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

Japanese yen lower, Tokyo Core CPI next

The Japanese yen has posted losses on Thursday. In the North American session, USD/JPY is trading at 149.84, up 0.48% on the day. Tokyo core CPI expected to ease to 2.3% Inflation has been steadily moving higher in Japan and January's inflation data reflects the upward trend. The consumer price index climbed to 3.2%, a 19-month high, and the producer price index and the BoJ Core CPI both accelerated in January compared to a month earlier.

Feb 27 by Kenneth Fisher

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European Central Bank (ECB) news

EUR/USD Outlook: Germany's fiscal bazooka ignites Euro bulls, but a minor pullback is imminent as ECB looms

An aggressive fiscal spending proposal by Germany has attracted bullish animal spirits into EUR/USD. A significant rally in the longer-end German Bund yields is likely to alter ECB monetary policy guidance towards a “less dovish stance.” The three-month rally in the EUR/USD has reached overbought condition, at risk of a minor corrective pull-back below 1.0885/0940. In the upcoming European Central Bank (ECB) meeting on Thursday, 6 March, where market participants are expecting another 25 basis

Mar 06 by Kelvin Wong

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Bank of England (BoE) news

GBP/USD shrugs as UK GDP unexpectedly declines

The British pound has edged lower against the US dollar on Friday. GBP/USD is trading at 1.2928 in the European session, down 0.13% on the day. UK economy declines 0.1% in January The UK economy barely registered any growth in the second half of 2024, rising 0.1% in the third quarter and flatlining in the third quarter. The New Year hasn't seen any improvement, as GDP contracted 0.1% m/m in January, after a 0.4% gain in December and missing the market estimate of 0.1%.

Mar 14 by Kenneth Fisher

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Bank of Japan (BoJ) news

US dollar climbs against yen on soft US CPI report

The Japanese yen has lost ground against the dollar for a second straight day. In the North American session, USD/JPY is trading at 143.39, up 0.43% on the day. Earlier, USD/JPY rose as much as 0.96% but pared much of those gains. US inflation lower than expected US inflation surprised on the upside in February. Headline inflation eased to 0.2% m/m from 0.5% and below the market estimate of 0.3%. Annually, headline inflation dropped to 2.8% from 3% and below the market estimate of 2.9%. It w

Mar 12 by Kenneth Fisher

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Swiss National Bank (SNB) news

Swiss franc hits new 2025 high as inflation continues to fall

The Swiss franc has rallied for a third straight trading day. In the North American session, USD/CHF is trading at 0.8884, down 0.12% on the day. The Swiss franc has jumped 1.6% this week and earlier strengthened to 0.8856, its best level this year. Switzerland's inflation falls to lowest in nearly four years Swiss inflation has been falling and the trend continued in February.

Mar 05 by Kenneth Fisher

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Bank of Canada (BoC) news

Canadian dollar rises as BoC trims rates

The Canadian dollar is steady on Thursday. In the European session, USD/CAD is trading at 1.4379, up 0.06% on the day. Bank of Canada lowers rates to 2.75% There was no surprise from the Bank of Canada, which lowered rates by a quarter-point, bringing the cash rate to 2.75% and giving a boost to the Canadian dollar. The BoC has lowered rates at seven consecutive meetings and has chopped 225 basis points since last June. Behind the modest quarter-point cut, there is growing alarm at the Bank o

Mar 13 by Kenneth Fisher

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Reserve Bank of New Zealand (RBNZ) news

New Zealand dollar climbs as manufacturing improves

The New Zealand dollar is in positive territory on Friday. NZD/USD is trading at 0.5722 in the European session, up 0.46% on the day. NZ Manufacturing PMI rises to near-three year high New Zealand's manufacturing sector improved in February, as Manufacturing PMI rose to 53.9, up from 52.5 in January. This was the highest level since August 2022. All sub-index values recorded increases, including production, new orders and employment. The Manufacturing PMI has now recorded expansi

Mar 14 by Kenneth Fisher

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Reserve Bank of Australia (RBA) news

Australian GDP beats forecast, Aussie edges higher

The Australian dollar has extended its gains on Wednesday. AUD/USD is trading at 0.6271 in the European session, up 0.20% on the day. The Australian dollar jumped 0.75% on Tuesday, driven by the hawkish Reserve Bank of Australia minutes and a solid retail sales report. Australian GDP rises 1.3% Australia's economy expanded by 1.3% y/y in the fourth quarter of 2024, up from 0.8% in Q3 and above the market estimate of 1.2% and the RBA's forecast of 1.1%. This marked the fastest pace of growth s

Mar 05 by Kenneth Fisher

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People's Bank of China (PBoC) news

China Slashes Rates - Stimulus Package by PBoC Welcomed by Markets

The People's Bank of China (PBoC) has unveiled a stimulus package aimed at boosting economic growth. Key measures include a cut in the 7-day repo rate, a reduction in the required reserve ratio (RRR), and support for the mortgage market and property sector. Asian and European stock markets have reacted positively to the stimulus as markets welcomed the news. Oil prices have risen as well and could benefit from the stimulus package. Will the Oil price recovery continue?

Sep 24, 2024 by Zain Vawda

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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.