• Investors sought shelter in safe haven assets with gold prices surging above six-year high level and the yen strengthening due to ongoing geopolitical uncertainties, as well as investor caution ahead of today’s Fed Chairman speech and the Trump-Xi meeting on the sidelines of G-20 summit this Saturday.
  • Tensions between the U.S. and Iran continue to intensify after Iran said that U.S. sanctions against its top leaders to access financial instruments abroad imply a permanent closure of the path of diplomacy. Furthermore, the U.S. stated that the pressure will go on and they would look to impose even more sanctions.
  • On the trade front, low expectations from the Trump-Xi meeting, media report US Congress want Trump to maintain the hard approach against Huawei at the meeting. This could be an obstacle for a meaningful breakthrough in US-China trade impasse this weekend. That said, hopes remain alive that the two leaders could thaw heightened bilateral tensions.
  • Weaker activity data in the US that pave the way for the Fed to start easing the monetary policy cycle. The US consumer confidence declined more than expected in June (121.5, consensus 131, previous month 134.1) along with new home sales (626K, consensus 684K, previous month 673K).
  • The uncertain backdrop meant that treasury yields trended further down with safe-haven bonds well in demand. The 10Y US Treasury breaching the 2% level on the down side. Peripheral risk premia showed minor changes. Italy risk premium trimmed its early widening (due to supply factors) after Italy’s economy minister confirmed the government would reduce its fiscal deficit target this year from 2.4% to 2.1% of GDP.
  • The US dollar trimmed early depreciation ending broadly flat, as investors increased demand for safe-haven assets. EM FX currencies were mixed but showing minor changes, as lower US yields provided support.
  • Despite the geopolitical risk, oil prices remained steady underpinned by concerns about demand, amid Saudi Arabia pledged to offset any supply shortage. However, risk-off mood boosted gold and gold demand.
  • Equity markets declined across the board, especially in Asia due to low expectations of a significant progress in trade talks between U.S. and China.
  • This afternoon, all eyes will be on the Fed Chairman speech about the economic outlook and its monetary policy that will take place after European markets close

Download The Full Market Comment

En ningún caso BBVA será responsable de las pérdidas, daños o perjuicios de cualquier tipo que surjan por acceder y usar el website, incluyéndose, pero no limitándose, a los producidos en los sistemas informáticos o los provocados por la introducción de virus y/o ataques informáticos. BBVA tampoco será responsable de los daños que pudieran sufrir los usuarios por un uso inadecuado de este website y, en modo alguno, de las caídas, interrupciones, ausencia o defecto en las telecomunicaciones.

Analysis feed

Latest Forex Analysis

Editors’ Picks

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

AUD/USD looks to regain 0.6800, trade optimism underpins

With the latest trade positive comments from White House Adviser Kudlow, AUD/USD seems to have picked up a delayed bid, now testing the 0.68 handle. The spot extends its recovery from monthly lows of 0.6769. 

AUD/USD News

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

US Dollar Index: DXY suck at monthly highs near 98.40 level

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

US Dollar Index News

WTI testing offers near $ 57 amid trade optimism, ahead of US data

WTI is looking to extend the overnight bounce above the 57 handle, as the bulls find some solace from the renewed US-China trade optimism after both trade teams agreed to meet over trade talks later on Friday. 

Oil News

Forex Majors

Cryptocurrencies

Signatures