Forex News
- GBP/JPY flatlines around 212.50, halfway through the weekly range.
- Investors are wary of placing Yen shorts as intervention risk remains high.
- Pound traders are bidding their time, awaiting the outcome of local elections in the UK.
The Pound (GBP) trades practically flat around 212.50 against the Japanese Yen (JPY) on Thursday. Investors are wary of selling JPY amid risks of intervention by the Japanese Ministry of Finance (MOF), while the uncertainty about the results of the UK local elections is keeping traders away from the Pound.
The pair trades halfway through the weekly range between 210.50 and 214.20 after dropping from last week’s highs at 216.60 on a suspected Tokyo intervention to support the Yen, which is thought to have had some follow-through this week.
Japanese Ministry of Finance Satsuki Takayama has repeated that the authorities are committed to taking “decisive action” against speculative moves several times over the last few days.
On Thursday, Japan’s top currency diplomat, Atsushi Mimura, said that the MOF faces no constraints on how often it can step in to support the Yen and that he is in daily contact with US authorities, which has served as a verbal warning against speculative JPY sellers.
In the UK, voters are heading to the polls to elect 136 local authorities as well as the parliaments of Scotland and Wales, which are likely to deliver a significant setback to the ruling Labour Party. If this outcome is confirmed, it might trigger a political crisis, with the outlook of a government change renewing concerns about fiscal stability, which have been subdued for some time.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
Commerzbank’s Tatha Ghose expects the Czech National Bank (CNB) to keep rates at 3.50% but sees upside inflation risks from higher energy prices and a growing chance of at least one 25 bp hike later in 2026. However, global risk aversion is offsetting support from rising rate expectations for Czech Koruna (CZK), leading to a sideways EUR/CZK view in coming months.
Energy shock and limited koruna upside
"In fact, the war has shifted the risk balance. The resulting surge in energy prices, with domestic fuel costs rising sharply and wholesale natural gas prices up significantly, introduces clear upside risks to the inflation outlook."
"While the board's immediate focus remains on second-round effects, which are not yet visible, the prospect of future rate hikes is steadily increasing. Our base-case is now for at least one 25bp rate hike later in 2026, unless of course, the war situation were to be resolved soon and the oil price were to decline clearly within months."
"Despite the hawkish outlook, the Czech koruna has failed to make new gains. The currency is being held back by broader global risk aversion, which is counteracting the support from rising rate expectations, and has even put a lid on the euro itself."
"Consequently, we expect the EUR/CZK pair to trade sideways in the coming months as opposing forces balance each other out."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- Dow Jones futures rise as optimism over a potential US-Iran agreement boosted overall market sentiment.
- US-Iran peace hopes lowered oil prices, easing inflation concerns and reducing expectations for prolonged Fed hawkishness.
- Strong corporate earnings supported market sentiment, with AI-related companies continuing to lead the broader market rally.
Dow Jones futures gain 0.23%, trading near 50,150 during the European hours on Thursday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 rise 0.18% to near 7,400, and the Nasdaq 100 futures advance 0.21% above 28,780.
US stock futures moved higher as investor sentiment improved on optimism over a possible US-Iran agreement. The BBC reported on Wednesday that Iran stated a US proposal aimed at ending the conflict is “still being considered,” despite reports indicating both sides could be approaching a deal.
According to reports, the US presented Iran with a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and ease the American blockade on Iranian ports. Talks concerning Iran’s nuclear program would take place at a later stage, although no final agreement has been finalized yet.
Hopes for peace between the US and Iran sparked a sharp decline in oil prices, helping to ease inflation worries and lowering expectations for an extended hawkish stance from the Federal Reserve (Fed). However, Chicago Fed President Austan Goolsbee warned that inflation has not continued to cool toward the Federal Reserve’s 2% target and has instead accelerated since the conflict started.
