Forex: All News & Analysis

USD/JPY: Yen modestly stronger ahead of BOJ

Japanese overnight index swaps show rates turning positive by the December 19th BOJ meeting Prior to the BOJ decision, Japan CPI is expected to see base effects help trim inflation down to 3.0% BIS: Yen real effective rate (against basket of currencies) falls to record low (dating back to the early 70s) The Fed rate decision drove home the message that interest rates will be staying higher for longer. Now it is the BOJ's turn to show what they will do about the yen. Verbal interventio

21-09-2023 14:56 GMT by Edward Moya

EUR/GBP: Pound falls to 2-month low against euro as BOE rate hiking cycle likely over

BOE officials vote 5-4 to keep rates on hold, first pause in almost 2-years Traders are no longer fully pricing in anymore quarter point rate rises Global bond market selloff saw Gilts rise 8.4bps to 4.292% The British pound went into freefall mode after the BOE unexpectedly kept rates on hold. The outlook has dramatically changed in a few weeks and investors are concerned about growth prospects. BOE governor Bailey noted that it's premature to talk about rate cuts and right now it seems t

21-09-2023 14:20 GMT by Edward Moya

USD/CAD - Canadian dollar eyes retail sales

Canada retail sales expected to rise BoC releases summary of deliberations The Canadian dollar is showing limited movement on Thursday. In the North American session, USD/CAD is trading at 1.3474, up 0.09%. Canada's retail sales expected to improve Canada wraps up the week with the retail sales report on Friday.

21-09-2023 13:05 GMT by Kenneth Fisher

USD/CHF - An attempted hawkish hold from the SNB but markets not buying it

SNB leaves its policy rate unchanged at 1.75% Chair Jordan signals further hikes likely won't be necessary USDCHF testing major resistance level after decision The SNB refrained from raising interest rates earlier today, instead signaling that sufficient tightening has taken place in order to get inflation back to below 2% over the forecast horizon. While inflation is already well below 2%, there was an expectation that the central bank would hike again.

21-09-2023 11:41 GMT by Craig Erlam

GBP/USD slips to 6-month low after BoE hold

Bank of England maintains interest rates Federal Reserve sends 'higher for longer' message to the markets The British pound has posted losses on Thursday. In the North American session, GBP/USD is trading at 1.2287, down 0.46%.

21-09-2023 10:36 GMT by Kenneth Fisher

GBP/USD - A surprisingly dovish BoE but another rate hike still possible

BoE leaves interest rates unchanged after 5-4 vote MPC statement suggests the tightening cycle may be over GBPUSD breaks major support after BoE decision We're certainly seeing plenty of different approaches from central banks as they wrap up their tightening cycles, with the Bank of England today surprising with a hold while not adopting a particularly hawkish tone alongside it. That said, more important than the tone is just how close the vote was, with five policymakers - including Gove

21-09-2023 09:57 GMT by Craig Erlam

Swiss sinks on SNB surprise, Fed pauses

SNB surprises and holds interest rates Fed delivers a 'hawkish hold' The Swiss franc has fallen sharply on Thursday. In the European session, USD/CHF is trading at 0.9060, up 0.80%.

21-09-2023 08:38 GMT by Kenneth Fisher

Podcast - Fed delivers a hawkish skip, King Dollar remains, Oil's minor pullback

OANDA Senior Market Analyst Ed Moya reviews the latest market news with Jonny Hart and Trader Nick. They discuss Wall Street's reaction to the FOMC decision.

20-09-2023 23:14 GMT by Edward Moya

Fed React: Dollar pares earlier losses after the Fed's attempt of a hawkish skip

Fed kept rates steady; target range remained at 5.25%-5.50% (as expected) Dot plots showed 12 of 19 expected policymakers (12 also called for one more hike in June) Fed projections saw rate cut bets halved from June's 5.10% to 4.60% US stocks dropped and king dollar returned after the Fed kept rates unchanged and signaled one more rate hike will happen this year. The US economy is too strong and this rate hiking cycle will last a lot longer than Wall Street wants.

20-09-2023 15:15 GMT by Edward Moya

USD/JPY drifting as Fed decision looms

Fed expected to pause, focus on dot plots The Japanese yen continues to have a quiet week. In Wednesday's North American session, USD/JPY is trading at 147.66, down 0.15%. Fed widely expected to pause If the Federal Reserve does not pause rate hikes at today's meeting, it would be a massive surprise.

