Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Trump Questions USMCA Renewal as Trade Talks Continue 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
The Japanese yen continued to struggle on Wednesday, slipping further as investors remained focused on the widening interest rate gap between Japan and other major economies. Despite expectations that the Bank of Japan (BOJ) will tighten monetary policy next week, the yen hovered near 156.82 per dollar after a sharp 0.6% decline the previous session, showing no clear catalyst for the move. The currency also stayed pinned near a record low against the euro, while the Australian dollar maintained its strong performance against the yen following Tuesday’s gains.
Analysts attribute the yen’s vulnerability to rising long-term U.S. yields and ongoing concerns about Japan’s fiscal outlook. Alex Hill of Electus Financial noted that market sentiment continues to pressure the yen and suggested further weakness may extend into the new year. He added that crosses such as kiwi/yen and Aussie/yen appear well positioned for additional upside. Although the BOJ is expected to raise interest rates, investors are watching closely for signals from Governor Kazuo Ueda regarding the bank’s future policy direction, particularly as Japan weighs new fiscal measures that complicate its already delicate economic landscape.
Broader currency markets traded cautiously ahead of the U.S. Federal Reserve’s policy announcement. A 25-basis-point rate cut is widely expected, keeping the dollar stable with the dollar index holding at 99.23. The euro traded near $1.1625, while sterling edged slightly higher to $1.3301. Market participants will be closely analyzing Fed Chair Jerome Powell’s comments and the updated dot plot, which may offer clues about rate cut expectations for 2026.
In the commodity-linked currencies, the Australian dollar traded at $0.6643 after nearing a three-month high on hawkish remarks from the Reserve Bank of Australia. The New Zealand dollar eased slightly to $0.5776. Investors remain attentive to U.S. economic data and shifting inflation expectations as central banks navigate diverging policy paths.
