Author: Robert Jessi

Iran expands attacks on Gulf states after US strikes, says Strait of Hormuz closed

 The EUR/JPY cross trades in positive territory around 184.65 during the Asian trading hours on Monday. However, the potential upside for the cross might be limited as heightened geopolitical tensions in the Middle East could boost a safe-haven currency. Furthermore, speculation over domestic asset shifts could underpin the Japanese Yen (JPY) against the Euro (EUR). Japan’s Finance Minister Satsuki Katayama said on Friday that the government is pursuing measures that would include the Government Pension Investment Fund (GPIF) to make “substantially greater investments in Japanese financial assets. Analysts said this move could offer greater support to ‌the battered currency than intervention.Technical…

The Kiwi topped the G10 FX leaderboard on Thursday as stronger economic data, narrowing Australia-New Zealand rate differentials and improving technicals aligned in its favour.Manufacturing survey delivers blockbuster upside surprise RBNZ tightening cycle gains fresh credibility RBA rate expectations continue to unwind technical breakdown gains momentum breakout shifts focus higher New Zealand may be on holiday, but the Kiwi dollar certainly wasn’t on Thursday. It topped the G10 FX leaderboard after strong data reinforced the RBNZ’s message from earlier this week that further rate hikes are likely.Factory Floor Fires UpThe catalyst for the outperformance was a blockbuster BNZ PMI. The…

The US Dollar to Canadian Dollar (USD/CAD) exchange rate has eased back to around 1.4160 after retreating from June’s highs above 1.42, with the Canadian Dollar finding support from firmer oil prices and improving risk sentiment. Latest — Exchange Rates:Dollar to Canadian Dollar (USD/CAD): 1.41574 (-0.07%)Pound to Canadian Dollar (GBP/CAD): 1.897869 (-0.13%)Euro to Canadian Dollar (EUR/CAD): 1.616046 (-0.23%) ING believes the Canadian Dollar can remain relatively well supported in the near term, although it does not expect USD/CAD to fall back below the key 1.40 level over the next couple of months. The bank notes that higher oil prices and…

The US Dollar to Canadian Dollar (USD/CAD) exchange rate has retreated to around 1.4160 after reaching highs above 1.42 earlier this month, with the Canadian Dollar showing signs of stabilising following its steep May and June losses. Scotiabank believes the CAD sell-off may have run its course as short-term US-Canada interest-rate spreads reverse some of their earlier widening. The bank expects Canada’s June labour-market report to be an important near-term test. Economists forecast a 10,000 increase in employment, unchanged unemployment at 6.6% and a modest rebound in wage growth. Scotiabank notes that May delivered an unusually strong 87,800 rise in…

Evaxion presents preclinical data on CMV vaccine candidate

In quiet FX markets, the coupon becomes the story. Takeaways • G10 FX carry is becoming relevant again as high rate dispersion meets unusually quiet volatility. • The trade is no longer just a simple risk-on bet, with some carry expressions now looking more neutral or even defensive. • JPY and CHF remain the cleanest funding legs, though both come with their own tripwires. • EM still offers more yield, but G10 carry now looks much more useful for portfolios that want income without taking the full EM risk bucket. Carry Is Back in the Driver’s Seat For the record,…

Gold (XAU/USD) lost its bullish momentum after rising more than 2% in the previous week and registered weekly losses as investors reacted to a clear re-escalation of tensions in the Middle East. July inflation data from the United States (US) and comments from Federal Reserve (Fed) Chair Kevin Warsh could drive XAU/USD’s action in the near term.Gold falls as US and Iran exchange strikesMarkets opened the week in a calm manner and Monday’s action remained subdued as trading conditions normalized following a long weekend in the US.Data from the US showed that business activity in the service sector continued to…

The US Dollar to Canadian Dollar (USD/CAD) exchange rate has eased back to around 1.4160 after retreating from June’s highs above 1.42, with the Canadian Dollar finding support from firmer oil prices and improving risk sentiment. Latest — Exchange Rates:Dollar to Canadian Dollar (USD/CAD): 1.41574 (-0.07%)Pound to Canadian Dollar (GBP/CAD): 1.897869 (-0.13%)Euro to Canadian Dollar (EUR/CAD): 1.616046 (-0.23%) ING believes the Canadian Dollar can remain relatively well supported in the near term, although it does not expect USD/CAD to fall back below the key 1.40 level over the next couple of months. The bank notes that higher oil prices and…

The EUR/USD pair finishes an uneventful week unchanged, just a handful of pips above the 1.1400 mark. Financial markets held cautiously throughout the week, trapped between little macroeconomic guidance and tensions in the Middle East.What’s happening between the United States and Iran?Washington and Tehran reached an agreement, the Memorandum of Understanding (MoU), in mid-June. The 14-point document aimed to end the Middle East conflict by establishing a 60-day ceasefire in which both parts agreed to continue negotiating to reach complete peace.Yet, the sticky points that generated tensions remain in place: on the one hand, the United States (US) wants Iran…