Forex Market News .. collected from serval sources, all in one place for you to review.
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Reserve Bank of New Zealand raise rates to 2.75% from 2.5% as was widely expected.
I'll have more to come on this separately, details and implications. Added, here is more:
Background previews can be found here:
This article was written by Eamonn Sheridan at investinglive.com.Comments from Takata, the BOJ's most consistent hawkish dissenter and a repeat vote for faster tightening at recent meetings, add to the picture of an internally divided board leaning toward further hikes even as Governor Ueda strikes a more measured public tone. His call for the BOJ to demonstrate determination against upward price deviations, rather than simply encouraging inflation to rise, signals a desire to shift the bank's communication stance more assertively than the current majority view. His warning that rising overseas interest rates could push Japan's own neutral rate above what markets currently expect is a notable escalation in tone, since it implies the eventual terminal rate for this hiking cycle may be underpriced.…
Australian Q2 GDP 0.4% q/q for a beat
2.1% y/y, beat
Just the numbers this post. I'll have more to come on this separately, details and implications.
In brief AUD should get a supportive blip, at the margin.
This article was written by Eamonn Sheridan at investinglive.com.Trump's comments push back directly on reporting that he is seeking to bring Iran to the negotiating table, instead framing the current military and economic pressure campaign as achieving US goals without a deal. His emphasis on near total control of the Strait of Hormuz will reinforce the market narrative that near term shipping risk has eased, consistent with recent reporting on reduced threat levels following the latest strikes. At the same time, his description of Iran's economy as collapsing and his call for the Iranian people to rise up signal no near term de-escalation, keeping a geopolitical risk premium embedded in oil prices. Traders should read this as confirmation that Washington sees leverage in prolonging pressure rather…
The PBOC allows the yuan to fluctuate within a +/- 2% range, around this reference rate. More here on this.
Two of Wall Street's most-read desks flagged the same underlying worry within weeks of each other, and neither flag was visible to the retail trader watching a standard price chart.
Mizuho's multi-asset team noted that momentum baskets had completely round-tripped, breaking below the lows set during July's Situational Awareness hedge fund unwind, and warned the move had turned self-fulfilling as systematic strategies de-risked into the weakness. Around the same time, JPMorgan's chief technical strategist drew a more historically loaded comparison, telling clients that the current divergence in AI stocks echoed the pattern seen in the months before the dot-com bubble burst in 2000.
The JPMorgan note, published August 21, pointed to a market…
The scale of Tuesday's strikes, around 100 targets including radar, mine laying and anti ship missile capabilities, points to a deliberate US effort to degrade Iran's ability to threaten Hormuz shipping for an extended period, with one official citing at least a month of reduced threat levels. That framing, combined with roughly 40 vessels safely transiting the strait on the day of the strikes, will likely support the case that near term supply disruption risk has eased even as the underlying conflict remains unresolved. The new tanker for tanker policy marks an escalation in US rules of engagement that traders should watch closely, since it introduces a fresh and more direct retaliatory mechanism tied specifically to attacks on shipping.…
Ueda's refusal to push back on market pricing for a September rate hike is likely to be read as a tacit acknowledgment that the central bank is comfortable with current expectations, rather than a signal of hesitation. His comments on the need for closer communication between central banks as the global environment shifts add a layer of caution, suggesting policymakers are wary of divergent moves creating volatility across currency and rate markets. The undisclosed talks with Bessent will draw attention given the parallel comments from Japan's finance minister on joint FX intervention being in line with G7 commitments, keeping the yen in focus. With Ueda offering no pushback on hike expectations and no fresh dovish signal either, the path…
Ueda's comments strike a carefully balanced tone that leaves the door open for further tightening without committing to a specific timeline, keeping September pricing intact without validating it outright. His framing of long-term yield rises as largely a global phenomenon rather than a domestic policy signal will likely ease some concern that the BOJ sees its own hikes as destabilising the JGB market, even as the benchmark yield sits near 3 percent. At the same time, his acknowledgment that upside price risks remain part of the policy calculus, alongside underlying inflation sitting close to the 2 percent target, keeps a hawkish undertone in play. Katayama's comments on monitoring debt markets with heightened urgency, paired with his…
Mizuho's note points to a technical breakdown with real teeth, since momentum baskets slipping below the lows set during July's Situational Awareness unwind (Mizuho referring to Morgan Stanley's Tech Momentum Index) means the market has now erased the entire rebound that followed that earlier liquidation event. The self-reinforcing dynamic Mizuho describes, where falling prices trigger further systematic de-risking, is the same mechanism that made the July move so violent, and it tends to accelerate once key technical levels give way. This latest leg lower is unfolding against a backdrop of rising bond yields and oil prices tied to the escalating US Iran conflict, adding a macro overlay to what started as a positioning and factor unwind.…
Crude has been grinding higher through the week on the back of this escalation, with prices pushing toward their highest level in more than a month as the market prices in a prolonged disruption to exports rather than a quick de-escalation. Traders are increasingly focused on the mechanics of the standoff itself, including the scale of the US naval blockade around Iranian ports and the risk of further mining attempts in the Strait, rather than any single headline. With the US Strategic Petroleum Reserve already near multi-decade lows and no clear diplomatic off-ramp in sight, the geopolitical premium embedded in oil prices looks unlikely to unwind quickly. Attention now turns to whether Iran responds with further strikes on US assets or…