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Gold price (XAU/USD) attracts some sellers to around $4,720 during the early Asian session on Wednesday. The precious metal falls as renewed Strait of Hormuz disruption stokes inflation concerns. Bloomberg reported on Wednesday that US President Donald Trump will extend the ceasefire with Iran until talks between the two countries have progressed. Trump’s announcement struck a markedly different tone from earlier in the day when he said, “I expect to be bombing” if Iran didn’t meet his conditions, adding the military was “raring to go.” Rising energy costs are stoking inflation fears, raising the bar for cutting rates. Gold is often used…
GBP/USD retreats on Tuesday, losing 0.18%, as the US Dollar (USD) recovers following a solid US Retail Sales report. Data in the UK showed the labor market remains solid, while traders digest headlines from the Federal Reserve (Fed) Chair nominee, Kevin Warsh, at the US Senate. At the time of writing, the pair trades at 1.3507, after reaching a daily high of 1.3539.Sterling eases despite firm UK jobs data and Warsh headlinesMarket mood is mixed, though US equities are positive, underpinned by strong earnings reports. Speculation about a possible end to the conflict between the US and Iran looms, yet…
United States (US) President Donald Trump said during late European trading hours on Tuesday, through a post on Truth Social, that Iran has violated the terms of the two-week ceasefire numerous times. Risk sentiment FAQs In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future,…
The rupee declined 32 paise to close at 93.48 (provisional) against the US dollar on Tuesday, weighed down by a steady American currency and volatile crude oil prices amid uncertainties over the progress of West Asia peace negotiations.Positive domestic equity markets failed to boost local currency, which also had some impact of the Reserve Bank’s latest move to ease curbs on speculative bets in non-deliverable forward markets, forex analysts said.The Reserve Bank on Monday partially withdrew directives taken on April 1 to curb excessive speculation in the rupee. The banking regulator had capped the net open positions in non-deliverable forward…
Gold (XAU/USD) sticks to intraday losses below the $4,800 mark through the first half of the European session on Tuesday, though it holds above a one-week low touched the previous day. Investors remain skeptical about a potential US-Iran agreement amid the standoff over the Strait of Hormuz. The US Navy seized an Iranian-flagged cargo ship in the Gulf of Oman as part of its blockade. In response, Iran once again closed the strategic waterway, which acts as a tailwind for Crude Oil prices. This, in turn, revives inflationary concerns and supports the US Dollar (USD), exerting pressure on the commodity.Any…
USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7790 during the Asian hours on Tuesday. The pair gains ground as the US Dollar (USD) receives support from increasing risk aversion, driven by persistent uncertainty surrounding US–Iran ceasefire negotiations. Traders assess ongoing geopolitical tensions in the Middle East as the 14-day ceasefire deadline approaches.Bloomberg reported that US President Donald Trump stated that US Vice President JD Vance is leaving later on Monday for Pakistan to resume negotiations, “either Tuesday night or Wednesday morning.” Iran is also sending a team, although it is unclear who would lead…
Gold price (XAU/USD) trades on a flat note near $4,825 during the early Asian session on Tuesday. The precious metal steadies amid renewed geopolitical instability in the Middle East. Reuters reported on Monday that Iran is considering attending peace talks with the United States (US) in Pakistan, following moves by Islamabad to end a US blockade of Iran’s ports. Nonetheless, officials stressed that no decision had been made, and Iranian Foreign Minister Abbas Araqchi said that “continued violations of the ceasefire” by the US are a major obstacle to continuing the diplomatic process.A breakdown in US-Iran peace talks and a…
West Texas Intermediate (WTI) US Oil trades around $87.10 per barrel on Monday, gaining 3.80% on the day at the time of writing, as geopolitical tensions in the Middle East revive concerns about global supply disruptions.The rebound follows a sharp recovery from Friday’s low near $78.89, after developments over the weekend cast doubt on the future of the peace process between Washington and Tehran. Oil prices had previously dropped significantly after the announcement of a ceasefire earlier this month, but have since regained ground as the situation becomes more uncertain.Iran’s foreign ministry spokesperson Esmail Baghaei stated on Monday that Tehran…
TD Securities strategists expect Canada’s March Consumer Price Index (CPI) to accelerate as higher energy prices lift the headline rate, while food disinflation offsets some of the impact. Core measures are seen rising but remaining contained, leaving the Bank of Canada’s (BoC) April communication broadly unchanged despite the recent Oil shock and Iran-related geopolitical tensions.Energy lifts headline, core stays contained”Headline CPI is set to accelerate to 2.5% y/y in March as prices rise 1.1% m/m, underpinned by the sharp increase for energy (market: 2.6% y/y, 1.1% m/m). Gasoline and other energy products should contribute ~0.7pp to the headline print (m/m),…
The Indian rupee logged its steepest one-day fall in a week on Monday, with wary investors bracing for the end of the U.S.-Iran ceasefire a day later amid rising tensions in the Middle East.The rupee declined to 93.1275 against the dollar, 0.2% lower than the previous session, its steepest fall since April 13. While the local currency had strengthened in early trading, it reversed course as dollar demand from state-run and foreign banks picked up, likely on behalf of merchant and foreign investor clients, traders said. A large Indian conglomerate was also spotted bidding for dollars, a trader at a…