Within the FX house, geopolitical issues seem to have overshadowed the FOMC consequence. Final at 99 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong be aware.
Threat aversion dominates sentiments
“Bloomberg carried headlines on ‘US eyes this weekend for Iran assault’, ‘US plans for any Iran assault proceed to evolve’. Threat aversion dominates sentiments, and that places strain on risksensitive FX together with AUD, NZD in G7 house whereas additionally undermining KRW within the AxJ house.”
“With oil costs vulnerable to going greater as geopolitical tensions present little indicators of de-escalation, internet oil importing AxJs akin to PHP, INR, KRW, TWD, and THB could also be affected greater than different AxJs. Geopolitical developments stay fluid, and warning is warranted as we head into the weekend. US markets are closed immediately for Juneteenth holidays. Taking inventory, DXY value motion was whippy however inside vary.”
“DXY did dip on FOMC consequence, the place dot plot nonetheless sees 2 cuts for the 12 months although dispersion of dots revealed division in views amid heightened uncertainty. Every day momentum turned delicate bullish whereas RSI rose. Speedy resistance at 99.50 (50 DMA). A decisive break might danger DXY going greater in direction of 100.2 and 100.60 ranges (23.6% fibo retracement of 2025 excessive to low). Help at 98, 97.60 ranges (latest low).”