During regular US trading on Wednesday, the Dow Jones climbed 1.24%, while the S&P 500 and Nasdaq-100 advanced 1.46% and 2.02%, respectively. Robust corporate earnings continued to support overall market sentiment, especially among AI-linked companies that remained at the center of the rally. Investors are now looking ahead to additional earnings releases on Thursday, including reports from McDonald’s, Gilead Sciences, and Airbnb, among others.
Shares of Disney surged 7.54% after the company posted a strong fiscal second-quarter report that included adjusted EPS of $1.57 and a 7% rise in revenue to $24.9 billion. Uber jumped 8.53% following solid first-quarter earnings that exceeded expectations and upbeat guidance for the second quarter, significantly outperforming the technology sector’s 2.64% gain.
Dow Jones FAQs
The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.
Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.
Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.
There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.
- Gold holds steady near a more than two-week top as a combination of factors undermines the USD.
- Hopes for a US-Iran peace deal and fading Fed rate hike bets keep the USD bulls on the back foot.
- The lack of follow-through buying, however, warrants caution before positioning for further upside.
Gold (XAU/USD) is seen building on its solid rebound from the $4,500 mark, or over a one-month low touched earlier this week, and gaining positive traction for the third straight day on Thursday. The positive momentum extends through the first half of the European session and lifts the commodity to an over two-week high, around the $4,750 level. Hopes for a US-Iran peace deal, along with fading hawkish US Federal Reserve (Fed) expectations, keep the US Dollar (USD) bulls on the defensive and continue to act as a tailwind for the precious metal. Bulls, however, might opt to wait for further clarity over a potential US-Iran peace deal before positioning for further gains.
US President Donald Trump struck an optimistic tone on Wednesday, saying that negotiations had made progress over the past 24 hours and that an agreement with Iran was very possible. Adding to this, the news outlet Axios reported that the US and Iran are very close to finalizing a deal. However, Iran's state-linked media pushed back against claims of a broader agreement and said, citing information from the Iranian Students' News Agency, that the US proposal includes provisions that Tehran has already rejected in recent days.
Adding to this, the BBC reported that Iran is reviewing a one-page memorandum of understanding with the US that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports. Furthermore, Trump threatened that Iran would be bombed “at a much higher level and intensity than it was before” if it didn’t agree to a peace deal. Moreover, investors reassess the likelihood of a deal amid major disagreements over Iran's nuclear program. This, in turn, is seen as a key factor acting as a headwind for the Gold.
On the economic data front, the US ADP report showed on Wednesday that private-sector employment grew by 109K in April, compared to a downwardly revised reading of 61K in the previous month. This better-than-expected print indicates continued, though uneven, strength in the US labor market. Moreover, the CME Group's CME FedWatch Tool suggests that traders are still pricing in the possibility of a Fed rate hike by the end of this year. This helps limit further USD losses and contributes to capping gains for the non-yielding Gold.
Traders now look to the US Weekly Initial Jobless Claims data, which, along with speeches from influential FOMC members, might provide some impetus later during the North American session. The focus, however, will remain glued to the closely-watched US Nonfarm Payrolls (NFP) report, due on Friday. Apart from this, further developments surrounding the Middle East crisis might continue to infuse some volatility across the global financial markets and help traders to determine the next leg of a directional move for the Gold price.
XAU/USD 1-hour chart
Gold looks to build on strength above 61.8% Fibo. amid bullish technical setup
Wednesday's breakout through the 200-hour Exponential Moving Average (EMA) and a subsequent strength beyond the 38.2% Fibonacci retracement level of the downfall from the April swing high were seen as key triggers for the XAU/USD bulls. The precious metal is also holding above the 50% retracement level, reinforcing the constructive bias.
Meanwhile, the Relative Strength Index (RSI) around 65 keeps the tone positive but shy of overbought territory, indicating room for another push higher while leaving the metal vulnerable to a corrective pullback if buyers lose traction. Moreover, the Moving Average Convergence Divergence (MACD) remains below the zero line with a negative reading, hinting that upside momentum is not yet fully convincing.
