Forex News
The Bank of Mexico (Banxico) Governor Victoria Rodriguez Ceja said in an interview with El Financiero that the Mexican central bank has been considering rate cuts since September.
Last week, Banxico reduced interest rates by 25 basis points, unexpectedly, from 6.50% to 6.25% on a 3-2 vote split, with Deputy Governors Galia Borja and Jonathan Heath opting to hold rates, as inflation has continued to rise, though it remains within the 3% plus or minus 1% range.
Regarding the exchange rate, she added that there is still an appreciation, compared to the average of the USD/MXN exchange rate held in 2025, adding that “The importance of exchange rate behavior under our free-floating regime lies in its potential impact on inflation. And we know that the pass-through of exchange rate fluctuations to consumer prices in Mexico is small. This is even more noticeable in an environment of slack.”
She added that going forward, “maintaining the rate at its current level – 6.25% – for an extended period will support the convergence of inflation to the target and will be adequate to address external macroeconomic challenges.”
Banxico FAQs
The Bank of Mexico, also known as Banxico, is the country’s central bank. Its mission is to preserve the value of Mexico’s currency, the Mexican Peso (MXN), and to set the monetary policy. To this end, its main objective is to maintain low and stable inflation within target levels – at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%.
The main tool of the Banxico to guide monetary policy is by setting interest rates. When inflation is above target, the bank will attempt to tame it by raising rates, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN. The rate differential with the USD, or how the Banxico is expected to set interest rates compared with the US Federal Reserve (Fed), is a key factor.
Banxico meets eight times a year, and its monetary policy is greatly influenced by decisions of the US Federal Reserve (Fed). Therefore, the central bank’s decision-making committee usually gathers a week after the Fed. In doing so, Banxico reacts and sometimes anticipates monetary policy measures set by the Federal Reserve. For example, after the Covid-19 pandemic, before the Fed raised rates, Banxico did it first in an attempt to diminish the chances of a substantial depreciation of the Mexican Peso (MXN) and to prevent capital outflows that could destabilize the country.
- Gold gains nearly 1% above $4,100 as US Dollar weakness accelerates.
- WTI plunges nearly 6% while December Fed hike odds reach 84%.
- China's central bank adds 25.8 metric tons to Gold reserves ahead of US CPI.
Gold (XAU/USD) price rises over 1.50% above $4,130 on Monday as the Greenback weakens, even though last Friday’s stellar US jobs data triggered a modest hawkish repricing, with markets increasing bets on a Federal Reserve (Fed) rate hike in December.
XAU/USD advances as Oil plummets, weighing on the USD despite rising Fed tightening speculation
US equities are recovering, reflecting a risk-on mood, in part because US President Donald Trump said it's “highly unlikely” he will order further strikes on Iran. Consequently, West Texas Intermediate (WTI), the US Oil benchmark, tumbled nearly 6% to $85.00, dragging the Greenback lower due to its positive correlation.
As of writing, reports emerged that US-Iran nuclear talks had been revived. Al-Arabiya, citing sources, reported that a Qatar-Pakistani proposal would allow Iran to enrich uranium to 3.67%, with Washington reportedly agreeing to the terms and Tehran accepting the proposal.
The US Dollar Index (DXY), which tracks the performance of the buck’s value against its peers, is down 0.46% to 101.81. On the other hand, the US 10-year Treasury yield rises two basis points to 4.889% as traders begin to price in further tightening after last Friday’s jobs report.
Nonfarm Payrolls crushed estimates, pushing the Unemployment Rate down from 4.2% to 4.1%. The CME FedWatch Tool shows that the odds of a December rate increase are 84%, up from last Friday’s 76%.
Due to its non-yielding nature, Gold usually fares badly amid high interest rate scenarios, but remains supported by central bank buying, as the People’s Bank of China (PBoC) added nearly 25.8 metric tons of the precious metal to its reserves in October, its largest monthly purchase in three years, according to the World Gold Council.
