Daily Newsroom
Follow market-moving stories, policy signals, and company developments curated by the editorial desk.
Lead story
The British pound and the euro traded lower against the U.S. dollar on Wednesday as markets anticipated a hawkish tone from new Federal Reserve Chair Kevin Warsh during his first public remarks since the June FOMC meeting.
Bank of America strategists maintain a positive medium-term outlook for the British pound, citing improving UK-EU relations, growing AI investment, and a pragmatic Bank of England as key supporting factors.
The United States has reportedly resumed air shipments of U.S. dollars to Iraq after a suspension of several months, according to a New York Times report citing Iraqi officials. The halt was initially part of a move to pressure Baghdad over the actions of Iran-backed militias.
U.S. Treasury and European bond yields climbed on Thursday following comments from central bankers that tempered expectations for near-term interest rate cuts. Investors are now awaiting the June non-farm payrolls report for further clues on monetary policy.
A top South Korean finance official stated the won is misaligned with economic fundamentals and confirmed that Seoul is in close communication with Japan and other allies on foreign exchange issues. The warning comes as the South Korean won languishes near a 17-year low against the U.S. dollar.
The British pound reached a two-week high against the U.S. dollar, which softened after Federal Reserve Chair Kevin Warsh refrained from issuing new hawkish signals. Market attention is now focused on the upcoming U.S. non-farm payrolls report.
Analysts at Citi report that the EUR/GBP currency pair has experienced a bearish technical break, falling below the 0.86 level. The bank suggests this move could signal further declines, potentially toward the 0.8450-0.85 range.
Analysts at UBS anticipate the Monetary Authority of Singapore will keep its policy settings unchanged in its upcoming July review but will likely tighten them in October due to expected increases in inflation. The bank maintains its forecast for a gradual strengthening of the Singapore dollar against the U.S. dollar.
The U.S. dollar experienced its most significant single-day drop since late April after a government report showed June job growth was much weaker than anticipated, leading traders to scale back expectations for a near-term Federal Reserve interest rate hike.
