Markets exhibit a divergence of opinions regarding a potential Fed rate hike in September, particularly in anticipation of significant inflation data releases. Rising oil prices and shifting diplomatic signals over the Strait of Hormuz contribute to increased market volatility. Scotiabank observes that the recent fluctuations in the Pound are predominantly influenced by market sentiment, closely … Read more
AUD/USD experiences a decline as market participants exhibit a lack of consensus regarding a potential Federal Reserve rate increase in September, particularly in light of upcoming crucial inflation data releases. Despite the increase in oil prices, the probability of a Federal Reserve rate hike in September decreased from 52% to almost 48%. MUFG and Westpac … Read more
USD/CHF rises as the US Dollar recovers losses following an oil rally spurred by geopolitical tensions. Increasing energy prices and Treasury yields have heightened concerns regarding potential early rate hikes by the Federal Reserve, even in the context of a softening labour market. Swiss inflation unexpectedly declined to a four-month low of 0.4% in July, … Read more
The Japanese Yen remains stable during the Mountain Day holiday as markets consider the possibility of intervention in the context of limited liquidity. The BoJ may raise rates in September to counter inflation stemming from a depreciating yen and escalating oil prices. A lacklustre July US payrolls report generated challenges for the US Dollar, leading … Read more
AUD/USD experiences an uptick as a robust Australian Dollar finds support in anticipation of the Reserve Bank of Australia’s forthcoming interest rate decision. The RBA is widely anticipated to maintain its cash rate at 4.35% for a second consecutive meeting. A weak July payrolls report created headwinds for the US Dollar, introducing rate uncertainty following … Read more
GBP/USD begins the week of 10–14 August positioned around 1.3500, marking its peak since 15 July. Sterling is capitalising on the momentum generated by a significant drop in the dollar, triggered by a disappointing US labour market report that has diminished expectations for a Federal Reserve rate increase in September. Further support has emerged from … Read more
The USD/JPY appreciates as divergent perspectives within the Bank of Japan regarding prospective rate increases maintain downward pressure on the Yen. Japan recorded an unforeseen current account deficit of JPY 92.3 billion in June, marking its first deficit in 17 months, attributed to substantial foreign dividend payouts. Escalating tensions between the US and Iran have … Read more
The USD/CHF has experienced an uptick, driven by increasing demand for the safe-haven US Dollar in the context of escalating tensions related to the US-Iran conflict and the situation in the Strait of Hormuz. July’s surprise 23,000 US payroll drop and past revision signal a cooling labor market, dampening Fed rate expectations. With Swiss inflation … Read more
AUD/USD maintains its decline as the demand for the US Dollar as a safe haven increases, driven by escalating tensions between the US and Iran, along with risks in the Strait of Hormuz. A surprising decline of 23,000 Nonfarm Payrolls in July has dampened expectations for an imminent interest rate hike by the Federal Reserve. … Read more
EUR/USD depreciates as rising geopolitical tensions in the Strait of Hormuz disrupt global markets. Market caution rises as Iran considers banning US and Israeli ships and penalizing hostile cargo until blockades lift. Rebounding oil prices threaten expectations that falling energy costs would ease pressure on the ECB to cut rates. EUR/USD extends its losses for … Read more