Federal Reserve (Fed) officials crossed the wires. Richmond Fed President Thomas Barkin commented that there’s no base case (in rates) for December, adding that the risk lies on the inflation side of the mandate.
Earlier, Chicago Fed President Austan Goolsbee was hawkish, saying that services inflation is beginning to “pick up,” that it has become a “big problem,” and that the Fed has to come to terms with failure on inflation.
Eyes shift to the release of the US Consumer Price Index (CPI) on Tuesday, which is expected to rise from 3.7% to 3.9% YoY in October. Core CPI is forecast to rise from 2.6% to 2.8% YoY.
XAU/USD technical outlook: Gold struggles at $4,100 and retreats
Gold price begins the week on a positive note, but it remains below last Thursday’s high of $4,146. Price action shows a modest jump, but momentum suggests that further consolidation lies ahead, with the Relative Strength Index (RSI) bracing for the 50-neutral level.
For a bullish continuation, XAU/USD must clear the confluence of the 100- and 50-day Simple Moving Averages (SMAs), at $4,191 and $4,201, respectively. Once hurdled, the next stop is the psychological $4,300.
On the downside, sellers must push Gold below $4,100, then $4,000. Once cleared, the next area of interest would be the November 4 daily low at $3,919, followed by the October 30 year-to-date low at $3,879.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
The US Dollar (USD) has partially faded Friday’s strong advance, coming under fresh downside pressure following reignited speculation over a probable US-Iran agreement, which in turn weighed heavily on crude oil prices.
The US Dollar Index (DXY) has started the week on the back foot, returning to the sub-102.00 region amid a slight decline in US Treasury yields across the curve, while investors remained cautious ahead of the release of US inflation data. The NFIB Business Optimism Index is due in the first turn ahead of the ADP Employment Change Weekly, the Inflation Rate, and the API’s weekly report on US crude oil inventories.
EUR/USD has left behind two daily drops in a row, regaining upside traction and challenging the key 1.1200 barrier. The speeches by the ECB’s Cipollone and Lane are due in an otherwise empty domestic docket.
GBP/USD has traded with marked gains along with the rest of its risk-linked peers, reclaiming the area beyond 1.3400 the figure after two straight daily losses. The BRC Retail Sales Monitor is due, followed by the speeches by the BoE’s Lombardelli and Pill.
USD/JPY has kickstarted the week on the defensive, breaking below the 158.00 barrier while extending the multi-day consolidative theme for yet another day. Household Spending data are due alongside Current Account results, Bank Lending prints, and the Eco Watchers Survey.
AUD/USD has set aside two consecutive daily pullbacks, retaking the 0.6900 mark and beyond on the back of the strong improvement in the sentiment surrounding the risk complex. The Westpac Consumer Confidence gauge and the NAB Business Confidence are due next in Oz.
Front-month WTI futures (December contract) have resumed their decline, reversing two daily advances in a row and flirting with the area of multi-week troughs below the $87.00 mark per barrel amid fresh optimism around the US-Iran-Hormuz conflict.
Gold has climbed to two-day highs north of the $4,100 mark per troy ounce following the US Dollar’s renewed offered stance, declining US Treasury yields across the curve and another negative day of crude oil prices.
Richmond Federal Reserve (Fed) President Tom Barkin said that “government, not consumer debt is at a historic level.” He added that there’s “no base case” regarding interest rates for the December meeting. The statements were made during a speech at the Greater Greer Chamber of Commerce in South Carolina.
Barkin suggested that the “current policy rate [is] likely around or slightly below neutral” and that the last job report was healthy, but that he stills see a low-hire, low-fire environment.
Key highlights:
Government debt, not consumer debt is at historic level
No base case for December meeting
Hard to know impact of elections on the economy
Current policy rate likely around or slightly below neutral
Would an advantage if each Fed policy meeting were set to include two full months of economic data
Last jobs report was healthy but still see firms in low-hire, low-fire environment.
