Live Forex News
Real-time financial news from around the world.
Published Monday β Friday, 24 hours a day.
United States
US Futures Rebound
Futures tracking US equities rebounded on Thursday to erase yesterday's loss as chip producers extended their rally and markets reconsidered risks of a rate cut by the Federal Reserve. Contracts for the S&P 500 were 1% higher, while those for the Nasdaq 100 gained 2% and the Dow 0.7%. The Federal Reserve held rates unchanged and half of the FOMC projected that at least one rate hike would be appropriate this year. The new Chairman, Kevin Warsh, also followed through on pledges to revamp the Fed's operational framework by launching a set of task forces. Meanwhile, President Trump signed the memorandum of understanding with Iran to soften energy inflation risks. Intel shares surged more than 8% premarket after the US President said the chipmaker struck a deal with Apple. In turn, Micron rose ahead of its earnings next week and Nvidia was 1% higher to trim yesterday's decline.
Euro Area
European Stocks Fall as Investors Digest Central Bank Decisions
European stocks traded mostly lower on Thursday, with the STOXX 50 near flat after a record high and the STOXX 600 down 0.7%, as investors digested policy decisions from the Bank of England and the US Federal Reserve, as well as the interim US-Iran agreement. The BoE voted 7-2 to maintain interest rates at 3.75%, as expected, citing uncertainty over the Middle East energy shockβs economic impact but expecting inflation to rise as costs spread. Meanwhile, the US Federal Reserve held interest rates steady on Wednesday, but new Chair Kevin Warsh signaled a possible rate hike to combat inflation. Globally, the US-Iran ceasefire pushed oil prices to three-month lows, easing inflation concerns. In individual stocks, Edenred surged 16% on takeover talks, Generali rose 0.8% on UniCreditβs stake plans, while EQT fell 0.5% after agreeing to buy Intertek. Infineon (+3.5%) and Aixtron (+1.5%) gained on tech strength, Airbus rose 2.3% on an upgrade, and Tesco fell 2% on slower Q1 sales.
United Kingdom
FTSE 100 Falls by Over 1%
The FTSE 100 dropped more than 1% on Thursday, with sentiment subdued after the Bank of England voted 7-2 to maintain interest rates at 3.75%. The index was dragged lower by weakness in energy and mining stocks as commodity prices continued to fall. Shell and BP lost more than 1.5%, Rio Tinto was down 2.3%, Glencore fell 2.4% and Anglo American slipped 3.2%. Tesco also weighed on the index, falling more than 1.5% after first quarter sales growth missed expectations. A number of stocks traded ex-dividend, including Persimmon, Land Securities and 3i Group. The BoE held its base rate at 3.75% at the June meeting, with two members voting for a 25-basis-point increase, matching expectations, and reiterated that it is monitoring geopolitical risks while remaining focused on returning inflation to its 2% target. The Federal Reserve also kept rates unchanged, although nine of its 19 policymakers now anticipate at least one rate hike this year.
Ukraine
Ukraine Holds Policy Rate at 15%
The National Bank of Ukraine maintained its benchmark policy rate at 15% in its June 2026 meeting, a third consecutive hold since the 50bps rate cut at the start of the year. The central bank noted that the current levels of interest rates ensured a sufficiently tight monetary backdrop for the Ukrainian economy and was high enough to stimulate demand for hryvnia denominated fixed income. Still, the NBU delivered a hawkish outlook by noting it is ready to raise interest rates should it see that higher energy prices from the war in the Middle East are becoming entrenched in core sectors of the price basket. Consumer inflation slowed to 8.2% in May but core inflation rose to 7.9%, both above forecasts from the central bank. The NBU expects inflation to remain steady in the coming months and rise at the end of the year, before dropping in 2027.
United Kingdom
UK 10-Year Gilt Yields Climb After BoE Holds Rates
UK 10-year gilt yields rose to 4.78%, recovering from two-month lows, as investors assessed the latest monetary policy decisions from the Bank of England and the US Federal Reserve, as well as the potential impact of the Makerfield by-election on Labourβs economic agenda. UK officials voted 7-2 to keep interest rates at 3.75%, highlighting uncertainty over the economic fallout from the Middle East energy shock. The BoE reaffirmed its commitment to addressing inflation, with Governor Andrew Bailey noting that pressures from the Iran conflict remain despite the ceasefire and prospective deal. The Monetary Policy Committee also projected inflation to rise later this year as broader cost increases spread through the economy, though it lowered its peak inflation forecast to 3.25% for Q4 2026, down from 3.6%. This follows the Fedβs decision to maintain rates, though nine of its 19 policymakers now anticipate at least one hike this year.
