Financial Market Newsletter

Two major events in focus for global financial markets this week are the inauguration of President Donald Trump and the Bank of Japan’s (BOJ) January policy meeting.

US's core CPI, which excludes food and energy, climbed 0,2% - its smallest gain since July and below the 0,3% forecast.

The USD weakened against the EUR (-0,63%) yesterday but remains close to its two-year high of $1,03, as lower-than-expected U.S producer inflation data.

China’s central bank recently reinforced its commitment to restraining the yuan’s depreciation, as the currency flirts with a 17-year low.

The USD/JPY exchange rate dipped by 0,15% yesterday but has still logged a gain of over 0,5% so far this week, trading at approximately $158 earlier this morning.

Minutes from the Federal Reserve’s December 17 - 18 meeting, released last night, reveal mounting concerns over stronger price pressures in 2025, driven by the likelihood that President-elect Donald Trump will increase tariffs on imported goods.

The USD declined sharply in early-week trading following mixed signals about the aggressiveness of President-elect Donald Trump’s proposed tariff schedule when he takes office on January 20.

The Australian dollar (AUD) saw its steepest decline in 6 years in 2024, and this downward trend may not be over yet, as the currency heads toward $0,60 in the first quarter of this year.