Analysis

On the GBP side of the GBP/USD pair, the UK’s economic recovery, rising inflation and our expectation of smaller-than-anticipated interest rate cuts by the Bank of England (BoE) provide support for the pound against non-USD currencies.

Today, we delve further into the exchange rate markets with a quantitative analysis. Our quantitative exchange rate forecasting tool is based on econometric multi-factor regression models. This approach involves identifying and analysing the key factors that influence exchange rates.

The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday.

The Australian Dollar (AUD) attempts to extend its gains for the fourth consecutive day on Wednesday, following the People’s Bank of China’s (PBoC) interest rate decision.

GBP/USD churned chart paper just south of 1.2700 on Tuesday as Cable traders brace for a decently-sized UK data dump due on Wednesday, headlined by UK Consumer Price Index (CPI) inflation figures for October.

The USD/CHF pair softens to around 0.8875 on Monday during the early European session, pressured by the weakening of the US Dollar (USD).

AUD/JPY retraces its recent gains from the previous session, trading around 100.70 during the early European hours on Tuesday.

GBP/JPY breaks its two days of losses, trading around 197.90 during the European session on Monday.

The Fed is widely forecast to lower the policy rate by 25 basis points to the range of 4.5%-4.75%.

The AUD/USD pair remains under some selling pressure for the third successive day on Tuesday and drops to its lowest level since August 8, closer to mid-0.6500s during the first half of the European session.

USD/CHF may appreciate further due to fading odds of bumper rate cuts by the Fed in 2024.

At the market open in London, the FTSE 100 Index declined 0.32%. The FTSE 250 Index and the FTSE 350 Index also fell.

GBP/CAD is pulling back after unfolding a partial down-leg within a broader rising channel.

Investing.com-- The Federal Reserve’s first interest rate cut in over four years quelled market fears of a recession, Goldman Sachs (NYSE:GS) said, with improved risk appetite likely to boost rate-sensitive Asian currencies. 

Investing.com-- Most Asian currencies moved little on Tuesday, while the dollar crept higher in anticipation of key inflation data that is likely to factor into the outlook for U.S. interest rates. Most regional currencies were nursing some losses over the past week as risk appetite was battered by

The Australian Dollar (AUD) recovers its recent losses against the US Dollar (USD) due to the hawkish sentiment surrounding the Reserve Bank of Australia (RBA).

The GBP/USD pair attracts some dip-buying during the Asian session on Monday and climbs back closer to mid-1.3100s in the last hour, though a combination of factors might cap any further gains.

The AUD/JPY cross remains under some selling pressure for the third successive day on Thursday and drops to a three-and-half-week low during the Asian session on Thursday.

Investing.com-- Most Asian currencies kept to a tight range on Friday as the dollar held recent gains in anticipation of key inflation data that is likely to factor into the outlook for interest rates. 

Investing.com-- Most Asian currencies firmed on Thursday, albeit slightly, as a rebound in the dollar stalled ahead of key economic readings that are likely to factor into the outlook for interest rate cuts.