Section
The latest forex coverage from the TrustFinance editorial desk.
Bank of America forecasts the euro will continue to face pressure against the U.S. dollar until the end of the third quarter, driven by a hawkish Federal Reserve, strong U.S. economic data, and rising oil prices.
Deutsche Bank warns that the U.S. Treasury's unexpected move to at least double its long-term bond buybacks is a form of 'soft financial repression' similar to the Fed's past 'Operation Twist,' which could place significant downward pressure on the U.S. dollar.
The Canadian dollar strengthened to its highest point against the U.S. dollar since early June, buoyed by a temporary U.S. suspension of new tariffs and a broad-based decline in the greenback.
The U.S. Treasury's unexpected move to double its long-end bond buybacks is being compared to the Federal Reserve's 'Operation Twist' by Deutsche Bank, which warns the policy could act as a form of financial repression and drive the dollar lower.
The loonie strengthened to its highest point against the U.S. dollar since early June, supported by a temporary suspension of threatened American tariffs and a broader decline in the greenback.
The British pound held firm after UK headline inflation for July rose to 2.9% as expected, while stable core inflation eased pressure on the Bank of England to raise interest rates.
Investors are increasingly turning to the Swiss franc to fund carry trades, shifting away from the Japanese yen after recent intervention threats have heightened the currency's volatility.
Most Asian currencies advanced on Wednesday, with the South Korean won leading gains to a one-year peak, as a retreat in U.S. Treasury yields pressured the dollar ahead of key Federal Reserve meeting minutes.
The Canadian dollar weakened against its U.S. counterpart as traders monitored last-ditch negotiations to avert new U.S. tariffs on Canadian goods valued at approximately $20 billion.