On the topside, immediate resistance is seen at the 61.8% Fibonacci retracement at $4,741.58, followed by a higher barrier at the 78.6% level near $4,807.61, with the recent cycle high around $4,891.72 capping the broader bullish scenario. On the downside, initial support is located at the 50% retracement at $4,695.20, ahead of a more substantial demand band around the 38.2% level at $4,648.82 and the 200-EMA at $4,634.46; a sustained break below this area would expose the 23.6% retracement at $4,591.44 and, if selling accelerates, the swing low near $4,498.68.
(The technical analysis of this story was written with the help of an AI tool.)
Interest rates FAQs
Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.
Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.
Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.
The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.
BNY’s Geoff Yu highlights growing fiscal stress in Central and Eastern Europe (CEE) as a key driver for regional FX and carry trades. Romania faces acute fiscal and external imbalances, while Poland and Hungary show better current account and Foreign Direct Investment (FDI) dynamics. Yu expects further fiscal divergence to be reflected in yield curves and currency holdings across CEE.
Romania, Poland, Hungary under fiscal lens
"In the near term, the fiscal stress points with the greatest FX implications are in Central and Eastern Europe (CEE). Despite our hopes for a more assertive approach, no regional central bank appears willing to push for higher rates. As in the U.K., the inflation angle will likely prove transitory, and fiscal is the bigger threat to inflation expectations."
"The recent collapse of the Romanian government points to significant short-term fiscal uncertainty, which is potentially destabilizing for a currency with materially low real rates and very high twin deficits – both nearly hit 8% of GDP as of Q4 2025."
"Poland and Hungary’s fiscal trajectories are also approaching high single-digit percentages of GDP. However, both have seen notable current account improvements over the past two years, and inbound FDI and current transfers – particularly for Hungary post-election – provide a better sustainability profile."
"External circumstances have determined common near-term inflation pressures in the region. However, further fiscal divergence is expected, which should be reflected in currency flow and holdings."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- USD/CHF slides to near 0.7775 as the US Dollar comes under pressure.
- According to Al-Hadath, there could be a breakthrough regarding the Hormuz reopening in the coming hours.
- Investors await the US NFP data for fresh cues on the Fed's monetary policy outlook.
The USD/CHF pair is down around 0.15% to near 0.7775 during the European trading session on Thursday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) declines due to growing hopes that the United States (US) and Iran would reach a peace deal soon.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.18% | -0.09% | -0.02% | -0.29% | -0.28% | -0.13% | |
| EUR | 0.14% | -0.05% | 0.06% | 0.13% | -0.15% | -0.14% | 0.01% | |
| GBP | 0.18% | 0.05% | 0.09% | 0.16% | -0.11% | -0.10% | 0.06% | |
| JPY | 0.09% | -0.06% | -0.09% | 0.06% | -0.21% | -0.24% | -0.03% | |
| CAD | 0.02% | -0.13% | -0.16% | -0.06% | -0.27% | -0.26% | -0.11% | |
| AUD | 0.29% | 0.15% | 0.11% | 0.21% | 0.27% | 0.00% | 0.17% | |
| NZD | 0.28% | 0.14% | 0.10% | 0.24% | 0.26% | -0.01% | 0.16% | |
| CHF | 0.13% | -0.01% | -0.06% | 0.03% | 0.11% | -0.17% | -0.16% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% lower at around 97.90.
In the European trade, Al-Hadath, sister channel to Al Arabiya, stated on X, that intense communications between the US and Iran are ongoing to gradually reopen the Strait of Hormuz, a vital passage to almost 20% of global energy supply.
The post also stated that there could be a “breakthrough in US-Iran peace talks in coming hours for ships stranded in the Strait”.
The US-Iran optimism is unfavorable for the US Dollar, as it diminishes the Greenback's safe-haven demand and eases fears of elevated inflation expectations, a scenario that allows traders to pare hawkish Federal Reserve (Fed) bets.
