Howdy, Guest User

BoE Inflation Expectations & PMI Readings

The Bank of England’s Decision Maker Panel showed 1-year ahead CPI inflation expectations fell to 3.4% (from 3.7%), while 3-year expectations eased to 2.8% (from 2.9%). This suggests businesses expect inflation pressures to continue moderating.

#UK Flash PMIs Beat Expectations:

-Manufacturing PMI: 52.8 vs 52 expected (52.5 previous)
-Services PMI: 51.8 vs 49.4 expected (48.8 previous)
-Composite PMI: 52.1 vs 49.8 expected (49.3 previous)

All three readings came in above forecasts and remained above the 50 threshold, pointing to stronger-than-expected UK economic activity.

Market Takeaway:

The combination of stronger UK PMI data and still-hawkish BoE rhetoric is supportive for GBP, although the decline in inflation expectations could temper expectations for aggressive future rate hikes.

Forexsource.net

🔍 Click for expanded view

BOJ Shift Fails to Lift Yen

BoJ

The BOJ is slowly shifting toward tighter policy, but weak yen fundamentals and strong US dollar demand keep pressure on the currency. Traders remain watchful for intervention, though its long-term impact may be limited.

Forexsource.net

🔍 Click for expanded view

🔍 Click for expanded view

Gold rebounds above $4,130 as safe-haven demand intensified on persistent US‑Iran tensions

US‑Iran tensions

• Gold Price: Rebounded above $4,130 (and hit highs over $4,100) due to safe-haven demand driven by persistent US-Iran tensions.
• Key Drivers: Geopolitical instability, inflation hedging, and central bank buying.
• Correlations: Gold rises with a weaker US Dollar, lower interest rates, and stock market sell-offs.

Forexsource.net

Urdu

• سونے کی قیمت $4,130 سے اوپر واپس چلی گئی، اور $4,100 سے بھی اوپر کی سطح تک پہنچی۔ اس کی بڑی وجہ safe-haven demand تھی، جو مسلسل US-Iran tensions کی وجہ سے بڑھی۔

• اس کے بڑے drivers میں geopolitical instability، inflation hedging، اور central bank buying شامل ہیں۔

• سونا عموماً اس وقت اوپر جاتا ہے جب US Dollar کمزور ہو، interest rates نیچے ہوں، اور stock market میں sell-off چل رہا ہو۔

🔍 Click for expanded view

🔍 Click for expanded view

Burnham Appoints Healey

Burnham Appoints Healey – GBP Slips

UK Prime Minister Andy Burnham has appointed John Healey as Chancellor. The surprise nomination has triggered market caution, resulting in a broad decline for the British pound as traders react to the unexpected leadership change.

Forexsource.net

🔍 Click for expanded view

AUD/JPY Market Summary

AUD/JPY

The AUD/JPY pair is trading around 113.85, maintaining a bullish trend supported by the 100-day SMA and positive RSI momentum.

• Drivers: The Australian Dollar is strengthening due to interest rate differentials between the RBA and BoJ, though potential Japanese intervention remains a risk.
• Rate Outlook: Markets are pricing in a ~23% chance of an RBA rate hike in August and >50% by December, fueled by inflation concerns linked to Middle East tensions.
• Key Levels:
  • Resistance: 114.10 (immediate), 114.74, 115.00.
  • Support: 113.10 (initial), 112.75 (100-day SMA), 112.55.

Forexsource.net

🔍 Click for expanded view