The U.S. dollar index jumped to a seven-week high in a broad rally on Friday after data showed that employers added far more jobs in January than expected, reducing the chances of near-term Federal Reserve interest rate cuts.
Nonfarm payrolls increased by 353,000 last month, beating economists’ expectations for a gain of 180,000. Average hourly earnings increased 0.6% after rising 0.4% in December.
It “blew away expectations,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The market has further cut the chances of a March cut and reduced the amount of cuts (it expects) the Fed will deliver this year.”
The dollar had weakened in recent days in line with falling Treasury yields, even after Fed Chair Jerome Powell on Wednesday said that a March rate cut was unlikely.
Treasuries benefited from safe haven demand due to renewed concerns about the financial health of U.S. regional banks. But these concerns eased on Friday as U.S. regional bank stocks recovered slightly from a brutal two-day sell-off, helping send yields higher.
Recent moves in the dollar and Treasury yields in large part also reflect repositioning, following a strong January for the greenback and higher Treasury yields during the month.
“After a big move in most of January, I would say there was some position adjusting,” said Chandler. After Friday’s data, however, “I’m looking for a firmer dollar tone,” he added.
The dollar index reached 104.04, the highest since Dec. 12. The euro fell to $1.07810, holding just above the $1.07800 level reached on Thursday, which was the weakest since Dec. 13. The greenback rose to 148.58 yen, just below the 148.80 level reached on Jan. 19, which was the highest since Nov. 28 .
Traders are now pricing in a 21% chance of a rate cut in March, down from 38% on Thursday, and a 75% probability for May, down from 94%, according to the CME Group’s FedWatch Tool.
Sterling fell to $1.26140, the lowest since Jan. 17. The British currency had gained on Thursday after the Bank of England kept interest rates at a nearly 16-year high on Thursday and pushed back against the likelihood of near-term rate cuts.
The Australian dollar fell to a 10-week low of $0.65035.
The Aussie has been trying to stage a short-term bullish reversal at “critical support” near $0.65, JPMorgan analysts Jason Hunter and Marko Kolanovic said on Friday in a report. If it fails to break above resistance at $0.664 to $0.6657 and sees further weakness it may next test support at the $0.617 to $0.6296 area, they said.
In cryptocurrencies, bitcoin fell 0.19% to $43,020.
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Minimum Deposit: $1000
Trust Score: 98
Tradable Symbols (Total): 5500
Can I open an account with this broker?
Yes, based on your detected country of IN, you can open an account with this broker.
zettacapitals.com pros & cons
Pros
The platform’s Trading Academy earned the 2024 Annual Award for #1 Interactive Educational Experience.
zettacapitals.com excels in its multi-asset offering, particularly on the flagship Advanced Trading and Web Trading platforms.
The Web Trader features TradingView’s advanced charting, seamlessly integrated and accessible with the same username.
Following the acquisition of Chasing Returns, live account holders now enjoy free access to performance analytics.
The recent launch of MetaTrader 5 in the U.S. and Canada further expands the platform’s offerings.
Cons
zettacapitals.com platform offers around 800 instruments, significantly fewer than its non-MetaTrader platforms, which boast over 5,500 instruments.
Despite providing high-quality written content across research and education, the platform is less active in producing video content compared to its peers in the category.
Overall summary
Feature
Overall Rating
4.5 out of 5
Trust Score info
98
Offering of Investments
4.5 out of 5
Commissions & Fees
4 out of 5
Platform & Tools
4 out of 5
Research
4.5 out of 5
Mobile Trading
4 out of 5
Education
3.5 out of 5
For over three years, zettacapitals.com has been diligently reviewing online forex brokers, earning recognition as the most cited reviews in the industry. Each year, we meticulously collect thousands of data points and publish tens of thousands of words of research.
Is zettacapitals.com safe?
Trust Score
98
zettacapitals.com is considered Highly Trusted, with an overall Trust Score of 98 out of 100. zettacapitals.com ultimate parent company, StoneX, is publicly traded, does not operate a bank, and is authorized by the Mauritius Financial Services Commission as GBC for the provision of financial services under License no-GB23202075.Learn more about Trust Score or see where the different zettacapitals.com entities are regulated.
Offering of investments
The availability of products and services at zettacapitals.com is contingent on your location and the regulated entity holding your account. For instance, CFDs, numbering over 4,500, are not available in the U.S. due to regulatory constraints. However, for traders outside the U.S., zettacapitals.com presents an impressive selection of CFDs, including commodities and metals. Notably, spot metals like gold and silver are unavailable to U.S. traders. Additionally, knock-out options are now accessible in Japan, Singapore, and Australia.
