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EUR/USD fluctuates between modest gains and losses heading into the weekend as traders await Tehran’s decision on a possible agreement with the United States (US) to end the war in the Middle East. At the time of writing, the pair trades around 1.1573 and is on track to post modest weekly gains.Iranian Foreign Minister Abbas Araghchi said a memorandum of understanding (MoU) with the United States has “never been closer.” Pakistan’s Prime Minister Shehbaz Sharif also said that a final agreed text of a peace deal has been reached and that Islamabad is working closely with both sides to finalize…
Societe Generale notes that Chinese inflation remains subdued, with May Consumer Price Index (CPI) at 1.2% and core at 1.1%, while PPI has risen to a four-year high, suggesting weak consumer demand and margin pressure. The bank highlights that authorities are using targeted easing and tighter capital controls to manage USD flows and limit Yuan strength, keeping the currency as a regional anchor.Policy tightening around capital flows”May CPI held at 1.2% YoY, with core easing slightly to 1.1%, while PPI rose to 3.9%, the highest in four years, pointing to subdued consumer demand and continued pressure on margins.””In contrast, the…
Gold (XAU/USD) consolidates on Friday as traders await further developments on a potential US-Iran peace deal. At the time of writing, XAU/USD is trading around $4,200 after climbing to an intraday high of $4,246 earlier in the day.US President Donald Trump said on Thursday that he had canceled planned military strikes on Iran and claimed a peace agreement could be signed as soon as this weekend.Trump’s statement lifted market sentiment, helping Gold rebound from a nearly seven-month low of $4,023, as the US Dollar (USD) and Oil prices lost ground.Iranian Foreign Minister Abbas Araghchi said the Memorandum of Understanding (MoU) with the…
The rupee was buoyed on Friday, closing at a one-week high, as crude oil prices softened to a three-month low amid rising hopes of a peace deal between the US and Iran and rally in the domestic equity markets.Opening stronger at 95.35 per US dollar, the rupee closed at 95.11, up about 0.7 per cent, against previous close of 95.76. It tested an intraday high/ low of 94.95/ 95.53.Crude oil prices thawed to about $85 per barrel against $90 on reports of US and Iran inching closer to a peace deal. Benchmark indices BSE Sensex and NSE Nifty rose 2.30…
Commerzbank’s Bernd Weidensteiner and Christoph Balz argue that Kevin Warsh’s first Federal Reserve meeting is unlikely to deliver an immediate rate cut, given elevated PCE inflation and a still‑solid labor market. They expect the Fed to drop its easing bias next week, then only begin a gradual cutting cycle around mid‑2027, constrained by inflation risks and political pressure.Warsh unlikely to cut near term”However, an interest rate cut is unlikely to be seriously on the table next week. This is because inflation risks have continued to rise since the last meeting in April. Based on the comprehensive inflation measure preferred by…
The Indian rupee surged against the dollar on Friday as growing expectations of a U.S.-Iran peace agreement sent oil prices sharply lower and triggered an unwinding of long dollar positions.The rupee opened firmer at 95.32 per dollar but briefly slipped to a low of 95.52 in a volatile session, pressured by dollar demand from corporates and importers.Reports of a possible peace deal between Washington and Tehran pushed oil prices deeper into the red, easing concerns over India’s import bill and external balances.The rupee climbed to a one-week high of 94.9550 during the session before settling at 95.11, up 0.7% on…
Iran’s Mehr news agency has reported in the European trade on Friday that the draft with the United States (US) regarding the permanent peace deal needs finalization by relevant authorities. The agency has also reported key terms in the draft, which includes the reopening of the Strait of Hormuz, unfreezing Iran’s funds, and the lifting of the US naval blockade.Additional informationThe MoU with the US includes US commitment to lifting sanctions, withdrawing its forces from around Iran, and lifting the naval blockade.The MoU with the US also includes reopening Strait of Hormuz, cancelling oil sanctions, and releasing Iran’s frozen funds.Final…
The rupee surged 65 paise to 95.20 against the US dollar in early trade on Friday as global crude oil prices retreated after US President Donald Trump indicated an imminent deal with Iran.A weaker greenback and positive sentiment at the domestic equity markets provided further boost to the local unit, according to forex traders.At the interbank foreign exchange, the rupee opened at 95.40 before rising further to 95.20 against the greenback.The rupee had plunged 60 paise to settle at 95.85 against the US dollar on Thursday.”The rupee opened stronger on Friday, fuelled by a sharp retreat in global crude oil…
The USD/JPY pair attracts fresh buyers during the Asian session on Friday and moves away from a one-week low, touched the previous day. Spot prices currently trade around the 160.25-160.30 region, up nearly 0.25% for the day, and remain well within striking distance of the highest level since late April.The US and Iran continue to send mixed and contradictory signals regarding a potential peace deal, keeping a lid on the latest optimism and undermining the Japanese Yen (JPY) amid economic risks stemming from the Middle East conflict. Furthermore, persistent geopolitical uncertainties, along with hawkish US Federal Reserve (Fed) expectations, revive…
The EUR/USD pair gathers strength to around 1.1575 during the early Asian trading hours on Friday. The Euro (EUR) edges higher against the US Dollar (USD) on the European Central Bank (ECB) interest rate hike and improved risk sentiment.As widely expected, the ECB decided to raise the key interest rates for the first time since 2023 as Iran’s war ramps up energy costs, lifting its deposit facility rate from 2.0% to 2.25% following its governing council meeting on Thursday. The ECB also hiked its main refinancing operations rate to 2.40% and its marginal lending facility rate to 2.65%.“The war in…