Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Trump, Xi Focus on Trade and AI at White House Summit 
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The Japanese yen surged to a nine-week high as investors bet on further interest rate hikes by the Bank of Japan (BOJ), while the U.S. dollar held steady ahead of key payroll data. The dollar slid 0.25% to 151.09 yen, breaking below 151 for the first time since December 10. Market momentum was fueled by expectations of continued rate hikes, supported by recent wage data. BOJ board member Naoki Tamura reinforced hawkish sentiment, suggesting rates should reach at least 1% in fiscal 2025.
Analysts at Barclays see further downside for the dollar-yen pair, citing Japan's annual wage negotiations, which are expected to yield another solid 5% increase. Inflation remains above the BOJ’s 2% target, adding to pressure for higher rates.
Meanwhile, traders await U.S. nonfarm payroll data, with economists forecasting a steady 4.1% unemployment rate and 170,000 new jobs in January. However, revisions by the U.S. Census Bureau may complicate market reactions, analysts at Commerzbank warned.
Dallas Fed Bank President Lorie Logan signaled a prolonged rate hold, even if inflation nears the Fed’s 2% goal, provided the labor market stays strong. Market expectations suggest a 43% chance of a Fed rate cut in July, with around 44 basis points of total cuts priced in for 2025.
Elsewhere, the euro remained flat at $1.0382, while the British pound dipped 0.1% to $1.2426 following the Bank of England’s forecast of weaker growth and higher inflation. Two BOE officials even advocated for larger rate cuts.
Geopolitical risks persist as U.S. President Donald Trump suspended tariffs on Mexico and Canada but imposed new 10% levies on Chinese imports, adding to market uncertainty.
