Iranian Armed Forces Deputy Chief of Staff Brigadier General Kioumars Heidari said that Tehran has closed the Strait of Hormuz and will not open it except by the order of the leader of the revolution, Al Jazeera reported on Wednesday.
Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve and evidence of renewed safe-haven demand support the Dollar. The bank notes that concerns over the US budget deficit and treasury market stresses could weigh on the Dollar over the medium term, but concludes that last year’s Dollar debasement fears were exaggerated.
Bank of England's (BoE) Monetary Policy Committee (MPC) member, Megan Greene, said on Wednesday that it was appropriate to "proactively tighten our monetary policy stance" to ward against the risk of wage growth getting stuck at higher levels and firms passing those costs on.
Gold price (XAU/USD) tumbles to near $3,985 during the early Asian session on Thursday. The precious metal extends its downside as persistent inflation forces the US Federal Reserve (Fed) to maintain its tightening policy.
The Australian Dollar lost 0.27% against the US Dollar on Wednesday as market participants priced in further Federal Reserve tightening, amid a light economic docket in Australia and the US. The AUD/USD trades below 0.6850.
The 160.00 level is within reach of USD/JPY for the first time since early September, with Fed speakers and US producer prices still to come before the weekend. USD/JPY has left the range it held for seven weeks and reached just under 160.00, its highest since September 2.
Third-quarter Gross Domestic Product (GDP) on Thursday is forecast to show the UK economy growing faster, and GBP/USD goes into it at its lowest since mid-October.
The more artificial intelligence (AI) a US index holds, the more of the fall that began on November 5 it has now recovered. The NASDAQ 100 touched just under 28,600, above where it started that session, and is trading near 28,400.
The Mexican Peso (MXN) recovered some ground against the US Dollar (USD) on Wednesday after losing 0.45% in the previous week, following a US inflation report that was higher than expected, which increased the odds of further Federal Reserve (Fed) tightening.
GBP/JPY trades choppily despite posting gains of 0.17% on Wednesday, with price action remaining within Tuesday’s daily range of 211.44-212.65, suggesting a potential ‘bullish harami’ or inside-day pattern forming near a key resistance area.
The EUR/USD pair extends its losses below 1.1100 on Wednesday as traders digest the Federal Reserve's (Fed) hawkish comments, which have increased the odds of a rate hike. At the time of writing, the pair trades at 1.1092, its lowest level since May 2025.
Gold (XAU/USD) price extends losses for the second straight day on Wednesday as traders fully price in a rate hike by the Federal Reserve (Fed) following a hotter-than-expected US inflation report and hawkish comments by Fed policymakers. At the time of writing, XAU/USD trades at $3,999, down 0.70%.
The US Dollar (USD) has pushed harder, reaching levels last seen in April 2025 on the back of persistent bets over another interest rate hike by the Federal Reserve at its December gathering.
USD/CHF climbs nearly 1% on Wednesday, reaching a four-week high as the US Dollar (USD) strengthens across the board following a sharp shift in Federal Reserve (Fed) interest rate expectations. At the time of writing, the pair trades around 0.8335, extending gains for the second straight day.
The US Dollar Index (DXY) rises for a second straight day on Wednesday, hitting a fresh year-to-date high as hotter-than-expected US consumer inflation and calls from Federal Reserve (Fed) officials for further tightening fuel bets on more aggressive rate hikes.
The Pound Sterling (GBP) drops against the US Dollar (USD) on Wednesday as traders digest hawkish comments from Federal Reserve (Fed) officials and Tuesday's hot US inflation report. At the time of writing, GBP/USD trades below the 1.3300 psychological figure, down 0.55%.
AUD/USD remains on the back foot on Wednesday, hovering near levels last seen in March. The Australian Dollar (AUD) loses ground as expectations grow that the Federal Reserve (Fed) and the Reserve Bank of Australia (RBA) could take different monetary policy paths in the coming months.
Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve (Fed) and evidence of renewed safe-haven demand support the US Dollar (USD).
Deutsche Bank economists Sanjay Raja and Maui Brennan expect UK inflation to move higher in October, driven by energy, tobacco and modest food and services gains. They forecast headline CPI at 3.80% year-on-year, with Core CPI and Services CPI also rising.
Societe Generale’s Kit Juckes argues that despite potential future US fiscal tightening and greater AI regulation, current data show a resilient US economy. Core CPI has risen steadily, with headline CPI up 1% over two months, alongside strong payrolls, retail sales and GDP.
The Canadian Dollar (CAD) has resumed its downtrend, with the US Dollar (USD) rallying across the board on Wednesday as investors ramp up hopes of Federal Reserve (Fed) tightening in December.
The Japanese Yen (JPY) is showing signs of a medium-term structural turnaround as market focus shifts toward Bank of Japan (BoJ) policy normalization, domestic economic resilience, and heightened currency intervention risks near the 160.00 threshold.
USD/JPY edges higher on Wednesday, extending gains for the second straight day as expectations of a more hawkish Federal Reserve (Fed) outlook renew bullish momentum in the US Dollar (USD).
Oil prices picked up from two-month lows on Wednesday as investors start to worry about the lack of progress in negotiations to reach a peace deal in the Middle East.
Societe Generale’s Kit Juckes notes that EUR/USD ‘fair value’ is near 1.1150 after the latest US CPI-driven rates move, leaving the pair stuck in a range. He stresses that the US economy continues to outperform and keeps a year-end EUR/USD target of 1.10. Upcoming US PPI data may draw extra focus following CPI.
The US Dollar (USD) outperforms its major currency peers on Wednesday, as financial markets have started anticipating a bigger Federal Reserve (Fed) interest rate hike at the December policy meeting.
MUFG’s Derek Halpenny notes that a sharp rise in the 2-year UST yield, driven by stronger US CPI and hawkish comments from Fed Governor Waller, has revived speculation of a 50bp FOMC hike.
Deutsche Bank strategists explain that an upside surprise in US core and headline CPI, combined with hawkish comments from Fed officials, triggered a sharp selloff in US Treasuries. Two-year yields saw their biggest daily jump since 2025, while 10-year yields approached 5%. Market pricing now reflects a more extended and aggressive Fed hiking cycle into 2027.
Gold (XAU/USD) is showing a shallow recovery attempt on Wednesday, with bulls struggling to consolidate above $4.050 during the European session, leaving bears in control after the impulsive reversal from the $4,150 resistance area on Tuesday.
Kit Juckes at Societe Generale highlights that rising global bond yields are pressuring leveraged housing markets such as Australia. Recent NAB business confidence and home loans data were notably weak.
ING’s Chris Turner reports improving Japanese manufacturing sentiment, supported by semiconductor and data centre demand, strong corporate profits and firm wages. This backdrop could reinforce Bank of Japan (BoJ) confidence that inflation is stable near 2%.
Deutsche Bank analysts report that the strong US CPI data and hawkish Fed commentary sparked a selloff in US Treasuries and pressured US equities. The S&P 500 slipped as investors priced faster hikes, with Tech and AI-linked names underperforming initially. However, a revenue beat and upgraded guidance from CoreWeave later supported futures, pointing to some recovery in the S&P 500.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that a hotter-than-expected US October CPI report boosted the Dollar, triggered a sell-off in Treasuries led by the short end, and weighed on US stocks.
DBS Group Research, led by FX & Credit Strategist Chang Wei Liang, examines China’s evolving holdings of US securities over the past decade. The study looks for evidence of de-dollarisation, highlighting substantial Chinese net outflows from US equities and bonds and assessing how geopolitical tensions and sanctions risk are influencing China’s portfolio allocation decisions.
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