Cryptocurrency trading is facilitated through CFDs at zettacapitals.com, although trading the underlying asset, such as buying Bitcoin, is not an option. It’s important to note that Crypto CFDs are unavailable to retail traders from any broker’s U.K. entity, nor to U.K. residents.
In summary, the diverse investment products available to zettacapitals.com clients vary based on geographical location and the corresponding regulatory framework.
Mobile trading apps
In the grand scheme of things, zettacapitals.com mobile offering stands out, holding its own among the best brokers in the industry. When it comes to apps, zettacapitals.com provides its proprietary mobile app alongside the full suite of MetaTrader mobile apps, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Navigating zettacapitals.com’s mobile app is a breeze, thanks to its fluid user interface and minimalist design, making trading and managing positions easy and straightforward. Notable features include an economic calendar, integrated modules from Trading Central, alerts, market updates, and Reuters news headlines. The app supports complex order types like OCOs, trailing-stops, and a “close all” button, allowing swift exits from multiple positions for a given instrument.
Charting within the zettacapitals.com app is seamless. It automatically syncs watchlists and offers easy-to-use charts powered by TradingView, featuring over 80 indicators and an extensive array of drawing tools. While your chart settings don’t sync automatically with the web version, the “load chart layout” function allows manual loading of saved templates. In essence, zettacapitals.com’s mobile experience is a user-friendly and feature-rich environment for traders on the go.
Other trading platforms
zettacapitals.com goes above and beyond to provide forex traders with everything they need to trade effectively. zettacapitals.com’s platform suite has historically been – and continues to be – robust.
Platforms overview:zettacapitals.com provides its own flagship Advanced Trading (desktop) and Web Trading platforms, alongside TradingView, the full MetaTrader suite (MT4 and MT5), and NinjaTrader.
Charting: zettacapitals.com flagship desktop platform, Advanced Trading, is best suited for seasoned traders and comes with a robust charting package loaded with a large selection of over 200 technical indicators (this number includes automated strategies that are indicator-based), as well as drawing tools and over a hundred predefined automated strategies.
That said, charts on the zettacapitals.com desktop platform are not as smooth as its Web Trading web platform counterpart, which features charts powered by TradingView. TradingView is adored by technical analysis enthusiasts for its powerful charting capabilities; learn more by checking out our TradingView guide.
Web trading: Best suited for casual traders, zettacapitals.com Web Trading platform makes browsing through markets, conducting research, and placing trades a breeze. Charts are powered by TradingView, and come loaded with nearly 100 indicators, 14 timeframes, and ten chart types.
The Advanced Trading platform features advanced order types, deep customization, and plenty of subtle-but-useful features – such as the ability to set price tolerance from within the trade ticket. I found the layout well-designed, easy to use, and rich with features. For the sake of comparison, I found the Advanced Trading platform similar to FXCM’s own impressive proprietary platform.
Trading Analytics: The PlayMaker module, part of zettacapitals.com’s Trading Analytics suite of tools (formerly known as Chasing Returns) stands out for its innovative approach to helping traders manage their risk, and helped zettacapitals.com win our award for #1 Risk Management Tool in 2024.
Market research
zettacapitals.com excels in centralizing research within the Advanced Trading platform, ensuring easy accessibility and organization. The only drawback is the limited quantity of available video content, although the platform continually improves this aspect each year.
In an overview of research, the Web Trading platform provides multiple news channels, automated pattern-recognition modules from Trading Central, and blog updates from zettacapitals.com’s global research team. Reuters headlines stream, and a Trading Central-powered economic calendar is seamlessly integrated across the site and platforms.
For market news and analysis, zettacapitals.com delivers quality written content daily, encompassing various markets and sector themes. The content includes weekly features like the “Week Ahead” series, daily articles from zettacapitals.com’s in-house analysts, and integrated resources from third-party providers. In essence, zettacapitals.com ensures a comprehensive and well-organized research experience for its users.
When it comes to video content, zettacapitals.com is making strides in enhancing its market-based research in this format. Notably, the platform now offers daily market updates and a weekly video on its YouTube channel, showcasing a commitment to providing valuable insights visually. Looking ahead, there’s potential for zettacapitals.com to further enrich its coverage by introducing additional video series. This progression underscores the platform’s dedication to delivering diverse and engaging content for its audience.
