News

Chinese Yuan: Pace of appreciation against US Dollar seen slowing – ING

Chris Turner at ING notes USD/CNH is consolidating after last week’s sharp decline, as investors hesitate to buy Renminbi with the PBoC slowing lower USD/CNY fixings and US–Iran sanctions risks in focus.

Source  Fxstreet1787774220
Banxico lifts 2026 GDP forecast, delays inflation target return

On Wednesday, the Bank of Mexico (Banxico) releases its Quarterly Report for Q2 2026, in which the institution revises its forecasts for economic growth and inflation.

Source  Fxstreet1787773128
Emerging Markets: Idiosyncratic bid persists in equities – BNY

Geoff Yu at BNY highlights that EM EMEA equities have outperformed, with strong buying in Poland, South Africa and Turkey since before the July Fed meeting, despite weaker regional currencies and bonds.

Source  Fxstreet1787771220
Taiwan Dollar: Consolidation range with upside risks against US Dollar – Commerzbank

Commerzbank’s Dr. Henry Hao and Charlie Lay highlight that Taiwan’s booming AI-driven exports and strong external surplus create a fundamentally supportive backdrop for the Taiwan Dollar (TWD).

Source  Fxstreet1787768880
Chinese Yuan: Further gains toward 6.7000 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report USD/CNH slipped to 6.7166 and closed slightly lower, with short-term downside momentum gradually building.

Source  Fxstreet1787767860
Reserve Bank of Australia: Preemptive hike debate intensifies – TD Securities

Prashant Newnaha at TD Securities notes that the RBA’s August minutes were overall less hawkish than June, but still emphasized upside inflation risks and the possibility of preemptive tightening.

Source  Fxstreet1787760973
Polish Zloty: Policy divergence weighs on PLN against Euro – ABN AMRO

ABN AMRO’s Georgette Boele highlights that EUR/PLN has risen as interest rate expectations diverge between the Eurozone and Poland.

Source  Fxstreet1787757332
Taiwan: AI boom sustains exceptional growth – Commerzbank

Commerzbank’s Dr. Henry Hao and Charlie Lay underscore that Taiwan’s industrial production and exports are surging on AI and high-performance computing demand. July manufacturing output and export orders point to Q3 GDP growth around 12–12.5% year-on-year, after 12.9% in Q2.

Source  Fxstreet1787755991
Canada: Trade shock and GDP drag – TD Securities

TD Securities’ Robert Both analyzes the impact of new Section 338 US tariffs and Canada’s retaliation on the Canadian economy. The report estimates the combined measures will trim about 0.3 percentage points from GDP by 2027, with growth effects concentrated in late 2026.

Source  Fxstreet1787754335
Germany: GDP Recovery strengthens outlook – Deutsche Bank

Deutsche Bank expects Germany’s stronger-than-expected H1 2026 GDP performance to lift annual growth closer to 1% from the previous 0.5% forecast. Near-term transport headwinds should remain contained as Rhine water levels recover, although Q3 growth could temporarily stall.

Source  Fxstreet1787752021
US July Core PCE Rose 0.2% MoM in Line With Expectations, Inflation Remains Above 2% Target as Fed Rate Path in Focus

TradingKey - U.S. core inflation in July met market expectations, but the headline PCE increase came in slightly above forecasts. Combined with stagnant real consumer spending, this introduces greater

Source  Tradingkey1787750562
Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.

Source  Fxstreet1787750109
Swiss Franc: Weakness before renewed strength – Commerzbank

Commerzbank FX analyst Michael Pfister argues that the Swiss Franc (CHF) will stay under pressure through 2026 as markets gradually price out expectations of a Swiss National Bank (SNB) rate hike.

Source  Fxstreet1787746397
US Dollar: Softer energy supports carry trades – ING

ING’s Chris Turner notes that lower Oil prices and the recent intervention by US Treasury Secretary Scott Bessent have pushed long-end US yields 10–15bp lower, reducing FX and equities volatility.

Source  Fxstreet1787744910
Australian Dollar: RBA tightening risks rise – TD Securities

TD Securities’ Prashant Newnaha highlights that Australia’s July Consumer Price Index (CPI delivered a strong inflation impulse, with headline and trimmed mean measures beating consensus and remaining uncomfortably high.

Source  Fxstreet1787743702
Australian Dollar: Watching 0.7200 resistance against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD extended its consolidation slightly higher, closing at 0.7165 as short-term momentum improves.

Source  Fxstreet1787738104
Hungarian Forint: Recovery tied to euro entry story – ING

ING’s Chris Turner reports that the National Bank of Hungary cut its policy rate by 25bp to 5.50%, with Chief Economist Peter Virovacz seeing a 4.75% terminal rate.

Source  Fxstreet1787737238
Euro advances against Canadian Dollar amid falling oil prices

EUR/CAD extends its gains for the third successive day, trading around 1.6180 during the European hours on Wednesday. The currency cross gains ground as the commodity-linked Canadian Dollar (CAD) faces headwinds due to falling crude oil prices.

Source  Fxstreet1787732926
Euro: Schnabel’s upbeat tone supports against US Dollar – ING

Chris Turner at ING highlights that Eurozone data continue to surprise positively and ECB’s Isabel Schnabel now sees growth risks possibly to the upside.

Source  Fxstreet1787731979
US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States (US) Bureau of Economic Analysis (BEA) is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. 

Source  Fxstreet1787731200
Brent: Prices extend sharp decline – Deutsche Bank

Deutsche Bank’s Early Morning Reid team, including Peter Sidorov and Jim Reid, note that Brent Oil has reversed more than half of its recent 13% rally as Middle East de-escalation headlines weigh on energy markets.

Source  Fxstreet1787730275
Hungarian Forint: MNB caution offers modest HUF support - Commerzbank

Commerzbank’s Tatha Ghose reports that Hungary’s central bank, Magyar Nemzeti Bank (MNB), cut its base rate to 5.50% but avoided pre-committing to further easing, stressing that September’s Inflation Report will guide policy. The bank will monitor global rate hikes, could limit the scope.

Source  Fxstreet1787728700
ECB sets for September rate hike with no appetite to signal more – RTE

According to sources, the European Central Bank (ECB) is all set to hike its key policy rates at the September policy meeting, RTE reported. Sources also said that the central bank has no appetite to raise interest rates again after a hike next month.

Source  Fxstreet1787727711
Equities: Tech-led gains with softer Oil – Deutsche Bank

Deutsche Bank notes that Nvidia’s earnings have become a major macro catalyst, although the impact of positive surprises has faded in recent quarters.

Source  Fxstreet1787726855
Australian Dollar: RBA waits as inflation sticks – Commerzbank

Volkmar Baur at Commerzbank notes that the Reserve Bank of Australia (RBA) is in wait-and-see mode after three rate hikes, assessing how inflation and the labor market evolve. July Consumer Price Index (CPI) eased to 3.5% but missed expectations, with trimmed-mean inflation stuck at 3.6%.

Source  Fxstreet1787725846
Euro: Upside bias toward 1.1725 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD broke out of its recent tight range, closing slightly higher near 1.1675 as tentative upside momentum emerges.

Source  Fxstreet1787724749
ECB's Schnabel: Inflation likely to top 2% for extended period

European Central Bank (ECB) Executive Board member Isabel Schnabel said that inflation is unlikely to return to target over the medium term, and therefore further tightening will be necessary, Bloomberg reported on Wednesday. 

Source  Fxstreet1787722877
Asian stock markets gain as oil extends downfall, eyes on Jackson Hall Symposium

Asian stock markets reflect broader strength on Wednesday, as oil prices have fallen further on renewed hopes of the Strait of Hormuz, a vital passage for almost 20% of global energy supply, reopening.

Source  Fxstreet1787719975
Indonesian Rupiah remains subdued amid market caution, external headwinds

USD/IDR remains stronger for the second successive day, trading around 17,760 during the Asian hours on Tuesday. The pair continues to hold its ground while the Indonesian Rupiah (IDR) faces ongoing pressure from a cautious market sentiment and persistent external headwinds.

Source  Fxstreet1787719629
United States Dollar Index recovers to near 99.00 ahead of US PCE inflation data

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.00 in the early European trading hours on Wednesday.

Source  Fxstreet1787719371
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