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British Pound tumbles below 1.33 post hot US CPI, Fed hawkish rhetoric
The Pound Sterling (GBP) drops against the US Dollar (USD) on Wednesday as traders digest hawkish comments from Federal Reserve (Fed) officials and Tuesday's hot US inflation report. At the time of writing, GBP/USD trades below the 1.3300 psychological figure, down 0.55%.
Australian Dollar slips toward March lows as Fed and RBA outlooks diverge
AUD/USD remains on the back foot on Wednesday, hovering near levels last seen in March. The Australian Dollar (AUD) loses ground as expectations grow that the Federal Reserve (Fed) and the Reserve Bank of Australia (RBA) could take different monetary policy paths in the coming months.
Japanese Yen tumbles to ten-week low as USD/JPY breaks above 159.00
USD/JPY extends its bullish momentum on Wednesday, climbing 0.54% to around 159.65 at the time of writing, its highest level in ten weeks.
US Dollar: Supportive fundamentals offset deficit worries – Rabobank
Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve (Fed) and evidence of renewed safe-haven demand support the US Dollar (USD).
Euro falls to two-week low amid expectations of aggressive Fed rate hikes
EUR/USD extends losses for the second straight day, slipping to a two-week low during Wednesday's American trading hours.
UK inflation to move higher in October – Deutsche Bank
Deutsche Bank economists Sanjay Raja and Maui Brennan expect UK inflation to move higher in October, driven by energy, tobacco and modest food and services gains. They forecast headline CPI at 3.80% year-on-year, with Core CPI and Services CPI also rising.
US Dollar: US data keep support in place – Societe Generale
Societe Generale’s Kit Juckes argues that despite potential future US fiscal tightening and greater AI regulation, current data show a resilient US economy. Core CPI has risen steadily, with headline CPI up 1% over two months, alongside strong payrolls, retail sales and GDP.
1.4230: Canadian Dollar hits four-week lows as Fed tightening bets boost the Greenback
The Canadian Dollar (CAD) has resumed its downtrend, with the US Dollar (USD) rallying across the board on Wednesday as investors ramp up hopes of Federal Reserve (Fed) tightening in December.
Why are strategists betting on Japanese Yen strength even as it slides toward 160.00?
The Japanese Yen (JPY) is showing signs of a medium-term structural turnaround as market focus shifts toward Bank of Japan (BoJ) policy normalization, domestic economic resilience, and heightened currency intervention risks near the 160.00 threshold.
Japanese Yen weakens toward 160 as US inflation bolsters Fed hike bets
USD/JPY edges higher on Wednesday, extending gains for the second straight day as expectations of a more hawkish Federal Reserve (Fed) outlook renew bullish momentum in the US Dollar (USD).
WTI Oil steadies above $85 as hopes of Middle East peace agreement fades
Oil prices picked up from two-month lows on Wednesday as investors start to worry about the lack of progress in negotiations to reach a peace deal in the Middle East.
EUR/USD: Range persists as Dollar outperforms – Societe Generale
Societe Generale’s Kit Juckes notes that EUR/USD ‘fair value’ is near 1.1150 after the latest US CPI-driven rates move, leaving the pair stuck in a range. He stresses that the US economy continues to outperform and keeps a year-end EUR/USD target of 1.10. Upcoming US PPI data may draw extra focus following CPI.
United States Dollar Index extends rally as Fed’s 50 bps rate hike prospects heat up
The US Dollar (USD) outperforms its major currency peers on Wednesday, as financial markets have started anticipating a bigger Federal Reserve (Fed) interest rate hike at the December policy meeting.