Flows pressure KRW and tech theme – BNY
BNY’s Geoff Yu highlights that South Korean equities, especially AI and semiconductor names, face tightening financial conditions even as the KOSPI remains a top global performer. iFlow shows heavy institutional selling and extended outflows, which could now weigh on the Korean Won. Elevated inflation expectations and higher input costs across Asia suggest ongoing pressure on […]
Banxico minutes flag upside inflation risks from Middle East conflict
Banco de Mexico (Banxico) released its latest meeting minutes on Thursday, in which the Middle East conflict dominated the board’s discussion. On May 7, Banxico cut rates by 25 basis points to 6.50%, while telegraphing that the easing cycle that began in 2024 is over. The decision was not unanimous, with a 3-2 vote, with […]
MNB stance shifts focus to bonds over FX – BNY
BNY’s Geoff Yu argues that Hungarian asset positioning is stretched after elections, with markets now watching the central bank of Hungary Magyar Nemzeti Bank’s (MNB) upcoming decision. The new government prioritizes lower debt costs over Hungarian Forint (HUF) strength, aiming to attract duration flows via fiscal prudence. Yu expects unchanged policy, but warns HUF is […]
Pressured versus US Dollar with ECB repricing – Societe Generale
Societe Generale analysts note EUR/USD is lacking clear direction as it trades around its 200‑DMA and approaches an ascending trend line from February 2025. The pair faces resistance near 1.1750/1.1800 and support around 1.1500–1.1390. Softer Euro PMIs and expectations of European Central Bank (ECB) tightening versus a less dovish Fed are seen as Euro‑negative. Key […]
RBA comforted by softer data – Standard Chartered
Standard Chartered’s Nicholas Chia argues that softer Australian labour data and activity indicators support the view that the Reserve Bank of Australia has likely peaked its cash rate at 4.35%. The bank highlights rising unemployment, weaker PMI and moderating wage growth, and sees a high bar for further hikes, with potential easing only if activity […]
Trades flat near 159.00 as investors seek fresh developments on Iran war
The USD/JPY pair trades calmly around 159.00 during the Asian trading session on Thursday. The pair turns sideways as investors await fresh developments regarding negotiations between the United States (US) and Iran, after President Donald Trump stated on Wednesday that talks are in “final stages”. As of writing, the US Dollar Index (DXY), which tracks […]
PBOC sets USD/CNY reference rate at 6.8349 vs. 6.8397 previous
The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.8349 compared to the previous day’s fix of 6.8397 and 6.7955 Reuters estimate. PBOC FAQs The primary monetary policy objectives of the People’s Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, […]
Australia’s S&P Global Manufacturing PMI declines to 50.3 in May
The preliminary reading of Australia’s S&P Global Manufacturing Purchasing Managers Index (PMI) declined to 50.3 in May versus 51.3 prior, the latest data published by S&P Global showed on Thursday. The Australia’s S&P Global Services PMI eased to 47.7 in May from the previous reading of 50.7, while the Composite PMI fell to 47.8 in May […]
Gold rallies as Fed minutes flag hikes, US Dollar slides
Gold (XAU/USD) finds bids and edges higher during the North American session on Wednesday after the Federal Reserve’s (Fed) last meeting minutes showed that most officials favored laying the groundwork for a rate hike. At the time of writing, the XAU/USD pair trades at $4,530, up by 1%. XAU/USD climbs as lower yields offset hawkish […]
Dow Jones rides an Iran peace bid, but Nvidia holds the real verdict
The Dow spent Wednesday hostage to two things it cannot control, the bond market and an Iran headline, and by the time of writing, the headline had won. Futures had been grinding lower under the weight of a vicious selloff in long-dated Treasuries, then turned on a dime and ripped back toward the session highs […]
