JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
The U.S. dollar hovered close to a one-week low against major currencies on Wednesday, as investors awaited the Federal Reserve’s widely anticipated interest rate cut later in the day. Market sentiment remained cautious, with traders closely watching policy cues from central banks in Japan, Australia, and Europe.
The greenback weakened further against the Japanese yen after U.S. Treasury Secretary Scott Bessent indicated that Japan’s new government is open to potential Bank of Japan (BOJ) rate hikes. The dollar slipped 0.2% to 151.84 yen, extending losses from Tuesday. Bessent, currently in Japan with U.S. President Donald Trump for talks with Prime Minister Sanae Takaichi, said Japan’s willingness to give the BOJ policy flexibility would be key to stabilizing inflation and curbing currency volatility.
Meanwhile, the Australian dollar reversed early losses and rose 0.3% to $0.6604 after stronger-than-expected consumer inflation data dampened expectations for a rate cut by the Reserve Bank of Australia next week.
Market attention now turns to Fed Chair Jerome Powell’s post-decision remarks, with analysts noting that investors have largely priced in a dovish tone. “A lot of dovishness is baked into the curve, with a December cut almost fully discounted,” said Kyle Rodda of Capital.com. “Any deviation could spark volatility.”
Adding to market uncertainty, traders are also monitoring an upcoming meeting between President Trump and Chinese President Xi Jinping in South Korea, expected to address trade tensions and rare-earth export policies.
The U.S. dollar index stood at 98.681 after two days of declines. The euro held steady at $1.1655, while the British pound edged up 0.1% to $1.3278. The European Central Bank, also set to meet Thursday, is expected to leave rates unchanged.