Meanwhile, the Swiss Franc (CHF) reflects a mixed performance against its major currency peers, with investors seeking fresh cues regarding the Swiss National Bank's (SNB) monetary policy outlook.
Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data for April, which will be released on Friday.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Deutsche Bank’s Early Morning Reid notes that US equities extended gains as stagflation fears eased with lower Oil prices and AI-related optimism. The S&P 500, Nasdaq and Mag 7 all hit new highs, supported by strong performance from chipmakers such as AMD, while US high-yield credit spreads tightened to their narrowest level in three months.
US equities surge on AI and oil drop
"With fears of a stagflationary shock easing again, multiple equity indices like the S&P 500 (+1.46%), Nasdaq (+2.02%) and the Mag 7 (+2.00%) roared to new highs."
"Moreover, continued momentum from the AI trade helped propel risk assets to new highs as well, with the S&P 500 (+1.46%) at another record."
"Within the rally, chipmakers continued to outperform, driven by strong earnings from AMD (+18.61%) after it reported strong demand for AI agents."
"So this powered the Philly semiconductor index up +4.48%, extending its YTD gain to 62%."
"The positive mood was also visible in other risk assets, with US HY credit spreads tightening by 4bp to their narrowest level in three months."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
According to a post from Al-Hadath, a sister channel to Al Arabiya, on X, sources have stated that intense communications are ongoing to gradually reopen the Strait of Hormuz, a vital passage to almost 20% of the global energy supply.
Additional comments
Reaching understandings regarding easing the blockade in exchange for the gradual opening of the Strait of Hormuz.
The coming hours will witness a breakthrough for the situation of the ships stranded in the strait.
Market reaction
Investors seem to be responding positively to headlines regarding the reopening of the Hormuz.
WTI Oil Price
The WTI Oil price slides over 3% to near $90.00, following news of Hormuz' gradual reopening.
US Dollar Index
The US Dollar Index (DXY) has declined slightly to near 97.90 after the headlines.
S&P 500 futures
S&P 500 futures extend their rally, rising 0.15% to near 7,375.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
- The Euro ignored strong German data as traders awaited the upcoming Eurozone Retail Sales release.
- Germany’s Factory Orders rose 5.0% MoM and 6.3% YoY in March, signaling improving manufacturing activity.
- The Japanese Yen remains firm amid speculation that Japanese authorities may intervene in the currency market.
EUR/JPY remains flat after experiencing volatility, hovering around 183.70 during the early European hours on Thursday. The currency cross remains subdued as the Euro (EUR) failed to gain support from the strong German data. Traders shift their focus toward Eurozone Retail Sales data due later in the day.
Germany’s Factory Orders rose sharply in March, signaling continued improvement in the country’s manufacturing sector. On a monthly basis, orders for goods produced in Germany increased 5.0% in March following a revised 1.4% rise in February. The reading comfortably exceeded market expectations for a 1.0% increase. Factory Orders surged by 6.3% year-over-year (YoY) in March, as against the previous rise of 3.5%.
Meanwhile, the EUR/JPY cross remains under pressure as the Japanese Yen (JPY) stays firm after strengthening on Wednesday amid speculation that Japanese authorities may have intervened in the currency market.
Japan’s top foreign exchange official, Atsushi Mimura, stated on Thursday that authorities stand ready to take action against speculative moves in the FX market. However, Mimura refrained from commenting on possible intervention or specific currency levels.
The Bank of Japan’s (BoJ) March Meeting Minutes, released on Thursday, showed board members discussing the monetary policy outlook. Several policymakers viewed maintaining the policy rate at 0.75% as appropriate. Members also voiced concerns about a potential rebound in inflation fueled by higher oil prices, while one policymaker suggested the central bank should soon adjust its deeply negative real interest rates.
Bank of Japan FAQs
The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%.
The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance.
The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance.
A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
