Daily Global Forex Market News Summary (December 18)

US Dollar

The US Congress has reached an agreement to provide the necessary funding for the government before March next year.

Euro

The European Central Bank has raised the capital requirement for banks from 11.2% to 11.3% due to risk considerations.

German conservative chancellor candidate Merz has proposed cutting immigration and social spending plans by up to 100 billion euros.

British Pound

Traders expect the Bank of England to cut interest rates by 63 basis points in 2025 and believe the likelihood of a third rate cut in the same year is less than 50%.

Japanese Yen

The Japanese Parliament has approved a supplemental budget of $90 billion aimed at stimulating the domestic economy.

Other Currency Dynamics

Switzerland: The government has lowered its GDP growth forecast for the next three years and indicated a high level of uncertainty in international trade policies.

India: Market rumors suggest that the Reserve Bank of India may sell dollars to conduct mid-term buy-sell swap transactions.

Australia: The budget deficits for the next three years are expected to be $26.9 billion, $46.9 billion, and $38.4 billion, respectively.

South Korea: The central bank governor stated that if exchange rate fluctuations are abnormal, market intervention will be carried out again. The finance minister emphasized that they will actively respond to excessive fluctuations in the forex market to ensure economic stability.

Sri Lanka: The president expects foreign exchange reserves to reach $15.1 billion by 2028, sufficient to repay current debts.

Thailand: The central bank kept the interest rate unchanged at 2.25% and forecasts GDP growth rates of 2.7% and 2.9% for 2024 and 2025, respectively.

Indonesia: The central bank pointed out that capital outflows and the strengthening of the dollar have led to a loss of funds in emerging markets. Due to rising inflation rates, the pace of interest rate cuts by the Federal Reserve may slow down. At the same time, the exchange rate policy remains focused on maintaining the stability of the Indonesian rupiah.