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Hungarian Forint: NBH easing path shapes HUF prospects – ING
ING strategist Frantisek Taborsky reports the National Bank of Hungary (MNB) cut rates to 5.75% and confirmed dovish guidance, signaling further easing in August and possibly beyond. Markets have accepted renewed rate-cut pricing, and ING expects more dovish repricing.
Bank of England: Wait-and-see stance holds – Societe Generale
Societe Generale economist Sam Cartwright analyzes June United Kingdom (UK) inflation, noting headline Consumer Price Index (CPI) at 2.6% year-on-year, below Bank of England (BoE) projections, with core inflation steady at 2.6%.
Indian Rupee: Carry appeal capped by Oil risk – BNY
BNY's Geoff Yu notes that India’s central bank (RBI) has stepped in to support the Indian Rupee (INR) as rising energy costs threaten external balances and FX volatility. iFlow shows INR is currently underheld versus earlier in the year.
US Dollar Index Price Forecast: Bullish bias intact above 101.00
The US Dollar Index (DXY) shows moderate losses on Wednesday but has retraced most of the decline seen during the Asian trading session.
Gold hits two-week high as traders weigh Middle East risks, Fed outlook
Gold (XAU/USD) climbs to a two-week high on Wednesday as bargain hunters step in near the $4,000 mark, while traders weigh Middle East risks and the Federal Reserve’s (Fed) monetary policy outlook.
Japanese Yen: Hawkish BoJ signals versus Fed risk – Rabobank
Rabobank’s Senior FX Strategist Jane Foley discusses Japanese Yen (JPY) prospects, focusing on USD/JPY. Foley highlight that intervention by the Ministry of Finance (MoF) alone is unlikely to change the pair’s direction without improved Japanese fundamentals.
British Pound: Heavy trade as BoE seen adjusting – BBH
Brown Brothers Harriman’s Elias Haddad notes the British Pound (GBP) remains heavy versus the US Dollar (USD) and Euro (EUR) after a mixed United Kingdom (UK) June Consumer Price Index (CPI) report, with headline inflation cooling but core and services measures still sticky.
Silver price edges higher as geopolitical tensions offset inflation concerns
Silver (XAG/USD) trades around $59.35 at the time of writing on Wednesday, up 0.94% on the day, as persistent safe-haven demand offsets the negative impact of rising inflation expectations.
Euro: Drifting toward ECB test – ING
Chris Turner at ING notes EUR/USD has held up relatively well despite energy price gains and wider natural gas prices.
South Africa Retail Sales (YoY) increased to 2.3% in May from previous 1.3%
South Africa Retail Sales (YoY) increased to 2.3% in May from previous 1.3%
United States MBA Mortgage Applications increased to 1.9% in July 17 from previous -2.7%
United States MBA Mortgage Applications increased to 1.9% in July 17 from previous -2.7%
Euro holds near five-week highs against Yen despite BoJ tightening rumours
The Euro (EUR) reversed earlier gains against the Japanese Yen (JPY) on Wednesday, following hawkish comments by Bank of Japan’s (BoJ) policymakers. The pair, however, remains a few pips below 186.00 at the time of writing, with the five-week high of 186.19 at a short distance.
World Bank warns of risks of global slowdown, renewed inflation
The World Bank warned that the global economy is only "a few months" away from a worst-case scenario in which global growth slows to 1.3% while inflation rises to 4.5%, according to comments by Chief Economist Indermit Gill reported by Reuters.