I do not think ballot measures approved in recent elections will impede data center expansion, firms will find somewhere to build
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.56% | -0.55% | -0.30% | 0.07% | -0.69% | -1.45% | 0.04% | |
| EUR | 0.56% | 0.01% | 0.27% | 0.63% | -0.14% | -0.89% | 0.60% | |
| GBP | 0.55% | -0.01% | 0.28% | 0.61% | -0.15% | -0.90% | 0.59% | |
| JPY | 0.30% | -0.27% | -0.28% | 0.35% | -0.41% | -1.17% | 0.32% | |
| CAD | -0.07% | -0.63% | -0.61% | -0.35% | -0.76% | -1.51% | -0.02% | |
| AUD | 0.69% | 0.14% | 0.15% | 0.41% | 0.76% | -0.75% | 0.74% | |
| NZD | 1.45% | 0.89% | 0.90% | 1.17% | 1.51% | 0.75% | 1.50% | |
| CHF | -0.04% | -0.60% | -0.59% | -0.32% | 0.02% | -0.74% | -1.50% |
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).
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named 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 during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
- USD/CAD reverses earlier losses as the Canadian Dollar comes under pressure from falling Oil prices.
- Weak Canadian employment data raises doubts over the BoC's ability to tighten further.
- Strong US jobs data keeps December Fed rate hike expectations firmly in place.
USD/CAD attracts buyers during Monday’s American trading hours after spending much of the day in negative territory. The Canadian Dollar (CAD) faces a double headwind as Oil prices fall and the Bank of Canada (BoC) grapples with a difficult balancing act between containing inflation and supporting a weakening labour market.
At the time of writing, USD/CAD trades around 1.4131 after hitting an intraday low of 1.4077. The pair rebounds even as the US Dollar Index (DXY) falls 0.45% on the day.
West Texas Intermediate (WTI) closed roughly 12% lower last week and is down more than 3% on the day. Canada is a major crude exporter, leaving the Loonie sensitive to Oil price movements.
Democrats’ victory in the US midterm elections helped drive last week’s sell-off in crude, as traders bet that Congress would press President Donald Trump to end the war with Iran. Oil extends its decline on Monday after Trump played down the likelihood of renewed strikes. Qatar’s prime minister is in Washington, DC, for talks with Trump and Vice President JD Vance on efforts to end the conflict.
Even after the drop, crude remains above pre-war levels, keeping inflation risks tilted to the upside. Prices could rise again if talks stall or tensions escalate.
A third month of job losses complicates the BoC’s next move
Canada lost jobs for a third straight month in October, according to data released by Statistics Canada on Friday. Employment fell by 4.7K against expectations for a gain of 13.6K, following declines of 68.3K in September and 41.7K in August. The Unemployment Rate rose to 6.7% from 6.5%.
The BoC raised its policy rate by 25 basis points to 2.50% in October and signalled that further increases might be needed to keep higher energy costs from feeding into broader inflation. The weak jobs report makes that call harder. Persistent inflation keeps another hike in play, but a softer labour market gives policymakers a reason to wait.
A hawkish Fed poses another hurdle for the Canadian Dollar
US Nonfarm Payrolls (NFP) rose by 165K in October, more than double the 65K forecast, while the Unemployment Rate edged down to 4.1%. A firm labour market gives the Federal Reserve (Fed) room to raise rates as it works to bring inflation back to 2%. Traders price in roughly an 80% chance of a December hike, according to the CME FedWatch Tool.
Richmond Fed President Thomas Barkin said on Monday that the US economy was “remarkably stable” and that the direction of monetary policy was “straightforward,” though it was best to move “with care.” He added that the main risk to the Fed’s mandate was on the inflation side.
