Euro Optimism Gets a Reality Check, as Investors Reevaluate Rate Prospects

Euro bulls may have to temper their exuberance after the rush to invest in the single currency, which may have left it vulnerable in the short term, especially given the uncertainties surrounding the interest rate plans of several major central banks. The euro reached its highest level in ten months versus the dollar earlier this…

Reserve Currency: Yuan’s Global Ambitions, Still a Dream

There is renewed speculation that China’s yuan will soon challenge the US dollar as the world’s reserve currency. This time, the impetus for such discussion was Chinese President Xi Jinping’s visit to the Middle East, where he stressed the reach of Chinese trade and also stated his wish for oil contracts to be settled in…

Silver Likely to Underperform Against Gold in 2023

At the time of writing, silver is expected to end 2022 with slight gains and, perhaps more shockingly, to outperform gold after a far more volatile year. Silver’s lackluster performance this year was caused by two factors: the strength of the US dollar and higher bond yields, both of which resulted from vigorous policy tightening…

Goldman Sachs Removes Bullish Call on the Dollar Against Yen

The dollar’s recent meltdown suffered at the hands of the Japanese Yen has forced some of its backers to rein in their bullish bets on concerns the Bank of Japan’s hawkish pivot on monetary policy earlier this week could mark the start of a hawkish regime shift. The 4% plunge in USD/JPY earlier this week claimed its…