Central banks news

Stay engaged with the pivotal decisions that influence global economies. We offer timely coverage of central bank announcements, interest rate adjustments, and monetary policy statements, along with their implications for financial markets. Our thoughtful analysis delves into policy trends and the various factors driving central bank decisions, highlighting the resulting price movements across different asset classes.

US Federal Reserve (FED) news

Chart alert: EUR/USD finds support as ECB hawkishness offsets Fed strength ahead of NFP
EUR/USD is showing resilience ahead of the closely watched US Nonfarm Payrolls report as investors weigh diverging economic growth trends against converging central bank hawkishness. While the US labour market remains stable enough to support a higher-for-longer Federal Reserve stance, the ECB is expected to continue tightening policy amid persistent inflation. Technical analysis suggests EUR/USD is building a potential base above key support levels, supporting a near-term bullish outlook.
by Kelvin Wong
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European Central Bank (ECB) news

Chart alert: EUR/USD finds support as ECB hawkishness offsets Fed strength ahead of NFP
EUR/USD is showing resilience ahead of the closely watched US Nonfarm Payrolls report as investors weigh diverging economic growth trends against converging central bank hawkishness. While the US labour market remains stable enough to support a higher-for-longer Federal Reserve stance, the ECB is expected to continue tightening policy amid persistent inflation. Technical analysis suggests EUR/USD is building a potential base above key support levels, supporting a near-term bullish outlook.
by Kelvin Wong
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Bank of England (BoE) news

Chart alert: GBP/USD potential bullish reversal above 20-day moving average
GBP/USD is showing signs of a potential bullish reversal as sterling remains supported above key technical levels despite renewed US-Iran tensions. Traders are closely watching the US non-farm payrolls, unemployment rate, and Michigan consumer sentiment data for fresh directional cues. Intermarket analysis suggests the Bank of England may stay more hawkish than the Federal Reserve, while technical indicators point to strengthening upside momentum toward the 1.3640/3665 resistance zone.
by Kelvin Wong
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Bank of Japan (BoJ) news

Asia open: Middle East tensions drive oil higher as S&P 500 snaps winning streak
Global markets retreated as renewed U.S.-Iran tensions disrupted ceasefire hopes and pushed oil prices higher. The S&P 500 snapped a nine-day winning streak while technology shares came under pressure after Broadcom issued weaker-than-expected AI growth guidance. Meanwhile, rising energy costs, strong labour markets, and persistent inflation reinforced expectations of further monetary tightening from major central banks, weighing on investor sentiment worldwide.
by Kelvin Wong
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Swiss National Bank (SNB) news

The Swissie wins: CHF demand spikes as traders shun the Dollar
USD/CHF Analysis: As leaders warn of a "world without rules" at Davos, the US Dollar slides on policy fears. Capital flees to the Swiss Franc—now the premier safe haven—while Gold hits $4,750. We analyze the USD/CHF breakdown as the Franc jumps 1% in today's session. Safe-haven demand is back.
by Elior Manier
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Bank of Canada (BoC) news

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Reserve Bank of New Zealand (RBNZ) news

Asia open: AI Capex mania fuels world stocks to all-time highs as US-Iran peace deal skepticism lingers
Global stock markets surged to fresh record highs as relentless AI infrastructure spending continued to fuel risk appetite despite mounting macroeconomic and geopolitical headwinds. Investors are closely watching conflicting US-Iran peace deal developments, while sticky inflation pressures and increasingly hawkish central bank signals strengthen expectations for higher interest rates. Markets now shift focus to the crucial US PCE inflation report and the evolving AI-driven equity supercycle.
by Kelvin Wong
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Reserve Bank of Australia (RBA) news

Chart alert: AUD/NZD rally set to continue after hitting 13-year high
AUD/NZD may extend its rally after reaching a fresh 13-year high ahead of the RBNZ policy decision. While the RBNZ is expected to deliver a hawkish hold at 2.25%, widening Australia-New Zealand bond yield spreads and the RBA’s more aggressive tightening path continue to favour the Australian dollar. Technical analysis highlights strong bullish momentum above 1.2130 support, with a breakout above 1.2250 potentially opening the door toward 1.2310 and 1.2400.
by Kelvin Wong
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People's Bank of China (PBoC) news

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How central banks influence the currency markets

Central banks are powerful institutions that play a crucial role in shaping the foreign exchange (FX) market. Their actions and policies can significantly influence currency values, impacting everything from international trade to investment flows. Understanding how central banks affect forex is essential for anyone involved in global finance. Here are some key ways they exert their influence:

  • Interest rates: Higher rates attract investment, strengthening the currency; lower rates weaken it.
  • Quantitative easing (QE): Injecting liquidity can weaken the currency.
  • Reserves management: Buying the currency supports its price; selling weakens it.
  • Market intervention: Direct buying/selling to influence exchange rates.
  • Forward guidance: Communication about future policy impacts expectations.
  • Crisis measures: Emergency actions to stabilize markets.