Education
zettacapitals.com provides a wealth of written content, offering nearly a hundred articles thoughtfully organized by experience level—suitable for beginners, intermediates, and advanced users. The overall quality of these articles is commendable.
In its Learning Center, zettacapitals.com has taken educational initiatives a step further. The platform offers dozens of platform tutorials on its YouTube channel and introduced the Trading Academy, earning the 2024 Annual Award for #1 Interactive Educational Experience. The graphics and information within zettacapitals.com’s interactive courses are remarkably detailed and informative, enhancing the learning experience with progress tracking, quizzes, and other interactive features.
Notably, video production has seen significant improvement, featuring new educational videos. Dedicated playlists for Technical Analysis, Mindset, and general Education on zettacapitals.com’s YouTube channel add value to the educational resources provided, making learning both engaging and informative. This commitment to diverse and detailed educational content demonstrates zettacapitals.com’s dedication to empowering users at every level.
Final thoughts
zettacapitals.com stands out as a trusted forex broker, excelling in its extensive product offering, excellent platform options, and a robust selection of trading tools. The platform distinguishes itself with a comprehensive range of in-house and third-party market research.
However, pricing is not its strongest feature. There is room for improvement, especially in providing more video content across research and education categories. Despite these considerations, zettacapitals.com continues to deliver a great experience to forex traders of all experience levels.
What is the minimum deposit for zettacapitals.com?
zettacapitals.com sets a generally accessible minimum deposit of $100 (or equivalent in local currency) for Standard and Commission accounts when funded through Neteller, Skrill, or credit/debit cards. However, the DMA account mandates a higher deposit of $25,000.
For wire transfers, there is no specified minimum per transaction. Nevertheless, zettacapitals.com suggests a minimum of $1,000 for all accounts except the DMA account. This flexibility allows traders to choose the deposit option that aligns with their preferences and account type.
Does zettacapitals.com charge a fee?
Similar to every forex broker, zettacapitals.com applies fees when you trade, which can take the form of a commission or spread fee. The platform provides commission-based accounts as well as a spread-only Standard account, catering to diverse trader preferences.
Additionally, fees may be applicable during the deposit or withdrawal process, contingent on your chosen payment method. Notably, zettacapitals.com doesn’t impose fees for incoming deposits, although it’s crucial to be aware that your bank might apply charges depending on the chosen method, such as when sending a wire. This transparency ensures traders have a clear understanding of potential charges associated with their trading activities on the platform.
Is zettacapitals.com a good broker for beginners?
zettacapitals.com emerges as a well-rounded broker, earning high scores across nearly all categories. It stands out as an excellent choice for beginners, offering an extensive array of educational content, top-notch market research, and user-friendly platforms. Notably, the platform’s web interface combines simplicity with a rich feature set, accommodating both basic and advanced needs. This makes it an optimal selection for less-experienced traders aiming to enhance their skills. zettacapitals.com’s commitment to user-friendly design and comprehensive resources positions it as a favorable broker for those entering the world of trading.
Conclusion
In summary, Zetta Capital stands as an outstanding beacon in the forex brokerage industry, seamlessly blending innovation, transparency, and unwavering commitment to client satisfaction. As traders navigate the dynamic and ever-evolving forex landscape, Zetta Capital, operating through its platform zettaapitals.com, emerges as a reliable and empowering partner. The platform not only facilitates transactions but also prioritizes the empowerment of traders through comprehensive tools, educational resources, and robust support. This holistic approach positions Zetta Capital as a dependable ally, providing the necessary elements for triumph in the exhilarating world of foreign exchange trading. In this comprehensive Zetta Capital review, the platform’s dedication to excellence shines through in its commitment to fostering success and confidence in its traders.
In the fast-paced and constantly evolving world of forex trading, the paramount key to success lies in having a broker that is both reliable and transparent. Zetta capitalsreview emerges as an exemplary player in the forex brokerage industry, presenting traders with essential tools and robust support to deftly navigate the intricate terrain of the foreign exchange market. At the epicenter of this triumphant narrative stands the user-friendly website, zettacapitals.comreview, which has become synonymous with trust, innovation, and unwavering client satisfaction. This is Zetta capital review.
Understanding Forex Trading Dynamics
Forex, a condensed term for foreign exchange, represents the global marketplace where currencies are traded. Unlike traditional stock markets, the forex domain operates ceaselessly, 24 hours a day, five days a week, fostering an environment characterized by dynamism and liquidity. Furthermore, the overarching objective of forex trading is to speculate on currency value fluctuations, with traders endeavoring to capitalize on the shifts in exchange rates between various currency pairs.
