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.
624 total articles
Citi expects the Federal Reserve’s initial meeting under Chair Kevin Warsh to produce policy statement tweaks largely priced into markets, limiting the likelihood of a significant dollar breakout. The bank flags the post-meeting press conference as the key variable - and says a neutral or ambiguous tone from Warsh should cap any abrupt U.S. dollar …
European government bond markets extended a rally for a second day after news of a preliminary U.S.-Iran ceasefire reduced immediate inflation concerns. Germany's 10-year yield and the policy-sensitive two-year note both fell to two-week lows, while UK gilt yields reversed earlier weakness. Market participants are now focused on central bank signal…
Most Asian currencies and the U.S. dollar traded with little change as investors awaited specifics on a preliminary U.S.-Iran agreement and a week of central bank decisions. The Bank of Japan raised its short-term policy rate by 25 basis points to 1.0% in a 7-1 vote, while markets parsed officials' comments for clues on the path of future tightenin…
The Canadian dollar strengthened modestly against the U.S. dollar on Monday after news of a preliminary peace agreement between the United States and Iran lifted investor risk appetite. The currency traded around 1.3980 per U.S. dollar, supported by rallying global stocks and bonds and a drop in oil prices, though gains were limited ahead of the Fe…
Bank of America strategists advise buying a 3-month AUD/CHF digital call option targeting 0.5800. The recommendation rests on the Swiss franc's status as a funding currency and an improved outlook for the Australian dollar following tightening rate differentials and progress toward reopening the Strait of Hormuz after recent US-Iran tensions.
TD Securities flagged a higher likelihood of delayed Japanese government intervention in the currency market as the dollar-yen rate approaches 165. The firm said intervention risks may intensify if USD/JPY climbs toward 162 after an anticipated quarter-point BOJ rate rise. Tokyo has already deployed substantial reserves to support the yen, while op…
Deutsche Bank currency strategists suggest investors take long positions in the Swedish krona, South African rand, Chilean peso and Indian rupee against either the U.S. dollar or the euro. The bank links the potential appreciation of these currencies to a resumption of oil shipments through the Strait of Hormuz and highlights positioning and domest…
Sterling and the euro rose on Monday after reports of a preliminary U.S.-Iran ceasefire framework lifted risk sentiment and pushed Brent crude sharply lower. GBP/USD traded at 1.3425 and EUR/USD at 1.1611 as the market weighed potential oil supply restoration against an intense week of central bank commentary and political events in the U.K.
Citi's valuation models produce fair value estimates for USD-JPY around ¥161 using data spanning 2017-2025 and ¥159 when restricting the sample to 2023-2025. The bank finds no clear distortion in market pricing, notes offsetting forces from Japanese equity strength and interest rate spread contraction, and anticipates a corrective move to below ¥15…
European government bond yields declined on Monday after a brokered agreement between the United States and Iran reassured investors and pushed crude oil prices sharply lower. Germany's 10-year Bund touched a two-week low, policy-sensitive two-year notes eased, and similar moves were seen across British and Italian sovereign debt as the market unwo…
Asian currencies strengthened on Monday after Washington and Tehran agreed a framework aimed at ending their conflict, lifting the U.S. blockade of Iran and reopening the Strait of Hormuz. The move supported risk assets and pressured safe-haven demand for the dollar, while Brent crude futures fell sharply. Investors are now focusing on a busy week …
Sterling underperformed on Friday after official data showed the UK economy contracted in April, reinforcing concerns that growth momentum is losing steam. EUR/USD also slipped, while the U.S. dollar remained broadly supported as investors priced in a cautious Federal Reserve stance ahead of next week’s policy meeting. Oil eased on reports of U.S.-…
BlackRock says steps by Indian authorities to attract overseas investors to government bonds are positive, but persistent uncertainty around oil prices and the resulting pressure on the rupee, together with high all-in currency hedge costs, continue to limit large inflows. The asset manager remains cautious, largely staying out of Indian debt this …
European government bond yields pulled back to their lowest levels in more than a week after signs of a diplomatic easing in the Middle East lifted demand for fixed-income assets and reduced immediate inflation worries. German 10-year yields fell below 3% and short-dated yields also declined, while U.K. gilt yields dropped after data showed the Bri…
Asian currencies showed mixed moves on Friday while the U.S. dollar eased slightly as markets reacted to renewed comments about a potential U.S.-Iran peace agreement and fresh U.S. inflation data. Oil prices dropped on hopes of a de-escalation in the Middle East, supporting risk assets and leaving the Indian rupee as the region's top performer. Tra…
Sterling and the euro edged lower after the European Central Bank raised its deposit rate by 25 basis points to 2.25%, a move markets viewed as fully anticipated. The ECB declined to commit to a future rate path, and elevated swap rates plus persistent dollar demand have left both currencies without a fresh catalyst to push them higher ahead of US …
BCA Research says portfolio flows have been the dominant force behind South Korea's FX and equity moves, elevating KOSPI volatility and leaving the won increasingly disconnected from solid fundamentals. The firm highlights a potential trade for won appreciation if outflows ease and policy support builds, noting elevated equity momentum alongside gr…
German short-dated government bond yields climbed on Thursday as market participants positioned for an anticipated European Central Bank rate increase, with the Germany 2-year approaching recent three-week highs and the 10-year reaching its strongest levels in over three weeks. The move comes as euro-area inflation exceeds 3% despite contracting PM…
Most Asian currencies traded in narrow bands as the U.S. dollar remained broadly steady, with the US Dollar Index close to the 100 mark. Market participants balanced concerns from new U.S. strikes on Iran - and Tehran's response to suspend vessel traffic through the Strait of Hormuz - against stronger-than-expected U.S. inflation readings that coul…
Rising expectations that the Federal Reserve will lift interest rates to counter inflation have undercut the 'debasement trade' that pressured the U.S. dollar after President Donald Trump took office, according to Chris Turner, head of foreign-exchange strategy at ING Bank NV. Strong U.S. economic data and elevated consumer prices have led markets …
Sterling and the euro showed little net movement as currency markets held steady ahead of the US May consumer price index release. GBP/USD was slightly higher at 1.3396 while EUR/USD edged down to 1.1551 as participants positioned for the CPI print that will influence dollar momentum, central bank expectations and flows into safe-haven and risk ass…
Bank of America kept a short position on the euro versus the dollar, warning that a widening growth gap between the United States and the euro area and the prospect of a more hawkish Federal Reserve could drive the common currency lower. The bank pointed to technical breaks, recent strong U.S. payrolls data, and the euro zone's energy import depend…
Eurozone government bond yields moved unevenly as markets digested fresh U.S. strikes on Iran and awaited a key U.S. consumer inflation report. Germany's 10-year benchmark fell, while the 2-year yield - more sensitive to central bank expectations - rose, reflecting a tug-of-war between safe-haven flows and rate-path repricing driven by recent data …
Asian foreign exchange markets were mostly calm on Wednesday as renewed U.S.-Iran hostilities reduced hopes for a quick de-escalation and investors awaited U.S. consumer inflation data that could influence Federal Reserve policy. The U.S. dollar remained near a recent two-month high while crude prices rose on concerns over supply. Regional currency…
Sterling and the euro posted modest gains as currency markets consolidated following a dollar-led surge last week. The move was supported by stabilising technology shares and stronger-than-expected Chinese trade figures, while markets await key U.S. inflation releases and central bank meetings that remain in blackout periods.
