BoE Holds at 3.75%, But 7-2 Vote Keeps Rate Hike Risk Alive

The European Central Bank may have delivered its June rate hike, but its policymakers are already making the case for why the tightening cycle may not be over. Speaking in Paris today, Chief Economist Philip Lane dismissed suggestions that the ECB should have paused this month, arguing that “it would be very hard to make […] The post ECB’s Lane Says Staying at 2% Was Not an Option, Wunsch Signals Hike Risk appeared first on ActionForex.

EUR/USD fell on Friday to its lowest level since 31 March 2026 and is holding near 1.1457. The US dollar is being supported by rapidly growing expectations of further Federal Reserve policy tightening following more hawkish-than-expected signals from the regulator. This week, the Fed left interest rates unchanged. However, the updated forecasts showed that half […] The post EUR/USD Loses Ground as Market Sentiment Favours the US Dollar appeared first on ActionForex.

Markets Needless to say that new Fed chair Warsh made it clear that he wants to break with the Bernanke-Yellen-(Powell) era. Inflation has been running above target for five years and it’s time to fix that. The Fed will deliver on its price stability target and wants markets to take the lead. Less is more […] The post Sunrise Market Commentary appeared first on ActionForex.

EUR/GBP’s advance this week is telling a bigger story than simple Euro strength. What markets are really pricing is a fading belief that the Bank of England will need to deliver significantly more tightening than the European Central Bank. For months, Sterling benefited from the assumption that sticky UK inflation would eventually force policymakers into […] The post EUR/GBP Gains as Markets Scale Back BoE Tightening Expectations, More Upside Ahead appeared first on ActionForex.

Japan’s core consumer inflation remained unchanged at 1.4% yoy in May, matching expectations and staying below the Bank of Japan’s 2% target for a fourth consecutive month. Headline CPI edged up from 1.4% yoy to 1.5% yoy. The closely watched core-core measure, which excludes both fresh food and energy, slowed from 1.9% yoy to 1.8% […] The post Japan Core Inflation Holds at 1.4%, Fuel Subsidies Continue to Suppress Price Pressures appeared first on ActionForex.

New Zealand recorded a goods trade surplus of NZD 800m in May, slightly below expectations of NZD 875m, as strong export growth was more than offset by an even larger increase in imports. Goods exports rose NZD 1.4b, or 18% yoy, to NZD 8.9b, while imports climbed NZD 1.7b, or 26% yoy, to NZD 8.1b. […] The post New Zealand Exports Jump 18%, But Faster Import Growth Limits Trade Surplus appeared first on ActionForex.

We expect May CPI to fall -0.3%mth, which will still see the annual pace lift to 4.4%yr. On a seasonally adjusted basis, we pencil in a modest 0.2%mth rise. Transport is expected to again be the main drag due to lower fuel prices, with clothing & footwear also subtracting. This will be partly offset by […] The post Australia May CPI Preview: Underlying Pressures Persist appeared first on ActionForex.

Key insights from the week that was. The RBA Monetary Policy Board (MPB) unanimously decided to leave the cash rate unchanged at 4.35% this week, as widely expected. However, in the subsequent communications, the MPB clearly leaned against the idea that the hiking cycle is definitively over. After emphasising that both headline and underlying inflation […] The post Cliff Notes: Policy Matters appeared first on ActionForex.

Since establishing the all‑time high on October 6, 2025 at $126,272, Bitcoin (BTCUSD) has entered a pronounced corrective phase. The Elliott Wave sequence from that peak suggests further downside potential, with the extreme area projected between $41,411 and $52,204. In the short term, the decline from the May 6, 2026 high concluded at $59,081, marking […] The post Elliott Wave Analysis: Bitcoin’s (BTCUSD) Countertrend Bounce Set to Fail appeared first on ActionForex.

The Bank of England kept rates on hold in a 7-2 vote split, as widely expected. The economy is slowing, the labour market is cooling and, so far, inflation worries have not materialised. We expect an unchanged Bank Rate for the coming year, with risks tilted towards a hike this year and potential for lower […] The post Bank of England Review – On Hold as Hawkish Arguments Remain Scarce appeared first on ActionForex.

The BoE-Fed policy divergence is dragging GBPUSD lower. A weaker pound is a pro-inflationary factor for the UK. The US dollar recorded its best daily performance since early March, thanks to a hawkish surprise from the Fed. Nine FOMC members indicated in their forecasts that one or more federal funds rate hikes would occur in […] The post The Pound: A More Challenging Task for the BoE appeared first on ActionForex.

Dollar strength remains the dominant theme in global markets as investors continue to digest the Federal Reserve’s hawkish shift. The greenback extended gains broadly after policymakers effectively endorsed another rate hike this year and left the door open to additional tightening if inflation remains stubborn. Markets are now confronting a realistic scenario in which the […] The post Dollar Extends Fed-Driven Rally as AI Optimism Fuels Equity Rebound appeared first on ActionForex.