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Polish Zloty: Neutral MPC guidance points to underperformance ā Commerzbank
Tatha Ghose at Commerzbank expects Polandās NBP to leave rates at 3.75%, with forwards already reflecting this. With inflation momentum near zero and energy-driven disinflation back, earlier hike bets have been unwound and some analysts now discuss potential easing from Q4 or March 2027.
Forex Today: Markets await FOMC Minutes while tensions in Middle East escalate
Here is what you need to know on Wednesday, July 8:
Iran says any location that supports US attacks are legitimate targets
According to the Iranian State Media, Iran's Top Joint Military Command said, āTehran considers any location that supports United States (US) attacks on Iran as its legitimate target.ā However, there has been no official confirmation from other media outlets.
Japanese Yen: Weak tone within defined trading band against US Dollar ā UOB
United Overseas Bankās (UOB) Quek Ser Leang highlights that USD/JPY is trading firmly after a sharp rise, with intraday bias tilted higher toward 162.70 while major resistance at 163.00 is expected to hold.
New Zealand Dollar: RBNZ hike seen as moderate tightening ā MUFG
MUFGās Derek Halpenny reports that the New Zealand Dollar strengthened after the RBNZ raised its policy rate by 25 bps to 2.50%, the first increase since May 2023. He notes OIS had largely priced the move and more hikes, but MUFG expects only two additional increases by March 2027.
USD/CAD Price Forecast: Weakens below 1.4200 as Oil gains, but technicals still favor upside
The USD/CAD pair loses traction to near 1.4175 during the early European trading hours on Wednesday. Renewed US military strikes against Iran have boosted crude oil prices and provide some support to the commodity-linked Canadian Dollar (CAD) strengthens against the US Dollar (USD).
Czech Koruna: CNB hawkish bias supports CZK ā Commerzbank
Commerzbankās Tatha Ghose notes Czech headline inflation fell to 1.5% year-on-year, below Czech National Bank (CNB) forecasts, with goods and energy prices soft but services still elevated.
Austria Trade Balance up to ā¬-434.1M in April from previous ā¬-563.3M
Austria Trade Balance up to ā¬-434.1M in April from previous ā¬-563.3M
Euro rises against Japanese Yen as latter underperforms across the board
The Euro (EUR) trades 0.1% higher to near 185.20 against the Japanese Yen (JPY) during the European trading session on Wednesday.
British Pound: Momentum fades against US Dollar ā UOB
United Overseas Bankās (UOB) Quek Ser Leang reports that GBP/USD failed to sustain its recent strong run, pulling back after testing resistance near 1.3410.
USD/JPY Price Forecast: Dollar remains capped below 162.40 resistance area
The US Dollar (USD) appreciates against the Japanese Yen (JPY) for the fourth consecutive day on Wednesday, fuelled by the resumption of hostilities in the Middle East and dovish comments from Bank of Japan (BoJ) officials.
Equities: Mixed reaction to US-Iran tensions ā Deutsche Bank
Deutsche Bankās Jim Reid highlights that Asian equities are mostly lower as investors digest a sharp escalation in US-Iran tensions and surging Oil prices. KOSPI is down over 5% and the Nikkei and S&P/ASX 200 are weaker, while mainland Chinese indices and the Hang Seng are firmer on tech gains.
New Zealand Dollar: Hawkish RBNZ but kiwi seen vulnerable ā Commerzbank
Commerzbankās Volkmar Baur reports the Reserve Bank of New Zealand (RBNZ) lifted the Official Cash Rate (OCR) to 2.5%, with the New Zealand Dollar (NZD) gaining slightly versus US Dollar (USD).