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
The U.S. dollar remained broadly steady in Asian trading as markets focused on a two-day Federal Reserve meeting expected to end with unchanged rates. The Australian dollar weakened after March consumer inflation figures came in slightly below forecasts, though data still showed a notable monthly rise largely driven by fuel costs tied to the Iran w…
A recent Crisil Coalition Greenwich report highlights rising use of algorithmic execution in foreign-exchange trading and the growing role of nonbank liquidity providers. About a quarter of buy-side desks now use or plan to use nonbanks for FX trades, drawn by pricing, technology, and execution quality, while long-standing bank relationships contin…
Sterling and the euro declined versus the dollar on Tuesday after a tepid reaction in Washington to Iran's proposed interim ceasefire - a plan that would reopen the Strait of Hormuz while postponing nuclear negotiations. The softer reception helped push oil higher and reintroduced uncertainty across markets. Despite these developments, the dollar h…
Bank of America warns that South Korea’s currency may come under further strain as outbound direct investment jumps to $72 billion in 2025 and shifts toward developed markets, particularly the United States and Europe. The bank highlights that manufacturing makes up less than a quarter of outbound flows, while finance and insurance dominate, and th…
The Japanese yen firmed after the Bank of Japan left policy rates unchanged but signalled readiness to raise them as inflation risks grow. The dollar was largely steady ahead of a Federal Reserve meeting, while broader Asian currencies weakened on renewed concerns about a U.S.-Iran stalemate and rising oil prices. Market attention now turns to Aust…
Venezuela's interim central bank chief, Luis Alberto Pérez, told public and private banking representatives that the institution anticipates a period of exchange-rate stability and a slowdown in inflation. He reported the economy grew in the first quarter, marking 20 consecutive quarters of expansion, noted a narrowing gap between official and para…
Sterling and the euro rose slightly against the dollar after an overnight report that Iran submitted a fresh proposal to open the Strait of Hormuz lifted investor risk appetite. Gains were limited as oil prices remained elevated and a heavy calendar of central bank meetings, including the Fed, ECB and BoJ, kept markets cautious. UK pound and euro m…
Bank of America analysts recommend hedging exposure to the British pound despite a strong April for the currency, citing a historically weak May seasonal pattern, low market-implied volatility, and what they see as underpriced political uncertainty ahead of local elections. Technical indicators on GBP/USD add to the downside case, and the bank iden…
UBS projects that standard end-of-month portfolio rebalancing by institutional investors will underpin the dollar versus the yen through the end of April. The bank's model, which factors in relative equity performance, points to USD/JPY remaining supported in the near term. The signal registers as a moderate +3 on UBS's -5 to +5 scale.
Treasury Secretary Scott Bessent said the United States is in talks about establishing currency swap lines with partners in the Gulf and Asia after several allies requested assistance to manage energy shocks and other effects from the Iran war. Bessent noted such arrangements could strengthen international dollar liquidity and help create new dolla…
Most Asian currencies strengthened on Monday as the dollar eased marginally ahead of imminent meetings at the Bank of Japan and the Federal Reserve. Risk sentiment showed tentative improvement after diplomatic moves and reports of potential proposals linked to the Strait of Hormuz, but markets remain wary following the collapse of talks between the…
Goldman Sachs says the Canadian dollar has held up among G10 currencies in recent weeks even as domestic indicators have softened. March inflation undershot expectations despite an energy shock, and employment has stabilised with only modest improvement versus a year earlier. The firm anticipates the Bank of Canada will stay on hold at its April me…
Goldman Sachs argues that global developments will increasingly outweigh regional UK factors in determining sterling's path as markets contend with a protracted terms-of-trade shock. The bank notes a recent improvement in UK data against a weakening euro area, but warns that domestic issues - including monetary policy expectations, valuation metric…
Goldman Sachs has reduced its USD/BRL projections across the near and medium term, citing a stronger Brazilian real driven by improved terms of trade, a recovery in risky assets and comparatively high carry. The bank says the real's relative strength should persist while energy prices remain elevated and risk sentiment holds, but it warns that a re…
Goldman Sachs says the U.S. dollar's path is being influenced by an unexpectedly small supply shock from ongoing disruptions in the Middle East. While higher energy prices and product scarcities are altering global balances, the bank finds the immediate economic effects less conspicuous than initially feared. Goldman has trimmed global growth forec…
Treasury Secretary Scott Bessent said on April 24 that discussions about expanding U.S. dollar swap lines with Gulf and Asian allies are part of routine diplomatic and financial conversations. In a post on X, Bessent said additional swap lines can reinforce international dollar usage, improve liquidity in dollar funding markets, and support trade a…
A reduction in market turbulence has helped the carry trade deliver roughly 12% gains so far in 2026, its best start in three years. Rising oil prices have bolstered commodity-linked currencies, and major banks continue to recommend variations of the strategy while hedge funds and asset managers pursue short- and longer-term positions.
Sterling and the euro made small gains on Friday as the dollar weakened broadly, but fragile risk sentiment tied to an escalating Gulf crisis and renewed inflation worries limited market momentum. GBP/USD and EUR/USD rose marginally, supported in part by better-than-expected UK retail sales, even as policymakers and investors weigh the implications…
Most Asian currencies weakened on Friday while the U.S. dollar strengthened, heading for its best weekly showing since early March as ongoing uncertainty over the U.S.-Iran situation boosted demand for safe assets. Market caution around potential energy-driven inflation and expectations for fewer near-term Federal Reserve rate cuts also supported t…
Global markets are closely watching the expiration of a two-week Iran ceasefire, with recent moves showing a broadly weaker US dollar, lower FX volatility and falling oil prices. Analysts say further diplomatic progress could deepen dollar weakness and lift risk-sensitive currencies, while the potential for renewed conflict remains a material downs…
The Swiss National Bank remains prepared to intervene in foreign exchange markets to manage the franc's value, Vice President Antoine Martin told RTS. While the franc has been a policy concern, it has softened versus the euro and the dollar since the onset of the conflict in Iran. SNB minutes confirm officials are keeping interest rates at 0% and m…
Bank of America has initiated a short position on the euro versus the Brazilian real at a level of 5.80. The bank cites an outsized improvement in Brazil's terms of trade driven by commodity price gains, an increase in real interest rates, and macro conditions that support a firmer currency, even as domestic politics become more contested ahead of …
Bank of America research indicates the US dollar has shed its post-conflict momentum and entered a less predictable trading regime. After an initial war-driven spike, the dollar index has moved back toward its prior range as investors grow less reactive to geopolitical uncertainty. Elevated oil prices, resilient US data and stronger risk appetite a…
The pound slipped against the dollar on Thursday amid a wider risk-off shift after S&P Global's flash eurozone composite PMI signalled the first contraction in 16 months. The deterioration in eurozone activity compounded inflation pressures driven by surging fuel costs linked to the Strait of Hormuz crisis and added to downward pressure on both the…
Citi expects the dollar-yen rate to trade in a narrow band of ¥158 to ¥160 per dollar even though the interest rate differential between the U.S. and Japan has contracted sufficiently to satisfy a technical condition for a long-term reversal. Persistent strength in Japanese equities has applied downward pressure to the yen, and Citi warns that inte…
