Nordea’s team sees the European Central Bank delivering two more 25bp rate hikes, in December and March 2027, despite more aggressive market pricing.

Derek Halpenny at MUFG highlights that the Bank of England left rates unchanged, but signals suggest a hike is likely in November as most of the majority voting bloc see tightening as needed.

Rabobank strategists Bas van Geffen and Elwin de Groot expect the European Central Bank (ECB) to raise the deposit facility rate by 25bp to 2.75% in December, driven by higher energy price forecasts.

Nordea strategists expect the Federal Reserve (Fed) to deliver two additional rate hikes, arguing that resilient United States (US) growth, persistent inflation and continued labour-market strength suggest monetary policy is not yet sufficiently restrictive.

Mexico Private Spending (YoY) declined to 2.1% in 2Q from previous 2.2%

Mexico Private Spending (QoQ) up to 0.9% in 2Q from previous -0.8%

ING strategist Francesco Pesole notes that moderating Oil prices have slightly cooled the Dollar’s post-FOMC momentum, but still sees upside risks for the Dollar after the Federal Reserve’s hawkish message.

OCBC strategist Christopher Wong notes that the Bank of England (BoE) kept Bank Rate at 3.75% in a 6–3 vote while highlighting a more challenging inflation backdrop, with Consumer Price Index (CPI) seen near 3.75% in Q4 and above 4% in early 2027.

TD Securities’ Prashant Newnaha notes the Bank of Japan raised its cash rate by 25bps to 1.25%, in line with market expectations, and kept a hawkish framework that points to further hikes, with the next move seen in December.

European Central Bank (ECB) President Christine Lagarde said during the European trading session on Friday that the decision on interest rates by the central bank will be meeting by meeting.

ING’s Frantisek Taborsky notes that the Czech National Bank (CNB) kept its policy rate at 3.75% with a dovish tone versus market pricing, but ING economists now expect a hike in November due to higher inflation forecasts and elevated global energy prices.

Deutsche Bank highlights a broad-based rebound in global equities following a drop in Oil prices and supportive US data. The S&P 500 and NASDAQ led gains in US stocks, while the STOXX 600 advanced in Europe and major Asian indices, including the Nikkei and KOSPI, moved higher.

Commerzbank’s Volkmar Baur notes that EUR/USD stabilized after the Federal Reserve’s hawkish surprise, with markets now fully pricing another Fed rate hike in December and no cuts until late next year.

Danske Bank’s Danske Research Team reports a strong rebound in global equities, with the S&P 500, Nasdaq, Stoxx 600 and Kospi all posting solid gains despite a recent Fed hike and further tightening priced.

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) rises 0.5% month-over-month (MoM) in August after declining at a similar pace in July, the latest data published by the Office for National Statistics (ONS) showed on Friday.

USD/IDR halts its six-day winning streak, trading around 17,780 during Asian hours on Friday. The currency pair continues to hold its losses, with the Indonesian Rupiah (IDR) drawing strength from a pullback in crude oil prices.

USD/CHF extends its losses for the second successive day, trading around 0.8230 during Asian hours on Friday. The pair depreciates as the US Dollar (USD) faced challenges from falling oil prices, which helped ease broader inflation concerns.

EUR/JPY rises after registering minor losses in the previous day, trading around 180.20 during Asian hours on Friday. The currency cross advanced as the Japanese Yen (JPY) struggled following the Bank of Japan's (BoJ) latest interest rate decision.

Japan BoJ Interest Rate Decision meets forecasts (1.25%)

West Texas Intermediate (WTI) oil price remains subdued for the third successive day, trading around $96.40 per barrel during the Asian hours on Friday.

Iran's Islamic Revolutionary Guard Corps (IRGC) said on Thursday that a Togo-flagged oil ‌tanker was struck ‌while attempting to make an “illegal passage” through the Strait of ‌Hormuz, Arab news reported. 

Reserve Bank of Australia (RBA) Governor Michele Bullock said on Friday that risks to outlook were skewed to the upside at August board meeting.

Japan’s National Consumer Price Index (CPI) climbed by 1.9% YoY in August, compared to the previous reading of 1.9%, according to the latest data released by the Japan Statistics Bureau on Friday.

South Korea Producer Price Index Growth (YoY): 7.9% (August) vs 7.7%

South Korea Producer Price Index Growth (MoM) increased to 0.2% in August from previous -0.4%

OCBC strategist Christopher Wong highlights that Singapore Dollar (SGD) remains largely driven by the broader Dollar story after the FOMC, given its high sensitivity to USD moves.

MUFG’s Lloyd Chan remains cautious on the Thai Baht, keeping the USD/THB forecast at 34.00 by year-end.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD surged to 1.2784 and closed at 1.2783, its largest one-day gain in three months, with strong momentum despite overbought conditions.

Rabobank's Senior Macro Strategist Bas van Geffen discusses the latest FOMC decision, noting a unanimous 25 bps hike in the Federal funds rate and a shift to a higher policy rate trajectory for similar inflation outcomes.

The Bank of Japan (BoJ) stands on the verge of delivering a 25 basis point rate hike to 1.25%, with financial markets pricing in a near 100% probability of such an action.