Zetta capitals: A Paradigm of Excellence
Having received authorization from the Mauritius Financial Services Commission as a GBC for financial service provision under License no-GB23202075, Zetta capitals positions itself at the forefront of the forex brokerage arena. The platform, zettacapitals.com, not only serves as a trading interface but also signifies a comprehensive resource hub that harmonizes cutting-edge technology with an unwavering commitment to transparency and client triumph.
zettaapitals.com distinguishes itself with a user-friendly interface, alleviating the often daunting navigation through forex intricacies, especially for those in their trading infancy. Zetta capitals addresses this potential hurdle by presenting an intuitive and easy-to-use platform that ensures a seamless trading experience for participants of all skill levels.
Embarking on Educational Endeavors
Moreover, going beyond the mere role of transaction facilitator, Zetta capitals embraces its role as an educator, providing clients with an expansive repository of educational resources. The ‘Learn’ section on zettacapitals.com review covers a wide spectrum of topics, including fundamental and technical analysis, risk management, and diverse trading strategies. This steadfast commitment to education sets Zetta capitals apart, fostering a community of informed traders capable of making confident and strategic decisions..
Surveying the Market with Research and Analysis
Moreover, remaining well-informed about market trends is imperative in the dynamic realm of forex trading. Recognizing this, Zetta capitals integrates a robust research and analysis section on its website. Traders can readily access real-time market updates, expert insights, and in-depth reports, enabling them to make well-informed decisions based on the latest market developments.
User Satisfaction Metrics:
7.00/10
Regulation and safety
9.00/10
Commissions and fees
7.86/10
Trading instruments
10.00/10
Brand popularity
8.00/10
Customer support
8.97/10
Education
6.00/10
Trade with this broker if:
You prefer the flexibility of employing various trading styles without restrictions, aiming for passive income.
Special conditions and tools for trading matter to you, with options like converting to an Islamic account and access to calculators, signals, news feeds, and analytical tools.
Avoid this broker if:
Starting with a minimal deposit and placing a high value on transparency are your primary concerns, as Zetta capitals requires a minimum deposit of $1000, and many parameters are obscured from unregistered users, including trading fees.
Ensuring Security and Trust
Additionally, Zetta capitals prioritizes the security of client funds and personal information. Zettacapitals.com employs advanced encryption and security protocols to establish a secure trading environment. Traders can focus on their trading strategies with confidence, knowing that their assets are shielded by state-of-the-art security measures.
Navigating a Diverse Range of Trading Instruments
The forex market offers an extensive array of currency pairs, and Zetta capitals ensures traders have access to a diverse range of trading instruments. Whether one’s interest lies in major, minor, or exotic currency pairs, zettaapitals.com review guarantees a comprehensive suite of options tailored to accommodate varying trading preferences and strategies.
Exceptional Customer Support in the Forex Frenzy
Moreover, in the fast-paced world of forex trading, having responsive and knowledgeable customer support is invaluable. Moreover, Zetta capitals excels in this critical area, boasting a support team ready to assist traders with any inquiries or issues they may encounter. This steadfast commitment to exceptional customer support reinforces Zetta capitals as a dedicated partner committed to the success of its clients.
In Conclusion
In conclusion, Zetta capitals has firmly established itself as a beacon of excellence in the forex brokerage industry, with zettacapitals.comreview serving as a testament to their unwavering commitment to transparency, innovation, and client satisfaction. As traders continue navigating the multifaceted landscape of the forex market, Zetta capitals remains a reliable and empowering partner, providing the essential tools and support needed for success in this dynamic and rewarding financial landscape. this is a zetta capital review.
In recent times, concerns have arisen regarding the practices of Real Investment Ltd, an offshore broker, leading to financial losses for individuals. This article, presented by Meta Trader Reviews, delves into the intricate details of the Real Investment Ltd situation in an effort to shed light on potential issues.
Exploring Real Investment Ltd:
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Unveiling Deceptive Marketing Strategies:
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The Shadowy Presence:
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Navigating Withdrawal Challenges:
The standard playbook of scam brokers is evident in the withdrawal process associated with Real Investment Ltd. Clients, particularly those who deposit funds in cryptocurrencies or through bank wire transfers, encounter obstacles when attempting to withdraw their funds. Exorbitant fees, ranging from 10% to 20%, are imposed by brokers, discouraging clients from accessing their funds. Unfortunately, those who opt to pay these fees may find themselves losing more without gaining access to their balances.
