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Gold price (XAU/USD) loses ground to around $4,100 during the early Asian session on Wednesday. The precious metal faces new selling pressure after the US vows a response against Iran following reports of attacks on three oil tankers in and around the Strait of Hormuz. Traders await the release of the Federal Reserve’s (Fed) June meeting minutes later on Wednesday.“US Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway,” Centcom said on Tuesday.The US military added that the strikes…

The Indian unit closed 44 paise stronger at 94.96 per US dollar | Photo Credit: same design The rupee on Tuesday logged its biggest single day gain in over three-weeks, buoyed by central bank intervention and Dollar sales by exporters.The Indian unit closed 44 paise stronger at 94.96 per US dollar against the previous close of 95.40. Intraday, rupee tested a high/ low of 94.94/ 95.37.V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, said there was talk in the market of central bank intervention (sale of dollars) through public sector banks.Pressure on the domestic currency eased as crude…

Royal Bank of Canada (RBC) economists Abbey Xu and Nathan Janzen note that Canada’s merchandise trade surplus increased to $4.2 billion in May from $3.4 billion in April, as exports grew and imports slipped. They highlight weaker energy price support, falling export volumes, and rising industrial machinery imports as signs of shifting demand and improving business investment within an uncertain trade environment.Surplus grows as volumes soften”Canada’s merchandise trade surplus widened to $4.2 billion in May from $3.4 billion in April (revised upward from $2.7B), as exports rose 0.9% while imports declined 0.2%.””Still, monthly trade data are heavily influenced by commodity…

Analysts expect the currency to trade in the 94.20–95.40 range, with further weakness possible if the dollar strengthens. The rupee weakened over the past week, declining about 30 paise, or 0.32 per cent, to close at 94.97 against the dollar on Tuesday. The fall comes despite supportive factors, such as foreign inflows and lower crude oil prices, highlighting the stronger dollar’s influence on the local currency.According to NSDL data, net FPI inflows stood at about $1.1 billion so far in July, indicating that overseas investors remain interested in Indian assets. Domestic sentiment has also improved. The benchmark Nifty 50 index…

Geoff Yu reports that a Qatari LNG carrier was struck near the Strait of Hormuz, reviving security concerns and lifting European gas prices and Brent, WTI, Omani and Dubai crude benchmarks. He notes fragmented shipping routes, heightened shipowner anxiety, and warns that the incident pressures already fragile U.S.–Iran peace discussions and Qatar’s LNG export plans.Hormuz tensions underpin energy risk”A Qatari LNG carrier, the Al Rekayyat, was struck by a projectile near the Omani coast as it left the Strait of Hormuz, highlighting renewed security risks in the key shipping lane and testing a U.S.-Iranian understanding aimed at curbing attacks.””The incident…

Here is what you need to know on Tuesday, July 7:Markets turn cautious on Tuesday as investors pay close attention to headlines coming out of the Middle East amid a lack of high-impact data releases. In the second half of the day, United States (US) Goods Trade Balance data for May will be featured in the economic calendar, alongside the Automatic Data Processing’s (ADP) Employment Change 4-week Average.The US Dollar (USD) started the week on a firm footing and gathered strength against its major rivals in the first half of the day. The improving risk mood, as reflected by the…

The rupee appreciated 15 paise to 95.28 against the US dollar in early trade on Tuesday on improved market sentiment after reports that Saudi Arabia has slashed August crude oil prices for Asia amid easing of geopolitical tensions in the Middle East. Forex traders said lower Middle East risk premium and higher traffic from the Strait of Hormuz kept the oil prices lower. At the interbank foreign exchange market the rupee opened at 95.33 and later touched 95.28 against the American currency, registering a gain of 15 paise from its previous close.On Monday, the rupee had settled at 95.43 against…

The USD/JPY pair extends the previous day’s late pullback from the vicinity of mid-162.00s and attracts some follow-through sellers during the Asian session on Tuesday. Spot prices drop to the 161.70-161.65 region in the last hour, though the downside remains cushioned in the absence of any intervention by Japanese authorities and a supportive fundamental backdrop.Reports last week suggested that Japanese officials are abandoning their traditional habit of telegraphing intervention risks and are starting to focus on targeting speculators. The immediate market reaction, however, seems to have faded as no action has been taken yet. Moreover, the wide gap in borrowing…

The British Pound rallies to an 18-year high against the Japanese Yen, registering solid gains of over 0.77% as the GBP/JPY clears the previous year-to-date (YTD) high of 216.60 as the cross-pair clears the 217.00 figure for the first time since January 2008. At the time of writing, the GBP/JPY trades at 217.11.GBP/JPY Price Forecast: Technical outlookThe GBP/JPY formed a ‘bullish harami’ chart pattern on Friday, also known in the West as an ‘inside day’, which opened the door for further upside, once the pair cleared the July 2 high of the day (HOD) at 216.08, which exacerbated the leg-up…

The Pound Sterling steadies during the North American session, as the week begins in a risk-off mood, as evidenced by overall US Dollar strength in the FX markets, even though soft jobs data and trimmed hawkish Fed bets for the rest of the year. At the time of writing, the GBP/USD trades at 1.3357 after reaching a daily low of 1.3328.GBP/USD steadies as Dollar demand offsets softer Fed repricingLast week’s US jobs report missed estimates, while figures for April and May were downwardly revised, triggering a repricing of a less hawkish Federal Reserve. Nevertheless, the Unemployment Rate is within the…