Latest Forex News

The Australian Dollar (AUD)has bounced up from intra-week lows against the US Dollar (USD) on Friday, although the daily chart remains negative.

The British Pound (GBP) is up 0.2% to near 1.3557 against the US Dollar (USD) during the European trading session on Wednesday.

Brown Brothers Harriman’s (BBH) Elias Haddad reports the Australian Dollar is underperforming as bond yields fall after Q2 wage growth matched expectations. Haddad argues this outcome will keep the RBA on hold, with private sector wage gains at a four‑year low.

EUR/JPY trades around 184.70 on Wednesday at the time of writing, edging 0.03% lower on the day.

Commerzbank FX analysts Norman Liebke and Michael Pfister see the Brazilian Real (BRL) supported by the Brazilian Central Bank’s (BCB) hawkish stance and still-elevated real interest rates.

The Euro (EUR) trades higher against the British Pound (GBP) on Wednesday, on track for a five-day winning streak, and received additional support after Eurozone final inflation figures confirmed higher price pressures in July.

Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $63.10 per troy ounce, down 0.38% from the $63.35 it cost on Tuesday.

Deutsche Bank’s Chief United Kingdom (UK) Economist Sanjay Raja notes that UK inflation data for July broadly matched expectations, with headline Consumer Price Index (CPI) rising and core CPI steady.

EUR/USD rises after registering minor losses in the previous day, trading around 1.1600 during the European hours on Wednesday. The pair holds ground as the Euro (EUR) remains stronger following the release of Eurozone Harmonized Index of Consumer Prices (HICP) data for July.

ING’s commodities team highlights that Copper prices on the LME have retreated sharply, falling below $14,000/t as a significant increase in on-warrant inventories eases the previous supply squeeze.

MUFG’s Derek Halpenny highlights how elevated US Treasury yields and rising mortgage rates are beginning to weigh on the US housing market, with Housing Starts and Pending Home Sales softening.

Standard Chartered strategists have revised its Bank of Japan (BoJ) rate outlook, bringing forward its expected 25bps hike from October to September and raising its terminal rate forecast to 1.75% from 1.50% previously.

The Swiss Franc (CHF) appreciates moderately on Wednesday, as the US Dollar (USD) pulls back against major peers, with investors bracing for the release of the minutes of July’s Federal Reserve (Fed) monetary policy meeting, due later on the day.

Commerzbank FX analysts Charlie Lay and Moses Lim see USD/INR staying broadly stable as the Reserve Bank of India (RBI) keeps the policy repo rate at 5.25% and remains in wait-and-see mode.

OCBC’s Sim Moh Siong and Christopher Wong note that Gold’s rebound has lost momentum as renewed Oil gains and higher long-end US yields revive inflation concerns. Daily charts show fading bullish momentum and a lower Relative Strength Index (RSI) from near overbought levels.

Dow Jones futures inch higher 0.06% to trade around 53,440 during European hours on Wednesday. Meanwhile, S&P 500 futures remain steady near 7,710, and Nasdaq 100 futures edge lower 0.03%, trading near 29,580.

The US Dollar (USD) trades lower against its major currency peers on Wednesday ahead of the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be published at 18:00 GMT.

ING’s Chris Turner notes that the Dollar remains supported by higher energy prices and long-end US yields, but FX volatility is still low, favouring carry trades.

West Texas Intermediate (WTI) oil price moves sideways after three days of gains, trading around $84.50 per barrel during the European hours on Wednesday.

Danske Research Team notes that EUR/USD has extended its rebound towards 1.1600 as European yields remain elevated while US Treasury yields stabilize after the recent spike.

The US Dollar (USD) resumes its broader bearish trend with the Canadian Dollar (CAD) drawing support from higher Oil prices and a deal with the US to pause 50% tariffs on Canadian exports.

Derek Halpenny at MUFG notes that UK July CPI came in broadly as expected, with the headline rate rising to 2.9% mainly on higher utility bills, while services inflation eased.

Deutsche Bank strategists note that global equities endured another difficult session as rising yields and higher Oil reinforced a stagflationary backdrop. US indices, led by chip stocks and the NASDAQ, extended declines, while the STOXX Europe 600 posted its fifth consecutive drop.

Here is what you need to know on Wednesday, August 19:

USD/IDR depreciates after registering modest gains in the previous day, trading around 17,870 during the European hours on Wednesday. The pair holds losses as the Indonesian Rupiah (IDR) remains stronger following the release of the interest rate decision by the Bank Indonesia (BI).

Michael Pfister at Commerzbank reports that new 50% US tariffs on selected Canadian goods have been delayed by three days as an agreement is reportedly close, prompting only a modest Canadian Dollar (CAD) rebound amid uncertainty over the deal’s durability.

ING strategists Ewa Manthey and Warren Patterson note that Oil prices have risen for a fourth straight session, supported by US-Iran tensions and concerns over shipping through the Strait of Hormuz.

European Central Bank (ECB) official and Finnish Central Bank Governor Olli Rehn said in a written copy of a speech, released during the European trading session on Wednesday, that it is essential to keep inflation expectations anchored.

The Indian Rupee (INR) remains vulnerable against the US Dollar (USD), close to its two-week low at around 95.75.

Gold (XAU/USD) climbs back above $4,350 during the first half of the European session, reversing a part of the previous day's heavy losses.