Forex &amp; Currency Market News

China Raises Banks' FX Reserve Ratio to 6% to Moderate Yuan Rally

The People's Bank of China announced on 3 November 2026 that it will raise the foreign-exchange deposit reserve requirement for financial institutions from 4% to 6% with effect from 15 November. Reuters estimated that the adjustment could withdraw around $24 billion in foreign-currency liquidity from the banking system. The measure follows a more than 5% rise in the yuan this year. Reuters reported that the onshore yuan weakened by as much as 0.37% against the US dollar after the announcement. This foreign-exchange reserve requirement change is separate from the PBOC's earlier equity-support swap facility and short-term repo operations.

USDCNHUSDCNY

New Zealand Building Consents Fall 7.9% in September Despite Annual Growth

Stats NZ reported on 3 November 2026 that the seasonally adjusted number of new dwellings consented declined 7.9% in September after a 5.3% increase in August. There were 3,570 new dwellings consented during September. In the year ended September, 41,091 new homes were consented, up 18% from the previous year, while the annual value of non-residential building work consented fell 3.1% to NZ$8.7 billion. The monthly decline and stronger annual count highlight different time horizons; a building consent is not proof that construction has started.

NZDUSDAUDNZD

ECB Official Flags AI Valuations and Sovereign Bonds as Financial Stability Risks

European Central Bank Vice-President Boris Vujcic identified elevated AI equity valuations, government-bond market stress and potential losses at investment funds and other non-bank financial institutions as leading risks to financial stability, according to Reuters reporting on 2 November 2026. He noted that the ECB's forthcoming Financial Stability Review, scheduled for 18 November, was prepared as AI stocks began to correct. Vujcic said fiscal weaknesses should primarily be addressed by governments rather than relying on central-bank intervention. These are official risk assessments, not a newly announced ECB interest-rate decision or emergency market intervention.

EURUSDEU50

Forex & Currency Markets2 days ago

RBA Raises Cash Rate to 4.85% in Split 6–3 Vote as Inflation Persists

The Reserve Bank of Australia increased its cash-rate target by 25 basis points to 4.85% at its 3 November 2026 meeting, up from 4.60%. Six Monetary Policy Board members supported an increase and three favoured no change. The rate is its highest since 2008 and marks a fifth increase in 2026. The RBA said inflation remains too high, with elevated fuel prices and domestic cost pressures complicating the return to its target range. The rate decision is confirmed; further increases remain conditional rather than announced.

AUD/USDAUD/JPY

US Dollar Softens Ahead of RBA, BoE and US Jobs Releases

DXY 101.687, EUR/USD 1.11819 and GBP/USD 1.33984 in its 2 November morning table, describing softer US-dollar trading ahead of monetary-policy decisions and US payrolls. These are historical snapshots, not current live prices or completed central-bank decisions.

US DOLLAR INDEXEURO / US DOLLARBRITISH POUND / US DOLLAR

Forex & Currency Markets4 days ago

Brazilian Real Weakens as Dollar Gains 9.15% in Post-Election Week

Reuters reported the US dollar closed at 5.4460 Brazilian reais on 30 October 2026, rising 1.09% on the day to its highest closing level of the year. The dollar gained 9.15% against the real during the week following Brazil’s presidential run-off, amid investor concern about the fiscal-policy outlook. The move is an observed market reaction, not proof of any specific future government measure.

USD/BRL

Forex & Currency Markets5 days ago

Eurozone GDP Grows 0.4% in Q3, Beating Forecast as Ireland Boosts Result

Euro-area gross domestic product expanded 0.4% quarter on quarter in the third quarter of 2026, slowing from 0.6% in the preceding quarter but exceeding a 0.2% forecast, according to a Reuters report published on 30 October. Annual growth was 1.3%. Reuters reported substantial divergence among member economies: Germany expanded 0.2%, Spain and the Netherlands 0.6%, Italy was flat and France contracted 0.1%. Ireland’s 5.5% quarterly increase materially lifted the euro-area aggregate. The regional GDP estimate is a separate statistical release from the national announcements.

