FXStreet

The British Pound (GBP) has bounced from session lows against the US Dollar (USD) on Thursday, as the Bank of England hiked interest rates, as widely expected, with some policymakers calling for further monetary tightening.

Rabobank’s Global Daily notes that Brent crude Oil dropped over 10% to $93 per barrel, slipping below $100 for the first time since October 7 after US election results that were largely priced in. Strategists Michael Every and Joe DeLaura argue that any US pivot away from Iran or direct regional involvement offers no guarantee of sustainably lower Oil prices.

Nomura strategists note that Norges Bank kept its policy rate at 4.50% in November and signalled a willingness to hike again if needed. They expect no further rate changes in 2026–2027 and see the next move as a cut, likely only from 2028, given very gradual disinflation in Norway.

The Swiss Franc (CHF) gives up earlier gains on Thursday as the US Dollar (USD) shows signs of stabilising following US midterm election volatility, helping USD/CHF rebound. At the time of writing, the pair trades around 0.8176, up 0.10% on the day, after recovering from an intraday low of 0.8135.

The Japanese Yen (JPY ) has given away most of the previous gains on Thursday, as the US Dollar (USD) bounced up from highs with the dust of the midterm elections settling and the strong US macroeconomic data coming to the fore.

Commerzbank’s Tatha Ghose expects the Czech National Bank to deliver a fully priced 25 bp hike to 4.00%, but stresses that the key signal will be the overall tightening path.

The New Zealand Dollar (NZD) gives up half of its early gains against the US Dollar (USD) on Thursday. In the European trade, the NZD/USD pair retreats from day’s high of 0.5658, but is still 0.2% higher to near 0.5630.

Ripple (XRP) ticks higher on Thursday, trading near $1.32. The remittance token is up roughly 10% from last week’s trough at $1.20, suggesting that the path of least resistance is gradually flipping upward.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe highly volatile USD/JPY trading, with swings between 157.39 and 158.74 before a close at 158.42 as lower US yields supported the Japanese Yen. They see limited directional edge intraday, expecting a 157.70–158.70 range, and maintain a one-to-three-week range-trading view between 157.00 and 159.00.

The US Dollar (USD) is reversing previous losses on Thursday as markets start to shift their gaze away from the results of the US midterm elections to the solid US macroeconomic figures released this week, which pave the path for another Federal Reserve (Fed) interest rate hike in December.

The comments from European Central bank (ECB) Governing Council member Ante Zigman released in a Bloomberg report state that he expects a high chance of another interest rate hike in the December meeting.

Rabobank strategist Molly Schwartz notes that Brent crude Oil dropped over 10% to $93 per barrel, slipping below $100 for the first time since October 7 after US election results that were largely priced in.