Markets on Edge as US, Iran Trade Fire in Gulf | The Asia Trade 5/5/2026

Watch on YouTube ↗  |  May 05, 2026 at 04:41  |  1:35:05  |  Bloomberg Markets
Speakers
Kyle Rodda — Senior Market Analyst, Capital.com

Summary

The video covers the escalation of the US-Iran conflict in the Gulf, leading to an oil price surge and renewed inflation fears. Markets are pricing in higher Fed rate hike odds and a third RBA hike. Analysts discuss yen weakness, gold short-term pressure, and a potential USD rally as war trades reemerge. Other topics include Australian M&A, private credit, and AI infrastructure investing.

  • US and Iran exchange fire in the Persian Gulf, breaking the four-week ceasefire.
  • Brent crude nears a four-year high, amplifying inflation concerns.
  • RBA expected to deliver a third consecutive rate hike to 4.35%.
  • Yen remains under pressure; Japanese authorities likely intervened near 160.
  • Kyle Rodda expects further yen depreciation and a short-term gold pullback.
  • He also sees a USD rally as risk-off war trades return.
  • Barry Sternlicht highlights European real estate opportunities with positive leverage.
  • Apollo's Zito argues private credit is safer in the new asset-heavy regime.
Trade Ideas
Kyle Rodda Senior Market Analyst, Capital.com 51:00
USD to rally on war trades.
As the narrative shifts back to geopolitical risk and the war, he expects a reassertion of war trades: a pullback in equities (especially cyclicals) and a bounce in the US dollar. The dollar should benefit from risk-off flows and higher relative yields.
U.S. Dollar (DXY) MED
Kyle Rodda Senior Market Analyst, Capital.com 55:34
Yen to depreciate, BOJ behind.
Yen will continue to depreciate against the dollar due to fundamental divergence: BOJ remains accommodative while the Fed is hawkish, oil prices and higher US yields strengthen the dollar, and Japanese authorities can only intervene periodically without changing the trend. The 160 level is crucial and further weakness is expected.
FXY MED
Kyle Rodda Senior Market Analyst, Capital.com 57:10
Gold under pressure from yields.
Gold faces short-term downward pressure from a stronger US dollar and rising global yields, which are being lifted by inflation fears and the oil shock. He sees a potential spill towards the low-$3000s, though the long-term de-dollarization theme remains supportive.
GOLD MED
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This Bloomberg Markets video, published May 05, 2026, features Kyle Rodda discussing U.S. Dollar (DXY), FXY, GOLD. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kyle Rodda  · Tickers: U.S. Dollar (DXY), FXY, GOLD