Forex: All News & Analysis

BoE more optimistic on the economy after raising rates by 0.25%

The Bank of England hiked interest rates by another 25 basis points today, taking the base rate to 4.5% while making significant tweaks to their economic forecasts. The MPC is now of the belief that the economy will avoid recession this year and significantly revised up its GDP forecast, albeit to mild growth. What's more, its forecast for inflation was also much higher which may indicate it will have to go further and hold for longer in order to get back to target.

11-05-2023 13:42 GMT by Craig Erlam

Swiss franc falls despite SNB Jordan's hawkish message

SNB's Jordan says cannot exclude further hikes US PPI dips, unemployment claims jump The Swiss franc has fallen considerably on Thursday. In the North American session, USD/CHF is trading at 0.8950, up 0.59% on the day. SNB head Jordan says more tightening possible Swiss National Bank President Jordan reiterated a hawkish message on Wednesday that he sent out a week ago.

11-05-2023 11:00 GMT by Kenneth Fisher

Podcast - US inflation falls faster than expected, BoE to hike interest rates

OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart and Trader Nick. They discussed the latest US CPI release and its impact on the markets and preview the BoE rate decision.

11-05-2023 07:52 GMT by Craig Erlam

NZD/USD lower ahead of inflation expectations

New Zealand releases inflation expectations Markets react positively to US inflation report NZD/USD is trading at 0.6342, down 0.38% on the day. New Zealand Inflation Expectations eyed The Reserve Bank of New Zealand will be keeping a close eye on inflation expectations release early on Friday. Inflation expectations eased to 3.3% in Q1, down from 3.62% and the central bank will be hoping that the downswing continues.

11-05-2023 07:04 GMT by Kenneth Fisher

GBP/USD edges lower ahead of BoE meeting

BoE likely to raise rates by 25 bp US to release PPI and unemployment claims later today GBP/USD is trading at 1.2587 in Europe, down 0.30% on the day. BoE expected to raise rates by 25 bp The Bank of England is expected to raise rates today for a 12th consecutive time, with a 25-basis point hike. This would bring the benchmark cash rate to 4.50%.

11-05-2023 05:48 GMT by Kenneth Fisher

EUR/GBP Technical: Minor downtrend intact

EUR/GBP is still evolving within a major sideways range since August 2017 with its key resistance and support at 0.9300 and 0.8300. A minor downtrend phase has started to develop from its 3 February 2023 high of 0.8979. Short-term downside momentum remains intact below 0.8750 key short-term resistance. Since the start of this week, the EUR/GBP cross pair has continued its drop by 0.9% to print its current intraweek low of 0.8671 where market participants anticipant that the Bank of England (BoE

11-05-2023 05:19 GMT by Kelvin Wong

Pound swings after US inflation ticks lower

US inflation ticks lower to 4.9% BoE expected to raise rates by 25 bp on Thursday US inflation dips lower The US inflation report for April showed a very small decline. Headline CPI ticked lower to 4.9%, down from 5.0% in March and the consensus estimate of 5.0%. The core rate eased to 5.5%, matching the consensus estimate and a drop below the March reading of 5.6%.

10-05-2023 11:36 GMT by Kenneth Fisher

Australian dollar steady as US inflation falls to 4.9%

US inflation ticks lower to 4.9% Australia releases inflation expectations later today US inflation dips lower The US inflation report for April showed a drop in CPI, but the decline was marginal. Headline CPI ticked lower to 4.9%, down from 5.0% in March and the consensus estimate of 5.0%. The core rate eased to 5.5%, matching the consensus estimate and a drop below the March reading of 5.6%.

10-05-2023 07:33 GMT by Kenneth Fisher

Will US CPI shake up sleepy yen?

US inflation expected to remain at 5.0% BoJ to release Summary of Opinions USD/JPY continues to have a quiet week and is almost unchanged, trading at 135.20. Investors eye BoJ Summary of Opinions The markets will be keeping a close eye on the Bank of Japan's Summary of Opinions, which will be released later today. The summaries rarely move the dial on the yen, but this summary could be different, as it covers the April meeting which was the first chaired by Governor Kazuo Ueda.

10-05-2023 06:29 GMT by Kenneth Fisher

Waiting Game: Debt Ceiling Drama to resume, Inflation in focus

Dollar slightly stronger ahead of President Biden's pivotal meeting with congressional leaders NFIB report shows sentiment plunges to weakest levels in a decade Wall Street is hoping lawmakers won't have to resort to a short-term debt limit extension US stocks are mostly lower ahead of what will be the start of a lengthy debt ceiling negotiations and ahead of inflation report that should shows the disinflation process is struggling. No one is expecting any meaningful progress with President Bi

09-05-2023 15:11 GMT by Edward Moya

USD/JPY - Yen shrugs after Japanese wages, household spending fall

Japan's real wages fall for 12th straight month Japan's household spending falls 1.9% Fed sounds warning over tighter bank conditions USD/JPY is almost unchanged today, trading at 135.18. Household spending and wages slip Japan's households are again holding tightly to the purse strings, as household spending fell 1.9% y/y in March, following a 1.6% gain in February. The consensus estimate stood at 0.4%.

