Renewed tensions between the United States and Russia have resurfaced following an incident involving an oil tanker, sparking market concerns about potential disruptions to global energy supplies. Washington's move, associated with tightening oversight and enforcement of sanctions on Russian oil shipments, is viewed by Moscow as provocative and could worsen relations between the two countries. Russia views these actions as an attempt by the United States to suppress Russian energy exports and strengthen its dominance in the global oil market. Meanwhile, Washington argues that these measures...
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX analysts report. Sterling lags euro amid soft UK labor backdrop"GBP/USD edged higher on broad US Dollar (USD) weakness. Pound Sterling (GBP) is underperforming against EUR. The UK July labor market data matched consensus." "The unemployment rate was unchanged for a third straight month at a four-year of 4.7% in July (BOE Q3 projection: 4.8%). Worrisomely, the vacancies-to-unemployment ratio...
EUR/USD remains near the upper end of its three-month trading range, with another test of 1.18 possible today. Despite a recent spike, implied volatility has retreated, underscoring calmer market conditions, Commerzbank's FX analyst Michael Pfister notes. EUR/USD seems to be struggling to break above 1.18"Last week, I discussed the possible factors that could push EUR/USD back above 1.18 in detail here. However, the fact that it feels like we have been trading within a fairly narrow range for the last three months must also be put into perspective. While it is true that EUR/USD seems to be...
Silver steadied around $42.5 per ounce on Tuesday, hovering near 14-year highs as investors positioned for an expected US Federal Reserve rate cut this week. Markets are nearly fully pricing in a 25 basis point reduction on Wednesday, with 67 bps of easing projected by year-end. Expectations have been bolstered by data showing a cooling labor market and subdued inflation. President Donald Trump also pressed Fed Chair Jerome Powell for a larger cut, citing housing market weakness. Elsewhere, central banks in Canada and China are expected to ease policy this week, while those in Japan and the...
The dollar traded near a 2.5-month low against the euro and near a 10-month low against the risk-sensitive Australian dollar on Tuesday as investors increased bets for a Fed rate cut this week and next. The U.S. dollar traded slightly below its lowest level in more than two months against the British pound, with U.S. President Donald Trump renewing his call for aggressive monetary easing. Markets are pricing in a rate cut of at least 25 basis points on Wednesday as a certainty, with a 50 basis point cut even more likely. A total of 67 basis points of cuts are expected over the remainder of...
Oil prices are mixed in the early Asian trade, but may be supported by supply-disruption risks. Ukraine has stepped up attacks on Russia's energy infrastructure, ANZ Research analysts say in a research report. Another drone attack struck Russia's Kinef refinery, which has an annual processing capacity of over 20 million tons, the analysts note. "This follows last week's wave of attacks which Ukraine claimed have struck facilities handling almost half of Russia's seaborne crude exports," the analysts add. Front-month WTI crude oil futures are little changed at $63.32/bbl; front-month Brent...
Asian stock markets fell in unison on Thursday, following Wall Street's decline. A brief rally in tech stocks led by Nvidia quickly faded, prompting investors to turn away from riskier assets like...
European stock indices closed marginally lower on Wednesday as equities took a breather from their recent strong momentum, while investors continued to assess the outlook for the ECB's policy this...
The upcoming Supreme Court ruling on the legality of President Donald Trump's massive tariffs, which rocked markets in April, is one of the next major tests for US stocks and bonds.
Equity markets...