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.
517 total articles
Goldman Sachs has increased its forecasts for the onshore Chinese yuan, arguing the renminbi is substantially undervalued and poised to appreciate further due to China’s sizable external surplus and strong export competitiveness. While market attention centers on a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinpi…
Bank of England Governor Andrew Bailey cautioned that international regulators and the United States may clash over how stablecoins should be regulated, citing concerns about convertibility in a crisis and the potential for flows toward jurisdictions with stronger convertibility obligations. Bailey, who leads the Financial Stability Board, emphasiz…
Japan’s emergency steps to support the yen produced a rapid short-term rebound, but analysts warn the underlying forces that have pushed the currency lower remain in place. A BCA Research report describes the intervention as largely an effort to "buy time" rather than achieve a sustained recovery, citing differences in interest rates, positioned sp…
Sterling ticked up on Friday as market participants balanced renewed conflict in the Strait of Hormuz against rising political uncertainty in Britain. The pound's modest gain came despite a wider decline in market sentiment, with traders also focused on U.S. April payrolls and commentary from ING on binary outcomes for major currency pairs.
A convergence of high‑level diplomacy, corporate reporting and major economic data will shape financial markets in the coming week. U.S. President Donald Trump travels to Beijing as Washington seeks to preserve a trade truce, Saudi Aramco reports first‑quarter results against an unstable Middle East backdrop, and a string of inflation and growth re…
Bank of America recommends taking a bearish stance on the euro versus the Swedish krona via a three-month zero-cost risk reversal, arguing the krona has underperformed relative to peers since the April 7 ceasefire announcement in the U.S.-Iran conflict. Analysts at the bank say Sweden’s fiscal measures, balanced monetary policy and status as a majo…
Sterling inched higher against the dollar on Thursday as markets consolidated a risk-driven rally sparked by signs of de-escalation in the Gulf. GBP/USD and EUR/USD traded in narrow ranges after an initial surge, while investors weighed the potential for a limited Iran-U.S. agreement alongside UK local election outcomes that could reshape political…
Bank of America analysis indicates Japan's Ministry of Finance likely carried out yen-buying interventions on at least four days over the Golden Week holidays, with price patterns on April 30, May 1, May 4, and May 6 consistent with official dollar sales. BofA's strategist says recent support in the mid-155s and caps in the mid-157s follow an initi…
Most Asian currencies were largely unchanged in Asian trading after posting notable gains the day before, following a more than 7% fall in oil prices linked to reports that the U.S. and Iran were nearing a memorandum of understanding. The U.S. dollar was broadly subdued, Australia recorded an unexpected trade deficit for March, and central bank min…
Wells Fargo emerging markets strategist Alvaro Vivanco expects the Mexican peso to underperform against the South African rand, citing a widening divergence in monetary policy stances and higher real policy rates in South Africa. Policy responses and geopolitical developments related to the Iran war could further influence foreign exchange dynamics…
The Japanese yen strengthened sharply in a brief span during Wednesday's Asian session, climbing to a 10-week high of 155.04 per dollar before easing back to about 156.46 by New York noon. The move - an advance of roughly 1.8% within 30 minutes - has revived talk that officials intervened, even as markets in Japan were closed for a holiday and auth…
Citigroup strategists have closed a profitable long position in the Hungarian forint versus the Czech koruna executed through forwards, recording a 1.3% total return since the trade was opened on April 27. Despite taking profits, the strategists reiterated a constructive outlook for the forint, noting potential further upside if international energ…
Sterling and the euro climbed on Wednesday after reports suggested progress toward an agreement between Washington and Tehran and Iran signalled the Strait of Hormuz could allow safe passage. The moves reflected broad dollar weakness, driven by diplomatic developments that also pressured oil prices. Attention now shifts to U.S. inventory data and d…
UBS has increased its year-end forecast for the Australian dollar against the U.S. dollar to 0.74, citing an improvement in fundamentals alongside steady market demand for the currency. The bank also raised its short-term AUD/USD target and reiterated a preference for expressing AUD strength through short positions in EUR/AUD, while updating its AU…
UBS projects additional weakness in the Swiss franc against a set of higher-yielding, risk-sensitive currencies including the Australian dollar, Brazilian real and Norwegian krone. The bank expects USD/CHF rallies near 0.80 to prompt selling by local corporates and is doubtful that EUR/CHF will break substantially above 0.9260, citing growth risks …
UBS updated its EUR/NOK and EUR/SEK forecasts after recent geopolitical developments altered market risk appetite and rate expectations. The bank lowered its end-Q2 and year-end targets for the Norwegian krone pair and adjusted its near-term EUR/SEK view while keeping its year-end krona projection unchanged. UBS also flagged differences between mar…
The Japanese yen climbed sharply, with USD/JPY falling 1.7% to 155.09 - its strongest level since late February - after multiple reports indicated Tokyo had intervened in currency markets. Low trading volumes during a stretch of market holidays in Japan amplified the move. Despite the recent appreciation, the yen faces a muted outlook given stretch…
Most Asian currencies firmed on Wednesday after comments suggesting a pause in US operations around the Strait of Hormuz reduced risk-off pressures and helped push oil prices lower. The South Korean won led the gains following a stronger-than-anticipated consumer price print that lifted expectations of further policy tightening by the Bank of Korea…
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.35% at its May meeting, the third consecutive increase and a level that matches a peak reached during the COVID-19 inflation period. The board approved the move by an 8-1 margin, reversing a narrowly split vote from March. The Australian dollar traded around $0.7163, down 0.…
Sterling crept slightly higher against the dollar on Tuesday but remained constrained by a firm US currency and elevated oil prices. The euro hovered near recent peaks as markets absorbed a more hawkish global central bank backdrop and the prospect of further Fed tightening, while energy market risks continue to shape currency valuations.
The Indian rupee dropped to an all-time low on Tuesday as renewed tensions in the Middle East lifted oil prices, keeping pressure on a nation that imports most of its crude. The dollar rose against the rupee, while 10-year government bond yields held steady. UBS analysts flagged the balance of payments as the core vulnerability and suggested policy…
Bank of America advised traders to remain tactically long the U.S. dollar against the British pound and the Canadian dollar, even as the currency has shown muted and rangebound trading. Strategists said recent weakness reflects a mix of temporary flows, suspected Japanese intervention and a market view that the Federal Reserve faces a high bar to r…
UBS strategists expect the British pound to progressively appreciate against the Swiss franc over the coming months, citing the Bank of England's continued tightening bias and an estimated roughly 4% interest-rate advantage for sterling. The bank projects GBP/CHF will reach 1.08 by September and remain at that level through March 2027, while a purc…
UBS Switzerland AG projects the euro-to-franc exchange rate will trade in a tight 0.91-0.93 band over the coming months, with 0.90 acting as robust support. The pair rebounded toward 0.92 after an initial decline linked to the US-Iran conflict, driven by renewed risk appetite and expectations for European Central Bank tightening while the Swiss Nat…
Asian foreign exchange markets were largely subdued on Tuesday as investors stayed on the sidelines amid renewed U.S.-Iran hostilities in the Strait of Hormuz and ahead of the Reserve Bank of Australia's policy announcement. Thin liquidity from regional holidays compounded muted activity. The RBA delivered a 25 basis-point hike to take the cash rat…
