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Follow market-moving stories, policy signals, and company developments curated by the editorial desk.
Lead story
According to an analysis by UBS, the Monetary Authority of Singapore is expected to keep its policy settings unchanged in its upcoming July meeting but will likely tighten in October as inflation picks up. The bank has also maintained its medium-term forecasts for the USD/SGD exchange rate.
The British pound traded near its strongest level since mid-June on Tuesday, as the U.S. dollar remained in a narrow range ahead of the release of Federal Reserve meeting minutes.
Several major currency pairs, including EUR/USD and USD/JPY, are facing the expiration of options contracts worth billions of dollars on Wednesday. This event could potentially influence price movements around the specified strike prices.
Yields on U.S. government bonds rose on Tuesday as investors anticipated a potentially hawkish tone in the upcoming release of the Federal Reserve's June meeting minutes. The move reflects broader selling pressure in fixed-income markets, with European bond yields also increasing.
The U.S. dollar gained on Tuesday as investors sought safe-haven assets following reports of attacks on oil tankers in the Gulf. The incidents have led to increased geopolitical tensions and a U.S. response against Iran.
According to a report from Citi, the Japanese yen's recent weakness is closely tied to the strong performance of the country's equity markets. Investors are reportedly selling the yen to hedge their gains in Japanese stocks, putting downward pressure on the currency.
The U.S. dollar experienced its most significant single-day drop since late April after a government report showed job growth in June was much weaker than anticipated. The data has led traders to scale back expectations for an imminent interest rate hike by the Federal Reserve.
U.S. and European government bond yields climbed after hawkish remarks from central bankers dampened expectations for near-term rate cuts. Markets are now awaiting the U.S. non-farm payrolls report for further economic signals.
The Canadian dollar reached its highest level against the U.S. dollar in 10 days, bolstered by a cooling U.S. labor market and signs of continued expansion in Canada's manufacturing sector.
