Forex

The analyst said: "As had been broadly anticipated the BoJ left its policy rate unchanged at 0.25% at today’s meeting. With the political environment uncertain, we expect no change at the October meeting as well, and our Japan Economist believes the next rate increase to 0.5% could happen at the December meeting or thereafter. Although upside for USDJPY has been harder to come by than we had anticipated, our base case scenario is that the pair will be firmer in Q4. In... (continue reading...)

By Chibuike Oguh and Linda Pasquini

NEW YORK/LONDON (Reuters) -The dollar strengthened against the yen on Friday, hitting its highest level in two weeks, after the Bank of Japan left interest rates unchanged and indicated that it was not in a hurry to hike them again.

The BOJ could afford to spend time eyeing the fallout from global economic uncertainties, Governor Kazuo Ueda said in a press conference following the central bank's move,... (continue reading...)

With the Fed's recent 50-basis-point rate cut in the books, Bank of America analysts addressed client concerns regarding the potential impact on the U.S. dollar (USD) and historical parallels.

Unfortunately, there are no perfect analogs to the current economic environment, according to the bank.

They explain that while the economic conditions are somewhat similar to 1995, during which the USD was undervalued, today the USD is overvalued, making comparisons... (continue reading...)

LONDON (Reuters) - The Bank of England left interest rates at 5% on Thursday and voted to run down its stock of British government bonds by another 100 billion pounds ($132.86 billion) over the coming 12 months, weighing on the government's finances.

The Monetary Policy Committee voted 8-1 to keep rates on hold, with only external member Swati Dhingra voting for a further quarter-point rate cut after the BoE last month delivered its first reduction to... (continue reading...)

The Federal Reserve’s policy easing cycle that began Wednesday should weaken the US dollar and in turn, help the euro to rise, UBS strategists said in a note.

The Fed kicked off its easing cycle with a 50 basis point cut at the September meeting and is expected to continue reducing rates into 2025.

Based on the Fed’s dot plot, an additional 50 basis points of cuts are anticipated over the final two meetings of the year, aligning with their forecast of 100 basis points... (continue reading...)