Pboc 

Reforms of the PBoC's loan prime rate (LPR) have opened up the door for potential rate cuts and should immediately offer up a reprive to Chinese companies.

USDCNH swaps gapped lower before the spot market opened. Despite the LPR reforms not being direct rate cuts or a liquidity injection, given the recent elevated levels in FX funding Swaps and weak economic data, Swaps markets are expected to come under selling pressure in the next few sessions.

This new system is supposed to be more market-based. It's designed to lower borrowing costs for the real economy, rather than cut existing interest rates straight away, signalling a continuation of Beijing's targeted-easing approach. 

While not quite the policy bazooka the market so desperately needs, still with the Pboc opening the taps to a possible policy cut, it should provide a much-needed boost to regional sentiment and global commodity prices.

Oil 

Oil markets continue to trade on a favourable tone boosted by the prospects of more aggressive central bank policy stimulus while the terrorist attack on a Saudi gas terminal has temporarily increased middle east risk premiums.

Gold 

XAUUSD has been range-bound this morning trading with a softer bias as equity sentiment remains positive. With a big play unlikely in the cards ahead of the Jackson Hole symposium, traders will look to short-term momentum for intraday trading cues. In the medium-term, the market remains biased to buy XAUUSD on dips while prices remain above 14880-85, with further support into 1450. On the topside, the next significant resistance level to overcome is 1535/50 where breakout orders are getting sizably layered.

Euro

EURUSD remains under pressure, with euro cross  being aggressive offered this morning following last weeks dovish comments from ECB Governing Council member Rehn 

Yen
Range trade setting mentality is setting in today, but JPY  pair remain susceptible to headlines on trade and risk, so G-10 traders are closely monitoring  US equities and yields.

Vanguard Market Pte Ltd provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily Vanguard Markets Pte Ltd or its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD holds above 1.10 post-hawkish Fed cut

EUR/USD manages to hold above the1.10 after the Fed cut rates but signaled no further rate reductions. The bank acknowledged the strong labor market and robust consumption. However, it is worried about investment.

EUR/USD News

GBP/USD: Rising wedge at the top inflates downside risk

GBP/USD portrays a short-term rising wedge bearish formation while trading near 1.2475 during the Asian session on Thursday. One-week-old rising wedge surrounding monthly tops questions buyers.

GBP/USD News

USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 

USD/JPY News

Bitcoin dives below $10,000

Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. 

Read more

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Majors

Cryptocurrencies

Signatures