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Gold (XAU/USD) price consolidates above the $4,200 figure on Friday as market participants are optimistic about a potential US-Iran deal, set to be signed next week, according to newswires. Meanwhile, households in the US are becoming more optimistic about the economy. The XAU/USD pair trades at $4,216, up 0.11%.XAU/USD steadies as deal chatter offsets firmer yieldsInvestors’ mood turned optimistic amid news that the Middle East conflict could end if Washington and Tehran proceed with the signing of the Islamabad Memorandum of Understanding (MOU). There is growing speculation about a signing at the G7 meeting in Geneva, Switzerland, but the Iranian…
Brown Brothers Harriman’s Elias Haddad highlights strong South Korean asset performance, with South Korean Won (KRW) outperforming and the KOSPI up sharply on AI-led semiconductor strength. The Bank of Korea’s (BoK) Governor Shin Hyun Song delivered hawkish guidance, emphasizing the need to prioritize price stability. BBH notes that a 25 bps hike to 2.75% at the July 16 meeting is increasingly likely.Won benefits from hawkish policy stance”KRW outperformed most currencies overnight and the KOSPI jumped as much as 8.5% before settling 4.6% higher. Year-to-date, the KOSPI is the world’s best performing equity market, up a whopping 92%, driven by the…
USD/CAD trades on the front foot on Friday as lower Oil prices weigh on the commodity-linked Canadian Dollar (CAD) amid cautious optimism that the United States (US) and Iran could reach an agreement that would reopen the Strait of Hormuz.At the time of writing, the pair trades around 1.3979 after touching 1.4024 on Thursday, its highest level since November 2025. Meanwhile, West Texas Intermediate (WTI) Crude Oil trades near $83.50 per barrel, near two-month lows.The Canadian Dollar has remained under steady pressure since early May as geopolitical tensions keep safe-haven flows directed toward the US Dollar (USD). In addition, the…
Scotiabank strategists Shaun Osborne and Eric Theoret report USD/JPY is steady but elevated, with recent gains already surpassing prior intervention-trigger levels. A 25 bps Bank of Japan (BoJ) hike on Tuesday is widely anticipated, and markets price nearly one more increase by December. They flag concerns over communication as Governor Ueda will not attend, and see limited resistance up to 162 with support in the 156–158 band.Limited resistance seen toward 162″The yen’s ongoing weakness is a worry for market participants, government officials, and central bank policymakers, sparking concerns of intervention in the former as the latter consider the implications for…
EUR/USD fluctuates between modest gains and losses heading into the weekend as traders await Tehran’s decision on a possible agreement with the United States (US) to end the war in the Middle East. At the time of writing, the pair trades around 1.1573 and is on track to post modest weekly gains.Iranian Foreign Minister Abbas Araghchi said a memorandum of understanding (MoU) with the United States has “never been closer.” Pakistan’s Prime Minister Shehbaz Sharif also said that a final agreed text of a peace deal has been reached and that Islamabad is working closely with both sides to finalize…
Societe Generale notes that Chinese inflation remains subdued, with May Consumer Price Index (CPI) at 1.2% and core at 1.1%, while PPI has risen to a four-year high, suggesting weak consumer demand and margin pressure. The bank highlights that authorities are using targeted easing and tighter capital controls to manage USD flows and limit Yuan strength, keeping the currency as a regional anchor.Policy tightening around capital flows”May CPI held at 1.2% YoY, with core easing slightly to 1.1%, while PPI rose to 3.9%, the highest in four years, pointing to subdued consumer demand and continued pressure on margins.””In contrast, the…
Gold (XAU/USD) consolidates on Friday as traders await further developments on a potential US-Iran peace deal. At the time of writing, XAU/USD is trading around $4,200 after climbing to an intraday high of $4,246 earlier in the day.US President Donald Trump said on Thursday that he had canceled planned military strikes on Iran and claimed a peace agreement could be signed as soon as this weekend.Trump’s statement lifted market sentiment, helping Gold rebound from a nearly seven-month low of $4,023, as the US Dollar (USD) and Oil prices lost ground.Iranian Foreign Minister Abbas Araghchi said the Memorandum of Understanding (MoU) with the…
The rupee was buoyed on Friday, closing at a one-week high, as crude oil prices softened to a three-month low amid rising hopes of a peace deal between the US and Iran and rally in the domestic equity markets.Opening stronger at 95.35 per US dollar, the rupee closed at 95.11, up about 0.7 per cent, against previous close of 95.76. It tested an intraday high/ low of 94.95/ 95.53.Crude oil prices thawed to about $85 per barrel against $90 on reports of US and Iran inching closer to a peace deal. Benchmark indices BSE Sensex and NSE Nifty rose 2.30…
Commerzbank’s Bernd Weidensteiner and Christoph Balz argue that Kevin Warsh’s first Federal Reserve meeting is unlikely to deliver an immediate rate cut, given elevated PCE inflation and a still‑solid labor market. They expect the Fed to drop its easing bias next week, then only begin a gradual cutting cycle around mid‑2027, constrained by inflation risks and political pressure.Warsh unlikely to cut near term”However, an interest rate cut is unlikely to be seriously on the table next week. This is because inflation risks have continued to rise since the last meeting in April. Based on the comprehensive inflation measure preferred by…
The Indian rupee surged against the dollar on Friday as growing expectations of a U.S.-Iran peace agreement sent oil prices sharply lower and triggered an unwinding of long dollar positions.The rupee opened firmer at 95.32 per dollar but briefly slipped to a low of 95.52 in a volatile session, pressured by dollar demand from corporates and importers.Reports of a possible peace deal between Washington and Tehran pushed oil prices deeper into the red, easing concerns over India’s import bill and external balances.The rupee climbed to a one-week high of 94.9550 during the session before settling at 95.11, up 0.7% on…