Analysis: Currencies

ECB's Simkus sees equal chance of rate hike or cut

The European Central Bank is equally likely to raise or cut interest rates but it is hard to know when any such move will take place given the prevailing uncertainty about trade and geopolitics, ECB...

ECB's safety net is part of EU plan to court new allies

The ECB's plan to make it easier for foreign central banks to secure funding in euros is the latest part of Europe's emerging strategy to win trade and political friends and hold its own against the...

ECB's Makhlouf flags persistent inflation undershoot, slowing growth as risks to outlook

European Central Bank policymaker Gabriel Makhlouf identified a loss of momentum in euro zone economic growth or the possibility that inflation continues to undershoot the ECB's 2% target in a more...

Sterling recovers some BoE-led losses, politics loom large

The pound rose on Friday, recovering some of the previous day's steep slide that followed a surprisingly tight vote from the Bank of England to leave rates unchanged and its signal that it could cut...

ECB policymakers fret over risk of too-low inflation

European Central Bank policy is right for the current inflation outlook but risks remain that price growth might weaken excessively and the ECB must be ready to act if these materialise, ECB...

ECB's Escriva sees interest rates stable

ECB policymaker Jose Luis Escriva told Spanish radio station Cadena SER he expected interest rates to remain steady in the foreseeable future as inflation expectations were anchored around the...

Dollar set for strongest week since November, yen steadies before polls

The U.S. dollar steadied near a two-week high on Friday, poised for its strongest weekly performance since November as a rout in stocks driven by AI-spending concerns rattled investors, while the yen...

ECB to widen access to euro loans in bid to boost global role, sources say

The European Central Bank is working on opening up access to euro liquidity to more countries, making it cheaper and easier to obtain as part of efforts to bolster the international role of the single...

Traders bet the ECB will stick with steady rates, keeping one eye on the euro

Euro zone markets remained confident on Thursday in the view that the European Central Bank would likely hold interest rates steady for the rest of the year, with euro strength likely remaining in the...

BoE's Bailey welcomes Warsh as Trump's choice to lead U.S. Fed

Bank of England governor Andrew Bailey on Thursday welcomed U.S. President Donald Trump's choice of former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell's...

ECB leaves rates unchanged, shrugs off inflation dip

The European Central Bank left interest rates unchanged as expected on Thursday, shrugging off a dip in inflation while continuing to warn about an uncertain geopolitical environment. ...

Statement from the ECB following policy meeting

Following is the statement from the European Central Bank following its policy meeting. The Governing Council today decided to keep the three key ECB interest rates unchanged. ...

Bank of England votes narrowly to hold rates but signals reduction ahead

The Bank of England kept interest rates on hold on Thursday, but only after an unexpectedly narrow 5-4 vote, and said borrowing costs are likely to fall if an expected drop soon in inflation is...

ECB keeps rates unchanged, signal comfort with dollar weakness

The European Central Bank left interest rates on hold as expected on Thursday and played down the impact of dollar moves on its future choices, with a largely unchanged inflation outlook also...

Hedge funds jump into volatile January to reap returns

Hedge funds posted positive returns in January thanks to ripples of market volatility stemming from U.S. military action in Venezuela, questions around the independence of the Federal Reserve and a...

Russian services sector sees strongest growth in a year, VAT hike fuels inflation

Russia's services sector expanded at its fastest pace in a year in January, buoyed by stronger demand and a rise in new orders, an S&P Global survey showed on Wednesday. The S&P Global...

Euro zone faces inflation hurdle before ECB

A look at the day ahead in European and global markets from Rae Wee A look at the day ahead in European and global markets from Rae Wee Euro zone preliminary inflation data...

Ultra-low bond spread unity still out of reach for euro area

Euro zone sovereign bond yield spreads are at their lowest since Lehman Brothers collapsed in 2008, but investors say steeper falls will be difficult without deeper reforms, as volatile geopolitics...

Yen heads for fourth straight day of losses ahead of Japan's elections

The dollar rose against the yen on Wednesday, pushing the Japanese currency towards its fourth consecutive daily decline ahead of elections expected to boost Prime Minister Sanae Takaichi's fiscal and...