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: USD/JPY tests 156.13/50 resistance as hawkish Fed raises the bar for BoJ
USD/JPY has surged towards the key 156.13/50 resistance zone after a hawkish Fed rate hike reinforced the US dollar's yield advantage. Attention now turns to Japan CPI and the BoJ, where an expected hike to 1.25% may not be enough to strengthen the yen unless Governor Ueda signals further tightening. Technically, bearish RSI divergence raises reversal risk, with 155.45 acting as the key downside trigger.
by Kelvin Wong
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European Central Bank (ECB) news

Chart alert: EUR/USD minor uptrend intact ahead of ECB as markets brace for 25bp rate hike
EUR/USD holds near a two-week high around 1.1640 ahead of the ECB monetary policy decision, with markets expecting a 25-basis-point rate hike to 2.50%. Attention is on Christine Lagarde's guidance as surging energy prices revive inflation risks and raise the possibility of further tightening. Technically, EUR/USD has moved back above its 200-day MA, with 1.1604 acting as the key short-term support.
by Kelvin Wong
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Bank of England (BoE) news

United Kingdom: The Bank of England faces a difficult choice
UK inflation accelerated to 2.9% in August, while core and services inflation remained stable. The data support keeping interest rates unchanged tomorrow but do not eliminate the risk of future tightening. With wage growth slowing and the labour market weakening, the four rate hikes currently priced in by markets still appear too aggressive.
by Łukasz Zembik
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Bank of Japan (BoJ) news

Chart alert: USD/JPY tests 156.13/50 resistance as hawkish Fed raises the bar for BoJ
USD/JPY has surged towards the key 156.13/50 resistance zone after a hawkish Fed rate hike reinforced the US dollar's yield advantage. Attention now turns to Japan CPI and the BoJ, where an expected hike to 1.25% may not be enough to strengthen the yen unless Governor Ueda signals further tightening. Technically, bearish RSI divergence raises reversal risk, with 155.45 acting as the key downside trigger.
by Kelvin Wong
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Swiss National Bank (SNB) news

A hawkish Fed and a dovish SNB are driving gains in USDCHF
USDCHF extended its upward move, gaining 1.3% this week and more than 3.3% since the start of the month. The pair was supported by a stronger US dollar after hawkish signals from the Fed, while the Swiss franc weakened as the SNB kept rates at 0% and signaled readiness to intervene in the FX market.
by Krzysztof Kamiński
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Bank of Canada (BoC) news

FX markets and central banks Overview - USD/CAD - AUD/USD
During the week of August 17–21, 2026, major currency pairs rallied against the U.S. dollar amid shifting monetary policy expectations. While accelerated Canadian inflation bolstered the CAD and a cooling job market complicated the RBA’s outlook in Australia, markets looked past hawkish FOMC minutes to price in upcoming Fed rate cuts, driving broad gains led by NZD and AUD.
by Moheb Hanna
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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

FX markets and central banks Overview - USD/CAD - AUD/USD
During the week of August 17–21, 2026, major currency pairs rallied against the U.S. dollar amid shifting monetary policy expectations. While accelerated Canadian inflation bolstered the CAD and a cooling job market complicated the RBA’s outlook in Australia, markets looked past hawkish FOMC minutes to price in upcoming Fed rate cuts, driving broad gains led by NZD and AUD.
by Moheb Hanna
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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.