News

Bank of England: November hike risk rises – Rabobank

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.

Source  Fxstreet1789653077
British Pound: BoE stance leaves Pound exposed – BBH

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.

Source  Fxstreet1789650643
Swiss National Bank: Inflation pressures build – Nomura

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.

Source  Fxstreet1789648922
US Initial Jobless Claims dropped to 196K last week

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.

Source  Fxstreet1789648473
Bank of Japan: Market-priced hike to 1.25% – Danske Bank

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.

Source  Fxstreet1789647368
Federal Reserve: Hawkish path extends into year-end – Commerzbank

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.

Source  Fxstreet1789646283
Canada’s Carney puts economic sovereignty at heart of strategic alliances

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

Source  Fxstreet1789639952
Euro remains stronger against Canadian Dollar following Eurozone HICP inflation data

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.

Source  Fxstreet1789638128
Euro: Medium-term downside remains in focus against US Dollar - UOB

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.

Source  Fxstreet1789637605
Czech Koruna: Hawkish CNB pause may support CZK – Commerzbank

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.

Source  Fxstreet1789636279
British Pound: BoE decision keeps November hike risk alive – MUFG

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.

Source  Fxstreet1789635027
Swiss Franc: Remains near recent lows against US Dollar – UOB

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.

Source  Fxstreet1789633718
ECB’s Makhlouf: Can't rule out anything at future meetings

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.

Source  Fxstreet1789632830
Indian Rupee: RBI liquidity withdrawal tempers risks – Commerzbank

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.

Source  Fxstreet1789632638
Equities: Pressured by higher yields – Deutsche Bank

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.

Source  Fxstreet1789632118
New Zealand Dollar gains momentum following strong Q2 GDP growth

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.

Source  Fxstreet1789631726
CEE FX: Prolonged pressure from strong Dollar – ING

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.

Source  Fxstreet1789629001
How Wall Street Interprets the Fed Resuming Rate Hikes: Goldman Bets on October Hike, Citi Expects Cut Next June

TradingKey - The Fed resumed rate hikes for the first time in three years, but what truly caught the market off guard was not the 25-basis-point adjustment, but Chair Kevin Warsh's hawkish stance and

Source  Tradingkey1789628680

Switzerland Imports (MoM) above expectations (0M) in August: Actual (35485M)

Source  Fxstreet1789625360
Japan’s Kiuchi says aim to balance robust economy with fiscal sustainability

Japan's Economy Minister Minoru Kiuchi said on Thursday that officials aim to balance a robust economy with fiscal sustainability. However, Kiuchi declined to comment on interest rates. 

Source  Fxstreet1789624812
Indonesian Rupiah weakens amid complicating BI policy outlook

USD/IDR depreciates after opening with a bullish gap, remaining in positive territory for the sixth straight day and trading around 17,780 during Asian hours on Thursday. Meanwhile, traders are bracing for Bank Indonesia’s (BI) policy meeting next week.

Source  Fxstreet1789624641
US 10-Year Treasury Yield nears 5% after Fed rate hike, Middle East tensions raise inflation fears

United States (US) Treasury Yields erase an earlier decline during the early European session on Thursday. Federal Reserve (Fed) interest rate hike and escalating geopolitical tensions in the Middle East could lift US Treasury Yields in the near term. 

Source  Fxstreet1789621270
Asian stocks edge higher as hawkish Fed, elevated yields and geopolitical cap upside

Shares edged higher in Asia on Thursday, tracking US stock futures, as traders digest the Federal Reserve's (Fed) hawkish tilt ahead of other key central bank events.

Source  Fxstreet1789620664
Japan’s Katayama says expect BoJ to conduct appropriate monetary policy to achieve 2% price target

Japanese Finance Minister (FM) Satsuki Katayama said on Thursday that official will review budget requests, control debt issuance at a level that can gain market credibility. Katayama also expect the Bank of Japan (BoJ) to steer policy properly to achieve stable, sustainable 2% inflation.

Source  Fxstreet1789617434
Fed Policy Monitor: Hiking bias and curve reaction – NBC Economics and Strategy

NBC Economics and Strategy, authored by Taylor Schleich and Ethan Currie, reviews the latest Federal Reserve decision following strong CPI data. The Fed delivered a widely expected rate hike and signaled support for restrictive policy for a prolonged period.

Source  Fxstreet1789615329
US rates: Yields seen contained, steepeners favoured – TD Securities

TD Securities analysts highlight that the Federal Reserve’s 25bp hike and hawkish projections have boosted its inflation-fighting credibility, making nominal and real US rates attractive.

Source  Fxstreet1789615218
Federal Reserve: Policy path reshaped – Rabobank

Rabobank’s RaboResearch Global Economics & Markets team reviews the latest FOMC decision, noting a unanimous 25 bps hike in the federal funds rate. The Committee’s projections point to one more hike this year, then a prolonged hold through 2027, with the first cut in 2028.

Source  Fxstreet1789615060
US President Donald Trump says he told Fed Chair to 'do what you want' ahead of rate hike

US President Donald Trump said that he counseled Federal Reserve (Fed) Chair Kevin Warsh to vote for an interest rate hike because other Fed policymakers were expected to vote that way anyway, the Washington post reported on Wednesday.

Source  Fxstreet1789609814
0.2%: New Zealand’s Gross Domestic Product grows more than expected in Q2

New Zealand's Gross Domestic Product (GDP) grew by 0.2% QoQ in the second quarter (Q2) of 2026, compared with a 0.8% expansion in the first quarter, Statistics New Zealand showed on Thursday. This reading came in stronger than the expectation of a rise of 0.1%.

Source  Fxstreet1789598779

United States Total Net TIC Flows down to $83.7B in July from previous $133.5B

Source  Fxstreet1789589111
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