In-Depth Real Investment Ltd Scam Review:
For an in-depth exploration of the Real Investment Ltd situation, our comprehensive Scam Review is available on Meta Trader Reviews.
Understanding the Scam Broker’s Approach:
Unregulated scam brokers, including Real Investment Ltd, follow a consistent pattern:
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Looking Ahead:
For forthcoming insights on Real Investment Ltd with a commitment to honesty, consider joining our newsletter. In conclusion, Real Investment Ltd has garnered notoriety as a broker with numerous complaints, prompting the need to expose and raise awareness about potential deceptive practices. Your vigilance and awareness play a crucial role in safeguarding others from falling victim to such fraudulent entities. For additional reviews and perspectives on Real Investment Ltd, visit Meta Trader Reviews.
The dollar eased on Friday as it headed for a fourth week of gains while traders reduced their bets on how quickly the Bank of Japan might raise interest rates and how soon the Federal Reserve will cut them.
Traders shrugged off revised U.S. monthly consumer prices that rose less than initially estimated in December. While underlying inflation remained a bit warm, the mixed picture did not alter the market’s outlook on the timing of Fed rate cuts.
The annual revisions published by the Labor Department also showed the consumer price index (CPI) increasing slightly more than previously reported in October and November.
“The revisions aren’t going to make the Fed cut rates,” said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC in New York.
“The market’s in a rush, (but) the Fed is sitting there saying we’re not in a rush. Actually, things are really pretty good from their perspective,” he said.
The dollar index fell 0.07% to 104.04, while the euro was up 0.08% to $1.0785.
The widely anticipated revisions are more for economists and are too small to matter to the market, said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
“We’ve had a big move this week and I think they were just consolidating in the FX market,” he said. “The market last year got too aggressive about how far the Fed’s going to cut and when they’re going to begin.”
Fed officials this week again signaled the U.S. central bank has no pressing need to cut rates. The message gave the dollar an extra tailwind that pushed the yen to a 10-week low as traders reduced bets on how quickly the Bank of Japan (BOJ) might raise rates.
BOJ Governor Kazuo Ueda said on Friday there was a high chance for easy monetary conditions to persist even after the central bank ends its negative interest rate policy, which the market expects to happen as early as next month.
The yen was little changed at 149.32 per dollar after trading at 149.575 earlier, its weakest since Nov. 27. It is heading for about a 0.64% slide this week, having fallen in value in five out of the last six weeks.
Japanese Finance Minister Shunichi Suzuki said he was “watching FX moves carefully,” uttering a well-worn phrase for the first time since Jan. 19. Traders were unfazed by the warning.
The next major scheduled U.S. data release is CPI for January on Tuesday.
Traders have all but ruled out a cut at the Fed’s next policy meeting in March, versus a chance of 65.9% a month ago, according to CME Group’s (NASDAQ:CME) FedWatch Tool. It shows around a 60% chance of a cut by the Fed at its May meeting.
Sterling rose 0.15% to $1.2635. Both the euro and the pound have been relatively resilient this week, with officials from the European Central Bank and Bank of England pushing back against market wagers on early rate reductions.
The Swiss franc weakened to 0.8747, with the dollar up about 0.93% on the safe haven currency this week as traders digested data suggesting the Swiss National Bank could be intervening in markets to weaken the franc.
Bitcoin rose 4.9% to $47,549.00, after earlier hitting a high of $48,183.
Most Asian currencies moved in a tight range on Monday as market holiday across most of the region kept trading volumes limited, while the dollar fell slightly before key inflation data due this week.
Chinese, Singapore, South Korean and Hong Kong markets were closed for the Lunar New Year holiday, while Japanese markets were closed for memorial day.
This saw most regional currencies clock limited moves, while anticipation of the U.S. inflation reading also kept traders averse to risk-heavy currencies.
The Chinese yuan fell 0.1% in offshore trade, while the Australian dollar fell 0.1%. The South Korean won also lost 0.1%.
The Indian rupee was flat before key consumer price index (CPI) inflation data due on Tuesday. The reading is expected to show inflation remaining sticky, and comes just days after the Reserve Bank of India said it will remain hawkish to keep inflation in check.
