Forex News
The Swiss National Bank (SNB) holds interest rates steady at 0%, as expected. Now investors await Chairman Martin Schlegel's upcoming press conference at 09:00 GMT, where they will be looking for fresh cues on the monetary policy outlook.
SNB's monetary statement highlights
Banks’ sight deposits held at the SNB will be remunerated at the SNB policy rate up to a certain threshold.
SNB remains willing to be active in the foreign exchange market as necessary.
Inflationary pressure is virtually unchanged compared to the last monetary policy assessment.
SNB sees 2025 inflation at 0.2% (previous forecast was for 0.2%).
SNB sees 2026 inflation at 0.3% (previous forecast was for 0.5%).
SNB sees 2027 inflation at 0.6% (previous forecast was for 0.7%).
SNB sees 2025 Swiss GDP at around 1.5% (previous forecast was for 1.0-1.5%).
SNB sees 2026 Swiss GDP at around 1% (previous forecast was for around 1%).
Main risk to the economic outlook for Switzerland is the development of the global economy.
Economic outlook for Switzerland has improved slightly due to the lower us tariffs and somewhat better development globally.
Although US tariffs and trade policy uncertainty weighed on the global economy, economic development in many countries has thus far remained more resilient than had been assumed.
Baseline scenario anticipates that growth in the global economy will be moderate over the coming quarters.
US tariffs and trade policy uncertainty could yet weigh more heavily on global economic momentum than observed thus far.
Market reaction
The initial reaction to the SNB's policy on the Swiss Franc (CHF) seems positive. The USD/CHF falls to near 0.7990 as of writing.
Swiss Franc Price Today
The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | 0.08% | -0.02% | 0.14% | 0.52% | 0.25% | -0.15% | |
| EUR | 0.09% | 0.17% | 0.05% | 0.22% | 0.62% | 0.34% | -0.06% | |
| GBP | -0.08% | -0.17% | -0.08% | 0.06% | 0.46% | 0.18% | -0.22% | |
| JPY | 0.02% | -0.05% | 0.08% | 0.15% | 0.56% | 0.25% | -0.12% | |
| CAD | -0.14% | -0.22% | -0.06% | -0.15% | 0.40% | 0.11% | -0.28% | |
| AUD | -0.52% | -0.62% | -0.46% | -0.56% | -0.40% | -0.28% | -0.67% | |
| NZD | -0.25% | -0.34% | -0.18% | -0.25% | -0.11% | 0.28% | -0.40% | |
| CHF | 0.15% | 0.06% | 0.22% | 0.12% | 0.28% | 0.67% | 0.40% |
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 Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).
This section was published as a preview of the Swiss National Bank's (SNB) monetary policy announcement at 06:35 GMT.
The Swiss National Bank (SNB) is scheduled to announce its last monetary policy of 2025 today at 08:30 GMT.
The SNB is expected to hold interest rates steady at 0% for the second meeting in a row. The Swiss central bank would continue maintaining an expansionary monetary policy stance as price pressures have remained close to the lower end of 0%-2% inflation target. In November, the Swiss inflation remains flat on an annualized basis, following a 0.1% growth in October.
As the SNB is widely anticipated to leave borrowing rates at 0%, the major trigger for the Swiss Franc’s (CHF) outlook will be the monetary policy guidance for 2026. The SNB is unlikely to support negative interest rates as Chairman Martin Schlegel stated in his comments in early November that the "bar to go back to NIRP (negative interest rate policy) is very high”, citing that the ultra-dovish stance could lead to "undesirable side effects" on savers and pension funds.
How could SNB’s monetary policy outcome affect USD/CHF?
USD/CHF strives to gain ground during Thursday’s European session after revisiting its three-week low of 0.7985 the previous day. The Swiss Franc pair demonstrates a broader sideways trend amid a Descending Triangle formation whose horizontal support is placed from the November 19 low of 0.7985, while the downward-sloping border is plotted from the November high of 0.8124. The near-term trend of the pair is bearish as it stays below the 20-day Exponential Moving Average (EMA), which is at 0.8030
The 14-day Relative Strength Index (RSI) at 45.23, below the 50 midline, signals waning bullish momentum. A rebound in RSI toward 50 would signal stabilization.
