Societe Generale’s Kenneth Broux highlights that EUR/GBP has extended its decline after breaking a Head and Shoulders neckline at 0.8610, with the move now seen as stretched. The cross has dropped to a 0.84 handle, its lowest since June last year, a 4.5% fall since November.
ING analysts Warren Patterson and Ewa Manthey note Oil prices have extended gains as US–Iran tensions escalate and tanker flows through the Strait of Hormuz remain under pressure. Large second-quarter inventory drawdowns and the imminent end of global SPR releases leave the market more exposed.
The Indian Rupee (INR) opens lower against the US Dollar (USD), extending its losing streak for the third trading day on Thursday. The USD/INR pair rises to near 96.32 as elevated crude oil prices have renewed fears of higher foreign outflows.