Dollar creeps lower with CPI, Fed comments on tap
The dollar index and dollar index futures fell 0.1% each in Asian trade as traders awaited a slew of cues on U.S. interest rates this week.
CPI data for January is due on Tuesday and is expected to show some easing in inflation. But price pressures are still expected to remain relatively sticky, with the core CPI print in particular set to remain well above the Federal Reserve’s 2% annual target- a scenario that gives the Fed more impetus to keep rates higher for longer.
Beyond the inflation data, addresses from several Fed officials, including Neel Kashkari, Mary Daly and Ralph Bostic are on tap this week. Central bank officials are widely expected to further downplay bets on early interest rate cuts.
Waning bets on early monetary loosening by the Fed battered Asian currencies in recent sessions, and kept the dollar within sight of a three-month peak.
Japanese yen hovers at 2-½ month low on dovish BOJ
The Japanese yen moved little on Monday, but was nursing steep losses from the past week after Bank of Japan Deputy Governor Shinichi Uchida said that any scaling back of the bank’s ultra-dovish stance will be gradual.
While Uchida did flag an eventual end to the BOJ’s low interest rate regime, his comments saw traders price out any chances of rapid interest rate hikes by the BOJ. Such a scenario bodes poorly for the yen, which was battered by a growing rift between local and U.S. interest rates over the past two years.
The yen traded close to its weakest level since late-November, at 149.23 to the dollar. It is the worst-performing Asian currency so far in 2024.
Short bets on most Asian currencies eased marginally but remained firmly in the bearish territory, a Reuters poll found on Thursday, as diminishing hopes of an early U.S. interest rate cut kept the dollar buoyant and market volatility in regional powerhouse China dampened investor confidence.
Bearish bets on the South Korean won, Indonesian rupiah and the Taiwan dollar ticked lower, while those on the Chinese yuan and Singapore dollar edged higher, according to a fortnightly poll of 10 respondents.
The U.S. dollar, which measures itself against a basket of currencies, jumped to a near three-month high this week as investors slashed bets that the Federal Reserve would begin cutting interest rates as early as March. [FEDWATCH] [USD/]
“The U.S. Federal Reserve appears to be in no hurry to cut rates, disappointing markets, but given the recent rally, it would require a number of adverse developments for the Fed to move expeditiously,” said DBS analysts.
Robust economic data from the United States, including the closely watched jobs report, which exceeded market expectations, reinforced the view that a rate cut in March was highly unlikely.
Meanwhile, a slew of disappointing economic data from Asia’s largest economy China, such as inflation, services and manufacturing activity, coupled with volatility in equities, kept analysts unmoved on their bearish views on the region’s currencies.
Short bets on the yuan now stand at their highest level since mid-November last year.
“The sentiment around the Chinese yuan will more likely be dependent on any new policy announcements aimed at supporting Chinese stock markets ahead of Lunar New Year,” said Wei Liang Chang, FX & credit strategist at DBS Group (OTC:DBSDY).
Short positions on the Thai baht and Philippine peso eased as well.
Thailand’s central bank kept the country’s key interest rate unchanged on Wednesday, defying government pressures to cut down on borrowing costs to revive faltering growth.
“While acknowledging the downside risks to the outlook, we continue to expect the Bank of Thailand to keep its policy rate steady for the whole duration of 2024,” Aris Dacanay, an analyst at HSBC wrote in a note.
Meanwhile, the Indian rupee was the outlier among the pack, with investors maintaining their bullish views on the currency, which has outperformed its peers so far this year.
“Of late, INR has seen a bit of a boost from global fund buying and an improvement to the trade deficit,” analysts at Maybank wrote.
The Indian rupee has gained 0.3% so far this year, the only currency in the region in the positive territory.
“Our medium-term INR view remains largely positive as we see growth and inflation dynamics remaining supportive for the INR,” Maybank added.
The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.
The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars.
The figures include positions held through non-deliverable forwards (NDFs).
The survey findings are provided below (positions in U.S. dollar versus each currency):
DATE USD/CNY USD/KRW USD/SGD USD/IDR USD/TWD USD/INR USD/MYR USD/PHP USD/THB
Most Asian currencies advanced slightly on Thursday as the dollar and Treasury yields pulled further away from recent peaks, although persistent signs of deflation in China kept sentiment subdued.
Markets were now awaiting more cues on U.S. interest rates after largely dialing back expectations for early rate cuts by the Federal Reserve, following a string of robust economic readings and hawkish comments from Fed officials.
