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
HESTA, a major Australian pension fund with A$100 billion under management, has increased hedging of its international equity portfolio and boosted holdings of the Australian dollar, citing long-run valuation models that suggest the currency has been undervalued. The move comes as the Reserve Bank of Australia continues to raise rates while many ot…
Most Asian currencies traded in a narrow range on Monday, with the Japanese yen strengthening modestly after Japan's finance ministry stepped up warnings about possible market intervention. The yen's slight recovery came against the backdrop of Prime Minister Sanae Takaichi's decisive lower house victory, which raises concerns about expanded fiscal…
The U.S. dollar held close to two-week highs on Friday and was positioned for a solid weekly gain as a broad selloff in global equities, driven by worries over heavy AI-related spending, pushed investors toward safe-haven assets. Major European currencies posted modest recoveries after central banks left policy unchanged.
UBS said in a report released Thursday that the euro-to-pound exchange rate is likely to remain range-bound after the budget-related risk premium embedded in the British pound was largely removed. The bank highlighted firmer UK economic readings, an unchanged European Central Bank policy stance and uneventful Eurozone data as factors that have limi…
UBS forecasts a gradual appreciation in the GBP/CHF exchange rate as safe-haven demand for the Swiss franc eases. The bank notes that a budget-related risk premium that had weighed on the pound has been priced out, UK economic data has strengthened sterling, and a yield differential exceeding 3.5% makes the pound relatively attractive to yield-seek…
The Bank of England’s narrow 5-4 decision to keep interest rates unchanged took markets by surprise with a more dovish tone than expected. Investors have shifted expectations modestly toward a possible March rate cut, while the broader consensus still looks to the second quarter when clearer evidence of lower inflation is anticipated. Political unc…
Most Asian currencies moved within tight ranges on Friday as a generally firmer dollar and lower risk appetite weighed on the region. The Japanese yen recovered some ground intraday but remained fragile ahead of a decisive lower house election on Sunday. Markets also digested U.S. labor market data that softened the dollar on the day, while uncerta…
The Chinese yuan remained slightly softer on Friday morning but was positioned to notch its eleventh consecutive week of appreciation versus the U.S. dollar, the longest stretch since early 2013. Market participants pointed to strong export performance, seasonal FX conversions and a weak dollar as primary supports, even as short-term U.S. dollar vo…
The U.S. dollar firmed modestly on Thursday, recovering some ground amid renewed volatility in global equities. Traders shifted into the greenback after concerns about elevated AI-related spending dented risk appetite. The euro and sterling weakened following European Central Bank and Bank of England decisions to hold policy rates, while Asian curr…
Most Asian currencies weakened on Thursday as the U.S. dollar gained ground ahead of European and U.K. central bank meetings. Market jitters from a broader sell-off in global financial markets and a focus on upcoming policy decisions kept risk-sensitive currencies under pressure. The yen was notably soft ahead of Japan’s lower house elections, whil…
Bank of America Securities says recent appreciation in the Chinese yuan, supported by strong export flows and firmer policy signals, is likely to be an important driver for the foreign exchange landscape in both the near term and longer run. The People’s Bank of China set a firmer midpoint for the yuan, and BofA has revised its end-Q3 and Q4 USD/CN…
Poland's central bank said it may use foreign exchange interventions as part of its policy toolkit and reiterated that future monetary decisions will be guided by incoming economic data. Bank officials also highlighted fiscal policy as a continuing upside risk to consumer price inflation. A recent poll sees the zloty trading modestly firmer against…
Currency strategists surveyed between Jan. 30 and Feb. 4 expect the recent U.S. dollar recovery to be temporary. While a nomination to lead the Federal Reserve trimmed some dollar losses, the overarching view is that the dollar will remain choppy near term and then gradually weaken later in the year as markets cling to expectations for rate cuts an…
Bank of America has reduced its end-Q3 and end-Q4 forecasts for USD/CNY from 6.8 to 6.7, pointing to renewed momentum in the Chinese yuan underpinned by robust export performance and firmer policy signals. The bank outlines four themes shaping foreign exchange dynamics, highlights spillover effects to emerging market currencies, flags risks in EUR/…
The U.S. dollar steadied after a sharp recovery from recent four-year lows, with the Dollar Index trading slightly lower at 97.245 early Wednesday but remaining more than 1% higher on the week. Markets are parsing the implications of Kevin Warsh's nomination to lead the Federal Reserve and are awaiting U.S. and eurozone economic releases, including…
Most Asian currencies traded in narrow bands as the dollar steadied following a recent rebound, while the Japanese yen weakened further ahead of a snap lower-house election. Investors are parsing the implications of a U.S. Fed chair nominee and awaiting key U.S. payrolls data, even as regional central bank moves and a U.S.-India trade deal influenc…
Billionaire investor Ken Griffin told an audience in West Palm Beach that the U.S. dollar has lost some of its shine over the past year, attributing the decline to policy uncertainty and political rhetoric. He urged greater fiscal discipline, commented on the labor market and artificial intelligence, and weighed in on Federal Reserve leadership and…
The U.S. dollar pared some of its earlier gains but remains weaker over medium horizons, with analysts at Bank of America Securities saying renewed, sustained dollar declines will likely require further guidance from the Federal Reserve - particularly on interest-rate policy and balance-sheet plans under the next chair. Market moves followed the no…
Bank of America has raised its fourth-quarter 2026 AUD/USD forecast to 0.73 following a recent Reserve Bank of Australia rate increase that has left Australian policy rates higher than U.S. Federal Reserve rates. The bank cited rising commodity prices and an anticipated weakening of the U.S. dollar versus Asian currencies as key supports, while fla…
U.S. authorities are assessing whether certain cryptocurrency platforms have been used to help Iranian state-linked actors and others evade sanctions, as blockchain firms record a surge in crypto flows connected to Iran. Estimates from multiple analytics firms point to billions of dollars in on-chain activity in recent years, with disagreement over…
Bank of America’s quantitative indicators have moved to a bearish reading on the EUR/GBP currency pair, with technical models highlighting a break below the 200-day simple moving average as a catalyst to push the pair toward the 0.85 level. Option flow shows increased put activity in EUR/GBP ahead of central bank meetings scheduled for this week, w…
The U.S. dollar eased marginally on Tuesday but retained the bulk of gains earned in recent sessions after a high-profile Fed nomination shifted expectations for U.S. policy. Economic data and political developments - including a strong ISM manufacturing report and a partial U.S. government shutdown that delayed jobs releases - helped shape moves a…
Most Asian currencies firmed on Tuesday as the Indian rupee posted a sharp rebound following a U.S.-India trade announcement. The Australian dollar ticked higher ahead of a widely anticipated Reserve Bank of Australia rate increase, while broader regional currencies showed tentative gains despite recent pressure from a stronger dollar.
The Indian rupee jumped in early Tuesday trading following an announcement of a bilateral trade agreement between New Delhi and Washington that reduces U.S. tariffs on Indian goods. The currency fell sharply against the dollar - reaching 90.128 per dollar, its strongest level since mid-January - as markets reacted to the tariff cut, while questions…
Apollo Management chief economist Torsten Slok warned that the yen carry trade may be vulnerable to a swift reversal after speculative futures positions moved sharply. While futures positioning has become less bearish, Bank for International Settlements data show that yen lending to offshore financial centers and non-bank borrowers remains elevated…
