Daily Financial Breakfast 13 November 2026: IRGC Claims Destruction of U.S. Radar in Bahrain as Japan Cautions Over Yen Moves

Market News Today: Which Developments Are Shaping Markets?

• A U.S. military early-warning radar in Bahrain was destroyed in a strike, Iran’s Islamic Revolutionary Guard Corps claimed, Reuters reported.
• With USD/JPY holding above 160.00 for a second successive session, Japan cautioned against rapid, one-sided currency moves.
• An upward revision lifted eurozone third-quarter GDP growth from the preliminary 0.4% estimate to 0.6%.
• Persistent price pressures prompted warnings from Federal Reserve officials. New York Fed President John Williams said bringing inflation back to 2% would require action over time.
• The recent Bank of Mexico rate cut gave the wrong signal, Deputy Governor Jonathan Heath told Reuters, as he flagged inflation risks tilted to the upside.
• Pressure from rising U.S. crude inventories pulled WTI crude down to around $87.50 per barrel during early Asian trading on Friday.

How Are Markets Moving?

How Far Have U.S. Equity Futures Fallen?

Losses across U.S. equity futures during Friday’s European session left Dow Jones futures around 52,310, down 0.15%. S&P 500 futures were near 7,600 after a 0.16% decline, while a 0.30% fall put Nasdaq 100 futures around 28,300.

What Is Driving the Dollar’s Advance?

Stronger expectations of further Federal Reserve tightening propelled the U.S. dollar to a 19-month high on Thursday. For AUD/USD, an earlier update showed a 0.60% fall to around 0.6808; later in the session, the decline deepened to 0.67%, with the pair touching its lowest level since January. The previous week’s policy rate increase to 4.85% by the Reserve Bank of Australia had been accompanied by a signal that a pause could follow.

Thursday’s recovery in EUR/USD to around 1.1087 followed a fall to 1.1066, which at that point was its lowest since May 2025. Losses resumed in Friday’s Asian session, taking the pair to around 1.1050 and extending its losing run to a fourth consecutive day. Rising U.S. Treasury yields kept it under pressure through European trading. A fourth trading day of losses also took GBP/USD near 1.3227 on Friday; the Swiss franc, meanwhile, marked fresh monthly lows against the dollar.

Why Has Gold Come Under Pressure?

Greater market pricing of a 50-basis-point Federal Reserve rate increase in December weighed on gold on Thursday, sending it down nearly 2.8%. Having touched a one-year low of $3,852, gold was trading at $3,874 per ounce.

What Are the Latest Geopolitical Developments?

What Did Iran’s IRGC Claim About the U.S. Early-Warning Radar in Bahrain?

Reuters reported on Friday that Iran’s Islamic Revolutionary Guard Corps claimed to have struck and destroyed a U.S. military early-warning radar system in Bahrain. The account represented an assertion by the Iranian military; it was not a confirmed assessment of the damage.

Economic Trends & Central Bank Decisions

How Is Japan Responding as USD/JPY Moves Above 160.00?

Appropriate action would be taken in response to currency volatility, Japanese Finance Minister Satsuki Katayama said, noting that officials were monitoring rapid, one-sided foreign-exchange moves. Japan would also engage with the U.S. Treasury, she added. Her remarks followed an intervention warning from Prime Minister Sanae Takaichi earlier on Friday.

The yen remained near multi-month lows as USD/JPY crossed above 160.00 later on Friday for a second successive session. An earlier update that day had shown the pair just below 160.00. U.S. Treasury yields were rebounding as Japan issued its warnings.

A December Bank of Japan rate increase of 25 basis points was justified by Japan’s economic and inflation outlook, according to DBS Group Research. Driven by AI-related export demand and wage-led consumption, third-quarter real GDP was forecast to grow 0.8% quarter-on-quarter on a seasonally adjusted annualised basis. DBS expected October exports to rise 17% year-on-year, alongside a widening of the trade deficit to JPY1.2 trillion. Higher energy costs and yen weakness were expected to keep inflation above 2%.

What Changed in Eurozone Third-Quarter GDP Growth at 0.6%?

Eurozone economic expansion in the third quarter was stronger than initially estimated: revised GDP growth stood at 0.6%, against the preliminary 0.4%. This amounted to an upward adjustment of 0.2 percentage points to the initial growth estimate.

Why Are Fed Officials Still Concerned About Inflation?

Following repeated warnings about persistent price pressures from regional Fed presidents, New York Federal Reserve President John Williams said inflation was still too high. Returning it to 2% would mean the central bank having to take action over time, he said.

Speaking to Yahoo! Finance, Chicago Fed President Austan Goolsbee said inflation had been “well above target”, adding that Tuesday’s Consumer Price Index reading “wasn’t a one-off.” San Francisco Fed President Mary Daly, meanwhile, saw no doubt that artificial intelligence had added to price pressures, even though its effect on the labour market remained limited.

The Fed’s good work on employment contrasted with years of falling short of its inflation mandate, according to Cleveland Fed President Beth Hammack, who supported gradual rate increases. The probability of a December rate increase priced by markets reached 87%.

Why Does Banxico’s Heath Object to the Rate Cut’s Inflation Signal?

Financial markets received a confusing and incorrect signal from the Bank of Mexico’s recent rate cut, Deputy Governor Jonathan Heath argued in an interview with Reuters. Criticising the decision, he said it “confuses and sends the wrong message” to financial markets, and maintained that inflation risks were still tilted upwards.

Energy Prices & Commodity Trends

Why Has WTI Slipped to Around $87.50?

Selling pressure linked to higher U.S. crude oil inventories left West Texas Intermediate crude around $87.50 per barrel in early Asian trading on Friday. Prices retreated despite the continued focus on geopolitical risks in the Middle East.