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.
311 total articles
The U.S. dollar nudged higher Tuesday as U.S. markets reopened after a holiday, with investors positioning ahead of a string of domestic economic releases including Federal Reserve minutes and the PCE price index. Sterling fell after U.K. labor-market data showed rising unemployment and slowing pay growth. Other currencies saw muted moves as Asian …
Most Asian currencies eased Tuesday as trading volumes were light across the region for Lunar New Year holidays and the dollar gained modestly ahead of a succession of U.S. economic releases, including Federal Reserve minutes and the key December PCE inflation reading later in the week. Major pairs showed mixed moves with the yen and some offshore …
Goldman Sachs continues to project Sterling underperformance for the year even as recent UK growth and activity indicators have shown resilience. The bank says broader drivers including global risk sentiment, regional macro themes and currency valuations inform its view, but recent GBP moves have been driven mainly by domestic developments. Goldman…
Goldman Sachs has raised its euro outlook, forecasting additional gains for the currency over coming months even as EUR/USD trades close to the bank's three-month target of 1.18. The firm points to a continued relationship between EUR/USD and the broader Dollar index, expects the euro to benefit from a weakening dollar rather than lead moves as it …
The U.S. dollar eked out only minor gains Monday in light, holiday-affected trading after U.S. inflation came in softer than expected, reinforcing expectations for interest-rate cuts later in the year. Liquidity remained thin with several major markets closed. The Japanese yen slipped after fourth-quarter GDP data showed much weaker growth than for…
Most Asian currencies traded in narrow bands amid low holiday volumes as the dollar remained relatively unchanged following mixed U.S. consumer inflation data. The Japanese yen weakened after fourth-quarter GDP unexpectedly disappointed, led by weak business investment and soft exports and consumption. Market attention now shifts to a busy U.S. dat…
The U.S. dollar is trading marginally higher intraday but is poised for a weekly loss, while Bank of America Securities reports investor underweight positioning in the dollar at levels not seen in its sample going back to January 2012. The bank's Feb. 13 note says the nomination of Kevin Warsh reduced worries over Fed independence but did not trans…
Bank of America's recent FX and rates sentiment survey shows investor positioning in the U.S. dollar has fallen to the lowest levels recorded in the bank's sample. The survey of 42 fund managers overseeing $702 billion conducted 6-11 February finds growing bearish exposure to the dollar, rising short-USD crowded trades, and expectations that the do…
The U.S. dollar inched up on Friday but was largely constrained as markets awaited the January consumer price index, a key input for the Federal Reserve's rate outlook. The Dollar Index was slightly higher intraday yet poised for a roughly 0.6% weekly drop. Traders are watching for any upside surprises in inflation after a pattern of stronger-than-…
Most Asian currencies eased on Friday while the U.S. dollar found some footing ahead of U.S. consumer inflation data for January. Despite the one-day softness, regional currencies were positioned to end the week with gains, led by the Japanese yen after renewed speculation about official intervention. Other notable moves included a rally in the Aus…
The U.S. dollar slipped modestly on Thursday and was poised for a weekly decline despite a stronger-than-expected January payrolls report. The Dollar Index fell 0.1% to 96.700 at 04:30 ET (09:30 GMT), putting it on track for about a 1% loss on the week. Investors pared back expectations for Federal Reserve rate cuts after the jobs data, but the cur…
World Liberty Financial, a crypto venture associated with the Trump family, announced plans to launch World Swap, a foreign exchange and remittance platform that aims to connect users directly to debit cards and bank accounts worldwide and to settle cross-currency transfers at significantly lower fees. Company co-founder Zak Folkman disclosed the r…
Most Asian currencies strengthened on Thursday as chatter about possible Japanese intervention pushed the yen higher and Reserve Bank of Australia comments boosted the Australian dollar. The dollar received only temporary support from stronger-than-expected U.S. nonfarm payrolls, leaving the greenback stalled ahead of U.S. inflation data.
Proposed changes to Pakistan’s electricity tariffs, which would end the practice of industrial consumers subsidising residential bills, are expected to reduce costs for industry while raising household power bills and adding upward pressure to inflation. Analysts estimate a 1.1 percentage point rise in inflation over 12 months, a 13-15% drop in ind…
CIBC Economics argues the sharp US dollar decline in late January reflected a cluster of short-lived, unrelated events and heavy speculative positioning rather than a structural loss of value for the greenback. As those episodic drivers unwind, the bank expects the dollar to find a floor near DXY 98.50 and to weaken gradually through the first half…
The Australian dollar surged to its strongest level in three years after Reserve Bank of Australia Deputy Governor Andrew Hauser warned that inflationary pressures remain persistent and that the central bank would not hesitate to raise rates again if required. The move was supported by a softer U.S. dollar ahead of critical U.S. jobs data, and come…
The yen sustained gains on Wednesday, supported by a rally in Japanese equities and investor expectations that Prime Minister Sanae Takaichi’s decisive election victory could lead to more fiscally cautious policies. The dollar showed signs of fragility ahead of the U.S. non-farm payrolls report, following weaker U.S. retail sales and a slowdown in …
A strategist at State Street cautions that the U.S. dollar could fall by as much as 10% this year if the Federal Reserve reduces interest rates more aggressively than current market expectations once a new chair assumes office. The forecast rests on the view that deeper cuts would lower the cost for foreign investors to hedge U.S. exposures, increa…
The U.S. dollar is trading close to one-week lows as investors await a sequence of U.S. economic reports that analysts at Bank of America Securities say could determine the currency's short-term direction. The Dollar Index was around 96.700 at 09:00 ET (14:00 GMT). BofA highlights a slightly bearish bias for the dollar into the data flow, noting th…
The U.S. dollar traded marginally higher but remained close to one-week lows as traders positioned ahead of a cluster of U.S. economic releases later this week. Sterling fell after political pressure mounted on Prime Minister Keir Starmer over the appointment of Peter Mandelson as ambassador to the United States. Other majors showed mixed moves: th…
Most Asian currencies firmed on Tuesday as the dollar softened following an overnight drop, with the Japanese yen extending recent gains after government warnings about market intervention. Regional moves were restrained as traders awaited a busy calendar of U.S. economic data this week, including retail sales, nonfarm payrolls and the consumer pri…
CIBC economist Avery Shenfeld contends that recent commentary portraying the U.S. dollar as collapsing overstates the situation. Although the trade-weighted DXY is roughly 9% lower than a year ago, Shenfeld points to bond-market behavior and the dislocation between gold and the dollar as evidence that a true currency crisis has not occurred. The Fe…
International Monetary Fund Managing Director Kristalina Georgieva said the U.S. dollar is expected to retain its leading role in the global financial system despite recent declines. Speaking at an IMF conference in Al-Ula, Saudi Arabia, she cited the depth and liquidity of U.S. capital markets, the economy's size and entrepreneurial dynamism as ke…
Japanese Prime Minister Sanae Takaichi secured a commanding victory in a snap election, giving her party more than two-thirds of lower house seats. Bank of America Securities says the result shifts market attention toward the prospect of foreign exchange intervention, while noting structural forces that could continue to weaken the yen over time. I…
The U.S. dollar weakened at the start of a data-heavy week, with the Dollar Index down 0.3% as investors await U.S. retail sales, inflation figures and a delayed payrolls report. The Japanese yen firmed after officials signaled possible intervention following Prime Minister Sanae Takaichi's lower house victory. Movements in other major pairs reflec…
