USD 
EUR 
GBP 
AUD
The big story today was the shift in risk appetite, which wasn't entirely expected, honestly. If you were watching EUR/USD, you'd have noticed it pushing to new session highs, supported by softer oil prices and a modest easing in geopolitical tensions. According to ForexLive, headlines out of the Middle East helped sentiment, after Israel struck Lebanon, and the conflict with Hezbollah seemed to be prolonging. But despite all this, the EURUSD managed to rally, which was pretty wild.
And that's not all - the USDJPY was also on the move, pushing higher, supported by a modest rebound in yields. FXStreet Forex pointed out that the 10-year yield is up about 2 basis points, which isn't dramatic, but it's a shift from earlier declines that's helping underpin the pair. But what's really interesting is that the US Dollar has stabilized after Iran said the ceasefire was violated, and ING strategists still see scope for renewed weakness. They think the Greenback remains under pressure following the US-Iran ceasefire and hopes for de-escalation. You'd think that with all the uncertainty, the Dollar would be the safe haven of choice, but it's not playing out that way.
But let's look at the numbers - the British Pound was holding steady against the Euro, closing at 1.1478, and the Australian Dollar was up slightly against the US Dollar, closing at 0.7061. The New Zealand Dollar was also steady against the Pound, closing at 0.4359. And in the Euro Yen pair, we saw a closing rate of 186.0472. According to BNY Strategist Geoff Yu, European rate markets still discount too many hikes for the European Central Bank, Bank of England, and Swiss National Bank, despite an improvement in the economic outlook.
As we head into the next trading day, it's all about the Gross Domestic Product numbers for the US, and the BoE Credit Conditions Survey for the Pound. If you were watching the Forex calendars, you'd know that these are high-impact events, and they could shake things up. And let's not forget the Consumer Confidence numbers out of Japan, which could also move the Yen. So, what's coming next? Well, it's all about the data, and how the markets react to it. We've got a lot to watch, and it's going to be interesting to see how it all plays out.
Dollar Under Pressure
And that's not all - the USDJPY was also on the move, pushing higher, supported by a modest rebound in yields. FXStreet Forex pointed out that the 10-year yield is up about 2 basis points, which isn't dramatic, but it's a shift from earlier declines that's helping underpin the pair. But what's really interesting is that the US Dollar has stabilized after Iran said the ceasefire was violated, and ING strategists still see scope for renewed weakness. They think the Greenback remains under pressure following the US-Iran ceasefire and hopes for de-escalation. You'd think that with all the uncertainty, the Dollar would be the safe haven of choice, but it's not playing out that way.
But let's look at the numbers - the British Pound was holding steady against the Euro, closing at 1.1478, and the Australian Dollar was up slightly against the US Dollar, closing at 0.7061. The New Zealand Dollar was also steady against the Pound, closing at 0.4359. And in the Euro Yen pair, we saw a closing rate of 186.0472. According to BNY Strategist Geoff Yu, European rate markets still discount too many hikes for the European Central Bank, Bank of England, and Swiss National Bank, despite an improvement in the economic outlook.
As we head into the next trading day, it's all about the Gross Domestic Product numbers for the US, and the BoE Credit Conditions Survey for the Pound. If you were watching the Forex calendars, you'd know that these are high-impact events, and they could shake things up. And let's not forget the Consumer Confidence numbers out of Japan, which could also move the Yen. So, what's coming next? Well, it's all about the data, and how the markets react to it. We've got a lot to watch, and it's going to be interesting to see how it all plays out.