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Scotiabank’s Shaun Osborne and Eric Theoret note USD/JPY is little changed despite strong verbal intervention from Finance Minister Katayama, who warned of decisive action at any time. Markets remain unimpressed, given repeated rhetoric and limited impact from actual Yen buying. They recall recent data showing a significant sentiment shift toward the Japanese Yen among local retail FX traders, who may be more attuned to intervention risks.Katayama warnings and intervention expectations”The JPY is little changed despite Finance Minister Katayama deploying aggressive verbal intervention in its support earlier.””Katayama threatened “decisive action at any time”. That ranks as one of the strongest warnings…
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note USD/SGD has stabilised after an earlier sell-off, with spot around 1.2905 and intraday price action expected to stay confined between nearby support and resistance. They highlights building downside momentum on a 1–3 week horizon, with 1.2860 as a key trigger for a deeper decline, while 1.2930 caps the topside.Dollar-Singapore pair stuck in tight band”24-HOUR VIEW: USD fell to a low of 1.2876 two days ago. When it was at 1.2885 in the early Asian session yesterday, we highlighted that “the sharp increase in momentum points to further…
The upcoming week will be dominated by the European Central Bank’s (ECB) interest rate decision, United Kingdom (UK) inflation and labor market figures, and preliminary global Purchasing Managers Index (PMI) data. Australian employment, New Zealand inflation and Canadian CPI figures will also attract attention.The US Dollar Index (DXY) trades slightly higher near 100.80 after mixed United States (US) economic releases. The United States (US) calendar will be relatively light, leaving the Greenback sensitive to Federal Reserve (Fed) expectations, global risk sentiment, and developments in energy markets.US Initial Jobless Claims are expected to rise slightly to 212K from 208K on Thursday.…
Gold edges higher by some 0.92% on Friday as the US-Iran conflict boosted energy prices, which ultimately drive inflation higher, increasing expectations that the Federal Reserve (Fed) might need to raise interest rates. At the time of writing, the XAU/USD trades at $4,013, after reaching a daily low of $3,959.XAU/USD rises as Middle East escalation revives inflation fearsAttacks between the US and Iran soured market sentiment despite the ongoing recovery in US equity markets. Newswires revealing a further escalation of the war are pushing the non-yielding metal higher.Axios reported that the Trump administration is sending dozens of additional refueling planes…
The Dow Jones Industrial Average (DJIA) trades near 52,250 on Friday, down nearly 300 points late in the month’s strangest session. The index slid to the 52,000 handle through the first half of the day, rallied more than 600 points on the strongest consumer sentiment reading since February, and has spent the afternoon handing the entire pop back to the morning range. The average still hovers near flat on the week, while the broader benchmarks bleed.Good news, promptly confiscatedThe morning data offered little direction. Housing starts ran at a 1.43 million annualized pace against a 1.31 million consensus, building permits…
AUD/USD trades higher near 0.6980 on Friday, recovering from an initial decline as the US Dollar (USD) loses ground following a mixed batch of United States (US) economic data. Stronger Housing Starts and Consumer Sentiment were offset by weaker Building Permits and subdued Industrial Production prints.US Housing Starts increased to an annualized 1.43 million in June, beating expectations of 1.31 million and rising from 1.20 million previously. However, Building Permits declined to 1.37 million MoM, below the 1.40 million forecast and the previous 1.41 million. Building Permits are down 3.0% on an annual basis.US Industrial Production rose only 0.1% MoM,…
NZD/USD declines on Friday, trading around 0.5830 at the time of writing, down 0.19% on the day, as investors seek safe-haven assets following a fresh wave of US strikes against Iran. The US Dollar (USD) benefits from the renewed risk-off mood, while risk-sensitive currencies such as the New Zealand Dollar (NZD) remain under pressure.The United States (US) has carried out a sixth consecutive day of strikes against Iranian infrastructure, including targets in the Bandar Abbas region. In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that it would intensify retaliation against Washington and countries hosting US military bases. The IRGC…
The Indian rupee logged its sharpest weekly drop since May, with Friday’s uneventful trading session closing out the week, as elevated oil prices and strong merchant dollar demand renewed worries about the currency’s trajectory.The rupee closed at 96.28 per dollar, down about 1 per cent week-on-week, stung by a 13 per cent rise in Brent crude oil prices as fighting between the US and Iran intensified, choking energy supplies through the Strait of Hormuz yet again.Iran said it launched fresh strikes on US facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth…
The Indian rupee logged its sharpest weekly drop since May, with Friday’s uneventful trading session closing out the week, as elevated oil prices and strong merchant dollar demand renewed worries about the currency’s trajectory.The rupee closed at 96.28 per dollar, down about 1% week-on-week, stung by a 13% rise in Brent crude oil prices as fighting between the U.S. and Iran intensified, choking energy supplies through the Strait of Hormuz yet again.Iran said it launched fresh strikes on U.S. facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of U.S.…
Commerzbank economists led by Dr. Marco Wagner and Dr. Jörg Krämer expect the European Central Bank (ECB) to leave rates unchanged in July but still deliver a further 25 bps hike in September. Their ChatECB AI indicator remains in hawkish territory, while Euro area inflation is seen staying just below 3% as core inflation and inflation expectations trend higher, keeping the ECB biased to tighten.July pause, September hike risk”The ECB is unlikely to raise its key interest rates for the second time in a row next week. However, another rate hike is likely at the meeting in September. Our revised…