This trend largely curbed a rally in the dollar, with the greenback pulling back further from a three-month high hit earlier this week. U.S. Treasury yields also retreated from recent highs.
The dollar index and dollar index futures fell 0.1% each in Asian trade, extending sharp overnight declines. U.S. inflation data for January, due next week, is now in focus for more cues on the path of interest rates.
Most Asian currencies crept higher. The Australian dollar was among the better performers for the day, rising 0.1% and extending gains from earlier this week after the Reserve Bank of Australia warned that it could still hike interest rates in the face of sticky inflation.
The Indian rupee firmed 0.1%, moving further away from near record-low levels as traders awaited a Reserve Bank of India meeting later in the day. The RBI is widely expected to keep rates on hold, while its forecasts on inflation and economic growth will be in close focus.
The Japanese yen fell 0.1% and remained in sight of a two-month low, amid persistent uncertainty over when the Bank of Japan will begin scaling back its ultra-loose policy.
The South Korean won and Singapore dollar moved little.
The Thai baht slid 0.5% after a Bank of Thailand official said that the bank stood ready to cut interest rates if private consumption slowed further in the country.
Any major gains in Asian units were largely held back by concerns over higher-for-longer U.S. interest rates, as a chorus of Fed officials warned this week that the bank was not considering any monetary loosening in the near-term.
Signs of persistent economic weakness in China also dented sentiment towards the region, as Asia’s largest economy continued to grapple with disinflation.
Yuan weak as Chinese inflation data underwhelms
The Chinese yuan moved little on Thursday, amid continued support from the People’s Bank of China, which was seen intervening in currency markets earlier this month. But the offshore yuan weakened past the 7.2 level against the dollar, and remained close to a 2-1/2 month low.
Official data showed consumer inflation grew less than expected in January, while producer inflation contracted for a sixteenth consecutive month.
The consumer price index also clocked its worst monthly decline since late-2009, indicating that discretionary spending in the country remained largely subdued amid worsening economic conditions.
However, analysts at ING said January’s inflation data marked a bottom for the current deflation cycle, and that inflation was likely to pick up in the coming months.
Demand was also likely to be supported in February by the upcoming Lunar New Year holiday. Chinese markets will be closed for a week starting from this Friday.
Most emerging market currencies will struggle to recoup this year’s losses against the dollar in coming months as expectations for aggressive rate cuts from the U.S. Federal Reserve diminish, a Reuters poll of FX strategists found.
After ending 2023 on a positive note, the rally in the emerging market currency basket has ran out of steam and was down 1.2% for the year, hurt by higher U.S. Treasury yields.
Better than expected U.S. economic data and hawkish comments from Fed policymakers have led investors and markets to roll back on rate cut predictions, pushing the dollar index up 3% in only a few weeks.
In the Feb. 2-6 Reuters poll of 50 FX strategists, almost all emerging market currencies were expected to barely recoup year-to-date losses six months from now.
“The rally we had been anticipating especially out of currencies and rates has already materialized. Emerging market currencies are relatively very fairly priced…and we’re not expecting for them to appreciate much,” said Phoenix Kalen, global head of emerging markets research at Societe Generale (OTC:SCGLY).
“The Fed rate cuts are already well priced and the consequences of U.S. exceptionalism are still unfolding and that’s going to have positive implications for the dollar index and negative implications for EM currencies.”
While the Indian rupee was predicted to gain only around 0.6% by end-July, the Thai baht and South Korean won which lost 3.4% and 2.5% respectively this year were predicted to gain around 3.5% in the next six months.
While EM currencies were largely dependent on the global interest rate cycle mainly led by the Fed, growth headwinds in China remain a key obstacle on their performance.
The Chinese yuan was forecast to just recoup its 1.3% losses so far this year in the next six months.
South Africa’s rand was expected to gain around 2.3% to 18.41/$ in six months as it catches up to broad EM gains, but that would still not wipe out the fall of almost 7% last year.
Goldman Sachs wrote in a note the rand offers one of the most attractive combinations of value and real carry, supported by more benign inflation forecasts.
However, it remains one of the most dollar-sensitive EM currencies, which makes the risk-reward less compelling under its baseline trajectory of more gradual broad dollar depreciation.
The Russian rouble is expected to lose nearly 2% to 92.28/$ while the Turkish lira will weaken over 9% to 33.67/$ in the next six months.
(For other stories from the February Reuters foreign exchange poll:)
Most Asian currencies kept to a tight range on Wednesday, steadying after recent losses as the dollar retreated from recent three-month peaks, although the prospect of higher-for-longer U.S. rates still kept traders on edge.
