Euro hits fresh highs on peace talks in Ukraine, BoE in focus
The U.S. dollar remained under pressure amid growing concerns over partisanship creeping into key U.S. institutions.
Initial U.S. jobless claims, due later in the session, will be closely watched following last week's disappointing nonfarm payrolls report, which triggered a dovish repricing of the Federal Reserve easing path and a slide in the greenback.
The euro rose 0.14% to $1.1677, its highest level since July 28, with a possible peace deal in Ukraine seen as a positive driver for the single currency.
Ukrainian President Volodymyr Zelenskiy said he planned contacts with Germany, France and Italy on Thursday to discuss progress toward peace.
"Sectors to benefit (from a peace deal) should be European consumers, growth-sensitive and construction-related sectors," said Mohit Kumar, economist at Jefferies.
"It should also be positive for Eastern Europe as most of the reconstruction efforts would likely flow through Eastern European economies." Sterling was steady ahead of a BoE policy announcement, with markets widely expecting another rate cut.
Markets will watch the expected three-way voting split for any signal that the central bank might change its guidance on a "gradual and careful" easing path.
"We suspect conviction levels are low in the supposed consensus view that rates can only go down and pressure affected currencies," said Geoff Yu, strategist at BNY, after warning that markets may be too complacent about stagflation risks.
"The Bank of England will kick off what we expect to be a new run of cuts through August and September in Europe, but over-committing to easing risks policy error and prolonging stagflation," he added.
The Swiss franc rose 0.20% to 0.8047 versus the dollar , even as Swiss President Karin Keller-Sutter returned from Washington empty-handed after a trip aimed at averting a crippling 39% tariff on the country's exports to the U.S.
"While we still believe that a deal will ultimately be reached, it is likely to be far more expensive than Switzerland had hoped," said Michael Pfister, strategist at Commerzbank.
Last week, U.S. President Donald Trump fired the official responsible for the labour data he did not like, and focus is centring on his nomination to fill a coming vacancy on the Fed's Board of Governors and candidates for the next chair of the central bank. The dollar index, which measures the greenback against a basket of major peers, dropped to a fresh 1-1/2-week low at 98.00, down 0.20% on the day.
Fed funds futures are now pricing in a 94% probability of a 25 basis point cut at the Fed's September meeting, up from 48% a week ago, according to the CME Group's FedWatch Tool. In total, traders see 60.5 basis points in cuts this year. The president said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four.
China's yuan firmed slightly, supported by a stronger official midpoint and upbeat Chinese trade data.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
a minute ago
- CNBC
Dollar steady but on pace for weekly loss after Trump picks Miran as Fed governor
The dollar firmed slightly on Friday but was heading for a weekly fall as U.S. President Donald Trump's temporary choice for a fill-in Federal Reserve governor stoked expectations for a dovish pick to replace Chair Jerome Powell when his term ends. The yen was a touch weaker on the day against the dollar, which rose 0.45% to 147.760 yen. The dollar also rose 0.25% against the euro to $1.163775 and strengthened 0.29% against the Swiss franc to 0.808 francs. As concerns over softening U.S. economic momentum, especially in the labor market, boost hopes of Fed rate cuts, the dollar was down 0.6% on the week so far, against a basket of peers. On the day the dollar index was little changed at $98.31. Markets are focused on Trump's nomination of Stephen Miran, the Council of Economic Advisers chairman, to fill a newly vacant seat at the Fed, while the White House seeks a permanent occupant. Miran replaces Governor Adriana Kugler following her surprise resignation last week. "In many ways it reinforces what we already knew, which is that we're now looking at a much more political Fed and a much less independent Fed," said Michael Brown, senior research strategist at Pepperstone. Brown said that the news would contribute to his longer-term dollar bear case, but also argued Miran's credibility in the market's mind is relatively low. "We're all expecting at the September FOMC and any meeting he joins after that that he'll be very dovish and will be pushing for large rate cuts and that that will come effectively because the president has asked him to," said Brown. While investors remain worried about the U.S. central bank's independence and credibility after repeated criticism from Trump for not cutting interest rates, some analysts feel Miran's appointment is unlikely to have a material impact. "We still maintain that central bank independence is going to be very much intact," said Raisah Rasid, global market strategist at J.P. Morgan Asset Management in Singapore. She expects the central bank to focus on incoming data and the overall health of the U.S. economy. Trump's scathing attacks on Powell and the likelihood of a dovish pick as the next Fed chair have weighed on the dollar this week, although he recently backed off threats to oust Powell before his term ends on May 15. Fed Governor Christopher Waller, who voted for a rate cut in the Fed's last meeting, is emerging as a top candidate to be the next chair, Bloomberg News said on Thursday. Investor focus will now switch to next week's U.S. consumer price inflation data, with economists polled by Reuters expecting month-on-month core CPI to have nudged higher by 0.3% in July. The data will offer clues to whether tariff-driven price pressures are materializing and shape the Fed's policy path. Atlanta Fed President Raphael Bostic said on Thursday that while risks to the job market have increased, it remained too soon to commit to rate cuts, with more data lined up ahead of the Fed's policy review scheduled for Sept. 16 and 17. Traders are pricing in an 89% chance of a rate cut in September, with at least two rate cuts priced in by the end of the year, according to the CME Group's FedWatch. The dollar has struggled broadly this year and is down 9.5% against a basket of major peers, as investors sought alternatives, worried over Trump's erratic trade policies. Analysts anticipate the dollar to remain under pressure but see the fall unlikely to be as steep. "We're looking for a bending but not breaking sort of scenario (on the dollar)," Rasid added. Sterling touched a fresh two-week high of $1.34515, clinging to Thursday's sharp gains as the Bank of England cut interest rates but only after a narrow 5-4 vote, showing a lack of conviction in its easing bias. The vote split in the BoE meet "implies one of the most hawkish versions of a 25bp cut that reasonably could have been expected," analysts at Goldman Sachs said. The pound is on course for its best weekly performance since late June.