United Kingdom
Pound Slides Toward $1.32 as BoE Holds Rates
The British pound fell toward $1.32, reaching its lowest level since April 3, after the Bank of England voted 7-2 to maintain interest rates at 3.75%, in line with expectations. Policymakers adopted a cautious stance, citing uncertainty over the economic impact of the energy shock driven by the Middle East conflict. The BoE reiterated its readiness to act on inflation, with Governor Andrew Bailey emphasizing that pressures from the Iran conflict persist despite the ceasefire and potential deal. The Monetary Policy Committee expects inflation to rise later this year as cost increases spread across the economy, though it reduced its peak inflation forecast to 3.25% for Q4 2026, down from 3.6%. This decision follows the US Federal Reserveβs move to hold rates steady, though nine of its 19 policymakers now expect at least one hike this year. Meanwhile, investors await the Makerfield by-election results, which could shape Labourβs leadership and economic direction.
United Kingdom
Bank of England Keeps Rates Steady
The Bank of England voted 7-2 to keep Bank Rate unchanged at 3.75% in June 2026, as policymakers weighed easing inflation against continued uncertainty from volatile global energy markets linked to Middle East tensions. Two members of the Monetary Policy Committee preferred a 0.25 percentage point hike to 4%. Officials said global energy prices have declined since the previous meeting following developments in the Middle East, but remain elevated and unstable compared with pre-conflict levels. UK CPI inflation has eased to 2.8%, though the Bank expects it could rise later this year as earlier energy increases continue to feed through. Policymakers warned that the risk of second-round effects in wages and prices increases the longer elevated energy costs persist. At the same time, the labour market is showing signs of cooling, and broader economic momentum appears to be weakening, which could help limit inflationary pressure.
United States
Dollar Index Hits 12-month High
DXY increased to 100.72, the highest since May 2025. Over the past 4 weeks, Dollar Index gained 1.39%, and in the last 12 months, it increased 1.83%.
Bank of Botswana Keeps Bank Rate at 5.5% in June
The Bank of Botswana kept its Bank Rate at 5.5% on June 18, 2026, after a 200 basis point increase in the prior meeting, leaving borrowing costs at their highest since September 2017. Policymakers have opted for a wait-and-see stance as they assess the effects of earlier monetary tightening on inflation trends, especially in light of the recent US-Iran agreement to end their conflict and reopen the Strait of Hormuz. The latest CPI data revealed that Botswanaβs inflation rate surged to 10.7% in May, marking the highest level since December 2022, driven primarily by a sharp rise in energy prices, while the core inflation rate reached 5.9%, the highest since July 2023.
Switzerland
Swiss 10-Year Yield Falls to Over 3-Month Low
Switzerlandβs 10-year yield declined to below 0.31%, its lowest level since early March, as investors reacted to the Swiss National Bankβs decision to keep its policy rate at 0% and reaffirm its readiness to intervene in foreign exchange markets. The decision came even as geopolitical tensions linked to Iran have eased following a recent peace agreement, highlighting the SNBβs continued cautious stance. President Martin Schlegel reiterated that the central bank is prepared to sell Swiss francs "if necessary" to prevent rapid or excessive appreciation that could undermine price stability. Policymakers continue to point to subdued inflation, which remains within the 0β2% target range, as well as limited upward pressure in the outlook. The SNB held rates steady for a fourth consecutive meeting, signaling no immediate need to tighten policy. Inflation is expected to rise only modestly in the coming years, while growth is forecast at around 1% this year.
Portugal
Portugal Producer Inflation Accelerates to Over Three-Year High
Industrial producer inflation in Portugal accelerated to 5.1% year-on-year in May 2026, marking the highest increase since February 2023, following a 3.8% rise in April. The increase was driven primarily by energy prices, which surged 19.5%, up from 17.2% in the previous month. Inflation also accelerated for intermediate goods (4.2% vs. 2.2%), while prices for non-durable consumer goods edged up 0.3% after remaining unchanged in April. Meanwhile, price growth for capital goods eased to 1.5% from 2.2%, while inflation for durable consumer goods stood at 1.6%. On a monthly basis, industrial producer prices increased 1.0% in May, following a 2.4% rise in April.
Oil Drops as US-Iran Peace Deal Boosts Supply
Crude oil dropped below $75 per barrel on Thursday, the lowest level since early March, as markets reacted to the US and Iran reaching an agreement to end a prolonged conflict that caused the largest supply disruption on record. Early signs of progress emerged as several vessels began crossing the Strait of Hormuz again after weeks of disruption. President Donald Trump said an interim agreement had been signed, with plans to quickly reopen the key Persian Gulf shipping route. A return to normal flows through Hormuz could allow major producers including Saudi Arabia, the UAE and Iraq to restart millions of barrels of halted output. Oil has already fallen around 38% since reaching a four-month high in April. Shipping activity has shown signs of recovery, with Saudi oil tankers and vessels carrying LNG and fuel leaving the Gulf region. However, inventory levels remain tight, with crude stocks at Cushing, the largest US storage hub, falling to around 20 million barrels.
