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The United States (US) Federal Reserve (Fed) had a busy week. On Monday, the Fed asked local New York banks about their positions in USD/JPY, fueling speculation that the US may be preparing to work with Japan on the Japanes Yen’s (JPY) weakness. The news triggered a sharp US Dollar (USD) sell-off at the beginning of the week.Mid-week, the Fed had its monetary policy meeting. The central bank held its target range for the federal funds rate unchanged at 3.50%-3.75%, as expected. Chairman Jerome Powell’s press conference was focused on politics, Powell’s future, and the subpoena, topics he declined to…

Unconfirmed reports suggest that China may inject RMB 200 billion into large insurers to bolster their capital buffers, alongside an additional RMB 300 billion into major banks. This move aims to support the banking sector amid downward pressure on net interest margins. The PBoC’s USD/CNY fixing has remained below the 7.0000 level, aided by a weaker Dollar, note Lin Li, Asian Head of Global Markets Research and Khang Sek Lee, Research Associate at MUFG Bank.Government support for banking sector”If true, it is considered timely as the China Banking and Insurance News reported in November that more than two-thirds of the…

• Major indexes edged lower as investors digested Trump’s nomination of Kevin Warsh to succeed Fed Chair Powell in May.• Verizon surged on strong subscriber growth and upbeat 2026 guidance, while American Express fell despite a revenue beat.• Silver plunged over 17% in a dramatic reversal from record highs, triggering profit-taking across precious metals.• Despite Friday’s pullback, all three major averages posted solid gains for January, capping a strong start to 2026.The Dow Jones Industrial Average (DJIA) slipped around 200 points on Friday, falling 0.2% as investors weighed President Donald Trump’s nomination of former Federal Reserve (Fed) Governor Kevin Warsh…

DBS Bank’s Group Research discusses the upcoming Reserve Bank of India (RBI) monetary policy committee meeting scheduled for February 6, 2026. The report anticipates that the RBI will maintain its current interest rates, citing a firm growth impulse despite trade tensions and inflation that is off its lows. The Indian Rupee has faced depreciation pressures, and the RBI is expected to focus on liquidity and currency risks.RBI monetary policy outlook”The RBI monetary policy committee will decide on rates on 6-February. The MPC lowered rates in December 2025, along our expectations, but is expected to refrain from cutting rates further in…

Korea’s industrial production growth rebounded in December, indicating robust export growth. President Lee has signaled a potential supplementary budget to support various sectors, which could pose upside risks to Korea’s growth. The KRW has appreciated against the USD this week, reflecting positive sentiment, note Lin Li, Asian Head of Global Markets Research and Khang Sek Lee, Research Associate at MUFG Bank.Focus on supplementary budget potential”Separately, President Lee continued to release signal that a supplementary budget may be introduced this year, in part to support culture and arts sector and new startup incubation initiative.””While it is unclear whether it will ultimately…

Silver (XAG/USD) sinks sharply by more than 30% on Friday as the precious metals segment is being punished by the financial markets, with the grey metal falling more than $38 at the time of writing. XAG/USD trades at $76.91, after reaching a daily high of $118.46.XAG/USD Price Forecast: Technical outlookAs it plunges, Silver cleared key support levels like $100, $90, $80 and it seems on its way to challenge the $70.00 milestone if it wasn’t for the 50-day Simple Moving Average (SMA) standing at $73.51.The Relative Strength Index (RSI) fell on a parabolic form from around 83 level to 42,…

Gold price (XAU/USD) extends its losses on Friday, plunges nearly 10% to sink below $4,900 after US President Donald Trump revealed his pick for Fed Chair, while a hot inflation reading in the US justified the Federal Reserve’s (Fed) decision on Wednesday to keep rates steady. The XAU/USD trades around the top/bottom of the $5,000 mark.Bullion plunges over 7% as a hawkish Fed chair nomination and stubborn inflation crush easing hopesOn Friday morning, Trump revealed that he chose Kevin Warsh to become the new Chair of the US central bank. Warsh wasknown as a hawk in his previous period as…

USD/JPY rebounds around 154.50 on Friday at the time of writing, up 0.90% on the day, supported by a renewed recovery in the US Dollar (USD) after several weeks of weakness. The move comes as markets reassess the monetary policy outlook in the United States (US) and Japan.The US Dollar strengthened after US President Donald Trump expressed his support for Kevin Warsh to lead the Federal Reserve (Fed). If confirmed by the Senate, Kevin Warsh would succeed Jerome Powell, whose term is set to expire in May. Investors, who initially feared a highly dovish nomination given the president’s repeated calls…

Rabobank analysts expects the ECB to maintain the deposit rate at 2.00% through 2026, with two rate hikes anticipated in March and June 2027. Analysts notes that while the Euro’s appreciation may prompt verbal intervention, it believes the currency can rise further before necessitating any policy changes.ECB policy outlook and Euro performance”We expect the ECB to leave the deposit rate unchanged at 2.00%.””The burden of proof for any cut or hike is very high. We see the ECB on hold through 2026.””The euro’s gains may draw some verbal intervention, but we believe the currency can appreciate quite a bit further…

GBP/USD trades around 1.3760 on Friday at the time of writing, retreating 0.30% on the day as the US Dollar (USD) regains some traction. The Greenback finds support after reports that the US Senate has advanced a spending agreement aimed at avoiding a federal government shutdown, easing recent political uncertainty.The US Dollar strengthens after US President Donald Trump and Senate Democrats reached a compromise that would allow funding legislation to move forward. This development reduces near-term fiscal risks and provides modest relief to the US Dollar, which had been under pressure in recent sessions.In addition, investors remain attentive to reports…