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The Euro (EUR) trades marginally lower to near 1.1432 against the US Dollar (USD) during the European trading session on Monday. The major currency pair edges down as the US Dollar recovers its early losses.At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 100.77.The Greenback bounces back even as oil prices have retreated amid hopes of de-escalation in ongoing military aggression between the United States (US) and Iran. Higher oil prices de-anchor inflation projections that prompt Federal Reserve (Fed) interest rate expectations, a scenario that is favorable…
ING’s Chris Turner writes that Sterling has benefited from expectations Andy Burnham will appoint a fiscally cautious chancellor, alongside stale short positioning and M&A-related flows into United Kingdom (UK) equities. Turner sees scope for limited further Pound strength during Burnham’s early days, but warns tight UK public finances likely mean tax hikes. EUR/GBP support is seen at 0.8470, with 0.8400 as a best-case level.Political shift but fiscal constraints”Andy Burnham is set to succeed Keir Starmer as the UK Prime Minister later today. Sterling has been doing quite well recently on the view that Burnham will select a more fiscally responsible…
Surging oil prices have strained India’s forex reserves | Photo Credit: Kesavan N 7606 India’s central bank stepped into the foreign exchange markets to support the rupee after the currency weakened toward a record low as a renewed surge in crude prices weighed on sentiment.The Reserve Bank of India sold dollars in both offshore and onshore markets, traders familiar with the matter said, asking not to be identified because they aren’t authorised to speak publicly. A spokesperson for the RBI did not immediately respond to an email seeking comment. The rupee fell as much as 0.2% to 96.4575 per dollar, putting…
EUR/JPY remains subdued for the third consecutive day, trading around 185.80 during the Asian hours on Monday. The currency cross is holding a constructive bullish bias as it stays above both the nine-day and 50-day Exponential Moving Averages (EMAs), now aligned as nearby dynamic support.The 14-day Relative Strength Index (RSI) at 55.33 leans to the upside without signalling overbought conditions, suggesting bullish momentum is present but not yet overstretched while price consolidates just under the recent highs.The daily chart technical analysis shows the EUR/JPY cross is remaining within the ascending triangle, at the top near 186.10. This flat ceiling, combined…
The AUD/USD pair edges lower to around 0.6975 during the early Asian session on Monday. The Australian Dollar (AUD) extends the decline below the 0.7000 psychological level due to escalating tensions in the Middle East. The Guardian reported that US Central Command (CENTCOM) announced another death of a service member as it launched more airstrikes at Iran on Sunday in response to the killing of American troops. The US military said the service member was killed in Iraq on Saturday during the “controlled detonation” of a downed Iranian drone.Both sides have been accused of striking critical infrastructure in recent days. Meanwhile,…
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CNH is currently consolidating in a narrow range around 6.77. In their 1–3 week view, they maintain a downside bias toward 6.7600 as long as strong resistance at 6.7820 remains intact. Over 1–3 months, they see tentative upside potential if key technical resistance is broken.Short-term consolidation, medium-term downside bias”24-HOUR VIEW: After USD fell as we expected on Wednesday, we highlighted the following yesterday: “Our view was not wrong, as USD subsequently rose to 6.7781 and then fell to a low of 6.7653. Downward momentum continues to…
DBS Group Research economist Ma Tieying analyzes the latest Bank of Korea (BoK) decision, noting a hawkish shift as the base rate is raised to 2.75%. The report now anticipates a faster tightening cycle, with the policy rate reaching 3.25% by year-end 2026. Growth is expected to benefit from the AI-driven semiconductor sector, while Consumer Price Index (CPI) inflation is projected to overshoot target.BoK signals accelerated tightening cycle”The Bank of Korea raised the base rate to 2.75% from 2.50% at its July 16 meeting, marking the first rate hike since January 2023. The BOK maintained a hawkish stance and signaled…
Silver price recovered some ground on Friday, up 0.84%, but it is poised to finish the week down over 6.50%. At the time of writing, XAG/USD trades at $56.00 per troy ounce, after reaching a new year-to-date (YTD) low of $54.77. Source
Commerzbank’s Dr. Henry Hao argues China’s housing market remains in structural stagnation five years after the Evergrande crisis. National prices follow an L-shaped path, with a K-shaped divergence between Tier-1 and lower-tier cities. Weak demand, tighter funding and demographics mean real estate will no longer be China’s primary growth engine as Beijing redirects capital to new sectors.L-shaped prices, fractured construction cycle”China’s property downturn marks its fifth anniversary in July 2026. Despite localized price stabilization in top tier cities, the national housing market remains locked in stagnation. Our analysis of the construction cycle indicates structural stagnation will persist as Beijing pivots…
The Mexican Peso loses traction against the Greenback, dropping over 0.65% during Friday’s North American session as the American currency benefits due to its safe-haven appeal as the US-Iran conflict is far from ending, despite holding talks to finish the war. The USD/MXN trades at 17.53, after bouncing off a daily low of 17.41.USD/MXN rises as Oil risks revive Dollar and Fed supportMarket sentiment deteriorated amid a sell-off on chip stocks. The rise in Oil prices fueled speculation that the Federal Reserve could hike rates and narrow the interest rate differential, which favoured the Mexican Peso, as it began its…