After delivering an anticipated quarter-point reduction this week, the U.S. currency strength comes amid shifting expectations that Fed policymakers will forgo a cut in January. Investors see the central bank remaining cautious due to persistent inflationary pressures running above its 2% target, even though officials emphasize the recent upticks are part of a bumpy but steady disinflationary path.
Meanwhile, the incoming Trump administration—set to take office in January—could introduce policies that may fuel inflation. Despite this backdrop, Fed Chair Jerome Powell is expected to base this week’s decision and guidance on current conditions rather than anticipated policies.
The U.S. economy has proven resilient in the face of high interest rates,” said James Kniveton, senior FX dealer at Convera. “But with potential inflationary risks ahead, the Fed will need to stay vigilant. Although future U.S. policy changes may loom, I suspect Powell will avoid any hard assumptions at this stage.
By mid-morning in Europe, the U.S. dollar index =USD, which measures the greenback against six major peers, held steady at 106.83 after climbing to 107.18 on Friday—its highest since Nov. 26. The euro EUR=EBS edged 0.13% higher to $1.0517, recovering from a dip to $1.0453 last week following a surprise downgrade of France’s credit rating by Moody’s.
Data released Monday showed that the decline in euro zone business activity eased this month, offering modest support for the single currency. Sterling GBP=D3 firmed by 0.33% to $1.2650, pulling away from its Friday low of $1.2607 as investors await the Bank of England’s policy decision on Thursday. This comes just after the British economy posted a surprising contraction on Friday, underscoring the BoE’s delicate balancing act.
The yen JPY=EBS struggled to regain ground after logging its largest weekly decline since September. Reports that the Bank of Japan may skip a rate hike on Thursday weighed on the Japanese currency, with the dollar trading as high as 153.91 yen—its strongest in three weeks—before easing to 153.69.
Bitcoin Soars to Uncharted Territory
Amid the central bank watch, Bitcoin BTC stole the spotlight, racing above $105,000 for the first time before settling around $104,503 in early European trade. Enthusiasm for the world’s largest cryptocurrency surged after President-elect Donald Trump, in a recent interview with CNBC, suggested he might move forward with plans for a U.S. “bitcoin strategic reserve.”
Having pledged to make the United States “the crypto capital of the planet” during his campaign, Trump’s comments appear to have provided a fresh catalyst to Bitcoin’s rally.
“We’re in blue sky territory here, and the next figure the market will be looking for is $110,000,” said Tony Sycamore, an analyst at IG. “This is a big psychological milestone, and so long as sentiment remains positive, the momentum should keep building.”
Wall Street opened lower on Tuesday as investors turned cautious ahead of the Federal Reserve's interest rate decision, following strong retail sales data that signalled consumer resilience.
Chad's foreign ministry has announced plans to assert its sovereignty and redefine strategic partnerships, following France's troop withdrawals from Mali, Niger, and Burkina Faso. Chad hosts 1,000 French troops and various military assets for security cooperation.
“Azerbaijan has created a platform, and we are a bridge between the parties. And now it's up to all of us together to make that happen,” UN High-Level Climate Champion, Nigar Arpadarai, tells AnewZ in an exclusive interview ahead of COP29 in Baku.
Boeing is working to strengthen its finances,announcing plans to raise up to $25 billion through stock and debt offerings and securing a $10 billion credit agreement with major lenders
Honda and Nissan are exploring deeper collaboration, including a potential merger, to address growing competition from Tesla and Chinese EV makers. The move could create the world's third-largest automaker, reshaping Japan's automotive industry.
The French overseas territory of Mayotte is grappling with widespread destruction in the aftermath of Cyclone Chido, described as the strongest storm to hit the archipelago in over 90 years. Striking over the weekend, the cyclone raised concerns about disaster preparedness and response efforts.
The UN has called for an inclusive political transition in Syria, stressing that progress in this area is critical for securing the economic aid needed to rebuild the war-torn country. UN special envoy Geir Pedersen emphasized that inclusive political transition in Syria is crucial.
Luigi Mangione, 26, was indicted for the murder of UnitedHealth Group executive Brian Thompson, charged with first-degree murder and terrorism. Prosecutors say the killing was a planned act to "sow terror," sparking outrage over healthcare costs and access in the U.S.
Israeli troops intensified operations in the U.N.-monitored buffer zone between Syria and the Golan Heights, responding to ongoing security threats and strategic changes following the recent ousting of Syrian President Bashar al-Assad.
Negotiations at COP29 in Baku face a critical impasse as sharp divisions over climate finance and fossil fuel commitments threaten progress.
"Come up with the video in its full form," demands the COP29 CEO, Elnur Soltanov, in an exclusive interview with AnewZ. The chief executive has broken his silence on the claims he was using his position to organise potential fossil fuel deals.
Honda and Nissan are exploring deeper collaboration, including a potential merger, to address growing competition from Tesla and Chinese EV makers. The move could create the world's third-largest automaker, reshaping Japan's automotive industry.
Wall Street opened lower on Tuesday as investors turned cautious ahead of the Federal Reserve's interest rate decision, following strong retail sales data that signalled consumer resilience.
TikTok urges the US Supreme Court to block a looming ban, arguing the law violates free speech, as ByteDance faces a 19 January deadline to divest the app or face shutdown.
Tesla CEO Elon Musk has reached another major milestone, with his net worth surpassing $400 billion. This achievement comes on the back of a significant rise in Tesla's stock this year and the growing valuation of his space exploration company, SpaceX.
Honda and Nissan are exploring deeper collaboration, including a potential merger, to address growing competition from Tesla and Chinese EV makers. The move could create the world's third-largest automaker, reshaping Japan's automotive industry.
The French overseas territory of Mayotte is grappling with widespread destruction in the aftermath of Cyclone Chido, described as the strongest storm to hit the archipelago in over 90 years. Striking over the weekend, the cyclone raised concerns about disaster preparedness and response efforts.
The UN has called for an inclusive political transition in Syria, stressing that progress in this area is critical for securing the economic aid needed to rebuild the war-torn country. UN special envoy Geir Pedersen emphasized that inclusive political transition in Syria is crucial.
Luigi Mangione, 26, was indicted for the murder of UnitedHealth Group executive Brian Thompson, charged with first-degree murder and terrorism. Prosecutors say the killing was a planned act to "sow terror," sparking outrage over healthcare costs and access in the U.S.
Israeli troops intensified operations in the U.N.-monitored buffer zone between Syria and the Golan Heights, responding to ongoing security threats and strategic changes following the recent ousting of Syrian President Bashar al-Assad.
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