Ceasefire Frays but Markets Stay Steady; Fed’s Powell Keeps Inflation Guard
Global markets continue to trade with cautious optimism, despite signs of strain in the fragile Israel-Iran ceasefire. Reports out of Tehran on renewed Israeli airstrikes—despite US President Donald Trump declaring a ceasefire hours earlier—have added tension. Israeli army radio said the strikes targeted an Iranian radar site near Tehran,...
Fed Doves, Ceasefire Talk Sink Dollar as Risk Appetite Rebuilds
Dollar fell sharply overnight and extended its slide through Tuesday’s Asian session, as traders responded to dovish Fed commentary and easing geopolitical risks. Vice Chair Michelle Bowman signaled she would support a rate cut as soon as July if inflation pressures remain contained and labor market data weakens further....
Dollar Gains on Middle East Tensions, But Broader Markets Hold Steady
Dollar continues to dominate currency markets as geopolitical anxiety keeps providing support. Safe haven demand, sparked by fears of escalating conflict between the US and Iran, has put economic data on the back burner. While Iran has reiterated threats of retaliation after the US bombing of its underground nuclear...
Asia Shakes Off Iran Strike Fears, But Oil Market Still on Alert
Asian markets opened the week lower following the US military strikes on Iranian nuclear sites, marking a dramatic escalation in the Middle East. However, losses were limited and short-lived, with major indexes across the region quickly recovering earlier declines. Oil prices also staged a muted response. While WTI spiked...
Dollar Leads, But Euro’s Structural Story Gains Momentum
Markets were adrift last week as traders grappled with intensifying global risks. The unresolved twin threats of a full-blown trade war and escalating Middle East conflict kept investors on the defensive. Despite some tentative diplomatic efforts, neither front showed meaningful progress, leaving equities vulnerable after months of sustained gains....
Middle East Diplomacy Calms Nerves; Sterling Rises, Loonie Lags
Markets are showing tentative optimism today as signs of potential diplomatic engagement in the Middle East ease investor concerns. European foreign ministers are meeting Iran’s Abbas Araghchi in Geneva—marking the first direct discussions with Western officials since Israel’s strike on Iran last week. This also reflects the highest level...
BoJ Doubts Offsets Strong CPI as Yen Tumbles
Despite an upside surprise in Japan’s core inflation data, Yen extended its decline across the board today. While CPI ex-food rose 3.7% yoy in May, much of the gain was driven by an outsized 100%+ surge in rice prices, which alone contributed nearly half of the index’s increase. This...
Swiss Franc Jumps After Measured SNB Cut, Sterling Recovers after BoE
Swiss Franc rebounded broadly on Thursday after SNB delivered a widely expected 25bps rate cut to 0.00%. Some trade had speculated on either a stronger dovish signal or even surprise action aimed at curbing Franc strength. Instead, SNB refrained from anything bold, and the post-meeting move in Franc reflected...
Dollar Firms as Fed Embraces Caution Over Tariff-Driven Inflation; SNB and BoE Next
Dollar strengthened broadly in the wake of Fed’s policy decision overnight, although upside momentum remains measured. On the one hand, the updated dot plot maintained projection of two rate cuts in 2025. On the other hand, Chair Jerome Powell offered little to reinforce that view. Instead, he bluntly acknowledged...
Markets Tread Water Ahead of Fed Decision, Dots in Focus
Trading remains subdued across the forex markets as participants brace for the dual risk events: Fed’s policy decision and the escalating tensions between Israel and Iran. Currency pairs are largely bounded inside last week’s ranges, with traders opting for caution rather than conviction. Aussie and Kiwi lead this week’s...
Sterling Caught Between Inflation Surprise and Escalating Global Tensions; FOMC Next
Sterling weakened sharply overnight as risk appetite deteriorated on growing fears of military escalation in the Middle East. US President Donald Trump raised the stakes with Iran, issuing a public ultimatum to Supreme Leader Khamenei for “unconditional surrender” after claiming “total control” over Iranian airspace. There are intensified concerns...
Cautious Calm Holds as Israel-Iran Conflict Continues
Tuesday’s Asian and European sessions saw little conviction across even when geopolitical conflicts in the Middle East persisted. The Israel-Iran conflict, now into its fifth day, is generating concern but not yet panic. Oil and gold, typically sensitive to regional instability, remain rangebound, and equities are slightly softer with...
Yen Recovers Slightly After BoJ Hold; Trade Diplomacy Mixed Across G7
Yen recovered modestly after BoJ held interest rates steady at 0.50%, in line with expectations. The decision came with no change to the existing bond taper plan, but with a new framework to gradually reduce bond purchases starting in fiscal 2026. Markets interpreted the move as largely symbolic for...
Geopolitics on Backburner as Investors Eye Trade Negotiations and BoJ Hold
Global financial markets showed remarkable resilience on Monday despite a continuous escalation in Middle East tensions. Iranian missiles struck Israel’s Tel Aviv and Haifa overnight, prompting an immediate warning from Israel’s defence minister that Tehran would soon “pay the price.” Iran has reportedly rejected ceasefire negotiations while under Israeli...
Markets Calm, Geopolitics Linger as Fed, BoJ, BoE, and SNB Loom
Global markets were broadly steady on Monday, despite ongoing conflicts in the Middle East. The Nikkei led Asian bourses with a 1.26% while European indexes also opened higher. Even with Israel and Iran continuing to exchange military strikes, investor sentiment remained resilient. US equity futures are also treading water,...
Markets Enter High-Risk Phase as Geopolitical and Trade Risks Collide
Global Financial markets have endured months of turmoil, with overlapping concerns over the US debt downgrade, recession fears, and an intensifying global trade war. The sharp escalation in Middle East conflict last week has only deepened the anxiety, as Israel and Iran exchanged strikes, raising the specter of prolonged...
Geopolitical Escalation Fuels Risk Aversion; Dollar Still Lags Despite Bounce
Risk aversion dominates global markets today as geopolitical tensions in the Middle East intensify, though the broader equity selloff has remained contained so far. The trigger came early Friday when Israel launched a series of airstrikes deep into Iranian territory, targeting key military and nuclear infrastructure. In response, Iran...
Markets Slide as Israel Strikes Iran, Safe Havens Climb
Asia-Pacific equities slumped today after Israel launched a military strike on Iran, targeting nuclear facilities and escalating geopolitical tensions in the region. The strike, which came without US support, was followed by a sharp vow of retaliation from Tehran. The immediate reaction saw oil prices spike nearly 9%, as...
Dollar Crushed as Dovish Inflation Data and Trade Tensions Weigh; Euro Surges to Multi-Year High
Dollar accelerated its broad-based selloff in early US trading, plunging to its lowest level against Euro since 2021. The latest catalyst came from softer-than-expected May PPI data, which followed Wednesday’s downside surprise in CPI. The tandem inflation prints have further calmed fears of immediate tariff-driven price pass-through, at least...
Sterling Slides on Poor UK GDP, While Dollar Struggles Under Trade Uncertainty
Sterling came under renewed pressure at the start of European session, triggered by a deeper-than-expected contraction in UK GDP for April. Services sector, the economy’s dominant component, posted its first monthly decline since October. Nine out of 14 services subsectors registered falls, pointing to broad-based weakness. It's a disappointing...