New Zealand Dollar edges lower as Fed bets, Iran tensions support USD
The NZD/USD pair attracts some sellers during the Asian session on Monday and currently trades near the 0.5870 region, down around 0.15% for the day. Spot prices, however, remain confined within Friday’s broader range, warranting some caution for aggressive bearish traders. Friday’s better-than-expected US Nonfarm Payrolls (NFP) report lifted market bets for a Federal Reserve […]
Iran, US trade tanker attacks as Tehran will declare ‘prohibited zone’
Iranian government said that it targeted three oil tankers using an unauthorized route through the Strait of Hormuz, as well as a number of US-linked ships, in retaliation for US attacks on Iranian tankers over the weekend, Bloomberg reported on Sunday. Iran’s top security official Mohsen Rezaee stated that the country would establish a new […]
Australian Dollar resumes advance as US Dollar loses post-NFP momentum
AUD/USD resumes its advance on Friday after a brief bout of weakness following a stronger-than-expected United States (US) employment report. The pair initially fell to 0.7173 before reversing as the US Dollar (USD) struggled to capitalize on the upbeat figures, even as they strengthened expectations of a Federal Reserve (Fed) rate hike at the September […]
Turkey: CBRT likely to hold before two Q4 rate cuts
ING’s Muhammet Mercan notes the Central Bank of the Republic of Türkiye (CBRT) has normalised liquidity via weekly repo auctions, bringing effective funding costs down to the 37% policy rate. ING expects the CBRT to hold rates at the September meeting, then deliver two 100bp cuts to 35% in the fourth quarter, with further Gulf […]
Fed’s Hammack says policy is not restrictive enough
Cleveland Federal Reserve (Fed) President Beth Hammack said on Friday that the current monetary policy stance is not restrictive, emphasizing that inflation is too high. In an article on LinkedIn, she added that local contact views indicate that “now is the time for the Fed to hike to control inflation.” Key highlights: Inflation is still […]
Inflation above target into 2027 – Nordea
Nordea expects Eurozone inflation dynamics to stay persistent, with headline inflation projected above the ECB’s target at least until spring 2027. They see recent data as slightly weaker than the ECB’s June projections, partly due to soft food prices, but anticipate only modest downward revisions. Core inflation is projected to remain above 2% through 2028, […]
Dollar inflows support INR but impulse may fade – OCBC
OCBC’s Christopher Wong notes that strong foreign-currency inflows linked to the RBI’s special measures have bolstered the Indian Rupee (INR) and strengthened the central bank’s FX buffer. However, with the FCNR(B) window now closed, the exceptional near-term dollar supply is expected to fade, potentially leading to more two-way RBI management. Wong adds that USD/INR remains […]
Hawkish pause keeps options open – DBS
DBS Group Research economist Chua Han Teng notes that Bank Negara Malaysia (BNM) held the Overnight Policy Rate at 2.75% while dropping language that the current level is appropriate. DBS expects rates to remain unchanged through 2026 but sees risks tilted towards a one-off policy normalisation. BNM holds but signals flexibility “Bank Negara Malaysia (BNM) […]
Services PMI rebound keeps PBoC cautious – Commerzbank
Commerzbank says China’s August Services PMI rebound highlights some resilience in private-sector activity, but weak retail sales, soft inflation and higher unemployment still point to fragile domestic demand. The stronger PMI reduces the urgency for immediate PBoC easing, while leaving room for further support if growth weakens into year-end. Fragile demand keeps PBoC easing options […]
Two-way risks around support levels – OCBC
OCBC’s Christopher Wong notes that USD/IDR has pulled back as a softer Dollar and lower UST yields support the Indonesian Rupiah. He highlights Bank Indonesia Governor Destry Damayanti’s emphasis on a stability-first approach, prioritizing Rupiah and macro stability while still supporting growth. Wong sees near-term support for IDR but flags elevated Oil prices and high […]
