Foreign exchange markets and global currency movements.
Coverage of currency markets including major pairs, central bank actions, interest-rate differentials, and geopolitical influences. This section highlights trends in FX markets that impact global trade, inflation, and cross-asset correlations.
743 total articles
UBS analysts say unusually muted swings across major FX pairs have driven implied volatility lower, reducing the cost of hedging U.S. dollar exposure. With the dollar currently supported by higher interest rates and geopolitical tensions, investors may find now an opportune moment to add currency hedges, while selectively increasing exposure to cur…
Bank of America retains a guarded near-term stance on the euro, pointing to risks from energy markets and relatively stronger U.S. economic momentum. While investor sentiment toward Europe has weakened and energy-related exposure leaves the currency vulnerable, expectations for energy normalization and improved euro-area growth later in the year un…
Sterling and the euro retreated on Friday after U.S. labor market figures showed stronger-than-anticipated hiring, reinforcing expectations that the Federal Reserve will keep interest rates elevated for longer and supporting demand for the dollar. GBP/USD traded lower at 1.3413 as of 08:55 ET (12:55 GMT), while EUR/USD eased to 1.1594, with market …
The U.S. dollar steadied on Friday and was poised to finish the week higher as elevated tensions in the Middle East reinforced expectations of stronger inflation and a persistently hawkish U.S. rate outlook. Market attention concentrated on the upcoming May nonfarm payrolls release for fresh guidance on the U.S. economy and interest rates, while un…
Sterling and the euro edged higher against the dollar on Thursday as traders took a breather ahead of the U.S. non-farm payrolls report. GBP/USD traded around 1.3459 after a modest recovery, while EUR/USD held near 1.1640. The dollar’s fundamental strength persists following firm U.S. data and a cautious Fed outlook, and geopolitical friction betwe…
Most Asian currencies steadied on Thursday following large declines the previous session as the U.S. dollar remained close to a roughly two-month high. Markets were balancing a Washington statement that Israel and Lebanon had agreed to implement a ceasefire - contingent on Hezbollah halting its attacks - against fresh regional hostilities and stron…
The Canadian dollar fell to its weakest level in eight weeks amid heightened Middle East hostilities and U.S. trade actions. The loonie traded lower versus the U.S. dollar as oil prices rose and economic data showed a modest services expansion alongside a recent contraction in GDP growth. Market sentiment shifted toward the U.S. dollar and equities…
The Japanese yen fell to around 160 per U.S. dollar after renewed tensions in the Gulf region prompted investors to seek safety in the dollar. Iranian ballistic missile launches and subsequent U.S. strikes contributed to the move, which wiped out gains from Tokyo's large-scale intervention a month ago. Rising oil prices and stalled diplomacy have s…
Sterling and the euro slipped modestly as the dollar gained traction following stronger-than-expected U.S. labour market data. Renewed tensions in the Middle East and a rebound in oil prices added to concerns that the Federal Reserve may need to keep policy restrictive for longer, weighing on risk-sensitive currencies and sentiment.
Turkey's central bank reported gross foreign exchange reserves of $54.22 billion as of May 22, down from $61.23 billion a week earlier. The level represents the lowest reserves since June 2021. The central bank sold billions of dollars in the latter part of May; those sales occurred after a court ruling that removed the leader of the main oppositio…
The Swiss economy ministry dismissed conclusions from a U.S. probe into how countries handle imports made with forced labour, rejecting recommendations that Switzerland faces higher tariffs. The U.S. Trade Representative has proposed new duties of 10% or 12.5% on goods from 60 economies to address alleged failures to curb trade in forced-labour pro…
Asian foreign-exchange markets were broadly subdued as investors digested renewed military activity in the Middle East, a sweeping U.S. tariff proposal and fresh warnings from Japanese authorities after the yen briefly crossed the 160-per-dollar threshold. The U.S. Dollar Index edged modestly higher while regional currencies saw small moves amid at…
The euro's share of global markets stayed roughly unchanged at about 20% last year, according to a European Central Bank report. Despite expectations that uncertain U.S. economic policy could have boosted the euro's standing as an alternative to the dollar, investors redirected capital into gold and smaller currencies. The euro did, however, record…
BCA Research says the dollar's muted reaction during the Iran-related tensions reflects a retreat in geopolitical risk premia rather than an erosion of confidence in the currency. With risk sentiment improving and interest-rate and growth dynamics set to favor the U.S., the research house expects the dollar to remain resilient over the coming quart…
The pound found modest support alongside the euro on Tuesday as the dollar softened amid renewed US-Iran negotiation breakdowns and a retreat in Brent crude below $95. GBP/USD and EUR/USD both advanced slightly in early New York trade, while attention remained on USD/JPY approaching the psychologically important 160.0 level and on incoming US and e…
A European Central Bank report finds the euro increasingly behaved like a safe-haven currency during several episodes of market stress in 2025 and early 2026, moving in tandem with the Swiss franc and Japanese yen. The report links these shifts to specific U.S.-originated risk events, changes in official holdings of U.S. Treasuries and stronger for…
The U.S. dollar remained steady as traders digested contradictory messages about talks between Washington and Tehran. Currency markets traded in a tight range, with the dollar index near recent levels, Treasury yields close to recent peaks and investors eyeing this week's U.S. nonfarm payrolls report for further guidance on Federal Reserve policy.
Several major currency pairs carry sizeable options expiries on Tuesday, with concentrated strike levels in EUR/USD, USD/JPY and USD/BRL among others. Market participants monitoring order flow and stop placement will likely pay attention to the strikes as they can affect price action around the New York cut. Wednesday and Thursday expiries add addi…
Bank of America strategist Kamal Sharma says a structural shift in foreign direct investment (FDI) into the UK - toward greenfield projects, R&D and knowledge-intensive sectors such as AI, biotechnology and advanced manufacturing - should provide medium-term support for the British pound, even if immediate balance of payments improvements are not g…
Bank of America points to a marked rise in inward mergers and acquisitions, concentrated in capital-intensive and high-productivity sectors, as a key factor supporting sterling this year. The bank says these deal flows - especially transactions with significant cash components and longer-term greenfield and R&D investment - may not immediately appe…
Jefferies International strategist Durukal Gun said the United States could provide Turkey with a dollar swap line ahead of elections, strengthening hard-currency reserves and improving market sentiment. A U.S. backstop akin to last year’s support for Argentina would help Turkish authorities manage lira weakness, contain inflation expectations and …
Asian currencies and the U.S. dollar moved in tight ranges as markets balanced unresolved ceasefire discussions between the U.S. and Iran, renewed regional military activity, and mixed Chinese economic indicators. Persistent inflation risks, driven in part by rising energy costs, have traders reassessing the Federal Reserve's path and shifting focu…
JPMorgan has closed its core overweight weighting in the Turkish lira after the currency produced a 55% total return, switching to a short-term tactical approach. The position had been held in the bank's GBI-EM model portfolio since early September 2023, with a temporary pause around March 2024 municipal elections. The firm trimmed the holding on A…
The Reserve Bank of India said in its 2025-26 annual report that it will extend the digital rupee's application to more welfare payment programs and run tests for cross-border transfers. During the fiscal year the RBI and several government agencies ran welfare-linked pilots in states and territories including Gujarat, Puducherry and Chandigarh usi…
A government-commissioned expert report, summarized in a Finance Ministry statement on Friday, concludes that the economic costs of preserving the Icelandic krona outweigh the advantages of retaining an independent national currency. The analysis finds the exchange rate has more often amplified economic shocks than smoothed them, and it outlines po…
