Currency Movements

British Pound (GBP): The pound briefly reached $1.30 against the U.S. dollar, marking a four-and-a-half-month high. This surge is attributed to expectations that the Bank of England (BoE) will maintain current interest rates in its upcoming meeting. ​

Euro (EUR): The euro strengthened against both the U.S. dollar and the Japanese yen, driven by anticipated fiscal stimulus from Germany. ​

Commodity Prices:

Gold: Prices hit a record high, surpassing $3,000 per ounce. This increase is linked to rising geopolitical tensions and a weakening U.S. dollar, prompting investors to seek safe-haven assets. ​

Oil: Concerns over potential supply disruptions have pushed oil prices above $72 per barrel. ​

Central Bank Actions:

Swiss National Bank (SNB): In 2024, the SNB purchased 1.2 billion Swiss francs in foreign currencies, a significant decrease from the 132.9 billion francs sold in 2023. This shift reflects the SNB's confidence in achieving stable inflation within its target range. ​

Upcoming Events:

Federal Reserve Meeting: The Federal Reserve's two-day meeting commences today. While interest rates are expected to remain unchanged, investors are keenly awaiting insights on the economic implications of ongoing trade disputes and potential 'stagflationary' risks. ​

These developments underscore a dynamic forex landscape, influenced by geopolitical events, central bank policies, and market sentiment.​

Gold Hits Record High Amid Geopolitical Tensions; Pound Strengthens