BNY’s Geoff Yu argues that weaker precious metals are undermining the terms of trade for South Africa and Peru, limiting upside for South African Rand (ZAR) and Peruvian Sol (PEN) even in a supportive carry backdrop.
The British Pound (GBP) shows mild gains against the US Dollar (USD) on Thursday, as investors trim their USD long positions ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index later in the day.
TD Securities strategists expect May United States (US) core Personal Consumption Expenditures (PCE) Price Index inflation to firm, driven by services, while headline PCE is lifted by higher energy prices.
Societe Generale’s Kenneth Broux notes that Latin American currencies have weakened as the Dollar rebounds, with USD/MXN and USD/BRL breaking above key hurdles at 17.50 and 5.20.
Georgette Boele at ABN AMRO highlights that lower Oil and gas prices should, in principle, weigh on the Dollar and support the Euro, but EUR/USD has shown only a limited reaction so far.
The USD/JPY pair trades close to its fresh all-time high near 162.00 during the European trading session on Thursday. The pair advances as the US Dollar (USD) continues to outperform its peers due to firm speculation that the Federal Reserve (Fed) will tighten its monetary conditions this year.
The Australian Dollar (AUD) remains stuck near two-month lows against the US Dollar (USD) on Thursday, consolidating losses after plummeting about 2.5% in an eight-day losing streak.
Oman’s Foreign Ministry says during the European trading session on Thursday that future arrangements for the Strait of Hormuz, a critical passage to almost 20% of global energy supply, do not entail transit tolls, state media agency reported.
Gold price (XAU/USD) clings to Wednesday’s losses near $3,985 during the European trading session on Thursday. The yellow metal remains under severe pressure as traders seem confident that the next monetary policy move by the Federal Reserve (Fed) will be on the upside.
The Indian Rupee (INR) trades firmly against the US Dollar (USD) on Thursday. The USD/INR pair declines to near 94.30 as the Indian currency strengthens due to a further decline in oil prices.
Commerzbank’s Henry Hao and Moses Lim note that progress on reopening the Strait of Hormuz has driven Brent and WTI sharply lower, easing inflation risk premia in global bond markets.
Royal Bank of Canada (RBC) strategists argue that while the United States (US) consumer has remained resilient in 2026, persistent inflation and the earlier energy price shock have eroded households’ ability to absorb further price increases.
