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The Euro (EUR) extends its rally against the Japanese Yen (JPY) for the fourth consecutive day on Wednesday, reaching above 185.46 for the first time since an alleged intervention on April 30. The JPY has failed to draw support from Bank of Japan Governor (BoJ) Ueda’s hawkish comments and is dropping against its main peers, raising concerns of another intervention. Ueda warned about second-round effects from inflation on Wednesday and stated that central banks should not look at Oil prices in isolation, because a temporary energy shock “may turn lasting if it alters wages, expectations and price-setting behaviour.”These comments feed expectations…
Reserve Bank of New Zealand’s (RBNZ) Governor Anna Breman presents the prepared remarks on the Monetary Policy Review (MPR) and responds to media questions at the press conference after the May monetary policy announcement.Earlier on, Breman and her colleagues announced no change to the Official Cash Rate (OCR) decision, holding it at 2.25% as widely anticipated.RBNZ press conference key quotesAll members agreed on path for rates, difference was on timing.Members who voted to raise rates more concerned with second-round effects on inflation.Members who voted to hold emphasized low core inflation, subdued wage growth, anchored expectations.Longer term inflation expectations remain anchored.Inflation…
Mumbai: The Reserve Bank of India’s 3-year dollar-rupee buy-sell swap saw strong demand, with participants bidding nearly double the notified amount. The $5 billion swap attracted bids worth $9.8 billion, with its cutoff premium at 910 paise, an increase of 182 paise from the last time the central bank conducted a 3-year swap. The settlement of the initial leg of the FX swap will take place on Friday, through which the RBI will inject rupee liquidity into the banking system. The liquidity stood at a low surplus of Rs 67,285 crores as of May 25 Source
The Islamic Revolutionary Guard Corps (IRGC) threatened to retaliate after the United States (US) carried out strikes on southern Iran in “self-defence,” CNN reported on Tuesday. The IRGC also claimed that 25 vessels, including oil tankers, transited Hormuz during the “last day and night.”Iran’s Foreign Ministry condemned the US attacks as a violation of a ceasefire that’s been in place since early April. Meanwhile, Iranian Supreme Leader Mojtaba Khamenei said that “nations and lands of the region will no longer be a shield for American bases.”The US and Iran are working toward a memorandum of understanding, but disputes over language…
The Euro (EUR) loses ground during the North American session on Tuesday amid rising tensions in the Middle East, as the US and Iran exchanged fire near the Strait of Hormuz, while negotiations continue. At the time of writing, the EUR/USD pair trades at 1.1622, down 0.15%.Euro weakens as Iran tensions offset softer Oil pricesIran reported that the US violated the ceasefire as the United States conducted defensive strikes in southern Iran, after President Donald Trump said that negotiations with Tehran would extend. Meanwhile, US Secretary of State Marco Rubio stated that reaching a deal could “take a few days,”…
Gold (XAU/USD) loses ground on Tuesday as the US Dollar (USD) and Oil prices rebound after renewed US military strikes in southern Iran dampen hopes for a quick end to the Middle East war. At the time of writing, XAU/USD is trading around $4,511, easing from an intraday high of $4,580.The US Central Command said on Monday that US forces carried out “defensive strikes” in southern Iran targeting missile sites and Iranian boats allegedly attempting to place naval mines near the Strait of Hormuz. Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had downed a US MQ-9 Reaper drone…
Analysts said uncertainty surrounding US-Iran relations and concerns over broader West Asia conflict could keep the rupee under pressure in the near term. The rupee depreciated 47 paise to close at 95.73 (provisional) against the US dollar on Tuesday, on renewed geopolitical tensions in West Asia and a rise in crude oil prices.Forex traders said a strong US dollar and weak domestic markets also pressured the rupee.At the interbank foreign exchange market, the rupee opened at 95.43 against the US dollar, and touched an intra-day high of 95.33 and a low of 95.76 against the American currency.At the end of…
Deutsche Bank strategists highlight that the S&P 500 has logged an eighth consecutive weekly gain, supported by falling Oil prices and easing stagflation fears. Futures are modestly higher after the long weekend, though slightly below pre-strike levels. The report notes that US equities advanced despite recent weakness in big tech, with the Magnificent 7 slipping over the week.US equities supported by lower Oil”This morning S&P 500 futures are +0.62% and NASDAQ futures +0.85% which is a few tenths of a percent lower than most of yesterday before the overnight strikes.””That decline in oil prices meant investor fears eased about a…
The USD/CHF pair edges higher to near 0.7830, snapping the four-day losing streak, during the early European session on Tuesday. Uncertainty surrounding the US-Iran peace negotiations provides some support to the US Dollar (USD) against the Swiss Franc (CHF). The US military’s Central Command said US forces have carried out strikes on southern Iran in “self-defence,” the Guardian reported on Monday. It said that the military will defend US forces “while using restraint” during the ongoing ceasefire.Traders will keep an eye on the US April Personal Consumption Expenditures (PCE) Price Index report, which is due later on Thursday. Any signs of…
The dollar nursed losses on Tuesday on rising investor optimism of a deal being struck to reopen the crucial Strait of Hormuz and end the three-month-long Iran war, although fresh U.S. attacks on Iranian targets weighed on sentiment. Despite low odds of an imminent deal, hopes of peace have pushed oil below $100 a barrel, eased pressure on emerging-market currencies, and boosted risk sentiment. Iran’s top negotiator and its foreign minister were in Doha for talks with Qatar’s prime minister on a potential deal. U.S. President Donald Trump said talks with Iran were going “nicely”, but warned of fresh attacks…