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Commerzbank’s Thu Lan Nguyen argues that any relief from a potential reopening of the Strait of Hormuz for Aluminium will likely be short‑lived. Guinea, which supplies 40% of global bauxite, plans to cap exports at 150 million tons, nearly 20% below last year, a move expected to support bauxite prices and, over time, Aluminium prices.Guinea quota tightens raw material availability”However, a reopening of the Strait of Hormuz could turn out to provide only short-term relief. Over the course of the year, a shortage is emerging in a key raw material for aluminium production: the government of Guinea, the market leader…
EUR/USD edges higher during the North American session on Friday amid heightened tensions in the Middle East, even though a solid US jobs report might prevent the Federal Reserve (Fed) from cutting rates in the upcoming months. At the time of writing, the pair trades at 1.1775, up 0.44%.Euro gains as geopolitical fears outweigh upbeat US payrollsTensions around the US-Iran conflict heightened as they exchanged strikes for control of the Strait of Hormuz. In the meantime, US Secretary of State Marco Rubio said they’re waiting for Tehran’s response to the 14-point memorandum, aimed at extending the ceasefire and reopening the…
Rupee strengthened this week on the back of nascent optimism regarding a US-Iran peace deal but renewed hostilities threatened to yet again sway the outlook for Asian currency.Volatility expectations for the rupee drifted higher as investors remained on tenterhooks for the next chapter in the more than two-month-long war that had upended the macroeconomic outlook for oil importers such as India.A flare-up in fighting occurred on Thursday as Washington awaited a response from Tehran to its proposal to end the conflict. US President Trump said a ceasefire is still in effect.The rupee declined nearly 94.70 to the dollar before paring…
ING analysts Ewa Manthey and Warren Patterson note that ICE Brent and NYMEX WTI have rebounded after three sessions of losses as renewed US‑Iran tensions in the Strait of Hormuz lift the risk premium. They highlight constrained flows through the key shipping chokepoint and see Oil prices remaining highly sensitive to geopolitical headlines in coming sessions.Crude supported by Hormuz disruptions”ICE Brent and NYMEX WTI moved higher on Friday morning after three straight sessions of losses, amid reports of renewed clashes between US and Iranian forces. Brent rose nearly 3% to just below USD 103/bbl. The rebound followed US strikes on…
Rabobank’s Senior Economist Maartje Wijffelaars highlights extreme volatility in Oil, with Brent dropping to $93 per barrel before spiking above $102 as shifting war headlines from Washington drive sentiment. He notes thin liquidity, algorithmic trading dominance and labels the recent fall from around $115 in Brent as premature, underlining ongoing risks around the Strait of Hormuz.Brent swings on war and liquidity”Oil markets are experiencing extreme volatility, reacting to every new – often conflicting – signal from the White House on the war’s outcome. Thin liquidity is amplifying these moves, as many traders have exited the market, leaving mostly algorithmic traders…
The rupee depreciated 45 paise to 94.67 against the US dollar in early trade on Friday, as Brent crude prices rose back to USD 101.00 per barrel after US and Iranian forces exchanged fire near the Strait of Hormuz.Forex traders said investor sentiments were affected after Iran accused the US of violating the ceasefire as the US carried out retaliatory strikes with new attacks, which took place in the Strait of Hormuz and civilian areas, while President Donald Trump said the ceasefire was still in effect.Brent oil prices, which had fallen to $98 per barrel amid the US-Iran peace deal,…
The AUD/JPY cross trades in positive territory around 113.20 during the early European session on Friday. A potential truce between the United States (US) and Iran improves risk sentiment, supporting the Australian Dollar (AUD) against the Japanese Yen (JPY). The US President Donald Trump administration has been waiting for Iran to respond to its proposal to reopen the Strait of Hormuz and end the war.On the other hand, fears of further interventions from Japanese authorities might help limit the JPY’s losses. Reuters reported on Friday, citing a source familiar with the matter, that Japan’s officials intervened in the foreign exchange…
Mumbai: The Indian currency surged more than a rupee against the US dollar over the past two days from historic lows, climbing a further 36 paise on Thursday in lockstep with the pronounced retreat in crude oil prices, after the West Asia peace talks seemed to gather sufficient traction.The rupee advanced to 94.25 against the dollar, from the previous close of 94.61. The unit had plunged for four straight days before Wednesday, ending at a lifetime low of 95.28 Tuesday. Dealers said the rebound was driven largely by a retreat in crude prices below $100 a barrel, which prompted traders…
The EUR/USD pair posts modest gains around 1.1730 during the early Asian session on Monday, supported by growing optimism surrounding a potential US-Iran peace deal. Markets might turn cautious later in the day ahead of the highly-anticipated US Nonfarm Payrolls (NFP) report for April. The US President Donald Trump administration has been waiting for Iran to respond to its proposal to reopen the Strait of Hormuz and end the war. On Wednesday, an Iranian official said that it was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the critical US demands that Iran suspend…
Silver (XAG/USD) extends its strong rally on Thursday, with the white metal trading around $80.60 at the time of writing, up 4.19% on the day. XAG/USD is reaching fresh multi-week highs, supported by lower Oil prices, declining US Treasury yields and broad weakness in the US Dollar (USD).Markets continue to react to progress surrounding a possible deal between the United States (US) and Iran, which is boosting risk appetite and triggering a sharp correction in Oil prices. This easing in the energy market is reducing inflation expectations and prompting investors to reassess the outlook for Federal Reserve (Fed) monetary policy.The…