Market News
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Canada Manufacturing Sales (MoM) registered at -0.4%, below expectations (-0.2%) in July
Canada Manufacturing Sales (MoM) registered at -0.4%, below expectations (-0.2%) in July
Oil: Geopolitical supply risks tilt bias higher – OCBC
OCBC strategist Christopher Wong says oil risks have risen again as disruptions to Saudi export infrastructure and renewed concerns around the Strait of Hormuz and Bab el-Mandeb keep supply risks elevated.
Silver Price Forecast: Head-and-shoulders neckline comes under pressure
Silver (XAG/USD) trades under pressure at the start of the week, with both the fundamental and technical backdrop pointing to further downside. At the time of writing, XAG/USD trades around $63, down roughly 2.40% on the day.
New Zealand Dollar extends losses as US Dollar strengthens on Fed bets
NZD/USD extends its decline on Monday, trading around 0.5770 at the time of writing, down 0.72% on the day.
Japanese Yen: Policy-regime shift backs JPY against US Dollar – DBS
Philip Wee at DBS Group Research highlights a growing policy-regime change advantage for the Japanese Yen (JPY) versus the US Dollar (USD). Following joint US-Japan intervention and expectations of further Bank of Japan (BoJ) tightening, speculators have unwound short JPY positions.
British Pound: BoE hold, slower QT and dovish repricing risk – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad expects the Bank of England (BoE) to keep its policy rate at 3.75% with a likely 6–3 vote, as easing United Kingdom (UK) wage and services inflation allow a pause.
Japanese Yen trims gains with Fed and BoJ decisions looming
The Japanese Yen (JPY) holds moderate losses against the US Dollar (USD) on Monday, but remains close to seven-month highs, following a 4% rally in the previous two weeks.
Indian Rupee likely extends previous week’s downfall on Tuesday
The Indian Rupee is expected to extend its previous week’s plunge against the US Dollar (USD) after a long weekend on Tuesday. Indian financial markets across equity, commodity and currency remains closed on Monday due to Ganesh Chaturthi celebrations.
Czech Koruna: Dovish CNB may weaken CZK against Euro - ING
ING strategist Frantisek Taborsky outlines a busy Central and Eastern Europe (CEE) data calendar but stresses that the Czech National Bank (CNB) meeting is the key event. He expects rates to stay at 3.75% with dovish guidance, contrasting with still-hawkish market pricing.
Gold falls as Fed rate hike bets, rising Oil push Treasury yields to 5%
Gold (XAU/USD) remains on the back foot on Monday as Federal Reserve (Fed) interest rate hike expectations dominate market sentiment ahead of the two-day monetary policy meeting starting on Tuesday.
Federal Reserve: Rate hike path and data support – Deutsche Bank
Deutsche Bank’s Jim Reid and team say the Fed’s decision on Wednesday is the main market event, with their economists expecting a 25bp hike to 3.75%-4.00% and now forecasting 75bps of hikes over the next seven months.
US Dollar: Fed hike expectations and limited gains – MUFG
MUFG’s Lee Hardman notes that the US Dollar (USD) has strengthened only modestly even as markets price in a Fed rate hike at this week’s FOMC meeting.
ECB’s Schnabel: Recent energy-price developments have been quite concerning
European Central Bank (ECB) Executive Board member Isabel Schnabel said recent energy-price developments have been "quite concerning" as officials consider further interest-rate increases after last week’s move, Bloomberg reported.