Outperformance on yields and politics repricing – MUFG
MUFG’s Lee Hardman highlights the Pound as the best performing major currency in recent weeks, supported by higher UK real yields and favourable carry conditions. Markets are reassessing UK fiscal and political risks as Andy Burnham becomes Prime Minister, with expectations of a pro-business and fiscally responsible stance. MUFG judges much good news is now […]
Euro trims gains as the Pound strengthens ahead of Andy Burnham’s nomination
The Euro (EUR) ticks lower against the British Pound (GBP) on Monday, trading at 0.8495 at the time of writing, as last week’s rebound from 13-month lows at 0.8455 failed to consolidate above 0.8500. The Sterling is picking up across the board as the market braces for the nomination of the former Mayor of Manchester, […]
Holds above nine-day EMA support at 185.50
EUR/JPY remains subdued for the third consecutive day, trading around 185.80 during the Asian hours on Monday. The currency cross is holding a constructive bullish bias as it stays above both the nine-day and 50-day Exponential Moving Averages (EMAs), now aligned as nearby dynamic support. The 14-day Relative Strength Index (RSI) at 55.33 leans to […]
Gold falls toward $4,000 as US-Iran hostilities boosts Fed rate hike bets
Gold price (XAU/USD) falls to around $4,000 during the early Asian trading hours on Monday. The precious metal hovers around the psychological level in recent weeks after losing 14% in the second quarter (Q2), its worst showing since 2013. Rising tensions between the United States (US) and Iran push oil prices up, intensifying inflation fears. […]
Japanese Yen struggles as higher Oil prices and a wide US-Japan rate gap weigh
USD/JPY trades flat on Friday, holding near four-decade highs as the Japanese Yen struggles to attract buyers amid persistent headwinds, including higher Oil prices, Japan’s wide interest-rate gap with other major economies and a resilient US Dollar (USD). The Yen found brief support after Japanese Prime Minister Sanae Takaichi echoed Finance Minister Satsuki Katayama’s call […]
Burnham policy hopes underpin Sterling against US Dollar – Scotiabank
Scotiabank’s Shaun Osborne and Eric Theoret notes GBP/USD is lower on the day and well off its one-year high reached on optimism that incoming PM Burnham will pursue market-friendly policies. Despite late-week slippage, that view remains. The new government is expected to allow new North Sea drilling and bring Thames Water back under public control, […]
Australian Dollar recovers as mixed US data weakens the US Dollar
AUD/USD trades higher near 0.6980 on Friday, recovering from an initial decline as the US Dollar (USD) loses ground following a mixed batch of United States (US) economic data. Stronger Housing Starts and Consumer Sentiment were offset by weaker Building Permits and subdued Industrial Production prints. US Housing Starts increased to an annualized 1.43 million […]
WTI Oil rallies above $81 as Iran threats intensify supply risks
West Texas Intermediate (WTI) trades around $81.10 at the time of writing on Friday, up 2.76% on the day, and is heading for a weekly gain of more than 13% as geopolitical tensions in the Middle East continue to escalate. The conflict intensified after the United States (US) launched another wave of strikes against Iranian […]
British Pound slips for second straight day as Oil spike revives inflation fears
The Pound Sterling retreats during the North American session, down 0.22% against the Greenback, as geopolitical tensions remained high, triggering a jump in Oil prices and heightening fears of a reacceleration of inflation. The GBP/USD trades at 1.3449 after peaking near 1.3480. GBP/USD eases as Middle East tensions lift Dollar demand Hostilities in the Middle […]
Euro steadies as markets weigh ECB and Fed interest rate expectations
EUR/USD trades flat on Friday as traders reassess the inflationary impact of surging Oil prices amid escalating tensions in the Middle East, which have disrupted energy supplies through the Strait of Hormuz. At the time of writing, the pair trades around 1.1438 and is on track to end the week with modest gains. Oil prices […]
