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 says the U.S. dollar may be under near-term pressure following softer-than-expected June consumer inflation data, but advises investors to buy on declines. The bank points to lingering, if reduced, Federal Reserve tightening risks, potential upside for oil should Middle East tensions continue, and the possibility that robust U.S. corporate earn…
UBS warns that measures encouraging domestic allocation by the Government Pension Investment Fund and retail NISA investors could generate sizeable asset repatriation flows that would be relevant for foreign exchange markets. Despite the potential scale, the bank says Japan’s fiscal and monetary policy stance and the slow pace of allocation changes…
Sterling rose modestly and the euro drifted up as markets reassessed the recent dollar advance ahead of U.S. June CPI data. The greenback retains upward momentum linked to Strait of Hormuz developments and higher Brent crude, while traders weigh the potential for further Fed tightening. Short-term rate differentials and oil moves are shaping flows …
Bank of America warned that this week’s U.S. consumer price index (CPI) report could prompt pronounced moves in two major currency pairs. The bank said EUR/USD is exposed if inflation prints hotter than expected, while USD/JPY is vulnerable to a softer-than-expected outcome. Option-flow, skew, and the bank’s technical and valuation signals underpin…
Short-dated euro-zone government bond yields jumped on Tuesday, led by a sharp rise in two-year German yields as investors digested heightened Middle East tensions and firm Federal Reserve comments that pushed up global interest rate expectations. The move followed U.S. measures to reinstate a naval blockade on Iranian shipping and impose a 20% tar…
The Japanese yen steadied as market participants weighed comments from Tokyo about potential changes to state pension fund allocations and other measures to shore up domestic assets. The broader U.S. dollar remained firm while investors awaited June consumer price data and remarks from Fed Governor Christopher Waller. Elevated oil prices after U.S.…
The pound slipped on Monday as renewed U.S. strikes on Iran and concerns about shipping through the Strait of Hormuz pushed oil prices higher and supported the dollar against lower-yielding currencies. EUR/USD held modest gains while markets awaited key U.S. inflation data and testimony from the new Fed chair, factors that could reinforce dollar st…
Most Asian currencies weakened on Monday as a firmer U.S. dollar and rising U.S. Treasury yields pressured regional markets. The Japanese yen remained a focal point after comments suggesting the Government Pension Investment Fund (GPIF) could increase allocations to domestic assets, prompting speculation about potential repatriation flows. Investor…
Investor sentiment toward the Japanese yen has slumped to its weakest level in four years, driven by worries over Bank of Japan policy and fiscal measures, according to Bank of America Global Research's latest FX and Rates Sentiment Survey. Despite occasional intraday strength and persistent official warnings about intervention, leveraged funds hol…
The Canadian dollar climbed to its strongest level since June 19 after June employment figures exceeded forecasts. Stronger-than-expected job growth, a lower unemployment rate and continued export gains helped the currency snap a five-week losing streak, while markets anticipate the Bank of Canada will hold policy rates steady.
Angola’s central bank has authorized the Chinese yuan as an approved currency that domestic banks may use to satisfy mandatory foreign-currency reserve requirements. The Bank of Angola published a directive dated July 2 on its website adding the yuan to the existing list of the U.S. dollar, euro and South African rand. The move reflects China’s rol…
Citi expects the euro may extend gains versus the pound toward the 0.8450-0.85 area, but recommends a tactical approach to shorting sterling because of high carry costs and the need for clear catalysts. The bank highlights July 20 as a potential turning point when Andy Burnham is expected to be formally appointed Prime Minister, and notes past prim…
Euro-area government bond yields were largely unchanged on Friday after a violent two-day sell-off driven by fears that a breakdown of the U.S.-Iran ceasefire would push energy prices higher and re-ignite inflation. Germany's 10-year Bund yield remained near a seven-week high, while two-year yields, sensitive to ECB rate expectations, also held ele…
The Japanese yen led gains among Asian currencies after Tokyo indicated it will encourage the Government Pension Investment Fund to increase allocations to domestic assets. A hotter-than-expected producer price inflation print added to yen support by strengthening the case for additional Bank of Japan tightening. The dollar weakened on geopolitical…
The South African rand firmed on Thursday after a rise in gold prices, while statistics showed a sharper-than-anticipated year-on-year fall in manufacturing output for May. The Johannesburg Stock Exchange's Top-40 index ended higher, with mining shares helping lift market returns amid a modest pullback in the U.S. dollar.
Sterling and the euro traded marginally higher on Thursday after a fresh escalation in the Middle East and a brief rise in Brent crude lifted oil prices and reinforced expectations that the Federal Reserve will remain hawkish for longer. The dollar found support following US strikes in northern Iraq, while markets await remarks from New York Fed Pr…
Citi said in a research note released Thursday that the U.S. dollar could trade near ¥163 against the yen should Japan’s Topix index rise to 4,500. The bank’s current model places USD/JPY around ¥160 given existing equity levels, and it highlights how surging Japanese share prices have historically triggered portfolio rebalancing and hedging that w…
UBS retains a positive view on the New Zealand dollar following the Reserve Bank of New Zealand's 25 basis-point increase in the official cash rate to 2.50%. The bank recommends investors hold NZD on an unhedged basis to diversify away from U.S. dollar risk and advocates a short position in AUD/NZD, with a target of 1.18 and a stop-loss at 1.24. UB…
Eurozone government bond yields held close to their strongest levels in about a month after a sudden escalation in tension between the U.S. and Iran undercut a recent summer rally. Short-dated German yields and the 10-year Bund rose sharply as crude prices jumped on fears of supply disruption through the Strait of Hormuz, prompting investors to rep…
The U.S. dollar steadied as fresh U.S.-Iran military activity raised concerns over persistent inflation and potential additional rate hikes, while the Chinese yuan remained essentially unchanged after softer-than-expected consumer inflation for June and a jump in producer prices. Fed minutes showing policymakers divided on further tightening kept t…
Iraq has reached an agreement with U.S. authorities to put in place strengthened controls designed to block U.S. dollar flows to Iran and Iran-aligned militias. The arrangement ends a roughly four-month suspension of physical U.S. dollar deliveries to Baghdad, a pause that had cut off Iraq’s access to cash generated by oil sales held at the Federal…
The Canadian dollar strengthened modestly against the U.S. dollar as a sharp rise in oil prices tied to heightened Iran tensions and increased market expectations that the Bank of Canada will lift interest rates later this year supported the currency. Stocks slipped globally amid renewed inflation concerns and the prospect of tighter monetary polic…
The South African rand weakened to its lowest level in a week after remarks from U.S. President Donald Trump that an interim peace deal with Iran had ended. The move corresponded with a broader drop in emerging-market currencies, a jump in oil prices and a broadly steady U.S. dollar. Market participants said the rand's near-term path will hinge on …
Sterling and the euro weakened modestly on Wednesday as the U.S. dollar attracted broad safe-haven demand following fresh U.S. strikes on Iran and increased equity market jitters. Brent crude jumped near 6%, boosting inflation worries. Market participants are also positioning ahead of the Federal Reserve's June meeting minutes, with analysts expect…
Euro zone government bond yields rose sharply on Wednesday, driven by heavy selling of short-dated sovereign debt after a sudden escalation between the United States and Iran and a jump in crude prices. Germany's 2-year yield spiked markedly while the 10-year Bund increased more modestly. Markets were also positioned ahead of the Federal Reserve's …
