Section
The latest forex coverage from the TrustFinance editorial desk.
UBS strategists are advising clients to purchase the U.S. dollar during periods of weakness, arguing that risks from potential Federal Reserve tightening and rising oil prices will ultimately support the currency despite recent soft inflation data.
UBS has reiterated its constructive stance on the British pound, forecasting the EUR/GBP exchange rate at 0.8500 by year-end, while acknowledging potential headwinds from the UK's fiscal policy and gilt market.
The rand strengthened against a weaker U.S. dollar after American inflation data for June came in below expectations, tempering bets for a Federal Reserve interest rate hike this year.
Bank of America analysts have identified the EUR/USD and USD/JPY currency pairs as particularly susceptible to volatility from the upcoming U.S. inflation data, with each positioned for different reactions depending on the outcome.
The British pound gained against the U.S. dollar as a recent greenback rally stalled, with currency traders awaiting the release of crucial U.S. inflation data that could influence Federal Reserve policy.
Short-dated Eurozone bond yields climbed, with Germany's policy-sensitive 2-year yield touching 2.78%, driven by a new U.S. blockade on Iran and warnings of a potential Fed rate hike.
