Forex Today: Cautious start to week as markets assess latest on US-Iran conflict
Here is what you need to know on Monday, June 29:
Financial markets adopt a cautious stance at the beginning of the week as investors evaluate the latest developments surrounding the conflict between the United States (US) and Iran. The European economic calendar will feature business and consumer sentiment data for June. Later in the day, European Central Bank (ECB) President Christine Lagarde will deliver an intorudctory speech at ECB Forum on Central Banking.
The US and Iran exchanged fire near the Strait of Hormuz over the weekend. Iran's Islamic Revolutionary Guard Corps (IRGC) said it targeted US military sites in neighboring countries, including Kuwait and Bahrain, after the US struck Iranian sites. Meanwhile, Iran demanded a full withdrawal of Israeli Forces from Lebanon as part of a final agreement with the US. A US official said on Sunday that the US and Iran will stand down on strikes and allow vessels to move freely. The official further noted that technical talks with Iran are set to conntinue on all areas of the Memorandum of Understanding. According to Axios, sides will meet in Doha on Tuesday for the next round of negotiations.
After closing the previous week in positive territory, the US Dollar (USD) Index holds steady above 101.00 in the European session on Monday, while US stock index futures cling to moderate gains.
Reserve Bank of Australia (RBA) Assistant Governor Chris Kent said during a review of alternative monetary policy tools that the central bank will be better prepared to respond to the next crisis it faces. "The cash rate target remains our primary and preferred instrument," Kent added. These comments failed to trigger a noticeable market reaction and AUD/USD was last seen trading little changed on the day at around 0.6900.
EUR/USD trades marginally higher on the day near 1.1400 in the European morning on Monday.
GBP/USD recovers modestly to start the week and holds above 1.3200. The Bank of England will publish Consumer Credit data for May later in the session.
Gold struggles to extend its recovery and retreats toward $4,050 after posting two consecutive days of gains to end the previous week.
USD/JPY trades in a tight channel at around 161.80 in the European morning on Monday. The data from Japan showed earlier in the day that Retail Trade expanded by 5.3% on a yearly basis in May, surpassing the market expectation of 3.2%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitwise brings NEAR to Wall Street – But the chart isn’t impressed
Synopsys and OpenAI reach AI chip design partnership, stock price surges over 7%
Synopsys has signed a multi-year legally binding agreement with OpenAI to jointly develop GPT-Synopsys, a model specifically trained and fine-tuned for chip design tasks. OpenAI will pay Synopsys a subscription fee for tool licensing, and both parties will share revenue based on improvements in chip design achieved by customers using the product.
How does Wall Street view the PCE? Goldman Sachs delays expectation for Fed rate hike
After the lower-than-expected US August PCE data was released, Goldman Sachs delayed its expectation for the Federal Reserve's second rate hike from October to December, and stated that it does not rule out the possibility that the Fed may eventually decide no further hikes are necessary. "New Fed Newsletter" Timiraos noted that the PCE does not change the previously known trend of rising inflation. Currently, the market prices in a 39% probability of a rate hike in October, down from 45% before the PCE release; and a 90% probability in December. The yield on 2-year US Treasury notes dipped slightly after the PCE announcement and then rebounded, while the 10-year yield continued to rise.
Zeta Global stock jumps 9.43% intraday, flashes overbought signals
Crypto prices
More
