Asian markets mixed, caution on US debt, Banks stress tests

FXStreet Team FXStreet

FXstreet.com (Barcelona) - Asian markets are mixed on Friday, with investors reluctant towards risk on concerns about the growing possibilities of debt default in the US, and ahead of the release of Eurozone Banks' stress test results. In currency markets, the Dollar remains trading near week lows.

Japanese Nikkei Index rises 0.3% after bouncing up from a negative opening, the South Korean Kospi Index adds 0.3%, and the Chinese Shangai Composite Index rises 0.2%. On the negative side, Australian ASX Index eases 0.4%, and the Hong Kong Hang Seng Index Index edges down 0.1%.

Standard & Poor's added pressure to US yesterday, setting its long-term dc"AAA" debt rating on "CreditWatch" with negative implications, following a similar move by Moody's, on the growing possibilities of a default as US congressman fail to reach an agreement to lift the country's debt ceiling.

Risk appetite is expected to remain subdued in Europe with investors focusing on the release of Eurozone Banks' stress tests results, were, according to markets sources 10 to 15 banks, out of 90, might have failed,. Most of them Spanish and German.

Dollar, near weekly lows

EUR/USD recovery from 1.3835 low on Friday, was capped at 1.4280, and the pairs following pullback has been contained above 1.4100, to consolidate in Asia around 1.4150.

GBP/USD bounced sharply fro multi-month lows at 1.5775 on Tuesday, to reach 3-week highs week highs at 1.6195 yesterday, and consolidate afterwards 1.6100 and 1.6175.

USD/JPY was rejected at 81.50 high last week, and the pair plunged this week breaching support level at 79.55/70 area to reach fesesh 4-month lows at 78.45 yesterday, and consolidate afterwards within a 40 pips range around 79.00.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD treads water around 1.3360

GBP/USD alternates gains with losses around the 1.3360 zone on Wednesday. That said, Cable’s upside remains capped as markets stay cautious following the flare-up of tensions in the Middle East.

EUR/USD flirts with 1.1400; geopolitical landscape deteriorates

EUR/USD comes under renewed selling pressure, slipping toward the 1.1400 region on Wednesday. The pair’s second daily pullback in a row follows extra strengthening of the US Dollar on renewed safe-haven demand after President Trump said the MOU with Iran to end the conflict was "over".

Gold loses impulse; focus shifts back to $4,000

Gold turns lower on Wednesday and trades deep in negative territory, opening the door to another potential visit to the key $4,000 yardstick per troy ounce. The yellow metal’s decline follows a modest uptick in the US Dollar as tensions in the Middle East have resurfaced.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

Fed Minutes to shed light on Warsh's first meeting as Chair

The United States (US) Federal Reserve (Fed) will release the Minutes of the June 16-17 Federal Open Market Committee (FOMC) meeting on Wednesday at 18:00 GMT. The Minutes should shed more light on the Fed’s hawkish hold delivered at Kevin Warsh’s first meeting as Fed Chair. Even so, doubts remain about how much the minutes will reveal, given Warsh's refusal to provide forward guidance.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.