Forex News
- The US President Donald Trump says Iran can no longer break agreements.
- Donald Trump says he wants to avoid targeting power plants and bridges.
- Trump's comments ease fears of an immediate escalation in the Middle East.
In an interview with Fox News, cited by Reuters, US President Donald Trump said that Pickaxe Mountain, an Iranian underground nuclear site, is not a big problem, adding that the United States (US) is now in a very strong position with Iran.
The US President also said that he would like to avoid targeting critical infrastructure such as power plants and bridges. These remarks may reassure investors that Washington is seeking to avoid a broader regional conflict.
At the same time, Trump maintained a hardline stance on Iran, saying that Iran can not break deals anymore. The comments suggest that Washington intends to maintain diplomatic pressure on Tehran while signaling a preference for measures that reduce the risk of a direct military confrontation.
Key takeaways
Pickaxe Mountain is not a big problem.
We have a very strong position with Iran now.
Would like to avoid attacking power plants, bridges.
I'm not looking to do that.
We cannot have Iran break deals anymore.
Market reaction
The US Dollar (USD) weakens following these comments, with the US Dollar Index (DXY) giving up its earlier gains to trade flat on the day around 101.53 at the time of writing. At the same time, Oil prices remain under pressure, with West Texas Intermediate (WTI) US Oil losing 1.24% on the day to trade around $80.20 at the time of press.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.01% | -0.08% | 0.08% | -0.09% | 0.30% | 0.01% | 0.01% | |
| EUR | -0.01% | -0.08% | 0.06% | -0.12% | 0.28% | 0.02% | 0.00% | |
| GBP | 0.08% | 0.08% | 0.15% | 0.00% | 0.39% | 0.11% | 0.11% | |
| JPY | -0.08% | -0.06% | -0.15% | -0.17% | 0.21% | -0.05% | -0.04% | |
| CAD | 0.09% | 0.12% | -0.01% | 0.17% | 0.40% | 0.10% | 0.12% | |
| AUD | -0.30% | -0.28% | -0.39% | -0.21% | -0.40% | -0.25% | -0.28% | |
| NZD | -0.01% | -0.02% | -0.11% | 0.05% | -0.10% | 0.25% | 0.01% | |
| CHF | -0.01% | -0.00% | -0.11% | 0.04% | -0.12% | 0.28% | -0.01% |
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).
ING strategists Warren Patterson and Ewa Manthey highlight that Copper has extended its July gains as easing Middle East tensions lift sentiment. They point to tight physical conditions, low inventories and firm Chinese import demand as key supports. They remain constructive, expecting these supply dynamics to keep Copper prices well supported if Chinese demand holds up.
Tight market and China demand support prices
"In base metals, copper also pushed higher, extending its strong July performance as easing Middle East tensions lifted broader market sentiment."
"The market continues to be supported by tight physical conditions, with inventories remaining low and Chinese demand for imported copper keeping premiums elevated."
"Ongoing uncertainty over potential US copper import tariffs is also providing additional support to the market."
"We remain constructive on copper, with tight supply conditions and low inventories likely to keep prices well supported, particularly if demand in China continues to hold up."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- Gold falls as a firmer US Dollar outweighs support from declining Oil prices.
- Traders await the Fed interest rate decision on Wednesday, with markets pricing a 35% chance of a rate hike.
- XAU/USD approaches $4,000 support, with RSI on the daily chart holding below the neutral 50 level.
Gold (XAU/USD) trades on the back foot on Tuesday, pressured by a firmer US Dollar (USD), even as Oil prices extend their pullback on hopes of an end to the US-Iran war. At the time of writing, XAU/USD trades around $4,034, down 1.0% on the day, after failing to sustain gains above $4,100 on Monday.
US President Donald Trump said on Monday that the two sides were having “good talks” and that there was a “good chance something will happen,” but warned that military action could resume if negotiations fail. Iran denied holding direct talks with the United States.
Meanwhile, Oman presented Iran with a proposal for the joint management of the Strait of Hormuz through “voluntary fees,” under which Iran would not have sole control of the key shipping route.
Oil prices have erased all the gains recorded last week, with West Texas Intermediate (WTI) trading around $80.15, extending its decline for a third consecutive day. Despite the sharp pullback, Oil prices remain elevated and continue to fuel inflation concerns.
