Trades lower near 1.3350 before BoE decision
The GBP/USD pair meets with fresh supply on Thursday and retreats further from the weekly high, around the 1.3385-1.3390 region, touched the previous day. Spot prices stick to modest intraday losses through the first half of the European session and currently trade around mid-1.3300s amid a broadly firmer US Dollar (USD). Following the previous day’s […]
Rebounds above 1.4050, constructive outlook prevails above 100-day SMA
The USD/CAD pair trades in positive territory near 1.4050 during the early European session on Thursday. The US Dollar (USD) strengthens against the Canadian Dollar (CAD) on hawkish signals from the US Federal Reserve (Fed). The preliminary reading of the US Gross Domestic Product (GDP) for the second quarter (Q2) is due later in the day. […]
Japanese Yen softens after Fed leaves rates on hold
The USD/JPY pair posts modest gains near 163.50 during the Asian trading hours on Thursday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) on a hawkish hold from the US Federal Reserve (Fed). The Bank of Japan (BoJ) will announce its interest rate decision later on Friday, with no change in rates expected. As widely […]
Yemen’s Houthis reportedly considering fees for ships sailing through Red Sea
Yemen’s Iran-backed Houthi rebels are considering imposing fees on commercial ships sailing through the southern Red Sea, Reuters reported on Wednesday. This development came a week after the Houthi declared a naval blockade on Saudi Arabia. The source said Houthi officials were looking into imposing fees on most traffic through the narrow Bab el-Mandeb gateway, which […]
US Dollar tumbles after divided Fed hold, Oil surges on Middle East escalation
Here is what you need to know for Thursday, July 30: The US Dollar (USD) falls sharply during the American session on Wednesday after the Federal Reserve (Fed) left interest rates unchanged. The Federal Open Market Committee (FOMC) maintained the federal funds target range at 3.50%–3.75% in a divided 9–3 vote. Cleveland Fed President Beth […]
Euro rises despite Fed hawkish hold, eyes on Warsh’s speech
The shared currency surged after the Federal Reserve kept rates steady, by a 9 to 3 vote, with three dissenters who supported a 25-basis-point rate hike. The EUR/USD trades volatily above 1.1420, up 0.28%. EUR/USD trades choppily above 1.1400 after the Fed held rates The Fed observed that economic activity continues to grow solidly despite […]
Hawkish hold may offer US Dollar limited support – BNY
BNY’s Geoff Yu highlights that markets face a genuinely live Federal Reserve (Fed) decision, with futures implying about a 35% chance of a hike and a hold still the base case. He stresses that reaction will hinge on Kevin Warsh’s guidance on September, warning that a surprise hike would be cross-asset bearish and even a […]
Speculative longs rise on tight supply – ING
ING’s Warren Patterson and Ewa Manthey highlight that speculative net long positions in LME Copper increased notably in the latest COTR data, supported by tight supply and low inventories. They note broader sentiment has improved, while positioning changes in Aluminium and Zinc were more modest, with only small increases in net long exposure among money […]
Softer inflation supports RBA pause – Commerzbank
Commerzbank’s Volkmar Baur notes that weaker-than-expected Australian inflation has sharply reduced market-implied odds of an August RBA rate hike and pushed the AUD lower. While services and non-tradable inflation remain elevated, he expects rates to stay unchanged in August and sees no further hikes this year, implying continued pressure on the Australian Dollar as Oil […]
Fed and energy drivers outweigh BoJ – ING
ING’s Chris Turner and Padhraic Garvey expect the Bank of Japan to keep its policy rate at 1.00% on 31 July, with any modestly hawkish shift seen as unlikely to materially boost the Yen or change the USD/JPY trajectory. They argue that energy prices and the Federal Reserve’s reaction function will dominate USD/JPY over coming […]