09-05-2023 10:13 GMT by Kenneth Fisher

AUD/USD dips on soft retail sales

AUD/USD ends 6-day rally Australian retail sales decline Fed warns that banks are tightening credit The Australian dollar is in negative territory, ending a rally of close to 200 points. In the European session, AUD/USD is trading at 0.6760, down 0.29% on the day. Australian retail sales decline Australian retail sales posted a decline of 0.6% in the first quarter, following a downwardly revised reading of -0.3% in Q4 2022.

09-05-2023 06:33 GMT by Kenneth Fisher

AUD/USD extends gains as business confidence improves

Australian business conditions improve Australian consumer confidence expected to decline AUD/USD continues strong rally The Australian dollar continues its impressive rally which started on May 2nd. AUD/USD has surged 2.6% during that time.

08-05-2023 13:10 GMT by Kenneth Fisher

USD/JPY drifting ahead of consumer spending and income reports

BoJ minutes focussed on inflation Bank turmoil, debt ceiling weighs on risk appetite Japan to release consumer spending and income The Japanese yen has started the trading week quietly and is trading just below the 135 line. BoJ minutes eye inflation The Bank of Japan released the minutes of the March meeting today. Inflation was, unsurprisingly, a hot topic at the meeting.

08-05-2023 10:55 GMT by Kenneth Fisher

Canadian dollar powers to 5-week high on strong job numbers

Canada add 41K new jobs US nonfarm payrolls jump to 253K Canadian dollar surges by 1.2% The Canadian dollar has extended its gains on Monday. USD/CAD is currently trading at 1.3339, down 0.26%. Canada's job market stays hot Canada's labour market defied expectations in April, as the economy added 41,400 jobs, above the March gain of 34,700 and the consensus estimate of 20,000.

08-05-2023 06:35 GMT by Kenneth Fisher

JPY bearish positioning is getting overstretched

Better than expected US non-farm payrolls for April have failed to ignite US dollar bulls. Two outliers; the safe haven currencies, CHF and JPY underperformed against the US dollar due to the resurgence of risk-on behaviour in the US stock market. JPY future’s bearish positioning has highlighted a risk of a short-term revival of JPY’s strength. Last Friday, the better-than-expected US official non-farm payrolls data (labour market) for April failed to trigger a meaningful rally in the US dollar

08-05-2023 01:49 GMT by Kelvin Wong

Labor Market remains resilient (for both the US and Canada)

Hot US NFP report shows 253,000 jobs created in April, prior months massively revised down Robust Canadian employment data doubles forecast Banking worries ease as Regional bank stocks rebound US stocks extended gains after the US nonfarm payroll report showed the labor market remains resilient. Stocks were off to a good start after decent results from Apple and as the regional banks rebounded after getting a nice upgrade from JPMorgan and as some banks/brokerages continue to show deposits are

05-05-2023 12:28 GMT by Edward Moya

Podcast - Another hot US jobs report, ECB slows rate hikes, BoE next week

OANDA Senior Market Analyst Craig Erlam joins Jonny Hart and Trader Nick to discuss the US jobs report, the ECB rate hike, and the week ahead.

05-05-2023 12:03 GMT by Craig Erlam

Week Ahead - US CPI data eyed while BoE seeks to get inflation back below 10%

US The labor market is showing signs of resilience, but now the focus shifts back to inflation, with focus on the banking space. The banking system doesn't look ‘sound and resilient’ as more banks come under stress. US regulators will eventually be forced to act as the banking crisis worsens and that could mean the further unwinding of more banks. The April inflation report is expected to show that the disinflation process is starting to lose momentum.

05-05-2023 11:34 GMT by Craig Erlam

USD/CHF - Swiss franc sinks on SNB's Jordan, nonfarm payrolls

SNB's Jordan says cannot exclude further hikes US nonfarm payrolls rise unexpectedly USD/CHF soars by 100 points The Swiss franc has taken riders on a roller-coaster ride this week. On Wednesday, USD/CHF plunged 1% but it has recovered all of these losses on Friday, courtesy of Swiss National Bank President Jordan and a strong nonfarm payrolls release. SNB's Jordan says rate hike on the table.

05-05-2023 09:56 GMT by Kenneth Fisher

Forex: all news & analysis