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Canadian Dollar retreats as US Dollar benefits from Fed rate hike bets
USD/CAD trades on the front foot on Tuesday, supported by a firmer US Dollar (USD), while trade tensions between the United States (US) and Canada and diverging Federal Reserve (Fed) and Bank of Canada (BoC) policy expectations weigh on the Canadian Dollar (CAD).
Chile IMACEC below forecasts (0.4%) in July: Actual (-1.5%)
Chile IMACEC below forecasts (0.4%) in July: Actual (-1.5%)
US Dollar: Warsh boost fades as Fed pricing holds – ING
ING’s Francesco Pesole notes the Dollar has surrendered around half of its post-Jackson Hole gains, even as front-end US rates remain firmly supported. He argues that concerns over long-end yields and potential Treasury intervention are feeding a debasement narrative.
Euro: ECB tightening seen limiting downside – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is trading heavy just below 1.1600 as Eurozone August Consumer Price Index (CPI) confirmed easing underlying inflation, with core and services measures slowing.
European Central Bank: Inflation risks support another hike - Nordea
Nordea strategists note that Euro-area flash inflation rose to 3.3% year-on-year in August, driven mainly by higher energy inflation, while core inflation edged down to 2.4% on weaker services.
Brazil Gross Domestic Product (YoY) came in at 2%, above forecasts (1.8%) in 2Q
Brazil Gross Domestic Product (YoY) came in at 2%, above forecasts (1.8%) in 2Q
Brazil Gross Domestic Product (QoQ) came in at 0.5%, above expectations (0.4%) in 2Q
Brazil Gross Domestic Product (QoQ) came in at 0.5%, above expectations (0.4%) in 2Q
Indian Rupee: Strong GDP underpins higher INR yields – MUFG
MUFG’s Michael Wan highlights India’s strong GDP data, with Q1 FY2026-27 growth at 7.8% year-on-year versus 7.1% consensus. Resilient domestic demand, robust credit growth and supportive fiscal policy underpin his view that Indian rates are likely to grind higher.
Gold Price Forecast: XAU/USD extends reversal below $4.400 amid Fed hawkish repricing
Gold (XAU/USD) resumed its decline on Tuesday, following a flat performance on Monday, reaching fresh two-week lows at $4,375 so far, posting a nearly 7% decline from last week’s peak, near $4,700.
Japanese Yen: Policy pressure and FX path – Rabobank
Rabobank’s Jane Foley examines Japanese Yen (JPY) weakness amid Prime Minister Sanae Takaichi’s preference for low interest rates, US Treasury pressure on BoJ policy and recent coordinated FX intervention.
EUR/USD Price Forecast: Upbeat US Dollar stresses on major currency pair
The Euro (EUR) trades 0.2% lower to near 1.1593 against the US Dollar (USD) during the European trading session on Tuesday.
US Dollar: September hike odds stay elevated – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar has recovered most of its recent pullback as Fed funds futures price a 67% chance of a 25 bps rate hike on September 16 and 60 bps of tightening over twelve months.
Gold struggles below $4,400 as Fed rate hike bets dominate
Gold (XAU/USD) extends its pullback from the more-than-three-month high touched last week and falls to a fresh two-week low on Tuesday. Rising expectations of Federal Reserve (Fed) interest rate hikes and fresh tensions in the Middle East remain the main drivers behind the latest leg lower.