EUR/JPY Price Forecast: Softens below 180.00, bearish bias persists below 100-day SMA
The EUR/JPY cross trades in negative territory around 179.85 during the early European trading hours on Thursday. Intervention risks from Japanese authorities provide some support to the Japanese Yen (JPY) against the Euro (EUR). Germany’s IFO survey is due later on Thursday.
Silver price (XAG/USD) has declined to nearly $64.00 per troy ounce amid rising expectations for Federal Reserve (Fed) rate hikes. This downturn is attributed to the strengthening US Dollar (USD) and US Treasury yields, driven by hawkish Fed expectations and robust domestic economic indicators. The latest Flash S&P Global PMI data for September revealed strong manufacturing growth, further supporting the Fed's tightening stance.
Market participants are closely monitoring the upcoming US weekly Initial Jobless Claims report, while some Federal Reserve officials have reiterated their support for the rate increase and cautioned about persistent inflation risks. Fed officials have expressed the need for additional rate hikes to bring inflation to a 2% target and have cautioned that the current policy stance may still be too accommodative.
Investors are also watching the geopolitical situation, particularly Iran's stance on nuclear technology and the Strait of Hormuz, which could exacerbate inflationary pressures. The silver market is influenced by various factors, including economic conditions, geopolitical events, and industrial demand. As a yieldless asset, silver tends to appreciate when interest rates are low and depreciate when rates rise.
The Gold/Silver ratio may also provide insights into the relative valuation of the two precious metals.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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