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Markets edged higher on Thursday as renewed optimism around global trade negotiations fueled risk-on sentiment. The US Dollar broadly weakened, allowing the British Pound and New Zealand Dollar to gain ground. Meanwhile, the Japanese Yen held firm near two-week highs, and Silver prices dropped toward $39.00 amid fading safe-haven demand. The PBOC’s stronger Yuan fix further signaled cautious confidence from Chinese policymakers.
Silver has dropped toward $39.00, sliding from recent highs as investor optimism around global trade deals reduces safe-haven demand. Despite underlying industrial usage, lack of risk-off momentum and a weaker USD are exerting downward pressure on the metal’s price.
Geopolitical Risks: Heightened optimism surrounding trade negotiations, particularly between the US and its key partners, is sapping demand for safe-haven assets like silver. With fewer geopolitical scares on the horizon, riskier assets are winning trader preference, pushing metals lower.
US Economic Data: Recent US data has been mixed, leaving the dollar somewhat subdued, which typically supports silver. However, the improved trade outlook has had a more dominant effect, overrunning short-term dollar weakness.
FOMC Outcome: The Fed’s steady tone and lack of hawkish surprises this week are keeping silver near range lows as traders refocus on growth and trade, rather than policy shifts.
Trade Policy: Renewed positivity around trade deals has curbed the recent rally in precious metals, as the perceived need for hedging resides in better economic conditions—not uncertainty.
Monetary Policy: With global central banks maintaining dovish or neutral stances and inflation ticking lower, silver’s appeal is dampened without strong catalysts to drive a move higher.
Trend: Silver is currently in a short-term downtrend, supported only by higher-timeframe moving averages near $38.50, signaling cautious tone among traders.
Resistance: The nearest resistance is at $39.40, with a more significant barrier at $39.80, where bulls would need to break through to regain upward momentum.
Support: Immediate support lies at $38.70, followed by $38.20—a break below this levels increases the chance of a drop toward $38.00.
Forecast: Silver is likely to continue drifting lower if global trade optimism holds firm. A sustained push below $38.50 could confirm a short-term bearish path toward $38.00.
Market Sentiment: Investor sentiment has swung from cautious to more optimistic on trade news, diminishing appetite for protection via precious metals. Silver is trading lower as capital rotates toward equities and cyclical assets.
Catalysts: Watch for fresh trade agreement headlines, US economic releases like PMI or CPI data, and any unexpected central bank commentary that could shift risk sentiment and influence silver pricing.
GBP/USD extended its gains to around 1.3850, surging on the back of renewed optimism over global trade agreements. The British Pound was heavily supported by a weaker US Dollar, as investors increasingly position for improved market sentiment and risk appetite.
Geopolitical Risks: Diminishing concerns over imminent trade disputes have reduced safe-haven demand for the USD, favoring pro-risk currencies like GBP. The upbeat global trade narrative is reinforcing investor confidence in growth-sensitive assets.
US Economic Data: Recent data has shown signs of cooling, dulling the USD’s rally and giving the Pound room to rally. Weakness in US inflation and retail figures this week has supported the move.
FOMC Outcome: The Fed’s neutral tone and lack of hawkish commentary have further undermined the greenback, tilting currency flows toward higher-yielding and risk-exposed assets.
Trade Policy: Positive signals around US-UK and broader global trade coordination are acting as a tailwind for GBP. Market sentiment reflects growing confidence in smoother trade flows ahead.
Monetary Policy: The BoE’s cautious approach, combined with a delayed Fed, enhances GBP attractiveness—especially in a market leaning toward growth and trade.
Trend: GBP/USD is in a strong uptrend, having broken through multiple resistance levels in the past week, making a bullish structure intact.
Resistance: Immediate resistance is at 1.3880, with a key psychological target at 1.3900.
Support: Support lies at 1.3800, followed by 1.3750, providing a buffer for any pullbacks.
Forecast: As long as the pair maintains above 1.3800, the upside momentum is likely to persist. Sustained trade optimism could push it toward 1.3900+.
Market Sentiment: Risk-on sentiment is supporting GBP flows as traders rotate out of the USD into growth-centric currencies. The Pound benefits significantly from the broader risk-friendly mood.
Catalysts: Key drivers for near-term moves include trade headlines, UK economic releases, and any Fed commentary that may alter USD strength dynamics.
NZD/USD surged past the 0.6050 level as renewed optimism around global trade negotiations powered risk sentiment. The New Zealand Dollar gained traction on the back of strong demand for higher-yielding currencies and a broad-based pullback in the USD.
Geopolitical Risks: Better-than-expected progress in global trade talks, especially involving China and the US, has lifted regional currencies like the NZD amid risk-on sentiment. With uncertainties receding, safe-haven flows are diminishing, further supporting the kiwi.
US Economic Data: Moderate US macro readings this week have eased inflationary concerns, weakening the dollar and providing a constructive backdrop for NZD gains.
FOMC Outcome: Fed officials’ cautious tone continues to temper the greenback’s momentum, helping the NZD/USD cross hold firm above key levels.
