Oil Surges, USD Weakens as Geopolitical Tensions Weigh on Markets

Welcome to our daily market update. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

 

Forex Market 

Risk Sentiment Softens as Oil Surges, USD Weakens
Markets opened the week cautiously as geopolitical tensions surrounding U.S.–Iran peace talks weighed on sentiment. Despite softer equities, the USD weakened broadly, supporting major currencies, while oil prices surged sharply.
The S&P 500 declined, Brent crude rose strongly, AUD/USD traded near its recent highs, and USD/JPY remained elevated.
AUD/USD held at the upper end of its recent range, supported by USD softness. EUR/USD and GBP/USD pushed higher, while USD/JPY drifted lower amid easing Treasury yield momentum. Commodity-linked currencies such as AUD and NZD outperformed on the back of rising oil prices.

General Market

Wall Street

  • Dow Jones: 0.0% | 49,443
  • S&P 500: -0.3% | 7,104
  • Nasdaq: -0.3% | 24,404
  • VIX: +8.8% | 19.02

Asia-Pacific

  • ASX 200: +0.1% | 8,953
  • Shanghai Composite: +0.8% | 4,082
  • Nikkei: +0.6% | 58,825

Europe

  • FTSE: -0.5% | 10,609
  • DAX: -1.2% | 24,418
  • CAC: -1.1% | 8,331

 

Headlines to Watch

United States

  • Retail sales expected to rebound on higher fuel prices
  • Fed Chair nominee Warsh to testify before Senate

Europe

  • ECB commentary (Kocher) may provide policy direction

Asia-Pacific

  • New Zealand inflation data could influence RBNZ outlook
  • Ongoing FX strength in AUD and NZD amid USD weakness
Currency Pair Mid-market Rate
AUD/USD 0.7175
AUD/NZD 1.2147
AUD/JPY 113.98
AUD/CNY 4.8920
AUD/EUR 0.6088
AUD/GBP 0.5301
AUD/HKD 5.6177

 

 

 

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved.
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.3

Facebook
LinkedIn