Silver (XAG/USD) edged lower on Monday, trading around $57.20, down 0.73%, following a robust US manufacturing report that strengthened expectations for a hawkish Federal Reserve policy, according to FX Street. The report has reinforced market sentiment that the Fed will maintain restrictive measures to curb inflation.
Meanwhile, the Euro to US Dollar (EUR/USD) pair remained in a tight trading range as investors awaited further clarity on US-Iran negotiations and observed signs of stabilization in the US Dollar, FX Street noted. This cautious stance reflects ongoing geopolitical uncertainties impacting currency markets.
Geoff Yu from BNY commented that countries like Brazil and Mexico now operate in a more comfortable policy environment after the Fed’s recent decisions, aided by anchored US front-end yields. Japanese investors might find these developments significant as shifts in US policy and commodity prices continue to influence global FX and equity markets.