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.

TD Securities’ macro team, led by Pooja Kumra, notes the Bank of England kept Bank Rate at 3.75% in a 6-3 vote, with a more hawkish tone versus July as inflation risks stay skewed higher.

UOB’s economics team, led by Suan Teck Kin and Alvin Liew, interprets the September FOMC as the start of a short hiking extension rather than a one-off move.

Rabobank’s Stefan Koopman notes that the Bank of England kept Bank Rate at 3.75% in a 6-3 vote, but sees rising inflation risks from higher energy prices and the Middle East conflict.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Bank of England (BoE) kept Bank Rate at 3.75% but signaled a low bar for further tightening. Governor Bailey warned policy may have to tighten if Middle East conflict-driven second-round effects emerge.

Nomura’s European Economics team, led by Josie Anderson, George Buckley and Andrzej Szczepaniak, expects the Swiss National Bank to keep its policy rate at 0.00% at the September 2026 meeting.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance decreased to 196K for the week ending September 12.

Danske Research Team expects the Bank of Japan to raise its policy rate to 1.25%, a move they say is largely priced in as market expectations tightened in recent weeks.

Commerzbank’s FX Research team, including Charlie Lay and colleagues, highlight a hawkish shift from the Federal Reserve as it raised the Fed funds target range by 25bp to 3.75–4.00%. The updated dot plot points to another hike this year and higher rates through 2028.

Canadian Prime Minister Mark Carney stressed on Thursday that Canada intends to remain a reliable international partner while strengthening its economic and technological sovereignty.

EUR/CAD appreciates after posting modest losses in the previous day, trading around 1.6050 during the European hours on Thursday. The currency cross holds its ground, driven by a stronger Euro (EUR) following the release of the Eurozone Harmonized Index of Consumer Prices (HICP) data for August.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has fallen for five straight sessions, closing at 1.1464 after a sharp 0.68% drop.

Commerzbank’s Michael Pfister expects the Czech National Bank (CNB) to keep rates unchanged today, in line with Bloomberg consensus and market pricing. Despite firmer inflation, officials still see policy as sufficiently restrictive, with a hint of future hikes.

MUFG’s Derek Halpenny highlights that focus shifts to the Bank of England (BoE), where MUFG expects a hold today but sees rising odds of a November rate hike.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF has staged an overdone rally toward 0.8265 and now expect the pair to consolidate between 0.8225 and 0.8275 in the near term.

European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, signaled during the European trading session on Thursday that the central bank could raise policy rates further in upcoming policy meetings.

Commerzbank’s India analysis shows the Reserve Bank of India stepping up liquidity absorption via INR1trn of government bond sales and continued VRRR operations, FX swaps and open-market actions. The measures aim to align money-market rates with the 5.25% policy rate.

Deutsche Bank analysts highlight that the first Federal Reserve hike since 2023 and a more hawkish dot plot weighed on US equities. The S&P 500 fell to its lowest level since July, with blue-chip names and banks underperforming, although tech indices were more resilient.

NZD/USD halts its three-day losing streak, trading around 0.5740 during the European hours on Thursday. The pair appreciates as the New Zealand Dollar (NZD) strengthens following the release of domestic Gross Domestic Product (GDP) data for the second quarter.

Frantisek Taborsky at ING argues that the stronger US Dollar (USD) following the Federal Reserve (Fed) meeting is clearly negative for emerging markets, keeping Central and Eastern European (CEE) currencies under pressure.