The U.S. dollar held close to a three-week peak against major currencies on Monday, as investors braced for a slew of central bank decisions expected this week. Markets are all but certain that the Federal Reserve will cut interest rates by 25 basis points on Wednesday, while also signaling a slower
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.”
Armenia heads to the polls on 7 June in a key parliamentary vote seen as a test of its democratic reforms and future political direction. Prime Minist...
The U.S. plans to seek the redirection of Iranian assets to Gulf states to help fund reconstruction and repairs for damage attributed to Iran, a sourc...
Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships ...
At least a dozen people were wounded, two critically, on Saturday (6 June) in Toledo, Ohio, as two shooters traded gunfire, police said....
The United Nations Assistance Mission in Afghanistan (UNAMA) has warned ahead of World Environment Day that Afghanistan's worsening water crisis is di...
Asian stocks surged to record highs on 7 May as investors priced in growing hopes of a potential Middle East peace deal, while oil prices eased and the U.S. dollar weakened amid shifting global risk sentiment.
Global investors are showing early signs of diversification away from U.S. Treasuries as worldwide debt levels climbed to a record $353 trillion by the end of March of 2026, according to a new report from the Institute of International Finance (IIF) published on 6 May.
China is stepping up efforts to boost domestic spending and U.S. retail giant Walmart is expanding across the country to meet demand.
The European Union is preparing its 20th round of sanctions against Russia over the war in Ukraine. The measures are close to being approved, after earlier delays linked to energy concerns in Slovakia and Hungary eased following repairs to the Druzhba oil pipeline.
Armenian authorities arrested six candidates from the pro-Russian Strong Armenia bloc on Saturday, one day before voters were due to take part in parliamentary elections.
Armenia heads to the polls on 7 June in a key parliamentary vote seen as a test of its democratic reforms and future political direction. Prime Minister Nikol Pashinyan is seeking re-election amid domestic polarisation, security challenges and regional diplomatic tensions.
More than 6,000 people gathered outside a vote-counting centre in Seoul on Friday night, demanding this week’s local elections be repeated after ballot shortages left some voters unable to cast their ballots.
Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships Natra and Zircon in the Sea of Azov. In a statement, it said four Azerbaijani citizens were killed and four others were injured.
The U.S. said it struck Iranian radar sites on Qeshm Island and in Goruk after intercepting four drones, while Iran's Revolutionary Guards said they launches retaliatory strikes on four tankers in the Strait of Hormuz and targeted U.S. bases in the Gulf.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
The International Labour Organization (ILO) has begun its latest round of negotiations on creating the first binding global standards for platform-based work, covering services such as ride-hailing, food delivery and other app-based work.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment