ACY Securities

In summary, the Federal Reserve holds a much greater influence on the financial markets compared to other central banks. Both the Fed and the US Treasury are keen on keeping yields from rising too high.

BoE commits to restrictive policy for an extended period. The Bank of England (BoE) has opted to keep its policy rate steady at 5.25% during Thursday’s Monetary Policy Committee (MPC) meeting.

In October, there was a slight, albeit minimal, strengthening of the US dollar against the euro, as observed in London closing rates. The exchange rate shifted from 1.0576 to 1.0562. On the other hand, the dollar experienced a more significant strengthening against the yen, moving from 149.37 to 151.56.

I see EUR/USD trading in a range of 1.0450 to 1.0760. Developments in the interest rate markets continue to be the driving force behind price movements. Various statements by ECB representatives (more on this in the Medium-Term Outlook) have led to a roller coaster ride this week

As anticipated, the Federal Reserve maintained interest rates at the range of 5.25-5.5%. However, they exhibited a dovish stance in three distinct ways. To start, their statement acknowledged the potential tightening of financial conditions, possibly impacting economic activity, alluding to the significant increase in

The Federal Reserve has recently made the decision to maintain its current interest rates. In the context of this year's second pause, it is essential to analyse the implications of this policy shift within the United States.

As evident since yesterday morning, the BoJ's policy meeting has given its approval for renewed selling of the yen, mainly due to the adjustments made to the YCC framework. These changes, however, were quite cautious and fell short of a complete abandonment of the existing policy.

The Federal Reserve is widely anticipated to maintain its current policy rates during the upcoming Wednesday meeting at 2 PM. This decision is expected despite several positive economic indicators, including the addition of 336,000 new jobs in September.

The yen experienced a fresh depreciation overnight following the Bank of Japan's recent policy update. This led to a resurgence in the USD/JPY exchange rate, pushing it back above the 150.00 threshold.

At the beginning of the current week, the trend seen in previous weeks has somewhat reversed, as investors found relief in the absence of a broader conflict between Israel and Hamas, which had escalated over the weekend

The US currency maintained its gains versus its rivals ahead of this week’s Federal Reserve interest rate decision. The Yen gained on a rise in Tokyo’s Annual Core CPI to 2.7% from 2.5% previously.

In the past month, the U.S. dollar index (DXY) remained largely stable, exhibiting fluctuations without a clear directional trend. During October, the dollar struggled to gain momentum in either direction.