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.
698 total articles
Options market pricing on Monday showed investors trimmed wagers on a weaker New Zealand dollar for the third time in four trading days. One-month NZD/USD risk reversals traded at 0.53% in favor of puts, down from 0.67% a week earlier and 0.71% two weeks ago, matching levels last seen on February 19. While the market still leans toward a softer kiw…
Sterling slipped on Monday as markets absorbed a deadlock in Middle East ceasefire talks and braced for a crucial US inflation report due Tuesday. The dollar registered modest gains after hopes for a pre-visit ceasefire faded, while oil traded higher and risk sentiment cooled. Domestic political fallout in the UK added an extra headwind for the pou…
Bank of America examined USD/CNY behavior around six meetings between US President Trump and Chinese President Xi Jinping and found the yuan typically strengthens modestly in the weeks after such summits. The bank's analysis also notes a slight average decline in the Shanghai Composite Index in the 10 days following these encounters, while recent c…
Bank of America assesses that the Kazakh tenge is roughly 1-1.5% overvalued despite current backing from high oil prices and tighter fiscal and monetary policy. While near-term support may persist, the bank warns seasonal headwinds may reverse over the next 2-3 months, potentially exposing the currency to weakness unless emerging-market risk remain…
UBS says the South Korean won is undervalued and that robust balance of payments flows, memory-led export growth and the planned inclusion of Korean Treasury Bonds in a global bond index could push USD/KRW under 1400 in the second half of 2026. The bank highlights valuation gaps against export share and the JPY/KRW cross while estimating a material…
Most Asian currencies declined on Monday after U.S. President Donald Trump described Iran’s reply to Washington’s peace proposal as "totally unacceptable," dimming hopes for an early de-escalation in the Gulf. The dollar strengthened further following robust U.S. payrolls data last week, while the Chinese yuan found limited support after inflation …
Goldman Sachs has increased its forecasts for the onshore Chinese yuan, arguing the renminbi is substantially undervalued and poised to appreciate further due to China’s sizable external surplus and strong export competitiveness. While market attention centers on a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinpi…
Bank of England Governor Andrew Bailey cautioned that international regulators and the United States may clash over how stablecoins should be regulated, citing concerns about convertibility in a crisis and the potential for flows toward jurisdictions with stronger convertibility obligations. Bailey, who leads the Financial Stability Board, emphasiz…
Japan’s emergency steps to support the yen produced a rapid short-term rebound, but analysts warn the underlying forces that have pushed the currency lower remain in place. A BCA Research report describes the intervention as largely an effort to "buy time" rather than achieve a sustained recovery, citing differences in interest rates, positioned sp…
Sterling ticked up on Friday as market participants balanced renewed conflict in the Strait of Hormuz against rising political uncertainty in Britain. The pound's modest gain came despite a wider decline in market sentiment, with traders also focused on U.S. April payrolls and commentary from ING on binary outcomes for major currency pairs.
A convergence of high‑level diplomacy, corporate reporting and major economic data will shape financial markets in the coming week. U.S. President Donald Trump travels to Beijing as Washington seeks to preserve a trade truce, Saudi Aramco reports first‑quarter results against an unstable Middle East backdrop, and a string of inflation and growth re…
Bank of America recommends taking a bearish stance on the euro versus the Swedish krona via a three-month zero-cost risk reversal, arguing the krona has underperformed relative to peers since the April 7 ceasefire announcement in the U.S.-Iran conflict. Analysts at the bank say Sweden’s fiscal measures, balanced monetary policy and status as a majo…
Sterling inched higher against the dollar on Thursday as markets consolidated a risk-driven rally sparked by signs of de-escalation in the Gulf. GBP/USD and EUR/USD traded in narrow ranges after an initial surge, while investors weighed the potential for a limited Iran-U.S. agreement alongside UK local election outcomes that could reshape political…
Bank of America analysis indicates Japan's Ministry of Finance likely carried out yen-buying interventions on at least four days over the Golden Week holidays, with price patterns on April 30, May 1, May 4, and May 6 consistent with official dollar sales. BofA's strategist says recent support in the mid-155s and caps in the mid-157s follow an initi…
Most Asian currencies were largely unchanged in Asian trading after posting notable gains the day before, following a more than 7% fall in oil prices linked to reports that the U.S. and Iran were nearing a memorandum of understanding. The U.S. dollar was broadly subdued, Australia recorded an unexpected trade deficit for March, and central bank min…
Wells Fargo emerging markets strategist Alvaro Vivanco expects the Mexican peso to underperform against the South African rand, citing a widening divergence in monetary policy stances and higher real policy rates in South Africa. Policy responses and geopolitical developments related to the Iran war could further influence foreign exchange dynamics…
The Japanese yen strengthened sharply in a brief span during Wednesday's Asian session, climbing to a 10-week high of 155.04 per dollar before easing back to about 156.46 by New York noon. The move - an advance of roughly 1.8% within 30 minutes - has revived talk that officials intervened, even as markets in Japan were closed for a holiday and auth…
Citigroup strategists have closed a profitable long position in the Hungarian forint versus the Czech koruna executed through forwards, recording a 1.3% total return since the trade was opened on April 27. Despite taking profits, the strategists reiterated a constructive outlook for the forint, noting potential further upside if international energ…
Sterling and the euro climbed on Wednesday after reports suggested progress toward an agreement between Washington and Tehran and Iran signalled the Strait of Hormuz could allow safe passage. The moves reflected broad dollar weakness, driven by diplomatic developments that also pressured oil prices. Attention now shifts to U.S. inventory data and d…
UBS has increased its year-end forecast for the Australian dollar against the U.S. dollar to 0.74, citing an improvement in fundamentals alongside steady market demand for the currency. The bank also raised its short-term AUD/USD target and reiterated a preference for expressing AUD strength through short positions in EUR/AUD, while updating its AU…
UBS projects additional weakness in the Swiss franc against a set of higher-yielding, risk-sensitive currencies including the Australian dollar, Brazilian real and Norwegian krone. The bank expects USD/CHF rallies near 0.80 to prompt selling by local corporates and is doubtful that EUR/CHF will break substantially above 0.9260, citing growth risks …
UBS updated its EUR/NOK and EUR/SEK forecasts after recent geopolitical developments altered market risk appetite and rate expectations. The bank lowered its end-Q2 and year-end targets for the Norwegian krone pair and adjusted its near-term EUR/SEK view while keeping its year-end krona projection unchanged. UBS also flagged differences between mar…
The Japanese yen climbed sharply, with USD/JPY falling 1.7% to 155.09 - its strongest level since late February - after multiple reports indicated Tokyo had intervened in currency markets. Low trading volumes during a stretch of market holidays in Japan amplified the move. Despite the recent appreciation, the yen faces a muted outlook given stretch…
Most Asian currencies firmed on Wednesday after comments suggesting a pause in US operations around the Strait of Hormuz reduced risk-off pressures and helped push oil prices lower. The South Korean won led the gains following a stronger-than-anticipated consumer price print that lifted expectations of further policy tightening by the Bank of Korea…
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.35% at its May meeting, the third consecutive increase and a level that matches a peak reached during the COVID-19 inflation period. The board approved the move by an 8-1 margin, reversing a narrowly split vote from March. The Australian dollar traded around $0.7163, down 0.…
