Analysis: Currencies

Fed Monetary Policy Report flags solid state of US economy

The Federal Reserve's latest Monetary Policy Report describes the U.S. economy as being in a solid position amid a monetary policy stance that will be driven by incoming economic data. ...

Traders now see just one Fed rate cut this year

Traders of short-term interest-rate futures on Friday now expect the Federal Reserve to cut interest rates just one time this year, backing away from earlier bets on two rate cuts starting in June,...

Moderate US job growth expected in noisy January employment report

U.S. job growth likely slowed in January, partly restrained by wild fires in California and cold weather across much of the country, though not enough for the Federal Reserve to resume interest rate...

Japan's household spending beats forecast, but recovery fragile

Japanese household spending rose for the first time in five months in year-on-year terms in December and at a much faster-than-expected pace, but the government said it was too early to call a...

Bank of Canada Governor says Trump's tariffs threat already having an impact

Bank of Canada's Governor Tiff Macklem said on Thursday that a policy shift in the U.S. was causing uncertainty and President Donald Trump's tariff threats were already impacting business and...

Fed releases 2025 bank stress test scenarios

The Federal Reserve announced on Wednesday it would be testing big banks against heightened stress in commercial and residential real estate markets as part of the U.S. central bank's annual stress...

Mexico's central bank will likely bring interest rate down to 9.5%

Mexico's central bank will likely cut its benchmark interest rate by 50 basis points later this week, taking it to 9.50%, a Reuters poll showed on Wednesday, as inflation cools and the economy notched...

More crowded US dollar trade ramps up expectations for euro parity

A crowded strong U.S. dollar trade is set to get more bunched up in coming months, with near one-third of currency strategists polled by Reuters now expecting the euro to fall to parity with the...

Trade war or not, global investors turn even more cautious on China

As China and the U.S. battle over tariffs, locked in a tussle that could result in a deal or a trade war between the world's two largest economies, staying away from China's stock market is becoming...

Russia seeks to end foreign corporate holding of vodka producer Russian Standard

Russia's finance ministry has added the Russian Standard Group companies to a list of economically significant organisations and launched an arbitration case over their foreign corporate holding...

Japan's service activity grows thanks to Asian demand, PMI shows

Japan's service activity expanded for a third straight month in January, helped by a rebound in new export business on Asian demand, a private-sector survey showed on Wednesday. The...

US job openings fall sharply in December; layoffs low

U.S. job openings dropped sharply in December, but low layoffs suggested that the labor market was not abruptly slowing down. Job openings, a measure of labor demand, decreased 556,000...

Central bank body urges policy revamps to heed COVID lessons

Central bank body the Bank for International Settlements has urged the likes of the Federal Reserve and European Central Bank to revamp the way they approach interest rate setting to avoid the...

Investors with 6 trillion euros warn EU not to weaken green rules

Investors with 6.6 trillion euros in assets under management have urged the European Union not to weaken its sustainability rules, as Brussels draws up plans to cut red tape around green finance. ...

Ontario cancels Starlink contract in latest Canadian tariffs protest

The Canadian province of Ontario on Monday announced it was cancelling a C$100 million contract with Elon Musk's Starlink, the latest retaliatory move against tariffs announced by U.S. President...

Trade war fears roil shares of US auto majors, Big Tech after Trump tariffs

Shares of automakers and megacap tech stocks bore the brunt of a wider equity pullback on Monday after U.S. President Donald Trump ordered sweeping tariffs against Mexico, Canada and China, sparking...

Currencies: Tariffs have taken the wind out of the sails (for now)

All was well until the announcement of an effective tariff increase. This should not have come as a surprise to the financial community, but clearly it did. Lulled into sweet illusions of leniency,...

Americans have high hopes for Trump's economy, Gallup poll shows

Americans are more bullish on the U.S. economy and the stock market and more hopeful about falling inflation and borrowing costs than they have been in a decade or more, including in the heyday of...

Asia's factory activity weakens as Trump tariffs jolt sentiment

Asia's factory activity weakened in January as soft Chinese demand and threats of higher tariffs by U.S. President Donald Trump weighed on business sentiment, private surveys showed on Monday,...