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.”
The year began with cautious optimism as a ceasefire deal, brokered by Egypt and Qatar on January 15th, brought a temporary halt to the 15 months of d...
One year after the fall of Bashar al-Assad, Syria remains at a critical crossroads, attempting to rebuild after 14 years of civil war while confrontin...
Nasry Asfura, the conservative candidate for Honduran president backed by U.S. President Donald Trump, was declared the winner on Wednesday more than ...
The year 2025 marked a global first in social media regulation, as Australia enacted the world’s first blanket ban on social media usage for childre...
Turkish authorities have detained 115 suspected Islamic State members they said were planning to carry out attacks on Christmas and New Year celebrati...
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.
A majority of Russians expect the war in Ukraine to end in 2026, state pollster VTsIOM said on Wednesday, in a sign that the Kremlin could be testing public reaction to a possible peace settlement as diplomatic efforts to end the conflict intensify.
Thailand and Cambodia both reported fresh clashes on Wednesday, as the two sides prepared to hold military talks aimed at easing tensions along their shared border.
Military representatives from Cambodia and Thailand met in Chanthaburi province on Wednesday ahead of formal ceasefire talks at the 3rd special GBC meeting scheduled for 27th December.
Libya’s chief of staff, Mohammed Ali Ahmed Al-Haddad, has died in a plane crash shortly after departing Türkiye’s capital, Ankara, the prime minister of Libya’s UN-recognised government has said.
Afghanistan and Iran have signed an implementation plan to strengthen regulation of food, medicine, and health products based on a 2023 cooperation agreement.
China has given the nod for car makers to sell Level 3 self-driving vehicles from as early as next year after it approved two electric sedans from Changan Auto and BAIC Motors.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment