Market News
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Pound Sterling awaits the Fed's two-strike inflation test
The real tension weighing on GBP/USD is a rate parity that masks a divergence. Both central banks sit at 3.75%.
GBP/JPY Price Forecast: Bears Eye 207.00 as downtrend holds
GBP/JPY falls for the third straight day on Wednesday, but it fails to register a lower low, suggesting buyers are stepping in but lack the strength to push the exchange rate past the opening price, leaving the pair near this week's lows. The cross-pair trades at 208.05, down 0.22%.
South Korean Won: Gains seen moderating after sharp repricing – DBS
DBS Group Research’s Chang Wei Liang notes that USD/KRW has fallen toward 1340 in a steady decline since late June, reflecting earlier optimism on the Korean Won from a booming memory sector and strong investment plans.
NZD/USD Price Forecast: SMA cluster wobbles as US yields bite
The New Zealand Dollar (NZD) extends its losses against the US Dollar (USD), down 0.30% on Wednesday as the Greenback gets underpinned by rising US Treasury yields, with the 10-year reaching its highest level since 2023. The NZD/USD pair trades at 0.5835.
Chinese Yuan: Uptrend intact with muted inflation against US Dollar – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad reports that USD/CNH continues to drift lower to its weakest level since January 2023 as China’s August Consumer Price Index (CPI) rose modestly while overall inflation remains subdued.
Mexican Peso holds firm as inflation cools, fiscal plan lands
The Mexican Peso (MXN) clings to gains against the US Dollar (USD) on Wednesday following the presentation of Mexico’s government fiscal package in Congress, while traders await the release of US inflation data. The USD/MXN pair trades at 16.89, down 0.09% near yearly lows.
Taiwan Dollar: Range trade expected after CPI surprise against US Dollar – Commerzbank
Commerzbank highlights that Taiwan’s August CPI undershot expectations due to favourable food base effects, but core inflation remains above the CBC’s forecast. The bank sees scope for a modest rate hike as growth stays robust and inflation risks persist.
Chile: Policy pause reflects fragile growth – Societe Generale
Societe Generale’s Dev Ashish reports that the Central Bank of Chile kept the monetary policy rate at 4.50% in September, as weak domestic growth offsets rising external inflation risks. The bank highlights disappointing activity, deteriorating labour markets and anchored inflation expectations.
EUR/USD Price Forecast: Buyers seek a decisive break above the 200-day SMA
EUR/USD struggles to extend its earlier gains on Wednesday as the US Treasury’s bond-buyback announcement sparks a brief bout of volatility, pushing Treasury yields higher and helping the US Dollar (USD) trim its losses.
United States 10-Year Note Auction up to 4.834% from previous 4.683%
United States 10-Year Note Auction up to 4.834% from previous 4.683%
Australian Dollar stabilizes as rebound in US yields supports USD
AUD/USD stabilizes around 0.7220 at the time of writing on Wednesday, after hitting a fresh four-month high at 0.7237 earlier in the day. The Australian Dollar (AUD) loses some momentum as the US Dollar (USD) rebounds, supported by rising US Treasury yields.
Japanese Yen: Strength builds against US Dollar ahead of BoJ decision – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight ongoing Japanese Yen (JPY) outperformance, with USD/JPY drifting toward key support near 153 and the 2026 low around 152. Markets fully price a 25 bp Bank of Japan (BoJ) hike on September 18.
US Treasury yields rise after buyback announcement, 30-year yield reaches 5.30%
US Treasury yields rise on Wednesday after the United States (US) Treasury Department announces plans to buy back $6 billion of longer-term government debt, three times the size of its usual operation.