Gold continues to be on the rise, with the Shanghai Exchange making moves to raise its margin ratio and increase the limit on price fluctuation. This resulted in a slight pullback in gold prices, which are currently just under US$2,900. Additionally, Japan’s Finance Minister Suzuki made comments hinting at potential discussions about FX at the upcoming G20 meeting, leading to some volatility in the USD/JPY pair.
Despite the developments in the gold and currency markets, other major FX pairs traded within tight ranges. Both the Bank of Korea and the Monetary Authority of Singapore decided to keep their policies unchanged, adding to the overall stability in the region. Even USD/CNH experienced minimal fluctuations, reflecting the calm trading environment in the broader market.
Overall, the focus remains on gold as it continues to show strength, with potential influences from global events like the G20 meeting. Despite some minor fluctuations in the currency markets, stability prevailed with most major pairs trading in narrow ranges. The decisions by regional central banks to maintain their policies also contributed to the overall sense of calm in the markets.