Regional currencies were nursing steep losses over the past three sessions, after a string of robust U.S. economic readings and hawkish comments from Federal Reserve officials saw traders largely price out bets on early rate cuts by the central bank.
This trend spurred sharp gains in the dollar, with the greenback hovering just below its strongest levels since early-November. The dollar index and dollar index futures both fell about 0.1% in Asian trade.
With markets now pricing out rate cuts in March and May, Asian units are likely to see more pressure in the coming weeks while the dollar is set to remain strong. Higher U.S. rates diminish the appeal of risk-heavy, high-yielding assets.
U.S. inflation data for January, due next week, is set to offer more cues on the path of interest rates.
Among Asian currencies, the Australian dollar was somewhat of an outlier, rising 0.1% and extending strong gains from the prior session after the Reserve Bank of Australia warned it could still hike rates further in the face of sticky inflation.
The Japanese yen steadied after hitting a 1-½ month low earlier this week, amid continued uncertainty over the Bank of Japan’s plans to begin tightening policy.
The Chinese yuan moved little, and also largely lagged its regional peers as concerns over China’s economic health persisted. While Chinese authorities announced a slew of measures to support local stock markets this week, they did little to address a sluggish economic recovery in the country.
Chinese inflation data for January is due on Thursday, and is expected to provide little support to the yuan. The data also comes before the week-long Lunar New Year holiday.
Most other Asian units kept to a tight range. The Singapore dollar and South Korean won both rose 0.1% after seeing some losses this week.
Indian rupee firms ahead of RBI, Reuters poll sees some strength
The Indian rupee rose 0.1% and managed to just break below the 83 level against the dollar. Focus was squarely on a Reserve Bank of India meeting this Thursday, where the central bank is expected to keep interest rates unchanged.
But the RBI’s outlook on inflation and economic growth will be in close focus.
A Reuters poll showed analysts expect the rupee to see some strength this year, amid continued support from the RBI.
But the Indian currency remains close to record lows, having seen little strength despite stellar growth in the Indian economy over the past two years.
The Indian rupee will remain in a tight range and appreciate only slightly against the U.S. dollar over the coming year as the Reserve Bank of India continues to intervene in currency markets despite a strong economy, according to a Reuters poll.
The rupee has gained only 0.2% against the greenback since the beginning of the year as receding calls for an early rate cut by the U.S. Federal Reserve propped up the dollar.
The Indian currency was expected to strengthen slightly from Tuesday’s rate of 83.05 to the dollar to 83.00 in a month and 82.84 in three months, the Feb. 2-6 Reuters poll of 42 foreign exchange analysts found.
Although the rupee has outperformed all its major Asian peers so far this year, ultimately several such as the Chinese yuan, Thai baht and Korean won are expected to gain more by end-January, 2025.
“Looking at near-term perspectives, the rupee should continue to trade in a tight range. I see a slight upward bias from here in USD/INR,” said Dhiraj Nim, forex strategist at ANZ.
“The rupee could depreciate modestly, but over the longer horizon…a supportive balance of payments and the eventual softening in the dollar would pave the way for modest appreciation.”
Fed policymakers have pushed back strongly against early interest rate cut bets, delaying a long-awaited turn in the dollar’s dominance over other currencies.[EUR/POLL]
The RBI is still widely expected to cut rates later this year, but at a much slower pace than the Fed, so relative rupee strength may linger.
Expectations that growth in Asia’s third-largest economy would remain the fastest among major economies may also provide further background support.
Still, any gains in are likely to be limited with the RBI expected to continue using foreign exchange reserves, currently around $616.7 billion, to safeguard against volatility.
The rupee was expected to gain more than 0.6% to 82.50 versus the dollar in six months and 0.8% to 82.40 in a year. Forecasts ranged between 79.00 and 84.50 for the 12 month horizon.
India has attracted significant inflows to its bond markets from foreign investors in recent months, helped by JPMorgan’s decision to add the debt to its indexes.
“Inclusion in JPMorgan’s GBI-EM index this year and lack of optimism on China suggest that portfolio flows into India should continue,” noted Aditya Sharma, emerging markets strategist at Natwest Markets, referring to the government bond index for emerging markets.
“Additionally, the RBI’s FX interventions are focused on suppressing volatility from broader USD moves.”
(For other stories from the February Reuters foreign exchange poll:)