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The Dow Jones Industrial Average prices the war last
The Dow Jones Industrial Average gave up close to 260 points to beneath 53,500, roughly half a percent lower, on the day the 60-day negotiating window meant to end the war over the Strait of Hormuz expired with nothing agreed to replace it.
New Zealand Dollar stalls as China slows down
NZD/USD is close to flat on the day, holding the 0.5900 region and unable to join the broader move against a soft US Dollar (USD).
China: Growth risks and stimulus watch – TD Securities
TD Securities’ Alex Loo highlights that China’s July data showed weaker industrial production, modest retail sales and record-weak Fixed Assets Investment, reinforcing concerns about insufficient domestic demand.
US Treasury yields surge as 30-year hits 2007 high
US Treasury yields advance on Monday during the North American session after reversing their course following the release of US Retail Sales data last week, which disappointed investors.
Forex Today: US Dollar sags to two-month lows as Middle East risk lifts Oil and Gold
The US Dollar Index (DXY) starts the week on the back foot, with the US Dollar Index (DXY) slipping toward two-month lows and holding below the 100.00 mark. August's run of underwhelming US data jobs, inflation and retail sales has steadily trimmed bets on a Federal Reserve (Fed) move next month.
Indonesian Rupiah: BI expected to extend policy pause – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad expects Bank Indonesia (BI) to keep its policy rate at 5.75% for a second straight meeting after 100 bps of tightening since May.
United States Total Net TIC Flows: $133.5B (June) vs $132.2B
United States Total Net TIC Flows: $133.5B (June) vs $132.2B
United States Net Long-Term TIC Flows registered at $172.7B above expectations ($151.4B) in June
United States Net Long-Term TIC Flows registered at $172.7B above expectations ($151.4B) in June
Japanese Yen muted on a soft US Dollar note
USD/JPY is close to flat on Monday, holding the mid-159.00s region after a soft Japanese growth report overnight failed to shift it in either direction. The pair has been drifting between support at 158.60 and resistance just above 159.50 for five straight days. This is a standoff, not a trend.
Singapore Dollar: Mild upside bias against US Dollar remains intact – UOB
United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD remains under mild downward pressure after slipping to 1.2775 before rebounding. Intraday, the pair may retest 1.2775, but support at 1.2765 is expected to hold.
Mexican Peso softens as Middle East risks boost US Dollar
The Mexican Peso (MXN) weakens against the US Dollar (USD) on Monday, with USD/MXN reclaiming the 17.00 level, even though the latest US inflation and Retail Sales data disappointed investors. At the time of writing, the USD/MXN pair trades at 17.03, breaking a four-day losing streak.
Chinese Yuan: Policymakers guide measured RMB appreciation – OCBC
OCBC’s Sim Moh Siong and Christopher Wong highlight that USD/CNH is trading near recent lows as Chinese policymakers allow a measured pace of Renminbi (RMB) appreciation while resisting an overly rapid move via a sizeable fixing premium.
United States: Washington hardens AI alignment strategy - Rabobank
Rabobank’s Senior Macro Strategist Bas van Geffen describes Washington’s emerging carrot-and-stick approach to artificial intelligence, extending its Pax Silica framework.