ING’s Frantisek Taborsky notes that the Czech National Bank (CNB) kept its policy rate at 3.75% with a dovish tone versus market pricing, but ING economists now expect a hike in November due to higher inflation forecasts and elevated global energy prices.
The Euro (EUR) extends gains against the Japanese Yen (JPY) on Friday, after some hesitation, amid the Bank of Japan (BoJ) Governor Ueda's hawkish rhetoric at the post-meeting press conference.
The GBP/JPY cross builds on its strong intraday rally and climbs to a nearly two-week top, above mid-210.00s during the early European session on Friday. Spot prices now seem poised to register gains for the first time in three weeks.
Dow Jones futures gain by 0.25% to trade near 51,940 during European hours on Friday. Meanwhile, S&P 500 futures advance by 0.34% to trade around 7,670, while Nasdaq 100 futures rise by 0.64% to trade near 29,630.
Deutsche Bank highlights a broad-based rebound in global equities following a drop in Oil prices and supportive US data. The S&P 500 and NASDAQ led gains in US stocks, while the STOXX 600 advanced in Europe and major Asian indices, including the Nikkei and KOSPI, moved higher.
NZD/USD depreciates after posting gains the previous day, trading around 0.5720 during the early European hours on Friday. The pair loses ground as the US Dollar (USD) recovers its daily losses due to hawkish comments from Federal Reserve Chair Kevin Warsh.
Commerzbank’s Volkmar Baur notes that EUR/USD stabilized after the Federal Reserve’s hawkish surprise, with markets now fully pricing another Fed rate hike in December and no cuts until late next year.
ING’s Frantisek Taborsky reports that the Bank of Japan delivered a 25bp hike to 1.25% in a split decision, acknowledging persistent inflation risks but with notable dissent.
The USD/JPY pair trims a part of strong intraday gains to a two-week high, though it holds comfortably above mid-156.00s during the post-meeting Bank of Japan (BoJ) press conference.
The USD/CAD pair trades in positive territory around 1.3995 during the early European trading hours on Friday. The US Dollar (USD) extends its rally against the Canadian Dollar (CAD) on a hawkish tone from the US Federal Reserve (Fed).
United Overseas Bank’s (UOB) Quek Ser Leang highlights that GBP/USD remains under pressure after four consecutive daily declines, though short-term momentum has not intensified. Intraday, the British Pound (GBP) is expected to range between 1.3335 and 1.3390.
Silver price (XAG/USD) extends its upside on Friday, trading 2.26% higher at around 66.80 during the European session. The white metal strengthens due to correction in oil prices and United States (US) Treasury Yields.
EUR/GBP inches lower after three days of gains, trading around 0.8590 during the Asian hours on Friday. The currency cross is facing downward pressure as the British Pound (GBP) gains momentum following stronger-than-expected United Kingdom (UK) Retail Sales data.
The British Pound (GBP) has ticked up against the US Dollar (USD) on Friday, following an unexpected increase in UK Retail Sales.
Danske Bank’s Danske Research Team reports a strong rebound in global equities, with the S&P 500, Nasdaq, Stoxx 600 and Kospi all posting solid gains despite a recent Fed hike and further tightening priced.
MUFG notes that Oil prices have declined as markets reassess supply risks tied to the US-Iran war and regional chokepoints.
United Overseas Bank’s (UOB) Quek Ser Leang maintains a bearish stance on EUR/USD after recent declines, expecting the pair to trade intraday between 1.1460 and 1.1500 as momentum eases.
Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) rises 0.5% month-over-month (MoM) in August after declining at a similar pace in July, the latest data published by the Office for National Statistics (ONS) showed on Friday.
USD/IDR halts its six-day winning streak, trading around 17,780 during Asian hours on Friday. The currency pair continues to hold its losses, with the Indonesian Rupiah (IDR) drawing strength from a pullback in crude oil prices.
The Australian Dollar (AUD) outperforms its currency peers on Friday, trading 0.18% higher at around 0.7122 against the US Dollar (USD) during the European trading session. The antipodean strengthens as Reserve Bank of Australia (RBA) Governor Michele Bullock warns of upside inflation risks.
Here is what you need to know on Friday, September 18:
The Indian Rupee (INR) opens sharply higher against the US Dollar (USD) on Friday, with the USD/INR pair correcting to near 95.75 from an over seven-week high of 96.10 posted the previous day.
USD/CHF extends its losses for the second successive day, trading around 0.8230 during Asian hours on Friday. The pair depreciates as the US Dollar (USD) faced challenges from falling oil prices, which helped ease broader inflation concerns.
The EUR/USD pair trades in positive territory around 1.1490 during the early European session on Friday, bolstered by a weaker US Dollar (USD). However, the potential upside of the major pair might be limited amid a hawkish interest rate hike by the Federal Reserve (Fed).
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – struggles to capitalize on the overnight modest bounce from the $94.65 area, or the weekly low, and remains on the defensive during the Asian session on Friday.
Gold prices rose in India on Friday, according to data compiled by FXStreet.
The NZD/USD pair struggles to capitalize on the previous day's modest recovery gains and edges lower during the Asian session on Friday. Spot prices, however, hold above the lowest level since July 9, touched on Wednesday, and currently trade around the 0.5730 region, nearly unchanged for the day.
The AUD/JPY cross rises to around 112.05 during the Asian trading hours on Friday. The Japanese Yen (JPY) attracts some sellers against the Australian Dollar (AUD) following the Bank of Japan (BoJ) interest rate decision.
Gold (XAU/USD) attracts some follow-through buying for the second straight day and touches a fresh weekly high heading into the European session on Friday.
Bank of Japan (BoJ) Governor Kazuo Ueda is addressing the press conference, explaining the reason behind raising the key interest rate by 25 basis points (bps) to 1.25% from 1.00% at the September meeting.
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