Euro Area
Eurozone Construction Output Rises in April
Eurozone construction output increased by 0.9% year-on-year in April 2026, following an upwardly revised 0.2% gain in March. Growth in specialized construction activities strengthened to 1.7%, up from 0.6% in the previous month. By contrast, building construction continued to contract, although the pace of decline eased to 5.2% from 7.1% in March. Growth in civil engineering also moderated, slowing to 4.4% from 5.3%. Construction activity expanded in Germany (2.6% vs. 0.4%) and Spain (1.4% vs. -5.9%) but declined in France (-2.9% vs. -3.3%), Belgium (-3.8% vs. 3.4%) and the Netherlands (-3.3% vs. 2.3%). On a monthly basis, construction output rose by 0.6%, easing from a 1.7% rise in the previous month.
Euro Area
Euro Slumps to 2-1/2-Month Low
The euro fell below $1.15, hitting its lowest level since late March, amid broad dollar strength as traders reacted to a more hawkish stance from the US Federal Reserve, which kept interest rates steady but revealed in its latest projections that nine policymakers now anticipate a rate hike by the end of 2026. This shift came after the European Central Bank raised rates last week and the Bank of Japan followed with a similar move earlier this week. Markets are now pricing in at least one additional ECB rate increase before year-end. Adding to the market dynamics, investors responded positively to reports of a US-Iran agreement to reopen the Strait of Hormuz, which drove oil prices to three-month lows and eased inflation pressures. Still, tensions persisted, with US President Donald Trump warning of potential renewed attacks and targeted actions against Iranian officials if the agreementβs terms were not upheld.
Bulgaria
Bulgaria Current Account Shortfall Widens in April
Bulgariaβs current account deficit widened sharply to EUR 1,209.3 million in April 2026 from EUR 788.9 million in the corresponding month of the previous year. The goods account deficit expanded to EUR 1,084.1 million from EUR 817.4 million, while the services account surplus shrank by EUR 127.4 million to EUR 402.7 million from EUR 530 million. Additionally, the primary income shortfall increased to EUR 636.1 million from EUR 603.7 million a year earlier. On the other hand, the secondary income surplus expanded by EUR 6 million to EUR 108.2 million from EUR 102.2 million, providing only limited support against the overall weakening in the current account balance.
Taiwan
Taiwan Holds Rate at 2% as Expected
The Central Bank of the Republic of China, Taiwan's monetary authority, maintained its benchmark interest rate unchanged at 2% in its June 2026 decision, as expected by the large majority of the market, to hold borrowing costs at their since 2008 for the ninth straight quarter. The decision contrasted with monetary authorities across Asia, which have commenced their hiking cycles as higher energy prices from the war in Iran exacerbated inflationary pressures. Inflation in Taiwan rose past 2% for the first time in one year in May, crossing the alert threshold for the central bank. This was combined with soaring growth in the economic area amid the global boom for high-end semiconductors and AI infrastructure products, driving the country to revised export growth this year upwards to 40%.
Japan
Japanese Yen Hits 23-month Low
The Japanese Yen touched 160.80 against the USD, the lowest since July 2024. Over the past 4 weeks, US Dollar Japanese Yen gained 1.07%, and in the last 12 months, it increased 10.6%.
Germany
Bund Yields Slightly Up as Fed Signals Hawkish Shift
Germanyβs 10-year Bund yields rose slightly to 2.93%, hovering near their lowest point since March 17, as traders assessed a more hawkish tone from the US Federal Reserve while also welcoming reports that the US and Iran had signed an agreement to reopen the Strait of Hormuz. The deal sent oil prices to fresh three-month lows, helping to alleviate inflation concerns. However, lingering tensions remained, as US President Donald Trump threatened to resume attacks and target Iranian officials if Iran did not honor its commitments. As expected, the Fed left interest rates unchanged, but its new quarterly projections indicated that nine policymakers now foresee a rate hike by the end of 2026. This development followed last weekβs rate hike by the European Central Bank and a similar move by the Bank of Japan earlier this week. Money markets are currently pricing in at least one more rate increase by the ECB before the end of the year.
FX Updates: South Korean Won Drops by 0.65%
Top currency losers are South Korean Won (-0.65%), Polish Zloty (-0.42%), Swedish Krona (-0.41%), British Pound (-0.36%), Euro (-0.16%) and Japanese Yen (-0.08%). Gains are led by Dollar Index (0.49%), Indian Rupee (0.45%) and Brazilian Real (0.39%).
Euro Area
Eurozone Current Account Surplus Shrinks in April
The Eurozoneβs current account surplus fell to β¬14.88 billion in April 2026, down from β¬20.84 billion a year earlier, driven by a drop in the goods surplus to β¬14.25 billion, the lowest since April 2023, compared to β¬25.79 billion in April 2025. Meanwhile, the services surplus grew to β¬15.55 billion from β¬11.07 billion, the primary income deficit narrowed to β¬1.04 billion from β¬1.91 billion, and the secondary income gap decreased slightly to β¬13.88 billion from β¬14.10 billion. Over the first four months of 2026, the current account surplus totaled β¬75.86 billion, down from β¬81.64 billion in the same period of 2025.
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