While the US-Iran war stays at the forefront, attention is also turning to the Federal Reserve’s (Fed) interest-rate decision on Wednesday, which carries an unusually high risk of a surprise rate hike.
The Fed is widely expected to keep the federal funds rate unchanged at 3.50%-3.75%. However, according to the CME FedWatch Tool, traders price in around a 35% chance of a 25-basis-point (bps) increase.
Hawkish bets have strengthened since Fed Chair Kevin Warsh led his first policy meeting in June. Warsh has repeatedly stressed the need to restore price stability as inflation runs above the 2% target.
Will $4,000 hold or break?
For Gold, the upcoming Fed decision could prove pivotal in determining whether the $4,000 support holds or gives way to a deeper corrective decline.
A surprise rate hike would put Gold at risk of falling below $4,000. Higher borrowing costs typically weigh on non-yielding assets while boosting the US Dollar and US Treasury yields.
The base case is a hawkish hold, with the Fed leaving rates unchanged while keeping the door open to an increase later this year as energy-driven inflation risks persist without a lasting resolution to the US-Iran war. Such an outcome could also leave Gold vulnerable to a break below $4,000.
Meanwhile, if the Fed adopts a less hawkish stance and views the energy shock as temporary, traders may scale back rate-hike bets. That could weaken the US Dollar and help Gold hold above the $4,000 support.
Technical analysis: Bears retain control below middle Bollinger Band
On the daily chart, XAU/USD maintains a mildly bearish near-term bias as it trades below the 20-day Simple Moving Average (SMA) at around $4,072, which also represents the middle Bollinger Band.
The band structure shows spot trading in the lower half of the envelope, while the Relative Strength Index (RSI) at 43.42 stays below the neutral 50 level, suggesting that recovery attempts lack strong momentum within a still‑pressured trend backdrop flagged by an Average Directional Index (ADX) near 32, which signals persistent but moderating trend strength.
On the topside, initial resistance emerges at the Bollinger middle band and 20‑day SMA near $4,072, followed by the upper band around $4,179, where sellers could reassert control if tested.
On the downside, immediate support is seen at the psychological $4,000 handle, ahead of the lower Bollinger band near $3,964. A daily close below this latter floor would expose deeper losses and reinforce the prevailing bearish bias.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
DBS Group Research economist Eugene Leow notes that investors remain cautious on upcoming FOMC decisions, with markets pricing a 34% chance of a July hike and nearly full odds for September. He highlights Taylor Rule signals for tightening, persistent inflation concerns and Oil risk premia, and outlines contrasting yield-curve reactions under Fed hold versus hike scenarios for US Treasuries.
FOMC risks for US yield curve
"Investors remain highly cautious about the upcoming FOMC meeting. The pause in US-Iran hostilities did prompt a correction lower in crude oil prices but the market is still assigning 34% odds that the Fed would hike this week and close to 100% odds for the meeting in September."
"First, our version of the Taylor Rule model points to Fed tightening. In the era of reduced forward guidance, data probably takes on greater significance."
"Second, the market is still concerned about inflation (there was a bit of a pop in 2Y breakeven over the past few trading days), the recent decline in crude prices and mild June CPI figures notwithstanding."
"The narrative around the Middle East conflicts shifts quickly and it may just make sense to assume that there will be a bit of a premium on oil prices and thus inflation for the foreseeable future."
"In the event of a Fed hold, we suspect that the curve may steepen modestly, with upward pressure more apparent in the long-end (10Y yields may grind towards the 4.7-4.8% range. Frontend yields are not likely to give up on Fed tightening that easily. If the Fed surprises with a hike, we suspect that long-end USTs may rally (10Y UST may drift towards 4.5%) on confidence that inflation will come under control amidst a more vigilant Fed."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- EUR/GBP builds on its recovery from a one-year low.
- UK fiscal concerns and monetary policy divergence between the ECB and BoE keep the British Pound on the defensive.
- Traders await the BoE's interest rate decision due on Thursday.
EUR/GBP holds firm on Tuesday, extending its recovery from the more than one-year low touched earlier this month as diverging monetary policy expectations between the European Central Bank (ECB) and the Bank of England (BoE), along with UK fiscal concerns, weigh on the British Pound (GBP). At the time of writing, the cross trades around 0.8550, near a three-week high.
