EUR/USD weekly outlook: US-Iran re-escalation and CPI in focus
The EUR/USD ended the week on the back foot, surrendering its earlier poise during Friday's session. From mid-week until that point, the pair had displayed a rather unexpected degree of composure, even as tensions in the Middle East flared up again.
Strait of Hormuz Remains Open Despite Iran's Closure Declaration Amid US-Iran Tensions
The southern route of the Strait of Hormuz stayed open for shipping despite Iran's declaration of closure amid escalating tit-for-tat attacks between the US and Tehran. Maritime authorities confirmed continued passage, highlighting ongoing geopolitical tensions in the strategic waterway.
Australian Dollar Outlook: AUD/USD Bounce Losing Steam Ahead of US CPI
The Australian dollar enters the week on uncertain footing after its recent recovery began to lose momentum. Australian consumer and business sentiment will be monitored, but the spotlight falls on Tuesday's US CPI report and Fed Chair Kevin Warsh's congressional testimony.
UniCredit Euro to Dollar Forecast: 1.15 Still Looks Out of Reach
The Euro to Dollar (EUR/USD) exchange rate is holding close to 1.1415, despite renewed geopolitical tensions in the Middle East that would normally be expected to support the US Dollar. UniCredit believes the Dollar's muted response reflects a combination of higher global bond yields, resilient equity markets and fading expectations.
Global Markets Edge Lower Amid Mixed Commodity Moves
Major global indices including DAX, Dow, Nasdaq, FTSE, and Hang Seng saw modest declines over the weekend, while commodities showed mixed performance with oil rising sharply by 3.33% and gold and silver slipping. The EUR/USD pair also experienced a slight decrease of 0.11%, reflecting cautious trading ahead of the new week.
Gold (XAUUSD) Price Forecast: Gold Rally Stalls as Oil Fuels Fed Fears
Gold prices slipped as oil-driven inflation fears pushed September Fed hike odds above 50%, lifting Treasury yields and the dollar ahead of CPI.
Interest Rate Forecast: BOJ Rate Hike Risk Builds as USDJPY Eyes 175
Rising inflation and bond yields keep another BOJ rate hike in focus, while USDJPY, GBPJPY and EURJPY remain bullish above key support levels.
Iran Rejects Strait of Hormuz Terms, Prompting US to Reinstate Sanctions and Naval Blockade
Oman has informed the United States that Iran has refused the proposed terms concerning the Strait of Hormuz, leading Washington to promptly reimpose sanctions and resume its naval blockade. This development escalates tensions in a strategically vital maritime corridor.
Iran's IRGC Navy Fires Warning Shot to Stop Vessel in Strait of Hormuz
Iran's IRGC Navy reported firing a warning shot at a vessel navigating an unapproved route in the strategic Strait of Hormuz, halting its progress. The incident underscores ongoing tensions in a critical global shipping corridor.
USD/CNY Forecast: Why Westpac Sees Sustained Chinese Yuan Gains
The US Dollar to Chinese Yuan (USD/CNY) exchange rate is trading around 6.78 after retreating steadily through 2026, with the Yuan continuing to outperform many major currencies. Westpac expects the Renminbi to strengthen further over the next two years, forecasting USD/CNY will fall to 6.75 by September, 6.70 by year-end and eventually.