20-09-2023 13:21 GMT by Kenneth Fisher

GBP/USD - BoE a coin toss after surprisingly encouraging inflation report

UK CPI 6.7% in August (7.1% expected, 6.8% in July) UK Core CPI 6.2% in August (6.8% expected, 6.9% in July) GBPUSD sees strong support near 1.23 Everyone at the Bank of England undoubtedly breathed a collective sigh of relief this morning, joining the rest of us, as inflation subsided much more than expected in August. Not only did the headline CPI rate not rise last month, as was expected, it actually fell slightly, with the core rate falling a lot. So despite the unfavorable base effect

20-09-2023 10:56 GMT by Craig Erlam

Aussie jumps as PBOC holds lending rates, hits 3-week high

China maintains one-year and five-year loan prime rates Australian dollar records strong gains The Australian dollar has posted strong gains on Wednesday. In the European session, AUD/USD is trading at 0.6496, up 0.67% and its highest level in three weeks. China holds loans prime rates China's banks maintained their benchmark loan rates for September, a sign that the Chinese economy may be finding its footing after government support.

20-09-2023 09:47 GMT by Kenneth Fisher

Canadian dollar pares gains after inflation rises

Canada's CPI rises in August Federal widely expected to hold rates The Canadian dollar is drifting in Wednesday's European session. USD/CAD is trading at 1.3432, down 0.11%. Canada's CPI jumps Canada's inflation rate rose sharply in July and the Canadian dollar rose as much as 0.70% on Tuesday and hit a 5-week high, but pared most of these gains.

20-09-2023 06:57 GMT by Kenneth Fisher

EUR/CAD: Loonie rallies after hot inflation report make next BOC meeting a coin flip

BOC's three-month moving average surged by a full point to 4.5% Odd's for the October 25th BOC policy meeting jumped to 50.5% vs 25.1% yesterday The December 6th implied rate for Canada is at 5.233% (nearly fully prices in a quarter point rate rise) The Canadian dollar currency is surging against the euro after a hot inflation report raised concerns that the Bank of Canada (BOC) might not be done raising rates. Inflation was clearly boosted by the surge with gasoline prices, and that will get

19-09-2023 12:25 GMT by Edward Moya

GBP/USD drifting with eye on inflation report

UK inflation expected to rise Fed widely expected to pause rate increases The British pound is trading quietly on Tuesday. In the European session, GBP/USD is trading at 1.2397, up 0.10%. UK inflation expected to rise The Bank of England has had a rough time in its battle with inflation, to put it mildly.

19-09-2023 10:39 GMT by Kenneth Fisher

Dollar wavers as the Fed's two-day policy begins

Modest dollar weakness is emerging as the Fed begins their two-day policy meeting; the euro is back above the 1.07 level, while the loonie is advancing below the 200-day SMA, and as the British pound rises above the 1.24 level. Positioning into the FOMC meeting is seeing rate options traders increase hedges, which means some traders are worried that the expected mid-year pivot could be in jeopardy. FOMC Inflation has come down a lot, but the Fed’s inflation isn’t quite over yet. The market

19-09-2023 08:25 GMT by Edward Moya

Gold - Cautious trading ahead of the Federal Reserve decision

Fed decision and forecasts on Wednesday could be very significant Is the Fed ready to replicate the ECB's explicitly dovish statement? Gold testing key resistance zone ahead of the meeting Gold is trading a little flat on Tuesday, perhaps showing a little caution ahead of the Fed meeting after a decent recovery in recent days. The yellow metal slipped back toward $1,900 amid resilient economic figures from the US that fed into fears of interest rates staying high for longer

19-09-2023 08:12 GMT by Craig Erlam

EUR/USD - Edges higher even as eurozone inflation is revised slightly lower

Headline HICP inflation falls to 5.2% (5.3% expected) while core HICP remains at 5.3% Further declines expected over the remainder of the year Divergence warns of potential exhaustion in the sell-off Eurozone headline inflation was slightly lower than initially reported in August while core was unrevised and is now modestly higher. Both are expected to fall going into next year and today's revisions are unlikely to alter the view of the ECB which has already decided that no more rate hikes will

19-09-2023 07:42 GMT by Craig Erlam

USD/CAD falls to one-month low

Canada's CPI expected to decline The Canadian dollar has extended its gains on Tuesday. In the European session, USD/CAD is trading at 1.3441, down 0.33%.

19-09-2023 07:15 GMT by Kenneth Fisher

Australian dollar edges higher after RBA minutes

RBA minutes show that central bank considered rate hike China to announce loan prime rate decision on Wednesday The Australian dollar continues to trade quietly this week. In Tuesday's European session, AUD/USD is trading at 0.6456, up 0.30%. The Reserve Bank of Australia released the minutes of this month's meeting earlier today.

19-09-2023 06:18 GMT by Kenneth Fisher

Forex: all news & analysis