Forex News
UOB Global Economics & Markets Research notes that the Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.25%, consistent with expectations. The central bank signalled that policy will stay accommodative while it monitors data, even though its projections allow for a possible hike later this year. UOB still expects rates to remain on hold for now.
Accommodative stance maintained despite hike option
"The Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate (OCR) at 2.25% as expected, signaling that policy will stay accommodative for some time while it monitors incoming data."
"Although its updated OCR track allows for the possibility of a rate hike later this year, the Bank showed no urgency to tighten, emphasising support for an early-stage recovery."
"Our view remains that the OCR will stay on hold for the foreseeable future, given already-tightened financial conditions and a nascent recovery supported by earlier rate cuts."
"We will update our outlook as incoming economic data evolve ahead of the next meeting on 8 Apr."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- NZD/USD may find key support near the 50-day EMA at 0.5911.
- The 14-day Relative Strength Index at 48 signals fading momentum after prior overbought levels.
- The primary barrier lies at the nine-day EMA of 0.5998.
NZD/USD has pared its recent gains registered in the previous session, trading around 0.5950 during the Asian hours on Friday. The technical analysis of the daily chart signals an emergence of the bearish reversal as the pair price is positioned below the lower ascending channel boundary. Additionally, the 14-day Relative Strength Index (RSI) at 48 (neutral) shows fading momentum after prior overbought readings.
The 50-day Exponential Moving Average (EMA) climbs, signaling an improving medium-term bias, while the nine-day EMA has rolled over and caps rebounds. The NZD/USD pair is holding between these average points to a shallow pullback within a broader recovery.
The NZD/USD pair may find primary support near the 50-day EMA at 0.5911. A break below the medium-term average would put downward pressure on the pair to navigate the region around the 10-month low of 0.5580.
The initial resistance is seen at the nine-day EMA of 0.5998, aligned with the psychological level of 0.6000. A rebound above this confluence resistance would support the NZD/USD pair to return to the ascending channel and target the 16-month high of 0.6121, which was recorded in July 2025. Further advances would lead the NZD/USD pair to explore the region around the upper boundary of the ascending channel at 0.6390.
(The technical analysis of this story was written with the help of an AI tool.)
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
Rabobank’s Molly Schwartz notes that crude Oil has reacted sharply to shifting US–Iran headlines, with prices rising to $72 per barrel, the highest since early August. She highlights that markets are focused on whether negotiations deteriorate into military confrontation, as Washington has moved significant assets into the region, and that the next 10 days could be critical for geopolitical risk premia in Oil.
Crude tracks US–Iran negotiations closely
"A brief glance at crude oil the past few weeks tell a story about the headlines. Negotiations going good=crude oil down a buck, going bad=right back up. The past few sessions are saying that negotiations are going bad, as crude is up to $72/bbl—its highest level since early August."
"It could, of course, be sooner than that—perhaps even this weekend. And the US appears fully prepared to take military action if necessary, having moved significant military assets into the region—the most since the 2003 Iraq invasion."
"As IAEA (International Atomic Energy Agency) Director General Rafael Mariano Grossi told Bloomberg on Thursday, obtaining access to those sites and determining the current state of Iran’s nuclear capabilities are crucial prerequisites for any agreement."
"Even though Grossi sounded cautiously optimistic (emphasis on cautious) that Iran would grant access and that a diplomatic solution is on the horizon, Tehran must follow through sooner rather than later—preferably within the next 10 days."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Commerzbank’s Michael Pfister notes that while EUR/USD has slipped back below 1.18 and the Euro’s spot gains versus the Dollar are modest year-to-date, options markets still reflect a structural shift since “Liberation Day.” He argues that investors increasingly use EUR options to hedge Dollar risk, reinforcing the Euro’s status as the main alternative reserve currency.
Euro options remain key Dollar hedge
"The situation has now calmed down somewhat, with EUR-USD trading well below 1.18 — roughly where it was before the movement higher picked up speed. Over the course of the year, the euro has actually only appreciated slightly against the US dollar. Were the last few weeks just much ado about nothing? I wouldn't go that far."
"Although the spot markets appear to have corrected again, the options markets clearly show a continuation of the trend since 'Liberation Day'. At that time, my boss illustrated that, in times of increased uncertainty (as measured by higher implied volatility), hedges against a stronger euro were now favoured over hedges against a stronger US dollar, unlike in the past."
"However, this development stalled for the other currencies in the second half of the year, as the risk of US dollar depreciation was apparently no longer considered quite so great. Since 23 January, when the latest phase of a weaker US dollar gained momentum, it has been EUR-USD options that have reacted."
"Naturally, we are only dealing with a few days' worth of data here, and we will have to wait and see how future crisis situations unfold before we can speak of a trend reversal. But in my opinion, this once again demonstrates why the euro is widely regarded as the only currency capable of replacing the US dollar as the world's reserve currency."
"Therefore, the market is likely to continue expressing its concerns about the US dollar through EUR options rather than the other major currencies in the coming months."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- US Dollar Index clings to gains near the four-week high of 98.00, driven by balanced FOMC Minutes.
- Fed officials are not in a hurry to cut interest rates as inflation has remained above the 2% target.
- Investors await the preliminary US Q4 GDP and S&P Global PMI data for February.
The US Dollar (USD) shows strength during the early European trading session on Friday, with the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trading firmly near an almost four-week high of 98.00 posted the previous day.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.01% | 1.51% | 1.69% | 0.56% | 0.41% | 1.30% | 0.97% | |
| EUR | -1.01% | 0.50% | 0.69% | -0.44% | -0.61% | 0.29% | -0.04% | |
| GBP | -1.51% | -0.50% | -0.06% | -0.94% | -1.09% | -0.21% | -0.54% | |
| JPY | -1.69% | -0.69% | 0.06% | -1.10% | -1.24% | -0.38% | -0.66% | |
| CAD | -0.56% | 0.44% | 0.94% | 1.10% | -0.20% | 0.74% | 0.41% | |
| AUD | -0.41% | 0.61% | 1.09% | 1.24% | 0.20% | 0.91% | 0.57% | |
| NZD | -1.30% | -0.29% | 0.21% | 0.38% | -0.74% | -0.91% | -0.33% | |
| CHF | -0.97% | 0.04% | 0.54% | 0.66% | -0.41% | -0.57% | 0.33% |
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 US Dollar has been outperforming since the release of the Federal Open Market Committee (FOMC) Minutes of the January policy meeting on Wednesday, which showed that officials are not in a hurry to cut interest rates soon.
Federal Reserve (Fed) officials are not in a rush to ease monetary conditions further as inflationary pressures in the United States (US) have remained above the central bank’s target of 2%.
Theoretically, signals from the Fed holding interest rates steady after executing a monetary-easing cycle are favorable for the US Dollar.
In Friday’s session, major triggers for the US Dollar will be the preliminary Q4 Gross Domestic Product (GDP) and the S&P Global Purchasing Managers’ Index (PMI) data for February, which will be released during North American trading hours.
The US economy is estimated to have expanded at an annualized pace of 3%, slower than 4.4% growth seen in the third quarter of 2025. S&P Global Composite PMI is seen higher from the previous release of 53.0 due to improvement in both manufacturing and the service sector activity.
Economic Indicator
Gross Domestic Product Annualized
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation’s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.Next release: Fri Feb 20, 2026 13:30 (Prel)
Frequency: Quarterly
Consensus: 3%
Previous: 4.4%
Source: US Bureau of Economic Analysis
The US Bureau of Economic Analysis (BEA) releases the Gross Domestic Product (GDP) growth on an annualized basis for each quarter. After publishing the first estimate, the BEA revises the data two more times, with the third release representing the final reading. Usually, the first estimate is the main market mover and a positive surprise is seen as a USD-positive development while a disappointing print is likely to weigh on the greenback. Market participants usually dismiss the second and third releases as they are generally not significant enough to meaningfully alter the growth picture.
Scotiabank analysts Shaun Osborne and Eric Theoret note that GBP/USD is trading defensively below 1.35, extending weekly losses as weaker jobs data and narrower yield spreads erode support. They flag elevated domestic risk into Friday’s retail sales and PMI releases, with expectations for solid services growth. Technically, the break of the 50-day MA raises risk of a move below the 200-day MA and toward January’s mid-1.33 lows.
Data risks and technical breaks weigh
"Fundamental support has been eroded on the back of weaker jobs data, narrowing yield spreads as markets have repriced easing from the BoE."
"Near-term domestic risk remains elevated into Friday’s retail sales and preliminary PMI’s, with market participants eyeing healthy levels of growth in services and modest expansion in manufacturing."
"GBP appears somewhat vulnerable to disappointment, given that expectations are relatively elevated."
"For GBPUSD, technicals are bearish following the break of the 50 day MA (1.3529), with risk of a push below the 200 day MA (1.3445) and a test of the January lows in the mid-1.33s."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- Australian Dollar weakens after S&P Global Purchasing Managers’ Index shows slowing growth in February.
- Australia’s Composite PMI fell to 52.0; Services to 52.2; Manufacturing to 51.5, all slower but still expanding.
- The US Dollar gains after Initial Jobless Claims fell to 206K, below forecasts.
Australian Dollar (AUD) holds losses against the US Dollar (USD) during the Asian hours on Friday. The AUD/USD pair trades around 0.7040 at the time of writing after giving up recent gains from the previous session.
The Australian Dollar (AUD) comes under pressure after S&P Global’s preliminary February Purchasing Managers’ Index (PMI) data showed a broad-based cooling in activity, indicating slower growth while inflation pressures remain sticky.
Australia’s Composite PMI slipped to 52.0 in February from 55.7 in January, marking a seventeenth consecutive month of expansion but at a more moderate pace. The Services PMI eased to 52.2 from 56.3, while the Manufacturing PMI edged down to 51.5 from 52.3, both signaling continued growth, albeit slower than at the start of 2026.
The AUD/USD pair also remains under pressure as the US Dollar (USD) draws support after the US Department of Labor (DOL) reported that Initial Jobless Claims declined to 206K for the week ending February 14, down from the prior week’s revised 229K and below the 225K consensus forecast. Traders await Friday’s preliminary US Q4 Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE) data for fresh direction.
