Ceasefire bounce faces oil and Fed headwinds – MUFG
MUFG’s Senior Currency Analyst Lloyd Chan argues that Asia FX gains on ceasefire hopes are running ahead of fundamentals, as Oil retains a structural floor and US yields stay elevated. He highlights that tanker traffic through the Strait of Hormuz remains subdued and war-risk premia high, reinforcing US Dollar strength and suggesting Asia FX relief […]
USD/KRW holds intraday gains around 1,480 as BoK advocates wait mode amid Iran risks
The USD/KRW pair holds onto its early gains around 1,478.00 during the Asian trading session on Friday. The pair trades firmly as the South Korean Won (KRW) weakens after the Bank of Korea’s (BoK) monetary policy announcement, in which the central bank left interest rates at 2.5%, as expected, and guided officials advocate a “wait […]
When are the China’s CPI, PPI and how could they affect AUD/USD?
China’s CPI, PPI Overview The National Bureau of Statistics of China (NBS) will publish its data for March at 01.30 GMT. The Consumer Price Index (CPI) is expected to show a rise of 1.2% YoY in March, compared to 1.3% in February. The Producer Price Index (PPI) is projected to show an increase of 0.4% […]
NZD/USD surges as geopolitics and Fed stance favor Kiwi
The NZD/USD pair is trading muted near 0.5860 on Friday, after climbing for four straight days, hovering near recent highs as the US Dollar (USD) remains supported by a combination of geopolitical tensions and a cautious Federal Reserve outlook. The breakdown in communication between the United States and Iran, alongside ongoing military activity and uncertainty […]
Geopolitics and cautious positioning – MUFG
MUFG’s Senior Currency Analyst Michael Wan highlights that Asian currencies have held up alongside a weaker Dollar despite renewed tensions around the fragile two-week ceasefire in the Middle East. He stresses that physical Oil flows through the Strait of Hormuz remain constrained and advises clients to stay cautious on risk and hedge exposure to vulnerable […]
Pricing disconnect persists – BNY
BNY Strategist Geoff Yu argues that European rate markets still discount too many hikes for the European Central Bank (ECB), Bank of England (BoE) and Swiss National Bank (SNB) despite an improvement in global risk sentiment following the U.S.–Iran ceasefire. He highlights that current futures pricing remains well above levels at the start of the […]
US GDP expands at annual rate of 0.5% in Q4 vs 0.7% expected
The United States’ (US) real Gross Domestic Product (GDP) expanded at an annual rate of 0.5% in the fourth quarter, the US Bureau of Economic Analysis’ third estimate showed on Thursday. This print followed the 0.7% growth announced in the previous estimate and came in below the market expectation of 0.7%. “Real GDP was revised […]
Preferred G10 relief trade on de-escalation – OCBC
OCBC strategists Sim Moh Siong and Christopher Wong highlights Australian Dollar (AUD) as the preferred G10 expression of de-escalation and pro-growth after the US-Iran ceasefire. They note that high-beta energy importers like Swedish Krona (SEK) and New Zealand Dollar (NZD) led the snapback, but AUD stands out as a pro-cyclical currency relatively resilient to energy […]
German Industrial Production declines 0.3% MoM in February vs. 0.9% expected
Germany’s industrial sector activity fell sharply in February, the latest data published by Destatis showed on Thursday. Industrial Output, in the Eurozone’s economic powerhouse, declined by 0.3% over the month in February, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, compared with the expected 0.9% rise and 0% recorded in January […]
Gold stays on the back foot as fragile US-Iran truce underpins USD
Gold (XAU/USD) once again shows some resilience below the $4,700 mark during the Asian session on Thursday, and for now, seems to have stalled the previous day’s retracement slide from a three-week high. Skepticism over the durability of the US-Iran ceasefire benefits the US Dollar’s (USD) reserve currency status and acts as a headwind for […]
