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The EUR/JPY cross trades in negative territory around 184.60 during the early European trading hours on Wednesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) amid hawkish signals from the Bank of Japan (BoJ). Japan’s National Consumer Price Index (CPI) inflation report will be the highlight later on Friday. Growing speculation that the Bank of Japan may raise interest rates in the coming months provides some support to the JPY. Reuters in a report Friday said the Japanese central bank is considering a rate hike as soon as September. Overnight index swaps are pricing in about an 80% odds…
The Indian rupee is poised to open weaker on Wednesday, as a deteriorating risk backdrop and high oil prices reinforce the currency’s underlying negative near-term bias.The rupee is expected to open in the 95.75 to 95.80 range, traders said, compared with 95.68 on Tuesday. Brent crude is nearing $92 a barrel, while high U.S. Treasury yields are weighing on risk appetite.Oil prices were up for the fourth straight day amid continued uncertainty over the Strait of Hormuz. U.S. President Donald Trump said on Tuesday that no talks were taking place with Iran and insisted the strait was open, contradicting Iran’s…
The Aussie Dollar reversed its course against the Greenback on Tuesday as investors remain uncertain of the outcome of the Middle East conflict, which tends to push energy prices higher, increasing the likelihood that major central banks would need to tighten monetary policy. The AUD/USD trades at 0.7080 after reaching a high of 0.7119.AUD/USD Reverses as Iran Risks Lift Dollar Before Fed MinutesThe US-Iran conflict is making headlines. Recently, CNN, citing a US official, reported that Trump instructed senior officials to stop talks with Iran. Trump also confirmed that the US Navy blockade is still active, while US data was…
AUD/USD trades just below 0.7100 on Tuesday, a touch lower for the day and sliding from the two-month highs reached on Monday. The pair opened with a firmer tone and pushed toward 0.7119 early on, but the bid faded through the session, and by the middle of the American trading session it sits just under its opening level.The move owes little to Australian data and almost everything to geopolitics. The US Dollar (USD) has clawed back a little ground as tensions around the Strait of Hormuz flare again, keeping a modest safe-haven bid under the Greenback and weighing on risk-sensitive…
Chris Turner at ING describes EUR/USD as contained after a rally stalled just above 1.16, with investors cautious due to high natural gas prices and upcoming FOMC minutes. He expects a 1.1520–1.1580 range near term, while higher energy supports ECB hike expectations. ING maintains forecasts for EUR/USD at 1.17 by end-September and 1.18 by year-end.Euro capped by energy and Fed risk”Yesterday’s EUR/USD rally stalled shortly above 1.16, and investors will be reluctant to push it much higher given energy price developments and ahead of the FOMC minutes tomorrow night.””Despite recent positive economic surprises in the eurozone, the fact that natural…
The rupee depreciated 7 paise to close at 95.68 (provisional) against the US dollar on Tuesday, weighed down by elevated crude oil prices and lingering geopolitical tensions in West Asia.Forex traders said the USD/INR pair is likely to trade with a slight negative bias, pressured by the delay in the deal between the US and Iran, rising crude oil prices and broader dollar support.At the interbank foreign exchange, the rupee opened at 95.68 against the greenback and traded in a range of 95.64-95.69 during the session. It eventually settled at 95.68 (provisional), lower by 7 paise from its previous close.On…
The Indian rupee closed marginally weaker on Tuesday as likely central bank intervention stood between the South Asian unit and the pressure from elevated oil prices and surging global bond yields.The rupee closed at 95.68 per dollar, down modestly from its close of 95.6025 in the previous session.The Reserve Bank of India likely intervened across market segments to support the rupee on Tuesday, traders said. The intervention anchored the currency even as its Asian peers slipped, with the Philippine peso down 0.5% and Indonesian rupiah down 0.2%.The rupee, rupiah and peso triplet is seen as among the most vulnerable to…
The Australian Dollar (AUD) trades almost flat at around 0.7100 against the US Dollar (USD) during the European trading session on Tuesday, but is close to its over two-month high of 0.7130 posted on Monday.The Aussie pair trades broadly firm as the US Dollar is under pressure, with financial markets pricing out the possibility of a Federal Reserve (Fed) interest rate hike in September.Fed seen on extended pause as softer US data tempers hike betsAnalysts at HSBC Asset Management highlight that “market pricing for a September Federal Reserve rate hike has fallen to its lowest level since mid-June,” as investors…
The rupee depreciated 7 paise to 95.68 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent demand for greenback.Forex traders said Brent crude near USD 91 per barrel increased oil-related dollar demand and the Reserve Bank’s earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows.At the interbank foreign exchange, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, the rupee depreciated 19 paise to close at 95.61 against the US dollar.The rupee opened lower as oil prices rose with the…
The AUD/JPY cross trades in positive territory around 113.40 during the early European trading hours on Tuesday. The Japanese Yen (JPY) weakens against the Australian Dollar (AUD) amid mounting fiscal concerns and persistent inflationary pressures. Traders await the release of the Australian jobs data, which is due later on Thursday. Prime Minister Sanae Takaichi’s plan to cut the consumption tax on food to 1% for two years has raised market concerns, as the government has yet to identify an alternative revenue source and the measure is viewed as an ineffective way to combat inflation. Additionally, markets are also concerned about elevated…