EUR/USDEURO STOXX 50

Forex & Currency Markets5 days ago

Bank of Japan Holds Rate at 1.25% in 8–1 Vote, Raises Inflation Outlook

The Bank of Japan left its short-term interest-rate target at around 1.25% on 30 October 2026 in an 8–1 decision, with board member Hajime Takata dissenting, according to the central bank’s monetary-policy release and Reuters reporting. The BoJ also upgraded its inflation assessment, saying underlying inflation was around its 2% target. The rate decision is distinct from its separately announced acceleration of ETF sales. The bank did not announce a December rate increase.

USD/JPYJAPAN 225

Forex & Currency Markets6 days ago

ECB President Christine Lagarde to Step Down on 7 February 2027

The European Central Bank confirmed on 29 October 2026 that President Christine Lagarde will step down on 7 February 2027, before her eight-year term was due to conclude in October 2027. Lagarde informed the ECB Governing Council and European Council President António Costa. Costa said the appointment process for her successor would begin immediately under European Union rules. No successor was announced in the official statements. The departure is a leadership development, not an ECB interest-rate decision.

EUR/USDEUR/GBP

Forex & Currency Markets6 days ago

Bank of Canada Raises Policy Rate to 2.50% as Inflation Risks Persist

The Bank of Canada increased its overnight policy rate by 25 basis points to 2.50% on 28 October 2026, with the Bank Rate at 2.75% and deposit rate at 2.45%. The central bank said more persistent price pressures and higher energy costs warranted tightening. It forecast inflation averaging 3% in 2027 before returning to 2% around mid-2028.

USDCADCADJPY

Forex & Currency Markets6 days ago

Federal Reserve Holds Rates at 3.75%–4.00% as Two Officials Seek a Hike

The Federal Open Market Committee left its target range unchanged at 3.75%–4.00% on 28 October 2026 by a 10–2 vote. Reuters reported that policymakers described economic growth as strong, while inflation remained elevated. Lisa Cook and Beth Hammack dissented in favour of a 25-basis-point increase. The decision and accompanying remarks left markets reassessing the likelihood of a December rate rise.

DXYEURUSDUSDJPY

EU Ministers Seek China Import Deals to Address Growing Trade Imbalance

European Union trade ministers said on 23 October 2026 that the bloc should seek agreements with China to limit import pressure in sectors including chemicals, machinery and pharmaceuticals. Reuters reported an EU goods-trade deficit of more than €370 billion in 2025, with a larger gap projected for 2026. Officials described the competitive pressure on European producers as China Shock 2.0. The ministers favoured dialogue with Beijing, but no new sector-specific agreement or import restriction was announced at the meeting.

EURUSDSTOXX50GER40

Eurozone Growth Slows to Four-Month Low as October Composite PMI Falls to 51.9

The flash eurozone composite PMI eased to 51.9 in October from 53.1 in September, the slowest expansion in four months. France returned to contraction while energy and transportation costs increased pressure on businesses. Employment gains slowed, and company confidence weakened.

EURUSDEURGBPSTOXX50

German Private-Sector Growth Slows as October Composite PMI Falls to 52.8

Germany’s flash composite PMI eased to 52.8 in October from 53.8 in September, remaining in expansion territory. Manufacturing PMI advanced to 54.2, while services PMI eased to 51.7 from 52.9. The release suggests weaker overall growth even as factory activity remained relatively resilient.

EURUSDGER40

French Private Sector Contracts as October Composite PMI Falls to 48.4

France’s flash composite PMI dropped to 48.4 in October from 51.1 in September, slipping below the 50 threshold for contraction. Flash services PMI came in at 48.4 versus 50.7 expected, while manufacturing PMI was 49.3 versus 50.5 expected. Survey respondents pointed to weaker demand amid political and financial uncertainty.

EURUSDEURGBPFR40

UK Business Activity Hits Eight-Month High as October Composite PMI Rises to 53.1

S&P Global reported that the UK flash composite PMI rose to 53.1 in October from 52.0 in September, its strongest pace since February. New orders and employment improved, including the first rise in staffing since changes to employer payroll taxation in 2024, while input costs remained elevated.