The Federal Open Market Committee (FOMC) Minutes from the January meeting reignited speculation about potential rate hikes should inflation remain persistent. While most policymakers supported keeping rates unchanged, only a few favored a cut, and officials indicated they would consider easing if inflation moderates as anticipated.
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.
- USD/CAD edges lower to around 1.3695 in Friday’s early European session.
- A rise in crude oil prices amid the US-Iran tensions supports the commodity-linked Canadian Dollar.
- Traders await key US inflation data to assess the Fed's monetary policy moving forward.
The USD/CAD pair trades in negative territory near 1.3695 during the early European session on Friday. The Canadian Dollar (CAD) strengthens against the Greenback amid higher crude oil prices. Traders await the Canadian Retail Sales data, along with the advance US Q4 Gross Domestic Product (GDP) report and the US Personal Consumption Expenditures (PCE) Price Index data.
Persistent geopolitical risks boost crude oil prices and provide some support to the commodity-linked Loonie. US President Donald Trump said on Thursday that Iran had 10 to 15 days at most to strike a deal over its nuclear program, per Bloomberg. Trump added that "really bad things will happen" if no deal is reached with Iran and the US will get a deal one way or the other. It is worth noting that Canada is a major oil-exporting country, and high crude oil prices generally have a positive impact on the CAD.
On the other hand, stronger-than-expected US economic data and a more hawkish Federal Reserve (Fed) outlook could underpin the US Dollar (USD) against the CAD. The US Initial Jobless Claims declined to 206,000 for the week ending February 14, according to the US Department of Labor (DOL) on Thursday. This reading came in below the market consensus of 225,000 and down from the previous week’s revised 229,000.
The US Personal Consumption Expenditure (PCE) data, the Fed's preferred inflation gauge, for December will be published later on Friday for clues on US monetary policy. Also, the preliminary reading of the Gross Domestic Product (GDP) for the fourth quarter will be released. A surprise downside to the reports could drag the USD lower in the near term.
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
- Silver price wobbles around $78.40 while investors await the preliminary US Q4 GDP data.
- The Fed is expected to deliver two interest rate cuts this year.
- US-Iran tensions continue to support Silver’s safe-haven appeal.
Silver price (XAG/USD) trades cautiously around $78.40 during the late Asian trading session on Friday. The white metal consolidates ahead of the preliminary United States (US) Q4 Gross Domestic Product (GDP) data, which will be published at 13:30 GMT.
The US Bureau of Economic Analysis (BEA) is expected to show that the economy rose at an annualized pace of 3%, slower than 4.4% growth seen in the third quarter of 2025. Signs of slowing US GDP growth would prompt expectations of more interest rate cuts by the Federal Reserve (Fed) in the near term. Silver tends to perform better in a low-interest-rate environment.
Currently, traders have priced in two interest rate cuts by the Fed through 2026, according to the CME FedWatch tool.
In Friday’s session, investors will also focus on private sector Purchasing Managers’ Index (PMI) data for February across the globe. The US S&P Global Composite PMI is expected to come in higher than the previous reading of 53.0.
On the global front, tensions between the United States (US) and Iran are expected to keep Silver’s safe-haven appeal upbeat. According to a report from the Wall Street Journal (WSJ), President Donald Trump is weighing a limited military strike on Iran to pressure the economy to agree to a nuclear deal.
Silver technical analysis
-1771565468095-1771565468102.png)
In the daily chart, XAG/USD trades flat at around $78.44. Price holds beneath a declining 20-day Exponential Moving Average (EMA) at $81.93, maintaining downside pressure. The 20-day EMA has rolled over in recent sessions and continues to cap recovery attempts.
The 14-day Relative Strength Index (RSI) at 46 (neutral-to-bearish) keeps momentum below the midline.
Near term, sellers would retain control while the metal remains under the falling average, keeping the room open for a downside move towards the February 6 low of $64.08. On the contrary, a daily close above the 20-EMA could shift risk toward stabilization. Until momentum reclaims the 50 line on RSI, rebounds could lack traction, whereas an RSI break above 50 would improve the recovery outlook.
(The technical analysis of this story was written with the help of an AI tool.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Japan Prime Minister Sanae Takaichi said on Friday that necessary spending will be funded as much as possible through the initial budget. She further stated that she will steadily lower the debt-to-GDP ratio and restore fiscal sustainability.
Key quotes
Necessary spending will be funded as much as possible through initial budget.
Will push bold investment through multi year budgets and long term funds.
Won’t pursue reckless fiscal policy that undermines market confidence.
Will steadily lower Debt to GDP ratio and restore fiscal sustainability.
Will maintain market trust and will clarify concrete fiscal indicators.
Fiscal policy that sufficiently considers discipline defines Takaichi cabinet’s ‘responsible, proactive fiscal policy’.
Will seek early passage by end of fiscal year of key bills including tax reform legislation for FY2026/27.
Market reaction
At the time of writing, the USD/JPY pair is trading 0.10% higher on the day at 155.25.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
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.