Analysts at OCBC note that sentiment toward the British Pound has turned more cautious, with “some of the recent optimism” now having “faded” as earlier hopes for “greater political stability in the UK are increasingly giving way to concerns over fiscal constraints.” They argue that “this reassessment has further to run, particularly as higher energy prices add to fiscal pressures,” leaving the Pound on a weaker footing. In this context, OCBC reiterates that it “continues to expect EURGBP to recover toward 0.87 over the coming months, in line with our broader view that GBP remains range-bound.”
BoE interest rate decision looms
The central bank can afford to maintain a steady approach as the inflationary impact of higher Oil prices has so far been contained in the UK. Headline inflation fell to a 15-month low of 2.6% in June, while signs of weakness in the labour market provide another reason to keep borrowing costs unchanged.
Inflation risks have not disappeared, particularly with energy prices trading above their pre-war levels. However, most economists surveyed by Reuters expect the BoE to keep interest rates unchanged through the end of the year.
In contrast, the ECB is expected to consider another rate hike as early as September. Against this backdrop, the Euro (EUR) remains favoured against the British Pound.
ECB left interest rates unchanged last week and reiterated that future decisions would depend on incoming economic data, the inflation outlook and the risks surrounding it. Traders now await the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for July, due on Friday.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.10% | 0.11% | -0.13% | 0.36% | 0.07% | 0.04% | |
| EUR | -0.05% | 0.05% | 0.07% | -0.20% | 0.31% | 0.02% | -0.01% | |
| GBP | -0.10% | -0.05% | 0.02% | -0.21% | 0.27% | -0.01% | -0.03% | |
| JPY | -0.11% | -0.07% | -0.02% | -0.25% | 0.24% | -0.05% | -0.06% | |
| CAD | 0.13% | 0.20% | 0.21% | 0.25% | 0.50% | 0.19% | 0.19% | |
| AUD | -0.36% | -0.31% | -0.27% | -0.24% | -0.50% | -0.27% | -0.32% | |
| NZD | -0.07% | -0.02% | 0.01% | 0.05% | -0.19% | 0.27% | -0.01% | |
| CHF | -0.04% | 0.00% | 0.03% | 0.06% | -0.19% | 0.32% | 0.00% |
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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
- The New Zealand Dollar remains under pressure as the US Dollar stays supported ahead of the Federal Reserve's policy meeting.
- Geopolitical tensions continue to drive safe-haven demand and underpin the Greenback.
- Investors remain cautious ahead of the Fed's decision, while expectations of further RBNZ tightening help limit Kiwi losses.
NZD/USD trades around 0.5770 on Tuesday at the time of writing, slightly lower on the day. The New Zealand Dollar (NZD) remains pressured by the firm US Dollar (USD), which continues to benefit from safe-haven demand amid persistent geopolitical tensions.
Markets remain focused on developments in the Middle East. The United States (US) has paused its military campaign against Iran after nearly two weeks of strikes, while US President Donald Trump said that talks with Tehran were progressing and that a diplomatic resolution remained possible. However, optimism has been frayed after reports of drone attacks in Saudi Arabia, Jordan and Iraq. Trump also warned that US strikes could resume if negotiations fail, helping the US Dollar retain its safe-haven appeal.
Investors are nevertheless reluctant to place aggressive bets ahead of the two-day Federal Reserve (Fed) policy meeting, which begins later on Tuesday. The US central bank is widely expected to leave interest rates unchanged on Wednesday, but markets will closely watch the policy statement and Fed Chair Kevin Warsh's press conference for fresh clues on the future path of monetary policy.
Meanwhile, the latest labor market data continue to point to a cooling US employment picture. The Automatic Data Processing (ADP) NER Pulse report showed that private employers added an average of 15K jobs per week over the four weeks ending July 11, down from 16.5K previously. Despite this further moderation in hiring, the US Dollar maintains a bullish tone with the US Dollar Index (DXY) holding close to its yearly highs.
In New Zealand, expectations that the Reserve Bank of New Zealand (RBNZ) could deliver another interest rate hike in September may help limit downside pressure on the New Zealand Dollar against the Greenback.