The downward-sloping border limits gains, with resistance seen near 0.8078. However, a daily close above that barrier could ease pressure and tilt the bias toward recovery for an upside to near the August high of 0.8171, while failure to reclaim it would keep sellers in control. Looking down, bears could gain control if the pair breaks below the November 19 low of 0.7985, and extend the decline towards the November 18 low of 0.7938.
SNB FAQs
The Swiss National Bank (SNB) is the country’s central bank. As an independent central bank, its mandate is to ensure price stability in the medium and long term. To ensure price stability, the SNB aims to maintain appropriate monetary conditions, which are determined by the interest rate level and exchange rates. For the SNB, price stability means a rise in the Swiss Consumer Price Index (CPI) of less than 2% per year.
The Swiss National Bank (SNB) Governing Board decides the appropriate level of its policy rate according to its price stability objective. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame excessive price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Yes. The Swiss National Bank (SNB) has regularly intervened in the foreign exchange market in order to avoid the Swiss Franc (CHF) appreciating too much against other currencies. A strong CHF hurts the competitiveness of the country’s powerful export sector. Between 2011 and 2015, the SNB implemented a peg to the Euro to limit the CHF advance against it. The bank intervenes in the market using its hefty foreign exchange reserves, usually by buying foreign currencies such as the US Dollar or the Euro. During episodes of high inflation, particularly due to energy, the SNB refrains from intervening markets as a strong CHF makes energy imports cheaper, cushioning the price shock for Swiss households and businesses.
The SNB meets once a quarter – in March, June, September and December – to conduct its monetary policy assessment. Each of these assessments results in a monetary policy decision and the publication of a medium-term inflation forecast.
- The Japanese Yen struggles to capitalize on its modest intraday gains against a rebounding USD.
- Japan’s fiscal and growth concerns turn out to be a key factor undermining demand for the JPY.
- The divergent BoJ-Fed policy outlooks limit losses for the JPY and cap the upside for USD/JPY.
The Japanese Yen (JPY) stalls its intraday pullback against the rebounding US Dollar (USD) and trades with a mild positive bias during the first half of the European session on Thursday. This marks the second straight day of the uptick and is sponsored by the growing acceptance of an imminent interest rate hike by the Bank of Japan (BoJ). This marks a significant divergence compared to dovish US Federal Reserve (Fed) expectations, which caps the attempted USD recovery and acts as a headwind for the USD/JPY pair.
Meanwhile, expanded fiscal spending under Prime Minister Sanae Takaichi’s administration has exacerbated concerns about Japan's public finances. Moreover, investors opt to wait for more cues about the BoJ's policy tightening path. This, in turn, might hold back the JPY bulls from placing aggressive bets as the focus remains glued to the outcome of a two-day BoJ monetary policy meeting, due next Friday.
Japanese Yen bulls have the upper hand vs USD amid divergent BoJ-Fed policy outlooks
- Bank of Japan Governor Kazuo Ueda reiterated earlier this week that the likelihood of the central bank's baseline economic and price outlook materialising had been gradually increasing.
- Moreover, Wednesday's release of the Corporate Goods Price Index indicated that inflation in Japan remains above the historic levels and backs the case for a further BoJ policy normalization.
- The market is now actively pricing in the possibility of a BoJ rate hike as early as next week, which marks a big divergence in comparison to the US Federal Reserve's dovish interest rate cut.
- The US central bank, in a widely expected move, lowered interest rates at the end of a two-day meeting on Wednesday and projected one more quarter-percentage-point rate cut in 2026.
- Meanwhile, Fed Chair Jerome Powell told reporters that the US labor market has significant downside risks and that the central bank does not want its policy to push down on job creation.
- Traders were quick to react and are now pricing in two more rate cuts by the Fed in 2026. This keeps the US Dollar depressed and continues to underpin the lower-yielding Japanese Yen.
- Investors remain worried about Japan's deteriorating fiscal condition amid Prime Minister Sanae Takaichi's reflationary push and massive spending plan to boost sluggish economic growth.
- In fact, the revised Gross Domestic Product report showed that Japan's economy shrank 0.6% in the July-September period and by 2.3% on a yearly basis, or its fastest pace since Q3 2023.
- This, however, was offset by expectations that higher wages will increase household purchasing power and boost spending, which should fuel demand-driven inflation and bolster the economy.
- Traders now look to the release of the usual US Weekly Initial Jobless Claims, which, along with the US Trade Balance data, could provide some impetus to the USD and the USD/JPY pair.
