The governor of the Bank of Canada, Tiff Macklem, said that the status of the US dollar as a “global safe asset” could be undermined by President Donald Trump’s trade policies. In his speech on Tuesday, McLeum said that global investors are considering whether the United States’ dominance in global financial flows will weaken as […]
Citigroup analysts denied the claim that global investors are seeking to reduce their reliance on the US dollar, saying that the notion of de-dollarization is a “mirage” unsupported by economic data. In a report to clients, strategists led by Osamu Takashima wrote that the dollar has fallen by nearly 9% this year, but US balance […]
Gold prices have remained on the decline as traders’ cautious attitude towards the possibility of future interest rate cuts by the Federal Reserve and the strengthening of the US dollar have curbed the recent rise in gold. Gold prices were about $60 lower than the record high set on Wednesday, which was triggered by the […]
Before the Federal Reserve made its decision, the US dollar was close to its lowest level since March 2022, and it is expected that Fed policymakers will resume cutting interest rates to support the weak labor market. The US dollar index fell for the third consecutive day, down 0.1%. Traders are awaiting the central bank’s […]
Deutsche Bank’s analysis of exchange-traded funds (ETFs) shows that overseas investors are cutting their dollar exposure at an “unprecedented pace” when purchasing US stocks and bonds by taking currency hedging measures. George Saravelos, the global head of currency research at the bank, wrote in a report released on Monday, citing data from more than 500 […]
Traders said that macro hedge funds have increased their bets on the Australian dollar, boosting their exposure to options that will pay off if the currency continues to rise against major currencies. Data from the Depository Trust & Clearing Corporation (DTC) shows that last week, the volume of options trading on the Australian dollar against […]
Morgan Stanley said that compared with the Japanese yen or the euro, the British pound is more vulnerable to large-scale capital flows and its trading pattern is more similar to some currencies that are far less liquid than the yen or the euro. The bank’s currency analysts found that both the Japanese yen and European […]
Westpac Bank said that Australian pension funds increased their currency hedging on overseas stocks in the last quarter, indicating that many pension funds are closely watching for possible changes in the performance of the US dollar in the safe-haven market. Analysis shows that industry funds dominate Australia’s A$4.3 trillion (US$2.8 trillion) retirement savings system, including […]
On Tuesday, it was reported that despite political instability, Bank of Japan officials are still willing to raise interest rates again this year. Subsequently, hedge funds increased their bets on call options for the Japanese yen. Sagar Sambrani, a senior foreign exchange options trader at Nomura International in London, said, “The Bank of Japan’s statement […]
Goldman Sachs and Bank of America strategists are bullish on the Swiss franc, believing that its support against the Japanese yen is strong as the rise in political uncertainty has weakened the yen’s appeal as a safe-haven asset. Shusuke Yamada, chief Japan foreign exchange and interest rate strategist at Bank of America, wrote in a […]