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | -0.01% | 0.08% | -0.07% | 0.31% | 0.07% | 0.08% | |
| EUR | -0.03% | -0.04% | 0.06% | -0.13% | 0.27% | 0.03% | 0.05% | |
| GBP | 0.00% | 0.04% | 0.09% | -0.05% | 0.32% | 0.08% | 0.11% | |
| JPY | -0.08% | -0.06% | -0.09% | -0.16% | 0.22% | -0.03% | 0.02% | |
| CAD | 0.07% | 0.13% | 0.05% | 0.16% | 0.40% | 0.12% | 0.17% | |
| AUD | -0.31% | -0.27% | -0.32% | -0.22% | -0.40% | -0.23% | -0.23% | |
| NZD | -0.07% | -0.03% | -0.08% | 0.03% | -0.12% | 0.23% | 0.05% | |
| CHF | -0.08% | -0.05% | -0.11% | -0.02% | -0.17% | 0.23% | -0.05% |
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 New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
- US private employers added an average of 15K jobs per week in mid July.
- Job gains lose further momentum, adding to the previous week’s decline.
Private-sector hiring in the US has further cooled in mid-July. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 15K jobs per week in the four weeks ending July 11.
That marks another pullback from the prior reading (16.25K), showing an extra impasse in hiring.
Market reaction
The Greenback creeps higher, extending its multi-day recovery and prompting the US Dollar Index (DXY) to trade closer to its yearly peaks well past the 101.00 hurdle.
Employment FAQs
Labor market conditions are a key element to assess the health of an economy and thus a key driver for currency valuation. High employment, or low unemployment, has positive implications for consumer spending and thus economic growth, boosting the value of the local currency. Moreover, a very tight labor market – a situation in which there is a shortage of workers to fill open positions – can also have implications on inflation levels and thus monetary policy as low labor supply and high demand leads to higher wages.
The pace at which salaries are growing in an economy is key for policymakers. High wage growth means that households have more money to spend, usually leading to price increases in consumer goods. In contrast to more volatile sources of inflation such as energy prices, wage growth is seen as a key component of underlying and persisting inflation as salary increases are unlikely to be undone. Central banks around the world pay close attention to wage growth data when deciding on monetary policy.
The weight that each central bank assigns to labor market conditions depends on its objectives. Some central banks explicitly have mandates related to the labor market beyond controlling inflation levels. The US Federal Reserve (Fed), for example, has the dual mandate of promoting maximum employment and stable prices. Meanwhile, the European Central Bank’s (ECB) sole mandate is to keep inflation under control. Still, and despite whatever mandates they have, labor market conditions are an important factor for policymakers given its significance as a gauge of the health of the economy and their direct relationship to inflation.
- WTI Oil remains depressed near $80 amid hopes of a new round of talks between the US and Iran.
- Analysts from major commercial banks warn that the market might have overreacted to a fragile truce.
- Some analysts affirm that a sustained decline in Oil prices would require free traffic through the Strait of Hormuz.
Crude Oil prices hold at one-week lows on Tuesday, after having depreciated more than 12% from last week's highs. The US benchmark West Texas Intermediate (WTI) barrel remains pinned near the $80 level at the time of writing as investors cling to hopes that the fragile truce in the Middle East will lead to a new round of peace talks. Market analysts, however, warn about the risks of overenthusiasm.
Commodity experts at ING observe that “the oil market continues to sell off heavily,” as US President Donald Trump signals that talks are under way with a “good chance” of a deal. However, they warn that Trump also said that “strikes would resume in the event a deal fails to materialise.”
Traffic through the Strait of Hormuz should resume to sustain lower Crude prices
ING analysts add that for this move to be sustained, "we will need to see a recovery in flows through the strait," reminding that “one would expect that the market will need to continue to price in a large risk premium, given that recent events have demonstrated how quickly a deal can unravel.”
Societe Generale strikes a similarly cautious tone, arguing that “a return to pre-war and early July levels is a big ask without fully-fledged commitment to peace and re-opening of the Strait of Hormuz.” The bank’s commodity analysts estimate that “every month without a lasting resolution adds at least $10/bbl to Brent prices,” while also highlighting that President Trump “warned strikes on Iran would resume if a new ceasefire deal is not reached.”
