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OCBC’s Christopher Wong observes that USD/SGD has slipped, tracking broader USD moves as risk sentiment tentatively stabilised. Bullish momentum on the daily chart has faded and RSI has fallen, leaving risks skewed to the downside. Support is seen at 1.29 and 1.2880, with resistance at 1.2980, while the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) trades around 1.65% above its model-implied mid.Pair slips with downside risk bias”USD/SGD slipped, tracking the moves in USD while broader risk sentiment tentatively stabilised. Pair was last at 1.2925 levels.””Bullish momentum on daily chart faded while RSI fell. Risks skewed to the downside.””Support at 1.29…

Gold (XAU/USD) rebounds on Tuesday after falling to a fresh seven-month low of $3,941 in the Asian session, as dip buyers help the precious metal recover some of its losses. At the time of writing, XAU/USD trades around $4,030 after hitting an intraday high of $4,063.Despite the modest intraday recovery, Gold remains on track for its worst quarter since 2013, having erased all of its gains for the year. The precious metal is down nearly 18% this quarter and is heading for its biggest monthly decline since 2008, with losses of about 11%.The downside came as geopolitical tensions in the…

Commerzbank’s Carsten Fritsch reports that Gold briefly dipped below USD 4,000 per troy ounce before bargain buying emerged, yet the metal is still heading for its largest quarterly drop in 13 years and a steep monthly decline. A hawkish shift in US Federal Reserve expectations has lifted bond yields and the Dollar, triggering heavy ETF outflows. Upcoming US labour data is seen as pivotal.Rate expectations crush bullion”Nevertheless, with a fall of almost 14% the gold price is on course for its biggest quarterly loss in 13 years. The monthly decline in June of around 11% is one of the sharpest…

The rupee depreciated by 15 paise to close at 94.65 (provisional) against the US dollar on Tuesday, as a strengthening greenback overseas and risk-averse investor sentiment weighed on the local unit.Forex traders said the rupee slipped to 94.58 against the US dollar, driven by month-end corporate import demand and lingering risk-off sentiment. However, relatively stable global crude prices and anticipated central bank interventions supported the currency and restricted the slide.At the interbank foreign exchange market, the rupee opened at 94.60 against the American currency and finally closed for the day at 94.65 (provisional), registering a decline of 15 paise from…

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…