FXStreet

OCBC’ strategists Sim Moh Siong and Christopher Wong expect USD/CNH to consolidate as Chinese policymakers temper rapid Renminbi (RMB) gains.

The US Dollar (USD) has maintained its bearish tone, building on Wednesday’s election-led marked pullback on Thursday.

Societe Generale strategists see improving risk-reward in China equities after a recent correction, especially in onshore technology. They highlight National Team purchases and revived buyback incentives as evidence of a policy floor.

Bitcoin (BTC) and the wider crypto market fell on Thursday as US markets opened. Losses in AI-related stocks pushed the NASDAQ Composite (IXIC) down as much as 5% amid concerns that Democrats' control of both chambers of the US Congress could lead to tighter crypto and AI regulations.

The Japanese Yen (JPY) outperforms all its major peers on Thursday as traders seek safety in the currency amid a sharp sell-off in US equities led by technology and chip shares. The US Dollar (USD) also gives up earlier gains and slips back into negative territory, adding pressure on USD/JPY.

Commerzbank’s Dr. Ralph Solveen notes that new orders in German industry rose sharply in September, with core orders excluding big ticket items also gaining strongly. He argues that this may mark the start of an upward trend in core orders.

The Bank of England (BoE) raised its Bank Rate by 25 basis points to 4.00%, with eight policymakers backing the move and Catherine Mann preferring a larger 50-basis-point increase.

Bank of England (BoE) Governor Andrew Bailey said that the central bank is “watching the extent of inflation pass-through,” while acknowledging that inflation risks are tilted to the upside, after the BoE raised interest rates to 4% on Thursday.

European Central Bank (ECB) President Christine Lagarde crossed the wires on Thursday and said that “the current situation is made hard by the energy shock and AI pulling in opposite directions.”

A fresh wave of selling in AI-linked stocks is pulling Wall Street into one of its worst days in recent memory. A Democratic win in both the upper and lower houses has added fresh worries that AI data center projects could face renewed moratoriums and regulatory pressures.

Bank of Canada (BoC) Governor Tiff Macklem appeared in the House of Commons, saying there may be a need to raise rates further.

On Thursday, Richmond Federal Reserve (Fed) President Thomas Barkin said inflation is the most important risk for the Fed right now, adding that the policy path is straightforward and that a gradual pace of rate increases “makes sense.”

The Pound Sterling erases its previous gains against the US Dollar even though the Bank of England (BoE) raised rates to 4%, narrowing the differential with the Fed, but solid US data and hawkish comments by Fed officials weighed on the UK currency. The GBP/USD trades at 1.3467, virtually unchanged.

Societe Generale reports the Banco Central do Brasil (BCB) has halted its five‑meeting easing cycle, leaving Selic at 13.75% amid post‑election volatility and fiscal uncertainty.

EUR/USD slips into negative territory on Thursday as the US Dollar (USD) rebounds from its post-election sell-off. Lower-than-expected US Initial Jobless Claims and hawkish remarks from Federal Reserve (Fed) officials help the Greenback regain ground.

Norman Liebke at Commerzbank expects Banxico to keep rates unchanged after roughly 300 bps of cuts last year and two more this year, as inflation remains slightly above the 3% target and prior easing has yet to fully filter through.

TD Securities analysts argue that despite a changed political backdrop after a Democratic blue wave, the Federal Reserve is still likely to deliver additional tightening.