GBPUSDEURGBPUK100

Taiwan Warns Chinese Maritime Militia Activity Is Expanding into Western Pacific

Taiwan’s Coast Guard said on 23 October that China was deploying maritime militia vessels alongside coast guard and research ships in what it called expanded battlefield preparation around Taiwan and the western Pacific. Officials described an August 16 incident involving a suspected militia boat, Minfudingyu 07902, that approached within approximately 2.7 nautical miles outside Taiwan’s restricted waters. Taiwan said the activity also increased pressure on Japan and the Philippines. These are attributed Taiwanese assessments, not independently verified evidence of an imminent military operation.

TAIEXUSDJPY

Australia Private Sector Contracts as October Composite PMI Falls to 47.7

Australia’s flash composite purchasing managers’ index fell to 47.7 in October from 51.3 in September, signalling a contraction in private-sector activity. The services PMI declined to 47.6 from 51.9, while manufacturing edged up to 49.7 from 49.6 but remained below the 50-point growth threshold. Survey coverage also described a rise in input and selling-price pressures. The October flash release is a separate Australian economic catalyst, not another report about US oil prices.

AUDUSDAUDJPY

UK Retail Sales Fall 0.4% in September, Missing Forecasts

Great Britain retail sales volumes fell 0.4% in September 2026, a steeper decline than the 0.1% fall expected in the Reuters poll, according to the 23 October Office for National Statistics release reported by Reuters. Warm weather weakened online clothing demand and supermarket sales declined, while motor-fuel sales rose 2.2% from August. Over the three months to September, sales volumes increased 0.7%, highlighting a distinction between the monthly decline and quarterly growth.

GBPUSDEURGBPUK100

Japan Core Inflation Reaches 2.1% in September, Above BoJ Target

Japan’s nationwide core consumer price index, which excludes fresh food, increased 2.1% year on year in September 2026, compared with 1.7% in August, according to data reported by Reuters on 23 October. The result matched economists’ median forecast and exceeded the Bank of Japan’s 2% target for the first time in nine months. A measure excluding both fresh food and fuel rose 2.4% from 1.9%. The release is relevant to expectations for further Bank of Japan policy tightening; it does not constitute a policy decision.

USDJPYJPYJGB10Y

Japan Exports Rise 16.7% in September but Miss Forecasts

Japan’s September exports rose 16.7% year on year, compared with a 20.1% increase expected in a Reuters poll, marking a 13th straight month of gains. Imports increased 18.9%, below the 19.6% consensus, while the trade deficit was ¥536.6 billion against forecasts for a ¥181 billion shortfall, according to the 21 October Reuters report citing the finance ministry.

USDJPYEURJPYNIKKEI225

New Zealand Inflation Slows to 3.7% in Q3, Below Forecasts

New Zealand annual consumer inflation slowed to 3.7% in the September 2026 quarter, below the 3.8% consensus and down to a level that remains above the Reserve Bank of New Zealand’s 1%–3% medium-term target. Quarterly inflation was 0.7%, compared with the 0.8% forecast. Reuters reported the New Zealand dollar dipped to around US$0.5692 following the data.

NZDUSDAUDNZD

European Stocks Fall as Oil Rises and Corporate Earnings Disappoint

The STOXX 600 declined nearly 1% on 22 October as higher oil prices and mixed quarterly reports weighed on European stocks. Reuters reported Hermès down 7.3% after slightly disappointing revenue, while Nestlé rose 1.2% on stronger-than-expected organic sales growth. Technology and banking shares also declined.

STOXX600HRMSNESN

French 10-Year Bond Yield Touches 5%, Highest Since 2002

France’s 10-year government bond yield touched 5.002% on 21 October 2026, a high not seen since 2002, Reuters reported. The yield spread over German 10-year Bunds was around 157 basis points amid fiscal uncertainty, protests and a difficult budget outlook. The 23 October Moody’s review is upcoming, not yet an outcome.

EURUSDFR10Y

UK Inflation Accelerates to 3.5% in September on Fuel Costs

UK annual consumer-price inflation increased to 3.5% in September 2026 from 3.1% in August, according to official statistics reported on 21 October. The outcome exceeded the Reuters economists’ consensus of 3.4%, as energy and motor-fuel prices pushed inflation higher. Market participants assessed implications for the Bank of England’s next rate decision.

GBPUSDEURGBP