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.”
Whole milk is heading back to school cafeterias across the U.S. after President Donald Trump signed a bill overturning Obama-era limits on higher-fat ...
NASA is carrying out the first emergency return in International Space Station history after an astronaut aboard Crew-11 suffered a serious medical co...
The British embassy in Tehran has been temporarily closed, with services now operating remotely, the government announced Wednesday....
The United States has announced an indefinite suspension of immigrant visa processing from 75 countries, expanding President Donald Trump’s crackdow...
Denmark has announced an immediate increase in its military presence in Greenland, citing growing security tensions in the Arctic....
French senators have approved the 2026 budget bill, but with amendments that are expected to worsen the fiscal deficit more than initially planned.
The world is facing a health financing emergency as global health investment risks falling to its lowest level in a decade, the World Health Organization (WHO) warned.
US producer prices rose 2.6% annually in May, matching market expectations, with a modest 0.1% increase from April, the US Bureau of Labor Statistics reported.
UK Finance Minister Rachel Reeves unveiled a major spending review on Wednesday, focusing on health, defence, and infrastructure to drive economic growth and restore confidence in the Labour government’s vision.
The Trump administration will suspend all visa processing for visitors from 75 countries beginning 21 January 2026, according to a State Department memo reported by media.
Sweden is sending a group of military officers to Greenland at Denmark’s request, Prime Minister Ulf Kristersson said on Wednesday, as Nordic countries and NATO allies step up coordination around the Arctic territory.
Saudi Arabia has informed Iran that it will not allow its territory or airspace to be used for any military action against Tehran, according to two sources close to the kingdom’s government cited by AFP.
Israel and Arab States have urged the U.S. to delay any potential military action against Iran, warning that such a move could undermine ongoing protests inside the country, according to NBC News.
Finland and Sweden have called for tougher economic measures against Russia, proposing higher import duties, export restrictions, and an European Union ban on Russian energy shipments.
China recorded the world’s largest-ever trade surplus in 2025, reaching $1.2 trillion as exporters shifted focus away from the U.S. amid ongoing trade tensions.
A coalition of women’s rights organisations, technology watchdogs and progressive campaigners is urging Apple and Google, owned by Alphabet, to remove the social media platform X and its associated chatbot, Grok, from their app stores.
Boeing booked more aircraft orders than Airbus in 2025 for the first time since 2018, official figures showed, even as the European manufacturer delivered more planes during the year.
U.S. oil major Chevron and private equity firm Quantum Capital Group are reportedly preparing a joint bid to acquire Lukoil’s international assets, as the sanctioned Russian energy company seeks to divest its overseas operations.
The U.S. dollar's share of global reserves fell to nearly 40% at the end of 2025, according to the International Monetary Fund (IMF), which says it's 10% lower than at the start of 2024. However, gold has risen and overtaken the dollar to be above 50% in global reserves according to the IMF data.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment