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.
China's paramount leader Xi Jinping's remarks at the White House ran to 21 lines on the wires, covering friendship, artificial intelligence (AI), counter-narcotics work and fair treatment for Chinese firms, and none of them mentioned tariffs.
ING’s James Knightley and Coco Zhang argue that US manufacturing is finally reviving after years of stagnation, helped by reshoring narratives, AI-driven investment and defence spending.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the Dollar is advancing broadly as a hawkish Federal Reserve stance combines with strong US economic outperformance.
Philadelphia Federal Reserve (Fed) President Anna Paulson crossed the wires on Thursday, signaling that further rate hikes may be needed to lower inflation. She acknowledged that the rate hike in September helped to “move policy to a better inflation-fighting posture.”
EUR/USD hovers near a two-month low on Thursday as expectations of another Federal Reserve (Fed) interest-rate hike keep the US Dollar (USD) firmly supported. At the time of writing, the pair trades around 1.1372, remaining on the back foot for a fourth consecutive day.
AUD/USD trims its losses on Thursday and trades around 0.7030 at the time of writing, down 0.15% on the day.
Bank of England (BoE) Deputy Governor Sarah Breeden said on Thursday that it is “not at all obvious” that there is a path toward lower energy prices, according to Reuters.
Commerzbank’s Thu Lan Nguyen argues that the unanimous Federal Reserve rate hike has temporarily restored its credibility and supported the Dollar, prompting a cut in the EUR/USD year-end forecast to 1.15 from 1.17.
Royal Bank of Canada economist Rachel Battaglia explains that Statistics Canada’s upward revision to population data has erased earlier signs of negative growth and now shows Canada’s population rising 0.5% year-over-year in Q2.
Cleveland Federal Reserve (Fed) President Beth Hammack warned on Thursday that inflation remains elevated in the United States (US), stressing that persistent price pressures could make the Fed’s task increasingly difficult.
ING’s Carsten Brzeski highlights that Germany’s IFO index has risen for five consecutive months, pointing to a cyclical rebound and unexpected resilience in the German economy.
USD/CHF climbs to its highest level since May 2025 on Thursday as the Swiss Franc (CHF) weakens across the board following the Swiss National Bank’s (SNB) decision to leave its policy rate unchanged at 0%.
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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