TD Securities strategists Prashant Newnaha and Alex Loo highlight that the Reserve Bank of Australia (RBA) raised the cash rate to 4.35% with a dovish message, viewing risks to inflation and growth as more balanced.
BNY’s John Velis reviews the April Federal Open Market Committee (FOMC), highlighting four dissents against the easing bias and implications for future policy under incoming Chair Kevin Warsh.
Here is what you need to know on Tuesday, May 5:
ING analysts Warren Patterson and Ewa Manthey note that ICE Brent has surged as renewed conflict in the Persian Gulf raises concerns over supply disruptions.
OCBC strategists Sim Moh Siong and Christopher Wong highlights renewed weakness in Silver as Middle East tensions and higher Oil prices weigh on risk sentiment.
Danske Research Team notes that global equities fell, with the S&P 500 down 0.4% and Stoxx 600 off 1% on Iran-related headlines. The session was characterized as de-risking, with most sectors lower except tech and energy.
The International Monetary Fund (IMF) managing director Kristalina Georgieva warned that inflation is already picking up and the global economy could face a “much worse outcome” if the war in the Middle East drags into 2027 and oil prices hit about $125 a barrel, Reuters reported on Tuesday.
The USD/CAD pair edges lower to near 1.3620 during the early Asian trading hours on Tuesday. Escalating tensions in the Middle East after the United Arab Emirates (UAE) reports missiles and drone threats from Iran underpin the commodity-linked Canadian Dollar (CAD).
MUFG’s Michael Wan flags a significant shift as China formally invokes its 2021 Blocking Statute for the first time, targeting recent US sanctions on five Chinese refineries linked to Iranian Oil.
OCBC strategists Sim Moh Siong and Christopher Wong report that USD/SGD fell into the New York close, helped by a sharp Brent decline and a pullback in USD/JPY, easing immediate inflation and yield concerns.