The Reserve Bank of New Zealand unexpectedly held its official cash rate at 2.75% on Wednesday, a decision that surprised markets and local banks. The Monetary Policy Committee voted 4-3 to maintain the rate, citing subdued wage growth, stable inflation expectations, and a weak domestic recovery, despite anticipating a rise in inflation to 4.4% in the December quarter due to fuel prices.
Australia's core inflation accelerated in the three months through September, with headline price growth picking up to 3.8% and exceeding economist expectations. The Reserve Bank of Australia is expected to raise interest rates at its upcoming meeting, with markets pricing in a 72% probability of a hike. The central bank's trimmed mean CPI rose to 3.3%, and services inflation increased to 4.1%.
Australian inflation rose more than expected in the third quarter, potentially influencing the Reserve Bank of Australia's upcoming decision.
Australia's headline inflation rose to 4.3% in September, exceeding previous reports and increasing rate hike expectations.
The dollar held steady at a two-week high early on Wednesday, with traders awaiting policy decisions from the Federal Reserve and the Reserve Bank of New Zealand. The Fed is expected to keep rates unchanged but signal its intentions for a December move, while the RBNZ is widely anticipated to hike interest rates.
Barclays strategists anticipate continued elevated volatility in Group-of-10 currencies due to a strengthening dollar and increasing interest-rate swings. The bank's outlook suggests these factors will drive currency market fluctuations.
Chile's central bank held its benchmark interest rate at 4.5% on Tuesday, October 27, 2026, as policymakers grapple with a weakening domestic economy and increasing inflationary pressures. The decision comes amid concerns over global growth and elevated external price pressures.
Bullish bets in US Treasuries are vulnerable to a sharp reversal if the Federal Reserve signals a more aggressive stance at its upcoming monetary policy meeting. Investors will be closely watching for indications of future rate hikes.
Bond investors are increasingly focusing on the impact of artificial intelligence investment and US fiscal deficits rather than Federal Reserve policy, according to market participants. While the Fed is expected to hold rates steady, persistent inflation and heavy government borrowing continue to pressure the Treasury market.
Bond investors are shifting focus from the Federal Reserve to AI and deficits, impacting Treasury yields.
Article restates known facts about Fed rates and market pressures, adding that election uncertainty complicates the outlook for the rest of 2026.
The dollar edged higher against the euro, yen, and sterling on Tuesday as traders positioned themselves ahead of key central bank meetings. The US currency stabilized after recent pressure linked to a selloff in AI stocks.
The Federal Reserve is widely expected to hold interest rates steady at its upcoming FOMC meeting. Fed Chair Kevin Warsh faces the challenge of explaining this decision amid persistent inflation and a stable labor market, while signaling a continued commitment to fighting inflation and keeping the possibility of future hikes open.
New orders for key US-manufactured capital goods increased 0.5% in September, and shipments of these products surged 1.2%, suggesting business spending on equipment maintained a robust growth pace in the third quarter. Economists had forecast core capital goods orders to advance by 0.7%.
US core capital goods orders rose 0.5% in September, and shipments surged 1.2%, indicating strong business spending on equipment in Q3.
New article details how AI investment is driving US core capital goods orders and shipments higher in September.
World stocks advanced on Tuesday as easing oil prices supported risk appetite ahead of the Federal Reserve's policy decision this week. Investors also assessed a raft of key corporate earnings, with the Fed widely expected to hold rates steady on Wednesday. The dollar index nudged higher against the euro and yen.
The Japanese yen weakened against the US dollar on Tuesday as a tech-led rebound revived risk appetite. Traders are closely watching the Bank of Japan's policy decision later this week, with expectations of a steady interest rate but a readiness to hike further.
The Japanese yen weakened against the US dollar as traders anticipated the Bank of Japan's policy decision.
Dollar firms as traders await central bank decisions on interest rates.
The dollar firmed against the euro, yen, and sterling ahead of central bank meetings.
US consumer confidence increased in October, marking the first rise in four months, according to The Conference Board. The Consumer Confidence Index rose to 91.7 from a revised 84.2 in September, driven by improved perceptions of current business and labor market conditions.
New orders for U.S.-manufactured durable goods increased 1.8% in September, the largest monthly gain in five months, according to data from the U.S. Census Bureau. The rise, exceeding economists' expectations, was primarily driven by a surge in transportation equipment bookings.
The Federal Reserve began its two-day policy meeting on October 27, with investors anticipating its next interest rate decision amid persistent inflation. Markets expect policymakers to maintain the benchmark rate between 3.75% and 4% following September’s 25-basis-point increase. Traders see approximately a 90% probability of no change this month.
Brazilian markets recovered some ground on Tuesday after a sharp selloff triggered by President Luiz Inacio Lula da Silva's reelection. The real strengthened nearly 2% against the US dollar to around 5.31 per greenback, and the Bovespa benchmark stock index rose 1%. Finance Minister Dario Durigan said the market rout reflected positioning rather than a deterioration in Brazil's economic fundamentals, pledging fiscal responsibility.
US consumer confidence increased in October, with the Conference Board's index rising to 91.7 from a revised 84.2 in September. The improvement was linked to easing gasoline prices, though consumers still expressed frustration with the high cost of living.
Lower-income Brazilians are spending 15% of their earnings on credit card debt, four times the rate of higher earners, according to new central bank data. The central bank is considering measures to curb overindebtedness amid rising credit risk.
High inflation is expected to persist globally well into next year, according to hundreds of economists polled by Reuters. Price pressures are becoming entrenched beyond rising energy costs, with economists raising forecasts for 31 of 50 economies surveyed. Global growth forecasts were also upgraded.
Duke Waldrop of UTXO warned that a liquidity shock from the Bank of Japan could affect Bitcoin. He also noted that Metaplanet trading below net asset value presents an opportunity.