Trade Policy: Strengthened trade sentiment is particularly favorable for the export-heavy New Zealand economy, enhancing NZD appeal relative to other currencies.
Monetary Policy: With the RBNZ maintaining its current stance, the NZD’s appeal remains strongly tied to external factors like trade optimism, which currently paints a favorable picture.
Trend: NZD/USD is forming a bullish channel, marked by successive higher highs and lows in recent sessions.
Resistance: The pair faces resistance around 0.6070, with potential upside extending toward 0.6100 if momentum continues.
Support: Key support levels lie at 0.6020, followed by 0.5990, which could serve as entry zones for buyers during pullbacks.
Forecast: A continued positive trade agenda could propel NZD/USD toward 0.6100, but a rejection at 0.6070 may trigger a temporary pullback toward 0.6020–0.6000.
Market Sentiment: Market mood remains strongly risk-on, with investors favoring currencies tied to growth and trade flows, including the kiwi.
Catalysts: Watch for developments in US-China trade dialogues, Australian/NZD inflation releases, and any major shifts in global risk sentiment—all of which could drive further movement in NZD/USD.
USD/CNY is trading near 7.1400 after the PBOC set the reference rate at 7.1385, a modestly stronger level compared to 7.1414 yesterday. The slight adjustment underscores the central bank’s intention to stabilize the yuan as global trade optimism and USD softness continue to influence markets.
Geopolitical Risks: While US‑China trade optimism remains in play, broader geopolitical tensions still loom, prompting cautious currency guidance from Beijing to temper volatility.
US Economic Data: Mixed US macro signals have softened demand for the dollar, but the PBoC’s intervention limits yuan appreciation even during risk-on moves.
FOMC Outcome: The Fed’s neutral-to-dovish messaging continues to depress the USD, but China’s central bank is tactfully preventing yuan overstrength.
Trade Policy: Ongoing progress in trade discussions adds risk-positive vibes to China’s currency, but Beijing is actively intervening to maintain controlled appreciation.
Monetary Policy: The PBoC remains in a cautionary mode, combining liquidity support domestically with FX stabilization to ensure orderly yuan trading.
Trend: USD/CNY is in a neutral band between 7.1360–7.1460, reflecting PBoC’s tight references and sticky USD dynamics.
Resistance: Resistance lies at 7.1460, the previous fix, with major upside capped around 7.1500.
Support: Key support is near 7.1360, followed by a deeper floor around 7.1300.
Forecast: The yuan is set to trade within the current range unless fresh trade developments or PBoC guidance shift sentiment—being managed to avoid extremes.
Market Sentiment: Sentiment is cautiously optimistic; traders welcome trade progress but are wary of policy intervention limiting yuan moves.
Catalysts: Watch for PBoC statements, Chinese economic releases, and US trade headlines for cues on whether the band will expand or remain constrained.
USD/JPY hit a two‑week low around 156.20, reflecting renewed Japanese Yen strength amid broad USD weakness driven by positive trade sentiment. The domestic currency continues to attract demand as investors rotate out of safe-haven USD into regional currency beneficiaries of risk-on momentum.
Geopolitical Risks:
With no significant global risk events currently unfolding, traders are more focused on carry-driven flows and regional optimism, with limited safe‑haven demand for USD.
US Economic Data:
Mixed US releases this week have softened expectations for further Fed tightening, weakening the USD and indirectly supporting Yen appreciation.
FOMC Outcome:
The Fed’s recently cautious tone reinforces the pattern of USD sluggishness, allowing other currencies like the JPY to benefit.
Trade Policy:
Progress in US-China trade talks is lifting risk-on sentiment globally, which typically leads to USD selling and supports JPY strength in certain carry trade unwinds.
Monetary Policy:
The Bank of Japan’s ongoing ultra‑dovish stance contrasts with slightly softer USD, making yield differentials less relevant in today’s environment—yen appreciation reflects broader FX sentiment instead.
Trend: The short-term trend is bullish for JPY (bearish for USD/JPY) as the pair has broken below recent consolidation around 157.00.
Resistance: Resistance for USD/JPY now sits at 157.00, then 157.50, where old support levels may act as barriers.
Support: Initial support is at 156.00, with the next level seen near 155.50 should momentum continue.
Forecast: If risk appetite remains elevated and USD weakness persists, USD/JPY could test further downside toward the 155.50–156.00 zone before stabilizing.
Market Sentiment: Market sentiment remains risk-on, favoring cyclical and regional currencies over USD as carry trade flows adjust.
Catalysts: Upcoming US labor market data and any renewed global trade headlines will be key in determining if USD/JPY maintains its current downward move.
Risk appetite returned to markets as trade optimism pushed the US Dollar lower and lifted key currencies like the Yen, Kiwi, and Sterling. Commodity moves mirrored this shift, with Silver pulling back as investors rotated away from safety. All eyes now turn to upcoming trade developments and key US economic data that may set the tone for the week ahead.
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