Tuesday’s US Consumer Price Index (CPI) could shift expectations for a December Fed rate hike and drive the US Dollar’s next move. A hotter-than-expected reading could strengthen the case for another hike and lift the US Dollar, while a softer print could help the Canadian Dollar regain ground.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.55% | -0.53% | -0.28% | 0.05% | -0.71% | -1.50% | 0.05% | |
| EUR | 0.55% | 0.02% | 0.27% | 0.59% | -0.16% | -0.92% | 0.60% | |
| GBP | 0.53% | -0.02% | 0.25% | 0.57% | -0.19% | -0.95% | 0.57% | |
| JPY | 0.28% | -0.27% | -0.25% | 0.32% | -0.43% | -1.20% | 0.33% | |
| CAD | -0.05% | -0.59% | -0.57% | -0.32% | -0.75% | -1.51% | 0.00% | |
| AUD | 0.71% | 0.16% | 0.19% | 0.43% | 0.75% | -0.76% | 0.76% | |
| NZD | 1.50% | 0.92% | 0.95% | 1.20% | 1.51% | 0.76% | 1.54% | |
| CHF | -0.05% | -0.60% | -0.57% | -0.33% | -0.01% | -0.76% | -1.54% |
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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
The Bank of England (BoE) Governor Andrew Bailey speaks at the Swiss Institute of International Studies SIAF, Zurich, Switzerland. He said that “UK economic activity is proving more resilient than expected, partly due to AI investment, particularly in business services.”
Bailey added that AI, digital technology and robotics have the potential to raise “sustainable economic growth,” while adding that the “AI asset price bubble poses clear financial stability risks.”
Key highlights:
UK economic activity is proving more resilient than expected, partly due to AI investment, particularly in business services.
AI, digital technology and robotics have potential to raise sustainable economic growth through higher productivity.
Growing signs of beginnings of positive supply shock from AI, investment
AI asset price bubble poses clear financial stability risks
AI returns may be strong but markets could overvalue them or returns could take longer than expected to materialize
Frontier AI has increased cyberattack risks, more extensive model testing is needed before and after release
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve ‘price stability’, or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects – a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets – usually government or AAA-rated corporate bonds – from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
- The Australian Dollar gains 0.75% on Monday, supported by a broad-based decline in the US Dollar.
- China's consumer inflation slows more than expected in October, while producer prices surprise to the upside.
- Strong US employment data reinforce expectations of a December rate hike, ahead of key inflation reports.
AUD/USD rebounds sharply on Monday, gaining 0.75% to trade around 0.6915 at the time of writing. The Australian Dollar (AUD) benefits from broad-based weakness in the US Dollar (USD), despite mixed economic data from China and elevated expectations of further monetary tightening in the United States (US).
The latest data from China, Australia's largest trading partner, show that the Consumer Price Index (CPI) rose 0.7% YoY in October, slowing from 0.9% in September and falling short of market expectations of 0.8%. On a monthly basis, consumer prices remained unchanged, following a 0.2% increase in the previous month, in line with forecasts. Meanwhile, China's Producer Price Index (PPI) accelerated to 5.7% YoY in October, compared with 5% in September and expectations of 5.3%. The stronger-than-expected increase suggests persistent inflationary pressures at the production level, despite the slowdown in consumer prices.
These figures paint a mixed picture of the Chinese economy, whose outlook remains particularly important for the Australian Dollar due to the close trade ties between the two countries. However, US Dollar weakness appears to dominate market sentiment on Monday, allowing AUD/USD to maintain its bullish momentum.
The US Dollar Index (DXY), which measures the Greenback's performance against a basket of six major currencies, falls 0.44% on Monday to trade around 101.85, despite growing expectations of an interest rate hike by the Federal Reserve (Fed).
According to the CME FedWatch tool, markets now price in nearly an 80% chance of a 25-basis-point (bps) rate hike at the December Fed meeting. These expectations reflect the resilience of the US economy and the Fed's commitment to bringing inflation sustainably back toward its 2% target.
The latest US employment figures reinforce this outlook. Nonfarm Payrolls (NFP) increased by 165K in October, significantly exceeding expectations of 65K and improving from September's 60K reading. Meanwhile, the Unemployment Rate declined to 4.1%, compared with forecasts of 4.2%.
