News

The EUR/USD pair prolongs its uptrend for the fourth consecutive day and climbs beyond the 1.1600 mark, to a one-and-a-half-week top, during the Asian session on Thursday.

The Fed’s Beige Book indicated an economy that has largely stalled, with activity “little changed” across Districts. Consumer spending declined again, while manufacturing posted slight improvement despite the drag from tariffs and uncertainty around their future path. Outlooks were broadly unchanged, though several contacts flagged “increased risk of slower activity in coming months. The labor […]

The post Fed’s Beige Book: Activity little changed, employment eases, costs still rising appeared first on Action Forex.

Bank of Korea Governor Rhee Chang-yong said Thursday’s policy decision was not unanimous, revealing that board member Shin Sung-hwan dissented. Shin argued domestic demand remains too weak to justify the board’s majority position. Rhee noted that three other board members indicated they were open to a near-term rate cut, highlighting a more divided committee as growth risks persist.

Rhee said Korea’s economic growth next year is expected to be close to its potential rate, but cautioned that heightened foreign-exchange volatility remains a key concern, particularly given its potential pass-through to inflation. The remarks underscore the BoK’s delicate balancing act between managing price pressures, weak domestic demand and increasing calls within the board for earlier easing.

–

More:

• Rhee says the board is split 50:50 on whether to cut rates or hold in the near term.

• The forex market has been showing herd-like behaviour.

• FX volatility is partly due to residents’ foreign stock buying.

• The won is declining more than peer currencies.

• South Korea’s CDS premium is stable.

• Rhee is concerned a weaker won could push consumer prices higher.

• Domestic-focused companies may be hurt by a declining won.

–

Earlier:

• Bank of Korea leaves its base rate on hold at 2.5% as widely expected

This article was written by Eamonn Sheridan at investinglive.com.

Reserve Bank of New Zealand Governor Christian Hawkesby said further interest-rate cuts now face a “high hurdle,” signalling that the easing cycle is effectively finished.

Bloomberg report on Hawkesby speaking an interview today after yesterday’s rate cut:

• investingLive Asia-Pacific FX news wrap: AUD up (high CPI), NZD up (rate cut), JPY up (BoJ)

He said the bank’s latest projections, which leave the Official Cash Rate flat through next year with only a small implied chance of another cut, show that it would take a meaningful deterioration in the outlook to justify additional easing.

Hawkesby noted the RBNZ has already delivered 325 basis points of cuts since last August and that continuing to “keep the door open” risks preventing inflation from returning to the 2% midpoint. With inflation at 3% but expected to slow toward 2% by mid-2026, he said the current stance buys the bank time to “observe and absorb” incoming data. Hawkesby also described the market reaction, a stronger NZD and higher yields, as in line with expectations.

—

Nothing new from Hawkesby here but a useful recap.

—

NZD has continued to rise since the rate cut yesterday.

This article was written by Eamonn Sheridan at investinglive.com.

Gold (XAU/USD) attracts some sellers during the Asian session on Thursday and erodes a part of the previous day’s gains to a nearly two-week top. The prospects for lower US interest rates, along with hopes for a peace deal between Russia and Ukraine, remain supportive of the upbeat market mood.

Gold (XAU/USD) attracts some sellers during the Asian session on Thursday and erodes a part of the previous day’s gains to a nearly two-week top. The prospects for lower US interest rates, along with hopes for a peace deal between Russia and Ukraine, remain supportive of the upbeat market mood.

ECB chief economist Philip Lane said overnight that while headline inflation has hovered near target for most of the year, the picture is still flattered by energy deflation. Non-energy inflation remains “well above 2%,” and Lane stressed that a further slowdown is required to ensure inflation is sustainably anchored at target. Nevertheless, he added “We’re […]

The post ECB’s Lane says more cooling needed in core inflation appeared first on Action Forex.

There’s been little official comment from Moscow regarding a revised U.S.-brokered peace plan for Ukraine.

The Australian Dollar (AUD) gains against the US Dollar (USD) on Thursday, extending its gains for the fifth successive session. The AUD/USD pair gains ground as the US Dollar (USD) struggles amid rising odds of Federal Reserve (Fed) rate cut bets in December.

The Australian Dollar (AUD) gains against the US Dollar (USD) on Thursday, extending its gains for the fifth successive session. The AUD/USD pair gains ground as the US Dollar (USD) struggles amid rising odds of Federal Reserve (Fed) rate cut bets in December.