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Thursday’s record Yen defence is the story everyone has written. Friday is the one that matters, because the Dollar has been sold in three separate lurches since the Tokyo morning, nobody has claimed any of them, and the US Treasury has told a number of banks through the New York Fed that it may enter the market and they should stand ready for further action. USD/JPY trades just under 159.00 late in the session, a Yen and a half beneath where the day began.The second round is the cheap oneThe pattern reads like an operation rather than a market. The…

The US Dollar Index (DXY) struggles to hold its early recovery on Friday as the fallout from suspected Japanese intervention and the possibility of direct action by the United States (US) keep the Greenback under pressure. At the time of writing, the index trades around 99.96, easing from an intraday high of 100.45 and hovering near its lowest level in six weeks. The DXY is also on track to close July in negative territory.The Greenback suffered a sharp sell-off on Thursday as the Japanese Yen (JPY) surged across the board. Reuters reported, citing a market source, that Japanese authorities likely…

Richmond Federal Reserve (Fed) President Tom Barkin said on Friday that it remains uncertain whether the current level of interest rates is sufficiently restrictive to bring inflation back to the Fed’s 2% target, according to an interview with The Wall Street Journal.Barkin also said he was unsure whether he would have joined the three Fed committee members who dissented in favor of a 25 basis-point rate increase at this week’s policy meeting. His comments come after the Fed left interest rates unchanged, while Governors Lorie Logan, Beth Hammack and Neel Kashkari favored an immediate hike.Key quotesIt’s a close call whether…

EUR/USD trades near the 1.1530 area during Friday’s American session, consolidating after a strong rally off intraday lows. The Euro found support from resilient Eurozone inflation data, although gains remain capped as hawkish Federal Reserve (Fed) rhetoric boosts the US Dollar.Preliminary data from Eurostat showed that the Eurozone Harmonized Index of Consumer Prices (HICP) rose 2.9% YoY in July, up from June’s 2.8% reading. Meanwhile, core HICP accelerated to 2.5% YoY, above both the previous 2.4% and economists’ forecasts, suggesting underlying price pressure remains persistent. On a monthly basis, headline HICP increased 0.2%, while core HICP was unchanged.Labor market figures…

Silver (XAG/USD) trades on the back foot on Friday as rising US Treasury yields outweigh support from a weaker US Dollar (USD). At the time of writing, XAG/USD trades around $57.50, down 2% on the day and on track to close July in negative territory.The US Dollar stays under pressure following suspected intervention by Japanese authorities to support the Japanese Yen (JPY). The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, hovers around 100, near six-week lows.Meanwhile, US Treasury yields move higher as elevated energy prices keep inflation risks tilted to the…

West Texas Intermediate (WTI) US Oil trades higher on Friday, rising 0.76% to around $83.30 after staging a sharp rebound from an intraday low below $80.00. The Crude Oil has erased some of its weekly losses and is on track to finish the week close to its opening levels after the bearish gap seen at the start of the week.Market sentiment has improved as investors reassess the impact of shipping disruptions through the Strait of Hormuz. According to CommBank, Oil tanker traffic through the strategic waterway has recovered to around 30%-35% of its pre-conflict level. A broader normalization of flows…

Canada’s economy cooled a tad in May. Indeed, the Gross Domestic Product (GDP) grew by 0.3%, adding to the previous month’s 0.6% expansion (revised from 0.5%), according to data released by Statistics Canada.From the press release: “Real gross domestic product (GDP) grew 0.3% in May, rising for a second consecutive month, as both goods-producing and services-producing industries expanded in the month. Overall, 13 of 20 industrial sectors contributed to the growth. Goods-producing industries expanded 0.6%, as most sectors comprising the aggregate rose in May. Services-producing industries rose 0.2%, driven in large part by increases in real estate and rental and…

The Indian rupee ended stronger on Friday, with persistent central bank interventions boosting the currency to its strongest weekly gain since March.The currency rose 0.3% on the day and about 1% week-on-week to end at 95.38 per dollar. On the month, though, it slipped about 0.7% as oil prices ‌climbed due ⁠to renewed ⁠hostilities in the Middle East.Brent was on track to rise 21% for the month and WTI 18%, snapping two straight months of declines for both oil benchmarks.Worries over ​the impact of oil prices have exerted pressure on the rupee. The currency appeared vulnerable to breaching record lows…

UOB strategists observe that the Federal Open Market Committee (FOMC) kept the Fed Funds Target Rate at 3.50%–3.75% for a fifth meeting, with a 9–3 split as three presidents sought a 25 bps hike. Their base case is an extended 2026 pause before easing resumes in 2027, but they warn that persistent inflation and hawkish members keep renewed tightening risks elevated.Fed holds but dissent and risks rise”FOMC holds rates steady, but dissent grows: The FOMC left the Fed Funds Target Rate unchanged at 3.50%-3.75% for a fifth consecutive meeting, but the decision was split 9-3, with three regional Fed presidents…

Surging crude oil prices driven by West Asia geopolitical tensions will act as a key ceiling for Indian stock market rallies, though strong valuations and support levels near 23,800 will cushion major downsides, Shrikant Chouhan, Head of Equity Research at Kotak Securities, said in an exclusive interview with ANI.Analyzing the macroeconomic risks posed by elevated oil prices, Chouhan outlined scenario-based projections for inflation, GDP, and currency volatility.”In the base-case scenario, if crude prices sustain above the mark of $85… it will start impacting the balance of payments, the current account deficit, and eventually inflation,” Chouhan stated, noting that retail inflation…