USD mostly higher as US shares fall
The greenback was mostly higher overnight, with the USD index rising for a third session, as geopolitical tensions and weakness in technology stocks weighed on risk sentiment.
The US-Iran conflict escalated after US President Donald Trump said Iran “will pay” after three US military personnel were killed over the weekend.
Meanwhile, technology stocks were lower, led by a further sell-off in South Korea’s Kospi index, which fell 4.5% yesterday and is now down 23% so far this month.
The Aussie was one of the few currencies to gain, with AUD/USD up 0.2%.
EUR/USD and GBP/USD both fell 0.2%.
In Asia, USD/JPY gained 0.1%, while USD/SGD was flat. USD/CNH lost 0.1%.
NZD back at one-month highs after inflation
NZD/USD was weaker overnight but rebounded after this morning’s inflation data.
June quarter inflation rose 1.5% versus expectations for a 1.4% increase, while annual inflation came in at 4.1% versus the 4.0% forecast.
Financial markets are pricing in a 94% chance of a 25 bp hike at the September RBNZ meeting.
NZD/USD rose 0.2% after the announcement to trade near one-month highs.
GBP eases as Burnham takes power
The British pound was weaker as former Manchester mayor Andy Burnham took office as the UK’s seventh prime minister in 10 years.
The GBP has recently been stronger, with GBP/USD up 2.1% over the past month, as some of the political uncertainty has been resolved.
However, GBP strength has eased, with both AUD/GBP and NZD/GBP showing signs of a reversal higher, supported by positive signals from momentum indicators such as MACD.
Meanwhile, GBP/SGD has turned lower after recently reaching a one-year high.
USD higher for third day
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 20 – 24 July
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