Investors now turn their attention to Tuesday's US Consumer Price Index report, followed by Friday's Producer Price Index release. Stronger-than-expected inflation figures could reinforce expectations of a December rate hike and support a rebound in the US Dollar, potentially weighing on AUD/USD.
On the geopolitical front, US President Donald Trump played down the likelihood of renewed strikes against Iran, while Qatar's Prime Minister visits Washington for discussions aimed at ending the conflict. These developments help ease concerns in energy markets, with West Texas Intermediate (WTI) Oil falling more than 3% on Monday to trade around $86.85 at the time of press.
Against this backdrop, the near-term direction of AUD/USD will largely depend on US Dollar dynamics and upcoming US inflation data, which could reshape market expectations for the Fed's next monetary policy decision.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.59% | -0.56% | -0.35% | 0.02% | -0.74% | -1.42% | 0.06% | |
| EUR | 0.59% | 0.03% | 0.28% | 0.60% | -0.15% | -0.84% | 0.65% | |
| GBP | 0.56% | -0.03% | 0.23% | 0.57% | -0.18% | -0.87% | 0.62% | |
| JPY | 0.35% | -0.28% | -0.23% | 0.34% | -0.41% | -1.10% | 0.39% | |
| CAD | -0.02% | -0.60% | -0.57% | -0.34% | -0.76% | -1.44% | 0.04% | |
| AUD | 0.74% | 0.15% | 0.18% | 0.41% | 0.76% | -0.69% | 0.80% | |
| NZD | 1.42% | 0.84% | 0.87% | 1.10% | 1.44% | 0.69% | 1.50% | |
| CHF | -0.06% | -0.65% | -0.62% | -0.39% | -0.04% | -0.80% | -1.50% |
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 Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Richmond Federal Reserve (Fed) President Thomas Barkin said on Monday that the risks “lie on the inflation side” of the Fed’s dual mandate, adding that the direction of monetary policy is “straightforward” but that they should move “with care.”
In remarks prepared for delivery to the Greater Greer Chamber of Commerce in South Carolina, Barkin added that the economy in the US is “remarkably stable,” that demand, along with broad-based cost increases, exerts pressure on inflation, and that firms are saying that they’re “trying to pass on higher costs.”
Key highlights:
Risk lies on the inflation side of the us central bank's mandate
Direction of monetary policy is ‘straightforward; but best to move policy 'with care’
US economy is ‘remarkably stable’
Resilient demand alongside broad-based cost increases putting upward pressure on prices.
Firms say they will be trying to pass on higher costs
Businesses are performing well, with 'remarkable' earnings:
Bankers say loan pipelines are healthy, demand extending well beyond artificial intelligence
Layoffs remain muted
I'm hearing reports of broad-based cost pressures.
Consumer sentiment is 'bleak. But consumers continue to spend, supported by resilient job market
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.54% | -0.52% | -0.30% | 0.06% | -0.71% | -1.34% | 0.12% | |
| EUR | 0.54% | 0.02% | 0.27% | 0.60% | -0.17% | -0.80% | 0.66% | |
| GBP | 0.52% | -0.02% | 0.25% | 0.57% | -0.20% | -0.83% | 0.64% | |
| JPY | 0.30% | -0.27% | -0.25% | 0.35% | -0.42% | -1.05% | 0.42% | |
| CAD | -0.06% | -0.60% | -0.57% | -0.35% | -0.77% | -1.39% | 0.07% | |
| AUD | 0.71% | 0.17% | 0.20% | 0.42% | 0.77% | -0.63% | 0.84% | |
| NZD | 1.34% | 0.80% | 0.83% | 1.05% | 1.39% | 0.63% | 1.48% | |
| CHF | -0.12% | -0.66% | -0.64% | -0.42% | -0.07% | -0.84% | -1.48% |
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).
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named 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 during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
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.