USD/JPY struggles to capitalize on intraday move up beyond 156.00
An intraday breakdown below the 156.00 mark and the 100-hour Simple Moving Average (SMA) backs the case for further losses amid negative oscillators on hourly charts. That said, technical indicators on the daily chart are holding in positive territory and suggest that any further decline is more likely to attract some buyers near the 155.35-155.30 hurdle breakpoint. The latter represented the top boundary of a short-term trading range and should act as a key pivotal point. Some follow-through selling, leading to a subsequent fall below the 155.00 psychological mark, might shift the near-term bias in favor of the USD/JPY bears.
On the flip side, a sustained strength back above the 156.00 mark could lift spot prices to the 156.60-156.65 region en route to the 157.00 neighborhood, or a two-week high touched on Tuesday. Some follow-through buying should pave the way for additional gains. The USD/JPY pair might then surpass the 157.45 intermediate hurdle and aim towards challenging a multi-month peak, around the 158.00 neighborhood, touched in November.
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 | 0.06% | 0.14% | 0.09% | 0.14% | 0.67% | 0.37% | -0.04% | |
| EUR | -0.06% | 0.08% | 0.04% | 0.08% | 0.61% | 0.31% | -0.10% | |
| GBP | -0.14% | -0.08% | -0.04% | 0.00% | 0.53% | 0.23% | -0.18% | |
| JPY | -0.09% | -0.04% | 0.04% | 0.05% | 0.58% | 0.26% | -0.12% | |
| CAD | -0.14% | -0.08% | -0.00% | -0.05% | 0.53% | 0.22% | -0.18% | |
| AUD | -0.67% | -0.61% | -0.53% | -0.58% | -0.53% | -0.30% | -0.72% | |
| NZD | -0.37% | -0.31% | -0.23% | -0.26% | -0.22% | 0.30% | -0.41% | |
| CHF | 0.04% | 0.10% | 0.18% | 0.12% | 0.18% | 0.72% | 0.41% |
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).
- GBP/JPY reverses a modest intraday dip, though it lacks follow-through amid mixed cues.
- Fiscal concerns and sluggish growth undermine the JPY, lending support to spot prices.
- The divergent BoJ-BoE policy expectations cap the cross ahead of Bailey’s testimony.
The GBP/JPY cross attracts some dip-buyers in the vicinity of the 208.00 mark on Thursday, though it lacks follow-through and sticks to a negative bias through the early European session. Spot prices currently trade around the 208.50-208.55 region and remain well within striking distance of the highest level since August 2008, touched earlier this week on Tuesday.
Investors remain concerned about Japan's deteriorating fiscal condition on the back of Prime Minister Sanae Takaichi's massive spending plan and sluggish economic growth. This, to a larger extent, overshadows hawkish Bank of Japan (BoJ) expectations, which, in turn, is seen as a key factor behind the Japanese Yen's (JPY) relative underperformance and acts as a tailwind for the GBP/JPY cross.
The downside for the JPY, however, seems limited amid expectations for an imminent BoJ rate hike as early as next week. The bets were lifted by BoJ Governor Kazuo Ueda's remarks earlier this week, saying that the likelihood of the central bank's baseline economic and price outlook materialising had been gradually increasing. This, along with a softer risk tone, could support the safe-haven JPY.
The British Pound (GBP), on the other hand, is pressured by a modest US Dollar (USD) recovery. This contributes to capping the upside for the GBP/JPY cross. Furthermore, the BoJ's hawkish outlook mark a significant divergence in comparison to bets that the Bank of England (BoE) will cut interest rates next week, which, in turn, warrants caution before placing fresh bullish bets around the cross.
Traders also seem reluctant and opt to wait for BoE Governor Andrew Bailey's testimony later today. The focus, however, will remain glued to the key central bank event risks next week – the BoE monetary policy update on Thursday and the crucial BoJ rate decision on Friday. This, in turn, will play a key role in influencing the GBP/JPY cross and determining the next leg of a directional move.
Economic Indicator
BoE's Governor Bailey speech
Andrew Bailey is the Bank of England's Governor. He took office on March 16th, 2020, at the end of Mark Carney's term. Bailey was serving as the Chief Executive of the Financial Conduct Authority before being designated. This British central banker was also the Deputy Governor of the Bank of England from April 2013 to July 2016 and the Chief Cashier of the Bank of England from January 2004 until April 2011.