Past experiences suggest that tensions can re-escalate fast
In the same line, Rabobank points out that while “energy prices have fallen by around $10/bbl from last week,” risks of “a full-scale re-escalation and persistent disruptions to the Strait of Hormuz, and the Bab el-Mandeb Strait, could fuel inflationary pressures in the US.”
Rabobank also stresses that weekend announcements that Trump was “pausing” strikes on Iran “doesn’t mean that Iran has paused strikes against its neighbors,” keeping the geopolitical backdrop fragile.
From a currency perspective, MUFG notes that “the decline in Oil prices yesterday has provided a breather for several Asian currencies, " yet shares concerns about "how quickly Middle East tensions can escalate.”
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Commerzbank’s Michael Pfister notes that reports of the Swiss National Bank (SNB) planning to keep rates unchanged until early 2028, if accurate, clash with still-ambitious market expectations for hikes by 2027. Combined with fresh US tariffs on Switzerland at a time when Swiss exports remain weak, this leaves the Swiss Franc under short-term pressure and delays prospects for a meaningful recovery.
SNB leak and US tariffs weigh
"Rather unusual news emerged yesterday: sources reportedly stated that the Swiss National Bank (SNB) is assuming internally that interest rates will remain unchanged until the end of 2027 and that a shift in interest rate policy will not be considered until early 2028."
"As we have argued on several occasions, the SNB would be ill-advised to hike the key interest rate this year."
"This means there is considerable potential for disappointment if the base rate of 0% is maintained until the end of next year, although it is likely to be some time before this potential materialises."
"As Swiss exports to the US have not yet recovered from last year's slump, this is putting pressure on the franc in the short term."
"For the time being, therefore, the franc continues to face difficulties."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
- The British Pound declines further against the US Dollar amid uncertainty surrounding the Fed’s policy announcement.
- Both the Fed and the BoE are expected to leave interest rates unchanged on Wednesday.
- US President Trump calls for interest rate cuts from the Fed.
The British Pound (GBP) extends its decline against the US Dollar (USD) to near 1.3277 during the European trading session on Tuesday, the lowest level seen in over three weeks. The GBP/USD pair faces selling pressure as the US Dollar rises further, with investors turning cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.06% | 0.11% | -0.12% | 0.35% | 0.09% | 0.03% | |
| EUR | -0.03% | 0.03% | 0.09% | -0.13% | 0.32% | 0.08% | 0.00% | |
| GBP | -0.06% | -0.03% | 0.07% | -0.15% | 0.31% | 0.06% | 0.00% | |
| JPY | -0.11% | -0.09% | -0.07% | -0.23% | 0.24% | -0.01% | -0.05% | |
| CAD | 0.12% | 0.13% | 0.15% | 0.23% | 0.49% | 0.20% | 0.17% | |
| AUD | -0.35% | -0.32% | -0.31% | -0.24% | -0.49% | -0.23% | -0.32% | |
| NZD | -0.09% | -0.08% | -0.06% | 0.00% | -0.20% | 0.23% | -0.05% | |
| CHF | -0.03% | -0.01% | 0.00% | 0.05% | -0.17% | 0.32% | 0.05% |
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).
In European trade, the US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, posts a fresh monthly high at 101.64.
According to the CME FedWatch tool, traders see a 62% chance that the Fed will leave interest rates unchanged in the range of 3.50%-3.75% in the policy announcement on Wednesday. Investors will closely track the policy announcement and Fed Chairman Kevin Warsh’s press conference to know whether the central bank’s decision will lean towards United States (US) President Donald Trump’s economic agenda.
On Monday, US President Trump urged Fed Chair Warsh to lower interest rates, adding that there was a good inflation report recently, costs were falling rapidly, and that prices should drop significantly once the Gulf War ends.
On the Pound Sterling front, investors await the Bank of England’s (BoE) monetary policy announcement on Thursday. The BoE is expected to leave interest rates unchanged at 3.75%, with a 7-2 majority. The major focus of financial markets will be on commentary on inflation and the economic outlook.
Economic Indicator
Fed Interest Rate Decision
The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).
Read more.Next release: Wed Jul 29, 2026 18:00
Frequency: Irregular
Consensus: 3.75%
Previous: 3.75%
Source: Federal Reserve
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