Daily Financial Breakfast 13 November 2026: IRGC Says It Destroyed U.S. Radar in Bahrain While Japan Warns on Yen Moves

Market News Today: Key Takeaways

• Iran’s Islamic Revolutionary Guard Corps said it struck and destroyed a U.S. military early-warning radar in Bahrain, Reuters reported.
• Japan warned about rapid, one-sided currency movements as USD/JPY traded above 160.00 for a second consecutive session.
• Eurozone third-quarter GDP growth was revised to 0.6% from the preliminary estimate of 0.4%.
• Federal Reserve officials warned about persistent inflation, with New York Fed President John Williams saying action was needed over time to restore inflation to 2%.
• Bank of Mexico Deputy Governor Jonathan Heath told Reuters that the central bank’s recent rate cut sent the wrong message and that inflation risks were tilted upward.
• WTI crude fell to around $87.50 per barrel in early Asian trading on Friday as U.S. crude inventories increased.

Market Developments

U.S. Equity Futures

During European trading on Friday, Dow Jones futures fell 0.15% to around 52,310, S&P 500 futures declined 0.16% to near 7,600, and Nasdaq 100 futures dropped 0.30% to around 28,300.

Foreign Exchange

The U.S. dollar reached a 19-month high on Thursday as expectations of further Federal Reserve tightening strengthened. AUD/USD traded around 0.6808, down 0.60%, in an earlier update before its decline extended to 0.67% later in the session; it reached its lowest level since January. The Reserve Bank of Australia had signalled a potential pause after raising its policy rate to 4.85% the previous week.

EUR/USD recovered to around 1.1087 on Thursday after touching 1.1066, then its weakest level since May 2025. By Friday’s Asian session, it was around 1.1050, extending losses for a fourth consecutive day, and remained lower during European trading as U.S. Treasury yields rose. GBP/USD also declined for a fourth trading day on Friday, reaching near 1.3227, while the Swiss franc hit fresh monthly lows against the dollar.

Gold

Gold fell nearly 2.8% on Thursday as market participants increased their pricing of a 50-basis-point Federal Reserve rate increase in December. It traded at $3,874 per ounce after touching a one-year low of $3,852.

Geopolitical Developments

Iran’s IRGC Says It Destroyed U.S. Early-Warning Radar in Bahrain

Iran’s Islamic Revolutionary Guard Corps said on Friday that it had struck and destroyed a U.S. military early-warning radar system in Bahrain, Reuters reported. The assertion was an Iranian military claim, rather than a confirmed assessment of damage.

Macroeconomics & Central Banks

Japan Warns on Currency Volatility as USD/JPY Trades Above 160.00

Japanese Finance Minister Satsuki Katayama said officials were observing rapid, one-sided foreign-exchange movements and that the government would respond appropriately to currency volatility. She also said Japan would engage with the U.S. Treasury. Prime Minister Sanae Takaichi issued an intervention warning earlier on Friday.

USD/JPY was just below 160.00 in an earlier Friday update before trading above that level for a second consecutive session later in the day, leaving the yen near multi-month lows. The warnings accompanied a rebound in U.S. Treasury yields.

DBS Group Research argued that Japan’s economic and inflation outlook supported the case for a 25-basis-point Bank of Japan rate increase in December. Its forecasts put third-quarter real GDP growth at 0.8% quarter-on-quarter on a seasonally adjusted annualised basis, supported by AI-related export demand and wage-led consumption. DBS projected October exports to grow 17% year-on-year but the trade deficit to widen to JPY1.2 trillion, with inflation remaining above 2% amid higher energy costs and a weak yen.

Eurozone Third-Quarter GDP Growth Revised to 0.6%

Revised estimates put eurozone GDP growth at 0.6% in the third quarter, up from the preliminary reading of 0.4%. The revision added 0.2 percentage points to the initial estimate of the region’s economic expansion.

Fed Officials Warn Inflation Remains Too High

New York Federal Reserve President John Williams said inflation remained too elevated and that the central bank would have to act over time to bring it back to 2%. His comments followed a series of warnings from regional Fed presidents about persistent price pressures.

Chicago Fed President Austan Goolsbee told Yahoo! Finance that inflation had been “well above target” and that Tuesday’s Consumer Price Index reading “wasn’t a one-off.” San Francisco Fed President Mary Daly said there was no doubt artificial intelligence had fuelled price pressures, while its impact on the labour market remained limited.

Cleveland Fed President Beth Hammack said the Fed was doing good work on employment but had been missing its inflation mandate for years. She favoured gradual rate increases. Market odds of a December rate increase reached 87%.

Banxico’s Heath Says Rate Cut Sends Wrong Inflation Message

Bank of Mexico Deputy Governor Jonathan Heath criticised the central bank’s recent rate cut in an interview with Reuters, saying it “confuses and sends the wrong message” to financial markets. He said inflation risks remained tilted to the upside.

Energy & Commodities

WTI Falls to Around $87.50 as U.S. Crude Inventories Increase

West Texas Intermediate crude traded around $87.50 per barrel in early Asian trading on Friday, losing ground as U.S. crude oil inventories increased. The decline occurred while Middle East geopolitical risks remained in focus.