Read more.Next release: Thu Dec 11, 2025 09:50
Frequency: Irregular
Consensus: -
Previous: -
Source: Bank of England
Here is what you need to know on Thursday, December 11:
The US Dollar (USD) recovers from earlier losses against its six major currency rivals after the US Federal Reserve (Fed) delivered a widely expected rate cut and signaled that it may leave rates unchanged in the coming months.
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 | 0.05% | 0.13% | 0.08% | 0.16% | 0.68% | 0.38% | -0.06% | |
| EUR | -0.05% | 0.08% | 0.02% | 0.11% | 0.63% | 0.33% | -0.11% | |
| GBP | -0.13% | -0.08% | -0.04% | 0.03% | 0.55% | 0.25% | -0.19% | |
| JPY | -0.08% | -0.02% | 0.04% | 0.09% | 0.61% | 0.29% | -0.12% | |
| CAD | -0.16% | -0.11% | -0.03% | -0.09% | 0.53% | 0.20% | -0.22% | |
| AUD | -0.68% | -0.63% | -0.55% | -0.61% | -0.53% | -0.30% | -0.73% | |
| NZD | -0.38% | -0.33% | -0.25% | -0.29% | -0.20% | 0.30% | -0.44% | |
| CHF | 0.06% | 0.11% | 0.19% | 0.12% | 0.22% | 0.73% | 0.44% |
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).
The Federal Open Market Committee (FOMC) voted 9-3 on Wednesday to lower the benchmark federal funds rate by 25 basis points (bps) to a range of 3.5%-3.75%. Fed Chair Jerome Powell emphasized that the US central bank is now "well positioned to wait and see how the economy evolves" and noted that a future rate hike is not a base-case scenario. Fed officials signaled they expect to lower rates just once next year.
Traders brace for the release of the US Balance of Trade, followed by the usual weekly Initial Jobless Claims and Wholesale Inventories reports, which will be published in the North American session on Thursday. Analysts estimate the number of Americans filing new applications for unemployment benefits to rise to 220,000, compared to 191,000 in the previous reading.
Earlier in the Asian session on Thursday, the Australian Bureau of Statistics (ABS) reported that the country’s Unemployment Rate was 4.3% in November, remaining steady from the previous month. The figure came in below the market consensus of 4.4%. Furthermore, the Australian Employment Change arrived at -21.3K in November from 41.1K in October (revised from 42.2K), compared with the forecast of 20K.
AUD/USD faces some selling pressure following the release of mixed Australian jobs data and currently trades below mid-0.6600s
USD/JPY trades on a stronger note above 156.00, bolstered by renewed USD demand. Earlier on Thursday, Japanese Chief Cabinet Secretary Minoru Kihara said that the government will closely monitor the impact on the Japanese economy of US financial conditions following the Fed rate cut.
USD/CHF holds steady around 0.8000. Traders await the Swiss National Bank (SNB) interest rate decision, which is likely to continue its current zero interest rate policy at its December meeting.
USD/CAD remains on the defensive above 1.3800. The Bank of Canada (BoC) held its key interest rate at 2.25% on Wednesday on the back of encouraging third-quarter data. BoC Governor Tiff Macklem stated that the current rate is at "about the right level" to keep inflation near the 2% target and support the economy through its structural transition.
EUR/USD loses traction to below 1.1700 after hitting an eight-week high in Thursday’s early Asian session.
GBP/USD softens after coming close to testing the 1.3400 barrier earlier. On Tuesday, BoE Deputy Governors Clare Lombardelli and Dave Ramsden supported a moderate monetary easing cycle, saying that risks to inflation are still on the upside.
Gold attracts some sellers around $4,200 heading into the European session. Silver corrects to near $62.00 after reaching an all-time high of $62.89 earlier in the Asian trading hours.
West Texas Intermediate (WTI) Oil price falls on Thursday, early in the European session. WTI trades at $57.95 per barrel, down from Wednesday’s close at $58.77.
Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $61.62 after its previous daily close at $62.46.
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.
- AUD/JPY falls to near 103.50 in Thursday’s early European session.
- Australia's Unemployment Rate was 4.3% in November, remaining steady from the previous month.
- Japan’s fiscal and growth concerns might cap the downside for the cross.
