Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
The U.S. dollar held firm on Thursday, poised for its strongest weekly performance in nearly a year, bolstered by a weakening yen and growing global political uncertainty. Market sentiment has been rattled by leadership shifts in Japan, political turmoil in France, and an ongoing U.S. government shutdown, prompting investors to seek refuge in safe-haven assets like gold.
The Japanese yen faced intense pressure after conservative leader Sanae Takaichi was appointed head of Japan’s Liberal Democratic Party, paving the way for her to become the country’s first female prime minister. Expectations of continued fiscal stimulus and loose monetary policy have fueled the yen’s decline. The currency was last seen at 152.49 per dollar, recovering slightly from an eight-month low of 153. It remains down over 3% for the week, marking its worst performance since September 2024.
“The dollar/yen rally has been relentless,” noted Carol Kong, currency strategist at the Commonwealth Bank of Australia. “If Takaichi maintains her dovish stance and the BOJ signals no near-term rate hikes, the yen could weaken further after the October policy meeting.”
In Europe, the euro traded modestly higher at $1.1639, halting a three-day losing streak but still down 0.9% for the week amid France’s political crisis. President Emmanuel Macron is expected to name a new prime minister within days following Sebastien Lecornu’s resignation.
Elsewhere, sterling edged up to $1.3413, and the Australian dollar rose to $0.6594, while the New Zealand dollar gained 0.1% to $0.5792 after a sharp fall triggered by a surprise 50 basis point rate cut by the Reserve Bank of New Zealand.
The Federal Reserve’s September meeting minutes revealed officials’ growing concern over labor market risks but ongoing caution about inflation. Despite the uncertainty, investors continue to expect around 44 basis points of rate cuts by December, keeping the dollar index steady at 98.77.
