Market News
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Emerging Markets: Selectivity key as Fed path clouds – HSBC
HSBC Asset Management notes that Emerging Market local-currency bonds have delivered strong returns over the past four years, supported by credible policies and attractive real yields, but year-to-date performance has softened as US Treasury yields rose and EM-US real rate differentials narrowed.
Denmark: Tax cuts keep inflation below the euro area – Nordea
Nordea economist Jan Størup Nielsen notes that Danish inflation eased slightly in July, with headline consumer prices up 1.7% year-over-year and core inflation steady at 2.3%.
USD/CAD Price Forecast: Bearish pressure builds below 1.4000
USD/CAD trades on the back foot on Monday even as the US Dollar (USD) regains some ground after weakening last week following softer-than-expected US Nonfarm Payrolls (NFP) data. Attention now turns to Wednesday’s US Consumer Price Index (CPI) report.
Eurozone: Resilient data but growth risks weigh on Euro – Rabobank
Rabobank's Senior FX Strategist Jane Foley notes Eurozone Q2 Gross Domestic Product (GDP) and Purchasing Managers' Index (PMI) data surprised to the upside, suggesting resilience despite higher energy prices and supply disruptions.
Australian Dollar stays flat ahead of RBA rate decision
The Australian Dollar (AUD) trades near the 0.7060 level against the US Dollar (USD) on Monday, giving back a little ground after six straight weeks of gains.
Euro holds ground against US Dollar amid Fed uncertainty ahead of US CPI
EUR/USD treads water on Monday as the US Dollar (USD) steadies following its post-NFP weakness, while Oil prices rise amid uncertainty over the reopening of the Strait of Hormuz. At the time of writing, the pair trades around 1.1553, virtually unchanged on the day.
Australian Dollar jumps as Yen struggles with Japan’s fiscal woes
AUD/JPY rises 0.70% on Monday and trades around 112.25 at the time of writing. The pair benefits from broad weakness in the Japanese Yen (JPY), while the Australian Dollar (AUD) holds firm ahead of the Reserve Bank of Australia (RBA) monetary policy decision on Tuesday.
Federal Reserve: Sideways growth and sticky inflation – TD Securities
TD Securities’ US economists Oscar Munoz and Eli Nir expect US output growth to move sideways in 2026 as the lingering Oil shock and Iran-related risks keep the Federal Reserve on hold through year-end.
Japanese Yen: Faces risk of return to 160 against US Dollar – ING
ING’s Francesco Pesole highlights that softer United States (US) data and a more dovish Fed outlook should, in theory, benefit the Japanese Yen (JPY) given its high rate sensitivity.
US Dollar: Positioning-driven softness ahead of CPI – BNY
BNY’s Wee Khoon Chong notes that the US Dollar (USD) has been the weakest G10 currency on iFlow metrics as markets scale back expectations for a September Fed hike.
Euro: Softer CPI may unlock 1.1600 against US Dollar – ING
ING’s Francesco Pesole notes that with key Eurozone data behind and European Central Bank (ECB) communication subdued, EUR/USD is now driven mainly by the United States (US) side.
British Pound rises against Japanese Yen as intervention impact fades
GBP/JPY edges higher on Monday as the Japanese Yen (JPY) underperforms across the G10 currency space, with structural headwinds limiting the impact of recent intervention. At the time of writing, the cross trades around 214.70, up 0.85% on the day.
Hungarian Forint: Recovery against Euro may resume – Commerzbank
Commerzbank’s Tatha Ghose notes that the Hungarian Forint (HUF) has only partially retraced its post-election gains and is expected to recover if global risk conditions stabilise, with EUR/HUF seen returning towards 350–355 in coming months.