EUR/USD
1.18362
0.199%
Gold
3658.54
-0.036%
Oil
63.287
-0.502%
USD/JPY
147.036
0.037%
GBP/USD
1.36367
0.097%
GBP/JPY
200.511
0.144%
Real-time News
The Eurozones seasonally adjusted current account data for July will be released in ten minutes.On September 18, Mitsubishi UFJ reported that the Bank of England will hold interest rates steady in September, following a narrow vote to cut rates in August. With little likelihood of a rate change now in sight, market attention will focus on the split in the vote, fine-tuning of policy guidance, and the annual decision on the pace of quantitative tightening. A 7-2 vote is expected to maintain interest rates, with Taylor and Dhingra voting for a rate cut. Guidance will continue to indicate a gradual decline in interest rates, but looking ahead, the Bank of England appears prepared to slow the pace of rate cuts to reflect the lack of consensus on easing. A December rate cut remains possible, but it is likely to be another close call. Regarding the balance sheet, the market generally expects the pace of quantitative tightening to slow from the current annual pace of £100 billion. This figure is expected to be revised to £60 billion, implying a slight reduction in active sales compared to the previous 12 months.Sources: Qatar raised the price of its October Al-Shaheen crude oil to a premium of $3.61 per barrel over the benchmark oil price.On September 18, HDFC Securities CEO Dhiraj Relli stated that the Federal Reserves interest rate cuts could make emerging markets like India more attractive to yield-seeking investors, potentially driving capital flows back into these markets. Relli noted that rising valuation risk premiums due to geopolitical concerns and trade tensions have led foreign institutional investors to be cautious about Indian stocks. He added that a mutually beneficial trade negotiation solution with the United States would eliminate policy uncertainty and restore foreign institutional investors confidence in the Indian market. He expects an earnings recovery in the second half of fiscal year 2026, which in turn will boost Indian stock prices. He stated that Indias structural growth story is likely to remain intact, supported by factors such as growing middle-class consumption and a thriving startup ecosystem.On September 18th, the US dollar weakened across the board after the Federal Reserve cut interest rates, and the Japanese yen briefly rose. However, as traders digested the information and realized the Fed was more hawkish than the market was pricing in, the USD/JPY exchange rate ultimately erased all losses and surged. The dot plot shows that the FOMC, by a narrow majority, expects two more rate cuts in 2025, while the remaining officials expect only one or no cuts. Furthermore, the Fed projects one rate cut in 2026, while the market had been pricing in three before the decision. Furthermore, Fed Chairman Powell, calling the rate cut a "risk management" action, remained fairly neutral. Looking ahead, the key will be the data. Strong data could trigger a hawkish shift in interest rate expectations and support the US dollar. On the other hand, weak data could continue to put pressure on it. For the Japanese yen, the fundamentals have yet to materially change. The yens gains are primarily driven by market expectations of a dovish Fed. Tomorrows Bank of Japan interest rate decision is expected to keep rates unchanged, and its forward guidance is expected to impact the yen.
