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The AUD/USD pair weakens toward the 0.7220 region on Thursday as the United States (US) Dollar (USD) strengthens after April Retail Sales held up in the United States (US).Support for the USD emerged after US Retail Sales rose 0.5% in April, meeting market expectations and highlighting the continued resilience of consumer spending despite elevated borrowing costs. The retail data, which dropped from 1.6% in March, reinforces confidence in the underlying strength of the US economy and further supports expectations that the Fed could maintain a restrictive policy stance for longer. The latest US Producer Price Index (PPI) report showed producer…
MUFG’s Lee Hardman notes that rising long-term JGB yields, driven by inflation risks linked to the Middle East conflict and hawkish BoJ commentary, are reinforcing expectations for a near-term policy rate increase. He highlights that a potential BoJ hike as early as June could support the Japanese Yen and reduce pressure for further FX intervention.Rising JGB yields bolster yen outlook”The ongoing move higher in yields in Japan has attracted more market attention overnight as well after the 30-year JGB yield rose above the high from 20th January and hit a fresh high of 3.93%.””The recent sell-off appears to have been…
Dow Jones futures rise 0.30% to near 49,950 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 advance 0.19% to near 7,480, and the Nasdaq 100 futures gain 0.41% toward 29,600.US stock futures gain as the S&P 500 and the Nasdaq 100 closed at fresh record highs on Wednesday. Technology stocks remained the main driver of the rally, with notable advances from Micron Technology, Nvidia, Tesla, Apple, and Alphabet.During Wednesday’s US regular session, Dow Jones slipped 0.14%, although the S&P 500 advanced 0.58% and the Nasdaq 100 climbed 1.2%. The gains…
The Indian rupee fell to an all-time low on Thursday, pressured by stubbornly high oil prices and persistent foreign portfolio outflows that have led to a current and capital account strain for Asia’s third-largest economy.The rupee fell 0.1% to 95.8525 per U.S. dollar, eclipsing its previous record low of 95.7950 hit on Wednesday.The currency has declined 1.4% so far this week and hit record lows in each trading session between Tuesday and Thursday.India imports about 90% of its oil needs and about 50% of its gas requirements, leaving the currency particularly vulnerable among emerging markets if the Iran war drags…
Gold price (XAU/USD) trades in positive territory during the Asian trading hours on Thursday. The precious metal edges higher as traders await the outcome of US President Donald Trump-Chinese President Xi Jinping summit in Beijing. The US April Retail Sales report will also be in the spotlight later on Thursday.Bloomberg reported late Wednesday that Trump arrived in Beijing for the first state visit to China by a US leader in nine years, as the world’s two largest economies look to stabilize ties with a summit playing out against the backdrop of the Iran war.The United States (US) and China are…
Mumbai: The rupee dived to a fresh lifetime low Wednesday for the third straight session of successive plunges, as rising crude oil prices fuelled hedging and boosted the demand for dollars. This outweighed the limited support from New Delhi’s latest move to raise import taxes on gold and silver to discourage private bullion buying. The rupee traded at a record intraday low of 95.80/$ and later closed at 95.70/$. It had previously closed at 95.62/$. It opened at 95.61/$ and traded in the range of 95.80/$ and 95.51/$ on Wednesday. The rupee has weakened 2.7% in FY27 so far. The…
US President Donald Trump arrived in Beijing for a state visit to China, where he will meet with Chinese President Xi Jinping to discuss topics including trade and the Iran war, Bloomberg reported on Wednesday. This is the first state visit to China by a US leader in nine years.Ahead of his arrival, Trump and other administration officials indicated that he intended to use the meeting as an opportunity to press the Chinese leader on many subjects, such as Beijing’s role in the unresolved Middle East conflict to rolling back trade barriers for US businesses.Market reactionAt the time of writing, the AUD/USD pair is…
The Government’s move on Wednesday to hike import duty on preious metals such as gold and silver to curb demand and curtail Dollar outflows did not bring respite for the Rupee, which closed at an all time low.The Indian currency closed eight paise weaker at 95.71 per US Dollar as pricey crude oil prices, FPI sales in the domestic equity market and importer demand continued to pile pressure on it.In a sign that the Indian currency (INR) may test the 96 mark in the next couple of trading session, going by the current rate of depreciation, intraday it tested a…
Dow Jones Industrial Average (DJIA) futures slipped onto the back foot through European and early US hours on Wednesday, struggling to hold above 49,500 after fading from overnight highs near 49,800. The S&P 500 and Nasdaq Composite are also nursing losses, with risk sentiment souring on a blistering wholesale inflation print and a hawkish chorus from Federal Reserve (Fed) officials. Add in a high-profile Senate vote to install Kevin Warsh atop the Fed and President Trump’s arrival in Beijing for a high-stakes summit, and traders have plenty of reasons to keep risk dialled down.Hot PPI deepens the pipeline inflation storyThe…
ING economists Gerben Hieminga and Rico Luman argue that the Middle East conflict and closure of the Strait of Hormuz have sharply lifted oil-based bunker costs, improving LNG’s relative appeal. Their modelling shows LNG price increases lag Marine Gas Oil, making LNG the most attractive near-term hedge and a commercially compelling transitional decarbonisation fuel for shipping.Oil shock favours LNG in shipping”Our analysis translates the current geopolitical risk into a simple message for shipowners and cargo owners: when oil products spike and gas rises less, the relative economics of LNG and (to a lesser degree) methanol and even ammonia improve quickly,…