The Japanese yen jumped 1% to around 150 per dollar on Friday, hitting a six-week high as investors reacted to data showing Tokyo inflation rose above 2% in November. The inflation data reinforced expectations for another interest rate hike from the Bank of Japan in December. Markets now price in about a 60% chance of a 25 basis point rate hike next month, up from about 50% a week ago. Tokyo's inflation figures are often seen as a leading indicator of national price trends, with national CPI data usually following in about three weeks. However, national CPI for November will not be...
The dollar index dropped below 106 on Friday, on track to lose about 1.5% for the week, marking its first weekly decline in nine weeks. The initial pullback was sparked by the nomination of Scott Bessent as US Treasury Secretary, which provided markets with a sense of stability and eased concerns over drastic policy shifts under the incoming Trump administration. The decline gained momentum on Wednesday after US PCE inflation data met expectations, signaling little change in the Federal Reserve's stance on interest rate cuts. Markets are now pricing in a 66.5% chance of a 25 basis point...
Oil prices edged lower in Asian trade on Friday and were headed for a weekly loss on expectations of easing tensions in the Middle East, with focus shifting to the upcoming OPEC+ meeting. Crude was hit by the announcement of a ceasefire between Israel and the Lebanese militant group Hezbollah, although whether the truce will hold remains unclear. Escalating tensions between Russia and Ukraine - following a series of debilitating attacks on Kyiv - provided limited support to crude, while overall trading volumes were limited due to the U.S. Thanksgiving holiday. Brent crude futures expiring...