Citigroup analysts see potential for a brief rally in the British pound around the Bank of England's upcoming meeting, but caution that significant downside risks from the UK's October budget could quickly reverse any gains.
The Canadian dollar weakened for a sixth straight session, touching its lowest point in nearly a month against the U.S. dollar, after the Federal Reserve raised interest rates by 25 basis points and signaled further tightening is likely.
The Japanese yen advanced as traders priced in a historic rate hike by the Bank of Japan, while the U.S. dollar took a breather after a hawkish interest rate increase from the Federal Reserve.
The Japanese yen weakened significantly against the dollar following the U.S. Federal Reserve's first interest rate hike since 2023, placing intense pressure on the Bank of Japan to deliver a hawkish policy response at its upcoming meeting.
Global sovereign bond yields fell on Thursday, snapping a recent sell-off, as investors digested a 25-basis-point rate hike from the U.S. Federal Reserve and a hawkish decision by the Bank of England to hold rates steady.
The British pound fell against the U.S. dollar after the Bank of England maintained its key interest rate, with traders reacting to cautious meeting minutes and upgraded inflation forecasts driven by energy prices.
Major banks including Citigroup and Wells Fargo are forecasting a drop in the Japanese yen, arguing the Bank of Japan is likely to disappoint hawkish market expectations at its upcoming policy meeting.
The Ugandan shilling has weakened significantly against the U.S. dollar, driven by strong demand from local importers and geopolitical uncertainty. Traders anticipate the currency could soon test its all-time low.
Both onshore and offshore Chinese yuan strengthened beyond the key 6.7 per dollar level, reaching a 20-month high despite a recent interest rate hike by the U.S. Federal Reserve.
