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JP Morgan report predicts soft USD benefiting EM assets, with potential for EM currencies to outperform dollar. | Photo Credit: iStockphoto The US dollar will remain soft this year, which is likely to benefit Emerging Market (EM) assets, according to a research report by American investment banking firm JP Morgan. “USD could stay soft this year, which would help EM assets. EM historically traded inversely to the dollar, and the big question is whether the last 15 years’ downtrend in EM and the strong USD could be ending,” says the report.EM assets involve putting money into countries with developing economies.…
The Australian Dollar strengthens as the US Dollar attracts sellers due to rising US economic concerns.However, the AUD may lose its ground as the RBA could deliver further rate cuts.The US fiscal deficit could increase if Trump’s “One Big Beautiful Bill” passes the Senate.The Australian Dollar (AUD) continues to gain ground against the US Dollar (USD) on Monday, marking fresh six-month highs. The AUD/USD pair receives support as the US Dollar remains under downward pressure amid rising uncertainty surrounding the United States (US) economy.The AUD’s upside could be restrained due to dovish sentiment surrounding the Reserve Bank of Australia’s (RBA)…
Iranian Foreign Minister Abbas Araghchi said on Friday that discussions with the United States (US) over its nuclear program were complicated as the fifth round of talks concluded in Rome.Araghchi further stated that the negotiations are too complicated to be resolved in two or three meetings, and there was potential for progress in nuclear negotiations after Oman made several proposals.Meanwhile, US President Donald Trump said American negotiators made “real progress” during “very good” nuclear talks with Iran over the weekend.Market reactionAt the time of writing, the Gold price (XAU/USD) is trading 0.35% lower on the day to trade at $3,345. Risk…
Asian currencies are likely to appreciate against the US dollar in the long term, according to a recent report by Jefferies.The report highlighted that the gross national savings in emerging Asian countries are significantly higher than those in developed G7 nations, giving Asian economies a strong foundation for currency strength.It said, “The most likely currency bloc to enjoy long-term appreciation against the US dollar remains Asian currencies in what amounts to a reversal of the dynamic triggered by the Asian Crisis nearly 30 years ago.”The report noted that this trend marks a reversal of the currency dynamic that was triggered…
XAU/USD rallies as Trump warns of 50% tariffs on EU imports, escalating trade war and boosting safe-haven demand.The US House passes a $4 trillion debt-heavy budget, with the Senate vote and inflation data in focus.Talks on Ukraine and Iran ease geopolitical stress, but markets remain risk-averse.Gold’s price uptrend resumed on Friday, with the yellow metal rising close to 2% daily and 5% in the week, as the US Dollar (USD) weakened further after US President Donald Trump escalated the ‘trade war’ with the European Union (EU). This and investors’ woes regarding the US fiscal stance propel bullion prices higher, with…
The Franc surges nearly 1% as Trump’s tariff threats trigger risk aversion and deepen the US Dollar’s slide.USD/CHF breaks below 0.8250, nearing key support at May’s low of 0.8184.Bearish flag breakdown points to a possible test of the 2025 low at 0.8038.Traders pile into Swiss Franc as US protectionism and fiscal risks spook markets.USD/CHF continues to weaken as the downtrend extends past 0.8250, as the pair loses almost 1%. Investors seeking safety bought the Swiss Franc (CHF) after US President Donald Trump threatened to enact tariffs of 50% on the European Union (EU) and 25% on Apple’s iPhone manufactured overseas.…
10-year yield falls to 4.51% as investors flee US assets amid rising protectionist risks.Trump targets iPhones made abroad and threatens 25% tariffs on Apple products.Moody’s downgrade, $3.8T tax bill, and EU trade tensions intensify fiscal and inflationary fears.US Treasury yields fall across the whole curve following Trump’s threats to impose tariffs on Apple’s iPhones not manufactured in the US and duties on European imports. At the time of writing, the US 10-year Treasury note yield is down two basis points at 4.509%.Treasury yields dip across the curve as Apple and EU tariff threats deepen concerns over trade war and US…
The Dow Jones fell on Friday, shedding 780 points at its lowest.Relief from tariff threats is over as the trade policy cycle begins anew.Markets pared back downside bets after investors remembered the odds of a tariff walkback remain high.The Dow Jones Industrial Average (DJIA) saw stiff losses during the Friday market session The major equity index declined 780 points top-to-bottom and tapped 41,200 before a slow crawl back to the 41,750 region. United States (US) President Donald Trump sent markets into a backslide after announcing his intent, or at least desire, to impose import taxes on a specific company, the…
The Canadian Dollar gained a full percent against the US Dollar.The Loonie climbed to seven-month peaks against the USD as trade threats resume.Canadian economic data has been thin this week, leaving CAD to follow broad-market flows.The Canadian Dollar (CAD) caught a huge boost from market-wide Greenback weakness on Friday. The Loonie climbed over a full percent against the waffling US Dollar (USD) following a fresh batch of eerily-familiar-looking tariff threats from United States (US) President Donald Trump.Canadian economic data has been strictly mid-tier for most of this trading week, leaving the Loonie at the mercy of broader investment sentiment. Next…
During statements made to the press during his weekly Executive Order signing, United States (US) President Donald Trump added further tariff commentary, though not necessarily clarity, to his social media posts earlier on Friday.Donald Trump followed up with comments about a possible ‘deal’ between US Steel and Japan-based Nippon Steel. One of the key details missed in the Nippon-US Steel deal is that it is an acquisition bid, not a partnership or investment agreement. If the deal is allowed to go through, US Steel will become a wholly-owned subsidiary of Nippon Steel. While Nippon Steel did agree to spend $4B…