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ING’s Francesco Pesole writes that European Central Bank (ECB) President Christine Lagarde’s opening remarks in Sintra were measured and do not signal a radical shift in policy communication. Pesole expects other ECB speakers to broadly validate market pricing for another hike this year and prefers EUR/USD stabilisation above 1.140.ECB communication supports steady Euro outlook”We argued yesterday that ECB President Christine Lagarde didn’t look likely to use Sintra for a radical change in policy communication. And indeed her opening remarks yesterday were quite measured. She said that the ECB response doesn’t need to be as forceful as it was in 2022-2023,…
At the interbank foreign exchange market, the rupee touched 94.58 against the US dollar, registering a loss of 7 paise from its previous close. | Photo Credit: istock.com The rupee fell 7 paise to 94.58 against the American currency in early trade on Tuesday, as month-end demand for dollars from importers and corporates added pressure on the domestic unit.Forex traders said the losses for the rupee were partly cushioned by relatively stable crude oil prices globally.However, concerns about potential supply disruptions in the Gulf and continued uncertainty around the Strait of Hormuz weighed on investor sentiments.At the interbank foreign exchange…
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.30 during the early European trading hours on Tuesday. The DXY gathers strength and is heading for its biggest monthly gain in nearly a year on optimism over US economic growth and the prospect of Federal Reserve (Fed) interest rate hikes.The Fed held its benchmark interest rate steady in a target range of 3.50% to 3.75% at its June policy meeting. The central bank’s update also removed a statement hinting that it was leaning towards lowering interest rates…
US President Donald Trump said via social media on Monday that the US and Iran are set to hold fresh talks on Tuesday in Doha, Qatar, following a weekend of hostilities in the Middle East, CNBC reported.“IRAN HAS REQUESTED A MEETING. IT WILL TAKE PLACE TOMORROW IN DOHA!,” Trump said in a post on Truth Social.Meanwhile, Iran said that no negotiation meetings are scheduled with Washington at any level in the coming days, as Tehran remains focused on implementing the memorandum of understanding rather than moving to final agreement talks.Iranian President Masoud Pezeshkian stated on Monday that Iran will honor…
The Pound Sterling (GBP) advances 0.40% on Monday after Andy Burnham, who is expected to become the new UK Prime Minister, commented that he will adhere to fiscal rules set by Chancellor Rachel Reeves at a speech in which he laid the path for the economy. The GBP/USD pair trades at 1.3244 after reaching daily lows of 1.3191.GBP/USD gains as Burnham reassures investors on fiscal disciplineCable is underpinned by broad US Dollar weakness, with the Greenback losing 0.20%, according to the US Dollar Index (DXY). The DXY, which tracks the performance of the buck’s value against six currencies, is down…
Crude Oil prices are practically flat on Monday, with the price of the US benchmark West Texas Intermediate (WTI) barrel practically flat around the $70.00 level. The decline in Crude prices witnessed over the last few weeks stalled on Monday as a fresh exchange of attacks between the US and Iran and confusing messages about the status of the Strait of Hormuz have put investors on their toes.WTI Oil prices have steadied on Monday, following a nearly 25% selloff over the last few weeks. News that the US and Iran agreed to stop last weekend’s reciprocal attacks, while reports about…
The Indian rupee lumbered in a thin band before ending modestly weaker on Monday as a decline in local stocks eroded the boost to market sentiment from gains in Asian currencies after the U.S. and Iran agreed to halt recent hostilities.The rupee settled at 94.54 per dollar, down 0.1% from its previous close at 94.3950.Tehran and Washington agreed to renew talks regarding their dispute over the Strait of Hormuz, per a U.S. official, raising hopes that they may save an interim peace deal that was under pressure from days of tit-for-tat strikes.Brent crude oil prices were up about 1% at…
The rupee pared initial gains and settled lower by 9 paise at 94.54 (provisional) against the US dollar on Monday, as renewed geopolitical tensions hit investors’ risk appetite.Forex traders said the rupee opened on a positive note with crude oil prices remaining supportive and foreign inflows improving, but a renewed flare-up in geopolitical tensions after fresh military exchanges between the US and Iran dented investor sentiment.At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched an intraday high of 94.25 and a low of 94.56 against the American currency.At the end of Monday’s trade,…
United Overseas Bank’s (UOB) Quek Ser Leang sees USD/JPY continuing to consolidate just below the 2024 high of 162.00, with intraday trading expected between 161.45 and 161.95. Despite fading momentum, the bank retains a mildly positive 1–3 week view as long as support at 161.25 holds, and longer-term analysis still allows scope to test the top of a rising wedge.Risk of break above 162.00 still intact”24-HOUR VIEW: We indicated last Friday that USD “could trade between 161.45 and 161.95.” USD then traded within a range of 161.51/161.84, closing largely unchanged at 161.73 (-0.03%). The price action provides no fresh clues,…
The rupee appreciated 20 paise to 94.25 against the US dollar in early trade on Monday supported by easing crude oil prices, even as a firm US dollar and tepid investor risk appetite weighed on sentiments.Forex traders said the rupee opened on a positive note with oil prices remaining supportive and foreign inflows improving. The overall bias remains positive for the rupee, they said, adding that the immediate hurdle remains the US dollar, which continues to hold firm near a 13-month high.At the interbank foreign exchange market the rupee opened at 94.36, then gained momentum and touched 94.25, registering a…