Daily Financial Breakfast 13 November 2026: U.S. Radar in Bahrain Destroyed, IRGC Says; Japan Issues Warning on Yen Moves

Today’s Market News: Main Developments

• A U.S. military early-warning radar in Bahrain was struck and destroyed, Iran’s Islamic Revolutionary Guard Corps said, according to Reuters.
• 160.00 was exceeded by USD/JPY for a second consecutive session, prompting Japan to warn over rapid, one-sided currency moves.
• 0.6% was the revised figure for eurozone third-quarter GDP growth, compared with an initial estimate of 0.4%.
• Persistent inflation drew warnings from Federal Reserve officials. New York Fed President John Williams said action would be required over time to bring inflation back to 2%.
• The recent Bank of Mexico rate cut conveyed the wrong message, Deputy Governor Jonathan Heath told Reuters, adding that inflation risks were skewed to the upside.
• Around $87.50 per barrel was the level for WTI crude in early Asian trading on Friday, after rising U.S. crude inventories pushed prices lower.

Market Moves in Focus

U.S. Equity Futures Move Lower

A 0.15% fall took Dow Jones futures to around 52,310 during Friday’s European session. S&P 500 futures lost 0.16% to trade near 7,600, while Nasdaq 100 futures retreated 0.30% to around 28,300.

Currency Markets: Dollar Strength Persists

A 19-month high was reached by the U.S. dollar on Thursday as expectations grew for additional Federal Reserve tightening. An earlier update put AUD/USD around 0.6808, a decline of 0.60%. Its loss widened to 0.67% later in the session, taking the pair to its lowest since January. After lifting its policy rate to 4.85% the previous week, the Reserve Bank of Australia had indicated that a pause was possible.

Following a dip to 1.1066, its weakest point since May 2025 at the time, EUR/USD rebounded to around 1.1087 on Thursday. The pair then slipped to around 1.1050 in Friday’s Asian session, marking a fourth consecutive day of losses. It stayed lower in European trading as U.S. Treasury yields climbed. Friday also brought a fourth trading day of declines for GBP/USD, which approached 1.3227. Against the dollar, the Swiss franc registered new monthly lows.

2.8% Near-Decline in Gold

A nearly 2.8% decline hit gold on Thursday as traders priced in a greater likelihood of a 50-basis-point Federal Reserve rate increase in December. After reaching a one-year low of $3,852, the metal traded at $3,874 per ounce.

Geopolitical Risk in Focus

Bahrain U.S. Early-Warning Radar Destroyed, Iran’s IRGC Claims

According to Reuters, Iran’s Islamic Revolutionary Guard Corps said on Friday that a strike had destroyed a U.S. military early-warning radar system in Bahrain. This remained a claim by the Iranian military, not a confirmed damage assessment.

Economic Data & Central Bank Policy

160.00 Breached by USD/JPY as Japan Warns on Volatility

Rapid, one-sided moves in foreign exchange were being monitored by officials, Japanese Finance Minister Satsuki Katayama said. She stated that the government would take appropriate action in response to currency volatility and would engage with the U.S. Treasury. Earlier on Friday, Prime Minister Sanae Takaichi had warned of intervention.

An earlier Friday update placed USD/JPY just under 160.00. Later in the day, the pair moved above that threshold for a second consecutive session, keeping the yen close to multi-month lows. U.S. Treasury yields rebounded alongside the warnings.

A 25-basis-point Bank of Japan rate increase in December was supported by Japan’s economic and inflation outlook, DBS Group Research argued. It forecast third-quarter real GDP growth of 0.8% quarter-on-quarter on a seasonally adjusted annualised basis, underpinned by AI-related export demand and wage-driven consumption. For October, DBS expected exports to rise 17% year-on-year and the trade deficit to expand to JPY1.2 trillion. It projected inflation to stay above 2% as energy costs rose and the yen remained weak.

0.6% Eurozone Third-Quarter GDP Growth After Upward Revision

At 0.6%, revised eurozone GDP growth for the third quarter exceeded the preliminary estimate of 0.4%. The upgrade increased the initial measure of the region’s economic expansion by 0.2 percentage points.

2% Inflation Goal Remains Out of Reach, Fed Officials Warn

Returning inflation to 2% would require central bank action over time, New York Federal Reserve President John Williams said, describing price growth as still too high. His remarks came after several regional Fed presidents warned of continuing inflationary pressure.

In comments to Yahoo! Finance, Chicago Fed President Austan Goolsbee described inflation as “well above target” and said Tuesday’s Consumer Price Index release “wasn’t a one-off.” Artificial intelligence had undoubtedly contributed to price pressures, San Francisco Fed President Mary Daly said, although its labour-market impact was still limited.

While the Fed was performing well on employment, it had fallen short of its inflation mandate for years, Cleveland Fed President Beth Hammack said. Her preference was for gradual rate increases. The market-implied probability of a December rate increase rose to 87%.

Banxico Rate Cut Gives Wrong Inflation Signal, Heath Says

In a Reuters interview, Bank of Mexico Deputy Governor Jonathan Heath challenged the central bank’s recent rate cut, saying it “confuses and sends the wrong message” to financial markets. In his assessment, inflation risks continued to lean towards the upside.

Energy Prices & Commodity Markets

$87.50 Area for WTI as U.S. Crude Stocks Rise

Around $87.50 per barrel was where West Texas Intermediate crude traded early in Friday’s Asian session. An increase in U.S. crude oil inventories weighed on prices, even as geopolitical risks in the Middle East remained in focus.