Forex and Commodities

This report outlines current FX and commodity strategies amidst central bank policy divergence and geopolitical shifts, including the recent US-Iran peace deal. Strategists favor the South African rand against the Swiss franc and recommend defensive positioning in AUDUSD and EURNOK.

Key Takeaways

• 1.Central bank policy remains a primary driver, with a hawkish Fed meeting boosting the dollar in the near term despite broad expectations for eventual rate cuts.
• 2.The recently signed US-Iran peace deal is supporting pro-growth currencies and improving market risk sentiment.
• 3.Strategists favor a short CHFZAR position to capitalize on interest rate carry and positive risk sentiment in the South African rand.

Table of Contents

• The week ahead: Central banks at crossroads
• Forex and Commodities
• FX opportunities of the week
• Yield pickup opportunities of the week
• Comments on select currencies and commodities
• Data calendar

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