The post Asia FX: Diverging paths under Dollar strength – MUFG appeared on BitcoinEthereumNews.com.
MUFG’s Lloyd Chan highlights that external pressures on Asia FX persist as the US Dollar and US Treasury yields stay firm, with markets fully pricing another Fed hike by October. He notes that most Asian currencies have weakened against the Dollar since the June FOMC, but domestic fundamentals and central bank actions are set to drive divergent performances across the region. Regional currencies under external pressure “Most Asian currencies have weakened against the US dollar since the 18 June FOMC meeting.” “In Indonesia, rupiah volatility has eased considerably following Bank Indonesia’s intensified support measures, including policy rate hikes and higher SRBI yields. Nonetheless, the rupiah remains sensitive to higher US yields.” “Meanwhile, the domestic macro backdrop has become somewhat less supportive. Manufacturing activity contracted in June, exports fell 5.8%yoy, the trade bala
The post EUR/USD Price Forecast: Bears retain control within descending channel appeared on BitcoinEthereumNews.com.
EUR/USD holds firm on Wednesday after reversing earlier losses triggered by renewed tensions between the United States (US) and Iran, while traders digest the June Federal Open Market Committee (FOMC) meeting minutes. At the time of writing, the pair is trading around 1.1427 after hitting an intraday low of 1.1391. The US Dollar (USD) saw little immediate reaction to the minutes, suggesting much of the Federal Reserve’s (Fed) message was already reflected in market pricing. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading around 100.97, easing from an intraday high of 101.27. Officials remained cautious about inflation, which remains well above the central bank’s 2% target, while describing labor market conditions as balanced. Policymakers also signaled that the future path of interest rates will depend on
The post Fed minutes show AI joining tariffs as inflation risk, reinforcing higher-for-longer rates appeared on BitcoinEthereumNews.com.
Federal Reserve officials viewed artificial intelligence-driven investment as an emerging source of inflationary pressure at their June policy meeting. They added another reason to keep interest rates elevated, even as the labor market remained stable. Minutes from the June 16–17 Federal Open Market Committee [FOMC] meeting show policymakers increasingly linking AI-related demand with persistent inflation. It reinforces expectations that borrowing costs could stay higher for longer. For crypto markets, that points to a macro backdrop that may delay the liquidity boost typically associated with lower interest rates. Fed says AI investment is adding to inflation pressures The minutes show officials broadly agreed that inflation remained well above the Fed’s 2% target and had become more broad-based. While policymakers continued to cite tariffs and sup
The post US Dollar Index shrugs at unanimous Fed hold that reads anything but unanimous appeared on BitcoinEthereumNews.com.
The US Dollar Index (DXY) spent Wednesday travelling in circles, grinding around 101.00 after the Minutes of the June 16-17 Federal Open Market Committee (FOMC) meeting crossed the wires at 18:00 GMT, capping a session in which traders had already faded another round of Middle East friction. The muted price action undersells the document. A unanimous 12-0 vote to hold the target range at 3.50% to 3.75% papers over a Committee that agrees on very little beyond the decision itself. Read more: FOMC Minutes leans toward higher-for-longer narrative One vote, three arguments Every voter backed June’s hold, and the post-meeting statement shrank to a few terse lines anchored by a bare commitment to delivering price stability. The Minutes reveal what that unity cost: a few participants saw a live case for raising the target range at the meeting itself, and settled for the
The post Breaking: FOMC Minutes lean toward higher-for-longer narrative appeared on BitcoinEthereumNews.com.
The June FOMC Minutes reinforced the Fed’s cautious approach as policymakers unanimously agreed to maintain interest rates unchanged while keeping a close eye on inflation risks. Although officials agreed that downside risks to the labour market had eased somewhat, they generally continued to view upside risks to inflation as elevated. Several participants warned that persistent price pressures could stem from stronger AI-related investment, higher tariffs or renewed tensions in the Middle East, with staff projections revised to show higher inflation in both 2026 and 2027 than previously expected. Importantly, a few policymakers judged that another rate hike could eventually become appropriate, although they still supported leaving policy unchanged at the June meeting. Almost all of those participants indicated that additional tightening would likely be warranted should inflatio
The post Gold slips as Trump’s Iran warning lifts US Dollar appeared on BitcoinEthereumNews.com.
Gold (XAU/USD) price dives over 1.30% on Wednesday as tensions in the Middle East bolstered the Greenback after US President Donald Trump said that the agreement to end the war with Iran was “over.” At the time of writing, XAU/USD trades at $4,059 after hitting a four-day low of $4,021. XAU/USD falls as Oil spike revives Fed tightening risks The yellow metal is feeling the strength of the US Dollar (USD) and also of rising US Treasury yields. US President Trump’s doubts about making a deal with Iran increased the chances of a resumption of attacks, exerting pressure on Oil prices. Western Texas Intermediate (WTI), the US crude Oil benchmark, gains over 3%, with the barrel quoting at $74.50 at the time of writing. This boosted the Greenback as high energy prices pose the risk of high inflation, fueling bets for higher interest rates. The US Dollar Index (DXY), which tracks the buck’s perform
This decision may strain U.S.-Iran relations, complicating future negotiations and peace talks, while impacting regional stability and diplomacy.
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The post Silver Price Forecast: XAG extends lower low sequence, eyes on $55 appeared on BitcoinEthereumNews.com.
Silver prices collapse nearly 2.50% on Wednesday as risk aversion drives traders towards buying the US Dollar, to the detriment of precious metals. At the time of writing, the XAG/USD trades at $58.41 after waking at around $61.03. XAG/USD Price Forecast: Technical outlook Silver is still downward biased, extending the series of successive lower highs and lower lows, besides its trading below the 200-day Simple Moving Average (SMA) at $70.19. The Relative Strength Index (RSI) is bearishly biased as the index approaches oversold territory. For a bearish continuation, if XAG/USD dives below the June 30 daily low of $56.61, this clears the path towards $55.79, the June 26 swing low. Below this level, the next area of interest is the November 13, 2025, daily low-turned-support at $54.39, ahead of the $50.00 figure. On the upside, buyers must clear the latest cycle high of $63.28
The post Japanese Yen falls near multi-decade lows appeared on BitcoinEthereumNews.com.
USD/JPY trades higher near 162.50 on Wednesday, after nearing a four-decade high earlier in the day, as the US Dollar (USD) remains supported by geopolitical risk and caution ahead of the Federal Open Market Committee (FOMC) Minutes. The Japanese Yen (JPY) remains under pressure near multi-decade lows, keeping traders alert to possible intervention from Japanese authorities. Support for the Greenback increased after United States (US) President Donald Trump announced that the interim memorandum of understanding with Iran was “over,” indicating his unwillingness to engage with Tehran. This statement boosted safe-haven demand for the USD and caused a rise in oil prices, which heightens concerns over inflation and global risk sentiment. The focus now shifts to the FOMC Minutes from the meeting held on June 16-17, which was the first under Fed Chair Kevin Warsh. If the tone is hawkish, it could reinforc
