should not follow a preset path, frames the latest rate hike as recalibration after oil-driven inflation, and says recurring supply shocks may force further adaptation to meet the 2% target. Panetta flags balanced risks for Euro “ECB Governing Council member Fabio Panetta said in Rome that the euro area faces a fragile outlook, with upside risks to inflation still coexisting with downside risks to growth.” “He argued that recent peace talks between the U.S. and Iran could eventually ease energy prices but warned that monetary policy should not follow a preset path.” “Panetta said policymakers must keep a close watch on geopolitical developments, energy markets, supply ch

The post Canadian Dollar steady as trade surplus, Fed outlook cap USD/CAD appeared on BitcoinEthereumNews.com. USD/CAD trades around 1.4205 on Tuesday at the time of writing, virtually unchanged on the day, as investors balance encouraging Canadian economic data against a US Dollar (USD) that remains supported by monetary policy expectations and ongoing geopolitical tensions. Canada released stronger-than-expected trade figures. Merchandise exports rose 0.9% in May, while imports edged down 0.2%, allowing the trade surplus to widen to CAD$4.24B from an upwardly revised CAD$3.41B in April. This marks Canada’s third consecutive monthly trade surplus. Meanwhile, the Ivey Purchasing Managers Index (PMI) eased to 59.7 from 61.3 but remained firmly in expansion territory, signalling that economic activity continues to grow. Despite the upbeat domestic data, the Canadian Dollar (CAD) struggles to gain traction, although higher Oil prices are providing some support. West Texas Intermediate (WT

The post Japanese Yen: Weak against US Dollar with limited upside – NBC appeared on BitcoinEthereumNews.com. National Bank of Canada ’s (NBC) Stéfane Marion and Kyle Dahms highlight the Japanese Yen (JPY) trading near multi-decade lows around 161 per USD, even as long-end yield differentials move in Japan’s favour. They see stretched short yen positioning, rising intervention risk near 162–163, and gradual BoJ normalization limiting further weakness. Their forecast has USD/JPY easing to 158 by year-end and toward 155 by mid-2027. Intervention risk caps yen losses “The yen remains near multi-decade lows despite some improvement in long-end yield spreads. Cautious BoJ normalization and fiscal concerns continue to limit support, while intervention risk around the 162–163 area and crowded yen shorts make further yen weakness look less likely. A sustained yen recovery likely requires lower U.S. yields or a more forceful BoJ.” “Positioning makes the setup more asymmetric. Non-commercial spec

The post British Pound: Capped by layered resistance against US Dollar – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret note the British Pound (GBP) is slightly softer against the US Dollar (USD) after encountering resistance near 1.3400, with limited fresh data and Bank of England (BoE) news. The RSI recovery suggests improving momentum, but multiple resistance levels between 1.3420 and 1.3520 constrain upside. They look for GBP/USD to trade in a 1.3350–1.3450 range in the near term. Momentum improves but upside capped “The pound is soft and also entering Tuesday’s NA session with a fractional 0.1% decline vs. the USD after finding some near-term resistance around 1.3400.” “Fundamental releases have been limited and developments out of the BoE have been limited to media reports of a proposed easing in bank capital rules. Political developments have been limited with markets waiting for fresh news on the looming leadership transiti

The post Polish Zloty: Dovish NBP tone risks downside – ING appeared on BitcoinEthereumNews.com. ING economists Rafal Benecki and Adam Antoniak argue that reduced prospects of further tightening by the European Central Bank (ECB) and Federal Reserve (Fed) should ease external pressure on the Zloty. However, they warn that market concerns over a potentially more dovish National Bank of Poland (NBP) are PLN-negative, and with Euro adoption distant, any softening in NBP rhetoric could pose greater downside risks compared with the Forint’s convergence support. PLN vulnerable to softer NBP tone “As the likelihood of further rate hikes from the European Central Bank has diminished and additional monetary tightening by the Federal Reserve this year appears increasingly doubtful, the external negative pressure on the zloty should diminish.” “Still, the FX market appears worried that the NBP may turn more dovish soon, which is PLN negative.” “By contrast, the National Bank of Hungary’s dovish r