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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.
USD/JPY is seen consolidating below its highest level since July 2024, touched the previous day, with intervention fears lending support to the Japanese Yen and capping the upside amid a modest US Dollar downtick. The signing of a US-Iran peace deal to end the war and reopen the Strait of Hormuz undermines the Greenback's reserve-currency status. However, the Fed's projection of a rate increase this year favors USD bulls and should provide a tailwind for the currency pair.
AUD/USD edges higher during the Asian session on Thursday as the US Dollar retreats from its highest level since late March, touched in reaction to the Fed's hawkish tilt the previous day. The US and Iran signed a MoU aimed at ending the war and reopening the Strait of Hormuz, boosting investors' confidence and undermining the safe-haven USD. Furthermore, the RBA's signal that additional rate hikes remain possible, if inflation persists, acts as a tailwind for the Aussie.
Gold attracts fresh buyers during the Asian session on Thursday, reversing part of the previous day's hawkish Fed-inspired slump to a fresh weekly low. As traders price in the possibility of a Fed rate hike this year, the signing of a US-Iran peace deal – to end the war and reopen the Strait of Hormuz – drags the safe-haven US Dollar away from its highest level since late March. This offers some support to the bullion, though the overnight failure near the 200-day SMA warrants caution for bulls.
Binance founder Changpeng Zhao has called on governments to tokenize their stock markets and issue sovereign stablecoins, arguing that blockchain technology can expand access to capital markets and increase the global use of national currencies. In an X post on Wednesday, CZ said countries should "tokenize their stocks, allowing worldwide buyers."
The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.
