Latest news with #SamyChaar
Time of India
a day ago
- Business
- Time of India
West Asia conflict, oil spike put investors on edge
New York: Israel and Iran launched fresh attacks on each other into Sunday, with Prime Minister Benjamin Netanyahu saying Israeli strikes would intensify as Tehran called off nuclear talks that Washington had held out as the only way to halt the bombing. Oil prices rose 7% on Friday, as Israel and Iran traded strikes, and investors will be watching closely to see how the price reacts when markets open later. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo "So far we are at a stage of 'controlled confrontation'", said Lombard Odier's chief economist Samy Chaar, where it is too soon to call for real and persistent economic damage despite high risk. On Saturday, Israel appeared to have also hit Iran's oil and gas industry for the first time, with Iranian state media reporting a blaze at a gas field. Israel's air offensive against Iran that began early on Friday, killing commanders and scientists and bombing nuclear sites in a stated bid to stop Tehran building an atomic weapon, knocked risky assets, including stocks, on Friday. It also lifted oil prices and prompted a rush into gold and the dollar, which resumed its role as a safe-haven asset for the first time in months. Oil prices at close to six-month highs could pose a risk to the inflation outlook . Live Events
Yahoo
14-05-2025
- Business
- Yahoo
Sterling recovers some lost ground against the dollar
By Linda Pasquini (Reuters) -Sterling recovered some ground against the dollar on Tuesday after weakening in the previous session, when the United States and China said they had temporarily cut reciprocal tariffs following negotiations over the weekend. The U.S. and China have agreed to temporarily slash tariffs in a deal that surpassed expectations, and the de-escalation in the trade war between the world's two biggest economies sparked risk appetite globally. Sterling rose 0.26% to $1.32115, after falling 1% against the dollar to a four-week low at $1.318 on Monday. It was steady against the euro and the yen, trading flat at 195.48 yen, while the euro slid 0.14% to 84.06 pence, holding its low of more than five weeks. "The global environment for UK assets and therefore the currency is actually relatively favorable," said Samy Chaar, chief economist at Lombard Odier, pointing to a more stable macro environment, improving domestic inflation, as well as Britain's improving relations with the rest of the world, as evidenced by their trade deals with the U.S. and India. Bank of England Chief Economist Huw Pill however said that he was worried inflation in Britain could prove stronger than policymakers expect and interest rates might need to stay higher than investors currently think. Last week, Pill voted against the BoE's quarter-point interest rate cut. The market is pricing in a cut in interest rates of up to 48.6 basis points in total by the end of the year, with no change in policy at the next BoE meeting in June. Earlier in the day, the pound had no noticeable reaction to UK wages data. "Far more interesting for the Bank of England will be next week's April CPI services release," Chris Turner, head of forex strategy at ING, wrote in a note to investors. Turner also pointed to the UK-EU summit on May 19, two days before the inflation data release, saying he expected sterling to stay bid ahead of that, "potentially even seeing EUR/GBP break below 84.0." Around mid-April, the euro shot up to its highest level against the sterling since 2023 at 87.38 pence, before retreating to 84.06 on Tuesday, its lowest since April 3. "I don't think we'll be able to hold levels under 84.0 for euro/sterling for very long," said Kit Juckes, chief FX strategist at Societe Generale. Sign in to access your portfolio
CNBC
13-05-2025
- Business
- CNBC
Sterling recovers some lost ground against the dollar
Sterling recovered some ground against the dollar on Tuesday after weakening in the previous session, when the United States and China said they had temporarily cut reciprocal tariffs following negotiations over the weekend. The U.S. and China have agreed to temporarily slash tariffs in a deal that surpassed expectations, and the de-escalation in the trade war between the world's two biggest economies sparked risk appetite globally. Sterling rose 0.26% to $1.32115, after falling 1% against the dollar to a four-week low at $1.318 on Monday. It was steady against the euro and the yen, trading flat at 195.48 yen, while the euro slid 0.14% to 84.06 pence, holding its low of more than five weeks. "The global environment for UK assets and therefore the currency is actually relatively favorable," said Samy Chaar, chief economist at Lombard Odier, pointing to a more stable macro environment, improving domestic inflation, as well as Britain's improving relations with the rest of the world, as evidenced by their trade deals with the U.S. and India. Bank of England Chief Economist Huw Pill however said that he was worried inflation in Britain could prove stronger than policymakers expect and interest rates might need to stay higher than investors currently think. Last week, Pill voted against the BoE's quarter-point interest rate cut. The market is pricing in a cut in interest rates of up to 48.6 basis points in total by the end of the year, with no change in policy at the next BoE meeting in June. Earlier in the day, the pound had no noticeable reaction to UK wages data. "Far more interesting for the Bank of England will be next week's April CPI services release," Chris Turner, head of forex strategy at ING, wrote in a note to investors. Turner also pointed to the UK-EU summit on May 19, two days before the inflation data release, saying he expected sterling to stay bid ahead of that, "potentially even seeing EUR/GBP break below 84.0." Around mid-April, the euro shot up to its highest level against the sterling since 2023 at 87.38 pence, before retreating to 84.06 on Tuesday, its lowest since April 3. "I don't think we'll be able to hold levels under 84.0 for euro/sterling for very long," said Kit Juckes, chief FX strategist at Societe Generale.
Business Recorder
13-05-2025
- Business
- Business Recorder
Sterling recovers some lost ground against the dollar
Sterling recovered some ground against the dollar on Tuesday after weakening in the previous session, when the United States and China said they had temporarily cut reciprocal tariffs following negotiations over the weekend. The U.S. and China have agreed to temporarily slash tariffs in a deal that surpassed expectations, and the de-escalation in the trade war between the world's two biggest economies sparked risk appetite globally. Sterling rose 0.26% to $1.32115, after falling 1% against the dollar to a four-week low at $1.318 on Monday. It was steady against the euro and the yen, trading flat at 195.48 yen, while the euro slid 0.14% to 84.06 pence, holding its low of more than five weeks. 'The global environment for UK assets and therefore the currency is actually relatively favorable,' said Samy Chaar, chief economist at Lombard Odier, pointing to a more stable macro environment, improving domestic inflation, as well as Britain's improving relations with the rest of the world, as evidenced by their trade deals with the U.S. and India. Sterling claws higher after US/UK trade deal Bank of England Chief Economist Huw Pill however said that he was worried inflation in Britain could prove stronger than policymakers expect and interest rates might need to stay higher than investors currently think. Last week, Pill voted against the BoE's quarter-point interest rate cut. The market is pricing in a cut in interest rates of up to 48.6 basis points in total by the end of the year, with no change in policy at the next BoE meeting in June. Earlier in the day, the pound had no noticeable reaction to UK wages data. 'Far more interesting for the Bank of England will be next week's April CPI services release,' Chris Turner, head of forex strategy at ING, wrote in a note to investors. Turner also pointed to the UK-EU summit on May 19, two days before the inflation data release, saying he expected sterling to stay bid ahead of that, 'potentially even seeing EUR/GBP break below 84.0.' Around mid-April, the euro shot up to its highest level against the sterling since 2023 at 87.38 pence, before retreating to 84.06 on Tuesday, its lowest since April 3. 'I don't think we'll be able to hold levels under 84.0 for euro/sterling for very long,' said Kit Juckes, chief FX strategist at Societe Generale.
Zawya
10-03-2025
- Business
- Zawya
Tariff and growth worries boosts safe-haven yen, Swiss franc
The Japanese yen and Swiss franc strengthened against the dollar on Monday, as traders flocked to safe haven currencies due to lingering worries over tariffs and a U.S. economic slowdown, while the euro steadied after a strong run last week. Following a volatile week that saw the euro's biggest weekly gain since 2009 after Germany's game-changing fiscal overhaul, the common currency edged 0.1% higher against the dollar and hovered near its four-month high as the markets awaited details on European spending. "We've seen a lot of news from Germany on defence and infrastructure, but the feeling is that there's going to be some follow through," said Samy Chaar, chief economist at Lombard Odier. Markets have also been fixated on trade tensions as U.S. President Donald Trump slapped tariffs on top trading partners only to delay some of them for a month amid fears of a U.S. economic slowdown. That has led to some investors losing faith in the U.S. economy which has been outperforming its peers. On currency futures markets, investors have slashed net long dollar positions to $15.3 billion from a nine-year high of $35.2 billion in January. YEN, SWISS FRANC SOUGHT Risk-averse investors have sought the Japanese yen and Swiss franc instead, sending both currencies to multi-month highs. On Monday, the yen was 0.58% firmer at 147.19 per dollar, just below the five-month high of 146.94 it touched on Friday. "We still favour the JPY to outperform as we think wage discussions and the shunto (spring wage talks) announcement on Friday should solidify the wage-inflation cycle that will keep the BOJ on a hawkish path ahead," said Dominic Bunning, global forex strategist at Nomura. Japan's real wages fell in January after two months of slight gains, data showed on Monday, days before the annual spring rounds of pay talks culminates at major firms. The Bank of Japan is widely expected to keep interest rates unchanged at its next policy review on March 18-19. The Swiss franc hit a three-month high of 0.87665 per dollar on Monday. The dollar index, which measures the U.S. currency against six others, was last at 103.98, stuck near a four-month low touched last week. The dollar fell more than 3% last week against major rivals, clocking its weakest weekly performance since November 2022. EYES ON INFLATION "If Trump is looking to pursue a weaker dollar, lower yields ... then certainly that adds to this idea that maybe the dollar can't strengthen or can't move aggressively higher," said Parisha Saimbi, Asia-Pacific rates and FX strategist at BNP Paribas in Singapore. Investors were also digesting data from Friday that showed U.S. job growth picked up in February, but cracks are emerging in the once-resilient labour market amid a chaotic trade policy. Eyes will now be on U.S. inflation data due on Wednesday. Traders are pricing in 75 basis points of cuts from the Fed this year, LSEG data showed, with a rate cut fully priced in for June. In other currencies, the Norwegian crown gained against the dollar and the euro. It was at its highest against the dollar since October at 10.7442 crowns after surging inflation sowed doubts about the central bank's plans to start cutting borrowing costs in March. China's yuan slipped on Monday after data over the weekend showed consumer price index in February fell at the sharpest pace in 13 months. (Reporting by Yadarisa Shabong in Bengaluru and Ankur Banerjee in Singapore, additional reporting by Tom Westbrook in Singapore; Editing by Bernadette Baum)