AUD/JPY slumps to around 103.50 during the early European session on Thursday. The Australian Dollar (AUD) softens against the Japanese Yen (JPY) following the release of mixed Australian employment data. Nonetheless, the Reserve Bank of Australia's (RBA) hawkish stance might help limit the AUD’s losses.
Data released by the Australian Bureau of Statistics (ABS) on Thursday revealed that the Unemployment Rate in Australia steadied at 4.3% in November. The figure came in below the market consensus of 4.4%. Additionally, the Australian Employment Change came in at -21.3K in November versus 41.1K in October (revised from 42.2K), compared with the consensus forecast of 20K. The Aussie edges lower in an immediate reaction to the mixed Australian jobs report.
On the other hand, the hawkish stance from the Australian central bank could provide some support to the Aussie against the JPY. RBA Governor Michele Bullock said that the interest rate reductions are not on the horizon for the foreseeable future and that the board discussed the possibility of rate hikes next year if inflationary pressures persist. Financial markets have priced in a potential rate hike as early as February or June 2026.
Meanwhile, traders remain worried about Japan's expansionary fiscal measures and growth amid Takaichi's administration's reflationary push and massive spending plan to boost sluggish economic growth. This, in turn, could weigh on the Japanese Yen and act as a tailwind for the cross. Prime Minister Sanae Takaichi has a pro-growth agenda, which is seen by markets as a signal for potential fiscal stimulus and looser financial conditions.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
- GBP/USD weakens to around 1.3365 in Thursday’s early European session.
- Fed cut the key rate by a quarter-point on Wednesday, as widely expected.
- Financial markets now put the chance of a BoE rate reduction next week at around 88%.
The GBP/USD pair trades in negative territory near 1.3365 during the early European trading hours on Thursday, pressured by the rebound in the US Dollar (USD). Nonetheless, the potential downside might be limited after the US Federal Reserve (Fed) delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report, which will be published later on Thursday.
Markets continue to digest the largely anticipated rate cut by the Fed on Wednesday. The US central bank reduced its key interest rate for the third time in a row at its December meeting but signaled that it may leave rates unchanged in the coming months. Two Fed officials voted to keep the rate unchanged, while Stephen Miran, whom Trump appointed in September, voted for a larger rate cut.
During the press conference, Fed Chair Jerome Powell said central bankers need time to see how the three reductions this year work their way through the US economy. Powell added that he will closely examine incoming data leading up to the next meeting in January. The Fed's economic projections suggested one rate cut will take place next year, although new data could change this.
On the other hand, the prospect of the Bank of England (BoE) rate reductions could drag the Pound Sterling (GBP) lower against the Greenback. Financial markets are now pricing in nearly an 88% chance of the BoE rate cut next week after signs from economic data that inflation pressure has eased.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Gold prices fell in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 12,211.23 Indian Rupees (INR) per gram, down compared with the INR 12,267.11 it cost on Wednesday.
The price for Gold decreased to INR 142,429.30 per tola from INR 143,081.10 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 12,211.23 |
10 Grams | 122,112.20 |
Tola | 142,429.30 |
Troy Ounce | 379,813.00 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
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.
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- EUR/USD trades with mild losses around 1.1690 in Thursday’s early European session.
- Fed’s Powell said central bank has delivered enough rate cuts for now.
- Analysts expect the ECB to keep its key interest rates unchanged at its upcoming monetary policy meeting next week.
The EUR/USD pair posts modest losses near 1.1690 during the early European trading hours on Thursday. However, the US Federal Reserve's (Fed) dovish rate cut on Wednesday could weigh on the US Dollar (USD) against the Euro (EUR). Traders await the release of the US weekly Initial Jobless Claims report, which is due later on Thursday.
The Federal Open Market Committee (FOMC) lowered its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%. The statement said, “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
Fed Chair Jerome Powell noted during the press conference that the central bank is well-positioned to wait and see how the economy evolves. The market has priced in a 78% chance that the Fed will leave interest rates unchanged next month, compared with a 70% odds just before the rate cut announcement, according to the CME FedWatch tool.
Across the pond, rising bets that the European Central Bank (ECB) is done cutting interest rates could support the Euro. ECB President Christine Lagarde reiterated that the current monetary policy stance is in a good position. Meanwhile, ECB policymakers Francois Villeroy de Galhau and Gediminas Simkus stated that there is no immediate reason to either cut or raise rates, as the current policy stance is considered to be in a "good place."
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
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