West Texas Intermediate (WTI) oil price declines after two days of gains, trading around $92.60 per barrel during Asian hours on Friday.
Chinese President Xi Jinping stated during his visit to Washington that Beijing and Washington must find a proper way to coexist peacefully and act as partners rather than rivals, the Financial Times reported on Thursday.
Yemen's Houthi claimed on Thursday that it launched dozens of ballistic missiles and drones at Saudi military installations in the kingdom's southwestern Jazan region, the Saudi-led coalition in Yemen said were aimed at Taif in western Saudi Arabia and the Yanbu area on the Red Sea.
Iranian President Masoud Pezeshkian said that it is for the United States (US) to decide whether to end its war against the Islamic Republic, as Tehran does not wish to continue fighting, Fox News reported on Thursday.
Gold price (XAU/USD) declines to near $4,275 during the early Asian session on Friday.
Finance Minister Katayama said on Thursday that the principles behind the joint US-Japan intervention of July 31 are still alive, and USD/JPY went on to touch 159.00, its highest since early September. The pair is trading just under 159.00, on track for a fifth straight gain.
The Aussie Dollar fell for the third straight day, down 0.37% against the US Dollar, which remained boosted by elevated US yields, which jumped as Oil prices rose and as inflation pressures built. The AUD/USD trades at 0.7012, near the 200-day Simple Moving Average (SMA) of 0.7021.
Rabobank’s USD/MXN analysis highlights recent moves driven by Oil-related Dollar strength and heavy speculative long-MXN positioning.
The Reserve Bank of New Zealand (RBNZ) has its Official Cash Rate (OCR) at 2.75%, and markets now price at least a 75% chance that it goes to 3% on October 28, against about 30% right after the September 2 hike. NZD/USD is trading just above 0.5650, its lowest since late June.
The 30-year Treasury yield touched 5.50% on Thursday, and two Fed officials gave bond buyers no reason to expect relief. New York Fed President Williams said another rate increase this year looks reasonable, and Philadelphia Fed President Paulson said rates may need to rise a little more.
Bank of England (BoE) Deputy Governors Lombardelli and Breeden said on Thursday that they are moving closer to voting for a rate hike, and the Pound fell for a fourth straight session regardless. GBP/USD is trading just above 1.3200, its lowest in nearly three months.
Commerzbank’s Henry Hao and Moses Lim report that Bank Indonesia kept the BI Rate at 5.75% while expanding FX hedging incentives to support the Indonesian Rupiah. Governor Destry Damayanti signaled a preference for non-rate tools and incentive-based measures over SRBI yield hikes.
Rabobank’s Molly Schwartz and Christian Lawrence note Banxico kept its overnight rate at 6.50% but significantly softened forward guidance, decoupling Mexican policy from expected Federal Reserve moves.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the Norwegian Krone (NOK) outperformed after Norges Bank delivered a hawkish 25 basis point hike to 4.50%.
The Mexican Peso (MXN) extends its losses against the US Dollar (USD) on Thursday after the Bank of Mexico (Banxico) held the benchmark interest rate unchanged at 6.50%, disregarding the interest rate differential as a primary factor in setting monetary policy.
The Dollar Index has won back about 90% of what it lost between the late-July top and the August low. It reached 101.40 on Thursday, its highest since late July, and is heading for a fourth straight gain.
On Thursday, the Bank of Mexico (Banxico) held interest rates unchanged at 6.50% for the third time, as expected, in a unanimous decision.
Commerzbank’s Dr. Henry Hao and Moses Lim note that Singapore’s August headline and core inflation both climbed to the upper half of the Monetary Authority of Singapore’s 2026 forecast range, with services, retail goods, food and utilities all contributing.
The US Dollar (USD) has traded with gains for the fourth consecutive day on Thursday, managing to revisit levels last seen in late July.
USD/JPY extends its advance for a fifth consecutive day on Thursday as broad US Dollar (USD) strength and persistent pressure on the Japanese Yen (JPY) keep the pair firmly supported.
Brown Brothers Harriman notes the Swiss Franc underperformed as the Swiss National Bank (SNB) kept its policy rate at zero for a fifth straight meeting and resisted market expectations for future hikes.
Scotiabank strategists Shaun Osborne and Eric Theoret note the Euro (EUR) remains soft as front-end spreads widen and European Union (EU) concerns persist over a possible US diesel export ban, despite official denials.
US and Iranian negotiators are discussing a phased agreement to end the conflict, Reuters reported on Thursday.
The Pound Sterling (GBP) drops for the fourth straight trading day versus the US Dollar (USD) on Thursday, down 0.21%, as Federal Reserve (Fed) officials remain hawkish and US jobs data shows labor market strength.
The 30-year Treasury yield rose to its highest since 2004 on Thursday while the two-year yield barely moved, and the Dow Jones Industrial Average is falling with the long one. The index dropped as far as 51,100, its lowest since June, and is on track for a third losing session in a row.
NZD/USD trades around 0.5655 at the time of writing on Thursday, down 0.30% on the day. However, the pair limits its losses as the New Zealand Dollar (NZD) benefits from a sharp increase in expectations of further monetary tightening by the Reserve Bank of New Zealand (RBNZ).
Standard Chartered argues that Europe’s political balance could shift to the right in 2027, with key elections in France, Spain, Italy and Poland. The bank highlights France’s presidential race as most critical, warning an RN victory would be market negative.
USD/CAD extends its advance on Thursday, climbing to its highest level since mid-July. The pair has posted only one daily decline over the past 12 trading days, reflecting the diverging monetary policy outlooks of the Federal Reserve (Fed) and the Bank of Canada (BoC).
Commerzbank’s Chief Economist Dr. Jörg Krämer notes that leading indicators such as the Ifo business climate index and PMIs have surprised to the upside, showing the German economy’s resilience to high energy prices and the Iran War.
Gold (XAU/USD) slides to a one-week low on Thursday as rising US Treasury yields and a stronger US Dollar (USD) reflect an increasingly hawkish Federal Reserve (Fed) outlook. At the time of writing, XAU/USD trades around $4,250, down nearly 0.85% on the day.
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