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Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
The U.S. dollar weakened on Thursday after the Federal Reserve struck a less-hawkish tone than investors anticipated, prompting traders to increase bets on further rate cuts in 2025. While the Fed lowered interest rates by 25 basis points as expected, Chair Jerome Powell’s comments during the post-meeting press conference signaled a more dovish outlook, surprising market participants who were positioned for a firmer stance on inflation.
Analysts noted a clear shift in tone compared to the Fed’s October meeting. Nick Rees, head of macro research at Monex Europe, said the commentary leaned “dovish,” encouraging investors to short the dollar. As selling pressure increased, the euro climbed above the key $1.17 threshold, touching $1.1705—its strongest level in nearly two months. Sterling also gained, reaching $1.3391, and the Japanese yen strengthened 0.25% to 155.64 per dollar, recovering slightly from recent weakness driven by wide interest-rate differentials.
The dollar index fell to 98.543, its lowest since late October, reflecting broad softness across currency markets. Tony Sycamore of IG said traders had expected the Fed to repeat the hawkish tone from October but instead received signals that support risk-asset rallies into year-end.
Market sentiment now leans toward two additional rate cuts next year, exceeding the Fed’s own projection of just one. The central bank also announced it will begin purchasing short-dated Treasury bills starting December 12, with an initial round of roughly $40 billion aimed at supporting market liquidity. The move boosted bond markets, pushing the two-year Treasury yield down to 3.5340% and the 10-year yield to 4.1332%.
Analysts at Societe Generale said the earlier-than-expected T-bill purchases helped spark a rally led by short-term Treasuries. In commodity-linked currencies, the Australian dollar eased to $0.66665, while the New Zealand dollar slipped to $0.5812 after recent highs.
This shift in Fed policy expectations continues to shape global currency flows and investor positioning as markets look ahead to 2025.
