Asian stocks kicked off Friday trade lower as investors continued to monitor the situation in Iraq.
Brent crude prices climbed to a new nine-month high above $115 a barrel overnight after U.S. President Barack Obama said he would send 300 military advisers to help Iraq battle rebel Sunni fighters. He emphasized there would be no troops involved in combat, but said targeted action was still an option if necessary.
Japanese shares pulled back modestly after ending at four-month highs on Thursday, but the benchmark Nikkei is still headed for a 1.7 percent gain for the week. Sony added 0.2 percent after shareholders voted Thursday to keep CEO Kazuo Hirai and other top executives after heckling them about the Japanese electronics and entertainment company's continuing losses.
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AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.