Forbes
a minute ago
- Forbes
Mortgage Rates Today: August 8, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today, the mortgage interest rate on a 30-year fixed mortgage is 6.48%, according to the Mortgage Research Center. On a 15-year fixed mortgage, the average rate is 5.44%, and the average rate on a 30-year jumbo mortgage is 6.67%. Borrowers will pay less in interest this week as the average rate on a 30-year mortgage is 6.48% compared to a rate of 6.65% a week ago. The APR , which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 6.51%. The APR was 6.68% last week. To borrow a $100,000 in a 30-year, fixed-rate mortgage with the current rate of 6.48%, you will pay about $631 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You'd pay around $127,758 in total interest over the life of the loan. Today, the 15-year mortgage rate inched down to 5.44%, lower than it was one day ago. Last week, it was 5.68%. On a 15-year fixed, the APR is 5.49%. Last week it was 5.72%. At today's interest rate of 5.44%, a 15-year fixed-rate mortgage would cost approximately $814 per month in principal and interest per $100,000. You would pay around $46,980 in total interest over the life of the loan. The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 6.67%. Last week, the average rate was 6.92%. If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $643 per month in principal and interest per $100,000 borrowed, which amounts to $132,205 in total interest over the life of the loan. Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024. Rates began to drop again in mid-January 2025, but experts don't forecast them falling by a significant amount in the near future. Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop . Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit. The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows. A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens. Before you look for a house, you should get to know your budget. This will give you an idea of the type of house you can afford. A good place to start is by using a mortgage calculator to get a rough estimate. Simply input the following information: Home price Down payment amount Interest rate Loan term Taxes, insurance and any HOA fees Multiple factors affect the interest rate for a mortgage, including the economy's overall health, benchmark interest rates and borrower-specific factors. The Federal Reserve's rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn't directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation. Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment. Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term. Many home buyers are eligible for several mortgage loan types . Each program can have its own advantages: Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums. FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579. An is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579. VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee , there are no ongoing mortgage insurance premiums or service fees. Borrowers with a qualifying military background may prefer a for its flexibility. A down payment may not be required. While you pay a one-time , there are no ongoing mortgage insurance premiums or service fees. USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower. Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency's conforming loan limits. The limit in most municipalities is $806,500 in 2025. Frequently Asked Questions (FAQs) A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower's credit score. Lenders adjust mortgage rates daily based on economic conditions, inflation, bond market movements and Federal Reserve actions. If you're shopping around for a mortgage, remember that you might be able to lock in a rate for 30 up to 120 days, depending on the lender. Note that some lenders charge a fee to lock your rate while others offer the service for free. A mortgage interest rate reflects what a lender is charging you on top of your loan amount in return for allowing you to borrow money. Annual percentage rate (APR) , on the other hand, is a calculation that includes both a loan's interest rate and finance charges, expressed as an annual cost over the life of the loan. In other words, it's the total cost of credit. APR accounts for interest, fees and time. Since APRs include both the interest rate and certain fees associated with a home loan, the APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.
Forbes
a minute ago
- Forbes
Money Market Interest Rates Today: August 8, 2025 - Earn Up To 4.35%
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The highest money market account rate available today is 4.35% Changes from the Fed or your bank can quickly change money market rates Online banks typically offer the most competitive yields on the market. As of today, the highest money market rate is 4.35%, compared to a national average rate of 0.52%, according to Curinos. Here are today's money market account rates: A money market account (MMA) is a type of interest-bearing deposit account offered by banks and credit unions that works like other savings accounts: You deposit money into the account and earn interest on your balance. You can withdraw funds whenever you need to, but you may be restricted to six transactions per statement period. Money market accounts typically pay higher interest rates than other deposit accounts, including traditional savings accounts. And unlike typical savings accounts, they often offer debit cards, check-writing capabilities or both, providing convenient access to cash. Money market accounts often have higher deposit and balance requirements than many bank accounts. MMAs at banks are insured by the Federal Deposit Insurance Corp. (FDIC), while MMAs at credit unions are insured by the National Credit Union Administration (NCUA). In both cases, depositors are covered for up to $250,000 per account type, protecting your money in the event of bank failure. To open a money market account , start by comparing the best yields on the market, but only include those accounts with minimum requirements you can meet. In addition to rates and minimums, consider account fees, withdrawal limits and other features to find the best fit. When you're ready to open an account, submit an application online or at a bank branch. The application will ask for personal information, including your name, address, Social Security number, employment status and income. You'll also need to provide a government-issued ID. Once your application is approved, you can make your first deposit. Be sure to transfer at least the minimum opening deposit required. Money market accounts work like savings accounts in some ways and like checking accounts in others. Both MMAs and savings accounts: Let you deposit funds as you please Earn interest on your savings Are highly liquid Are safe deposit accounts May have withdrawal restrictions, balance requirements and monthly fees Similar to checking accounts and unlike most savings, money market accounts: Can come with debit cards, checks or both Tend to have higher fees Tend to have deposit and balance requirements Frequently Asked Questions (FAQs) Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution. Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank's economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors. You can use a money market account calculator to see how much interest you'll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.
