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The Pound Sterling holds firm during the North American session as UK inflation data dipped, easing pressure on the Bank of England to tackle higher prices, while attacks between the US and Iran don’t seem to be ending in the Middle East. The GBP/USD trades at 1.3377.GBP/USD holds as softer inflation offsets Middle East risksDuring the European session, UK inflation data for June dipped from 2.8% to 2.6% YoY. The core Consumer Price Index (CPI) remained steady at 2.6% YoY for the same period. Even though this relieves the BoE, traders continued to price in an 82% chance for a…
The Reserve Bank of India sold a net $6.1 billion in the foreign exchange market in May, data released on Wednesday showed, as a sharp rise in oil prices due to the Iran war pushed the rupee to an all-time low.The RBI said in its monthly bulletin that it purchased $22.2 billion and sold $28.3 billion in May. In April, the central bank had sold a net $8.9 billion.The Indian rupee fell to a record low of 96.96 per dollar in May, pummeled by surging oil prices and higher global bond yields.The currency was then shored up by firm RBI…
Societe Generale economist Sam Cartwright analyzes June United Kingdom (UK) inflation, noting headline Consumer Price Index (CPI) at 2.6% year-on-year, below Bank of England (BoE) projections, with core inflation steady at 2.6%. The report highlights fuel-driven disinflation, limited indirect energy effects, and only modest expected core inflation increases. Cartwright forecasts Bank Rate staying at 3.75% through 2026, with potential 75bp cuts in 2027, while flagging energy-price risks to this path.BoE seen holding rates through 2026″Looking ahead, the recent rise in Brent crude, refined oil product, and European wholesale gas prices points to a stronger increase in near-term inflation than we…
The rupee depreciated by 34 paise to close at 96.59 (provisional) against the US dollar on Wednesday, weighed down by surging crude oil prices and heightened geopolitical uncertainty.Forex traders said risk aversion in global markets and a negative trend in domestic equities further dented investor sentiments.At the interbank foreign exchange, the rupee opened at 96.36 against the US dollar and traded in the range of 96.25 to 96.57 during the day. The domestic unit finally settled at 96.59 (provisional), lower by 34 paise from its previous close.On Tuesday, the rupee had settled higher by 11 paise at 96.25 against the…
The EUR/JPY cross attracts some sellers after an intraday move up to a one-month high and drops to the 185.75-185.70 area during the early part of the European session on Wednesday. The supportive fundamental backdrop, however, favors bullish traders as the market focus remains on the crucial European Central Bank (ECB) meeting on Thursday.In the meantime, expectations of a hawkish ECB tone might continue to underpin the shared currency and support the EUR/JPY cross amid the underlying bearish sentiment surrounding the Japanese Yen (JPY). In fact, investors are currently pricing in a 78% probability of an additional 25-basis-point (bps) ECB…
The rupee depreciated 11 paise to 96.36 against the US dollar in early trade on Wednesday as crude oil prices climbed on renewed geopolitical tensions, and demand for the US dollar increased as investors moved toward safe-haven assets. Forex traders said concerns over the security of oil shipments through the Red Sea and Strait of Hormuz continue to support crude oil prices. Moreover, Houthi threats against shipping and ongoing US-Iran hostilities have kept a geopolitical risk premium in the market, they said.At the interbank foreign exchange market the rupee opened at 96.36, registering a fall of 11 paise from its…
Gold (XAU/USD) rallies to an over two-week high, around the $4,140-$4,141 area, during the Asian session on Wednesday amid hopes that US-Iran diplomacy could ease energy prices and temper hawkish US Federal Reserve (Fed) expectations. In fact, top negotiators for Iran and the US signaled that they have not walked away from talks. US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, while Iran’s Interior Minister Eskandar Momeni visited mediator Pakistan and asked Islamabad to continue its efforts. Moreover, reports suggest that mediators are working to bring the US…
Iran’s top joint military command said that Tehran will expand its strikes and target the US and its allies’ interests across the region if the US attacks Iran’s nuclear sites, Xinhua news agency reported on Tuesday.Iranian State TV reported that if the US attacks Iran’s nuclear sites, it will be an expansion of war in the region.The statement came after US President Donald Trump said that the US will be hitting the Pickaxe Mountain area “pretty soon.” Trump on Tuesday vowed to respond if Houthi militants in Yemen disrupted that waterway but didn’t specify how.On Tuesday, a handful of oil…
USD/CHF edges higher as escalating tensions in the Middle East support the US Dollar (USD), with buyers eyeing a breakout above the 0.8150 resistance level that has capped gains since July 2025. At the time of writing, the pair trades around 0.8123, up 0.27% on the day.From a technical perspective, USD/CHF has largely traded sideways after breaking above 0.8000 in June. A successful retest of that level drew buyers back into the market. Holding above 0.8000 keeps the near-term bias tilted to the upside, although buyers may need a fresh catalyst to clear 0.8150.On the daily chart, the pair trades…
Tatha Ghose at Commerzbank highlights that Turkey’s market-based inflation expectations for 2026 and 12 months ahead have risen again, undermining confidence in disinflation. Survey participants see Central Bank of the Republic of Türkiye (CBRT) holding rates at 37% this week then cutting to 34.7% by year-end, a mix he deems negative for the Lira given underlying monthly inflation near 2% and a higher end-2026 USD/TRY forecast.CBRT stance seen as lira-negative”Turkey’s central bank (CBRT) published its latest survey of market participants yesterday, and the message was not encouraging. The year-end 2026 CPI forecast edged up to 29.2%y/y in July from 29.1%y/y…