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US President Donald Trump said that the US military will temporarily pause “Project Freedom” to restore freedom of navigation for commercial shipping through the Strait of Hormuz, the Guardian reported on Tuesday.Trump added that the decision was made at the request of Pakistan and other countries and follows what he called “tremendous military success” during a US campaign against Iran.His latest statement on pausing Project Freedom came hours after the US defense secretary, Pete Hegseth, said the US-Iran ceasefire “certainly holds” for now.Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against…
The Euro (EUR) trades on the front foot against the US Dollar (USD) on Tuesday as a mild pullback in Oil prices pushes US Treasury yields lower, adding pressure on the Greenback. At the time of writing, EUR/USD is trading around 1.1701, rebounding from an intraday low of 1.1676.Despite the intraday bounce, the upside in EUR/USD appears limited as market sentiment remains fragile following renewed hostilities in the Middle East, which could help limit losses in the US Dollar. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading around 98.40,…
The level of 94.50 will be a crucial resistance. Rupee has to breach this hurdle to get a breather | Photo Credit: Sibani Das The rupee has been knocked down badly over the last couple of weeks. The domestic currency fell to a new low of 95.43 against the dollar on Tuesday. It has closed the day at 95.29.A strong rise in crude oil price over the last two weeks is weighing on the rupee. The Brent Crude oil price has surged about 18 per cent from around $96 per barrel to $113 per barrel now.More upsideOn the charts, the…
Rabobank’s Senior FX Strategist Jane Foley expects interest rate differentials to support an upward bias in EUR/USD in the second half of the year, but sees Euro gains capped by Eurozone growth headwinds from the current supply shock. Foley does not expect EUR/USD to reach 1.20 this year and anticipates any H2 rally will lack strong conviction.Euro gains capped by growth risks”While we do expect interest rate differentials to allow an upward bias in EUR/USD to emerge during H2, we anticipate that upside potential in the EUR will be capped by the hit to growth likely to be suffered by…
USD/INR extends gains for the third successive day, trading around the fresh record high of 95.40, during the Asian hours on Tuesday. Traders will likely observe India’s HSBC Composite and Services Purchasing Managers’ Index (PMI) data to be released on Wednesday.The USD/INR pair appreciates as the US Dollar (USD) strengthens on safe-haven demand following Iran’s attack on the United Arab Emirates (UAE). CNBC reported Monday that the UAE was targeted by Iranian drones and missiles, while the US said it destroyed Iranian boats in the Strait of Hormuz. US President Donald Trump warned that Iran would be “blown off the…
USD/CHF holds ground for the third consecutive day, trading around 0.7840 during the Asian hours on Tuesday. The Swiss Federal Statistical Office is set to release the April Consumer Price Index (CPI) data later in the day.On Monday, the Swiss SVME – the Manufacturing Purchasing Managers’ Index (PMI) climbed to 54.5 in April from 53.3 previously, beating expectations of 52.0. This marked a second straight month of expansion and the strongest reading since October 2022. Sentiment in Swiss manufacturing improved despite ongoing volatility in the Middle East.The USD/CHF pair appreciates as the US Dollar (USD) advances on increased risk aversion…
The Indian rupee slid to a record low on Tuesday after U.S.-Iranian strikes in the Gulf rattled markets, dimming hopes for a resolution and deepening concerns over risks confronting the oil-importing economy. The currency weakened to 95.39 per dollar, down 0.3% on the day, eclipsing its previous all-time low of 95.33 hit on Thursday last week. Oil-sensitive Asian peers such as the Indonesian rupiah and Philippine peso also weakened on Tuesday as the Gulf hostilities tested a fragile truce and kept investors on edge.Analysts reckon that an elongated conflict in the Middle East, which keeps energy prices elevated, would widen…
The Reserve Bank of Australia (RBA) is having a monetary policy meeting this week and will deliver its decision on Tuesday. Market participants expect the Board to deliver a 25 basis points (bps) interest rate hike, the third consecutive one. If markets are right, the Official Cash Rate (OCR) will then reach 4.35% from the current 4.1%. As usual, policymakers will release a statement that should shed some light on the discussion that led to the decision. Governor Michele Bullock will then hold a press conference, in which she could provide additional information about officials’ assessment of the current macroeconomic…
BNP Paribas economists project Eurozone Gross Domestic Product (GDP) growth to slow from 1.5% in 2025 to 1.0% in 2026, with inflation rebounding to 3.0% in 2026 and 3.3% in 2027. Activity is expected to withstand energy shocks, supported by investment in defence, AI (Artificial intelligence) and electrification, while the European Central Bank (ECB) is seen delivering two 25 bps hikes in 2026, lifting the deposit rate to 2.5%.Growth slows as inflation rebounds”Eurozone growth would slow due to spillovers from the Middle East conflict.””GDP growth, which reached 1.5% in 2025, would slow down to 1.0% in 2026 and 1.3% in…
Gold (XAU/USDS) kicks off the week under pressure, hovering near one-month lows as hawkish interest rate expectations continue to weigh on the non-yielding metal amid ongoing tensions in the Middle East. At the time of writing, XAU/USD is trading around $4,560, down nearly 1.10% on the day.Strait of Hormuz tensions keep markets on edgeMarket sentiment remains fragile amid uncertainty over the future of US-Iran peace talks, with tensions escalating. Iran’s Fars news agency reported that two missiles struck a US naval vessel near the island of Jask after it allegedly ignored warnings from the Islamic Revolutionary Guard Corps (IRGC) to…