Financial Markets React to Madura’s Capture January 5, 2026 (158) President Trump’s efforts to replace Madura was pitched originally as a solution to the U.S. Fentanyl problem, but the deeper motive of this still unfolding narrative is a gambit to drive up Venezuelan oil production, cheapen the price of fossil fuel energy and drive faster…
Yearend Seasonality of EUR/USD January 1, 2026 The most widely followed bilateral relationship in the first quarter century of the era of flexible dollar exchange rates was that against Germany’s Deutsche mark. After 1998 the euro assumed the role of dollar performance bellwether when eleven European countries adopted the euro. The number of economies using…
December 2025 and Full 2025 in Figures January 1, 2026 Gold and silver prices soared in 2025, as the dollar experienced its weakest performance in almost a decade. Despite central bank interest rate cuts in Europe and North America, long-term interest rates advanced somewhat. Bitcoin swung all over the place but fell only around 6%…
Japan and China Officials Playing Closer Attention to Their Currencies December 29, 2025 (159) An abbreviated summary of this month’s Bank of Japan Board meeting that lifted the short-term policy interest rate to a 3-decade high of 0.75% states that ” business sentiment has not been weak” and predicts that “next year’s wage hikes at…
Next Week’s Menu: December 27, 2025 – January 2, 2026 December 26, 2025 Central Banks: A summary of the December Bank of Japan policy review and minutes from this month’s Federal Open Market Committee meeting will be published. Those reviews respectively resulted in a 25-basis point interest rate hike in Japan’s case and a 25-basis…
Egyptian Central Bank Rate Cut December 26, 2025 Monetary officials at the Central Bank of Egypt implemented their fifth interest rate cut of 2025 and signaled that more downward moves next year will be likely. The new main operating rate of 20.5% will be flanked by an overnight lending rate of 21.0% and an overnight…
Day After Christmas Remains Subdued December 26, 2025 The Christmas holiday has been extended in many countries, including most of Europe, Canada, Australia, New Zealand, South Africa, Hong Kong and Indonesia. Japan was open both Thursday and Friday. Although President Trump has authorized that today will be a federal holiday this year, most banks plan…
Next Week’s Menu: December 20-26, 2025 December 19, 2025 Central Banks: Monthly fixing of China’s Loan Prime Rates. The Bank of Japan will publish Board minutes, and BOJ Governor Ueda delivers a speech. Holidays and Special Event: Most markets, including those in the United States, Switzerland, Germany, France, Italy, New Zealand, Australia, Canada, Ireland and…
Russian Interest Rate Cut December 19, 2025 The Bank of Russia has cut its interest rate by another 50 basis points, but the level remains high at 16.0% versus on-year CPI inflation of 6.6% in November, which was a 26-month low. “Proinflationary risks still prevail over disinflationary ones in the mid-term horizon.” The central bank…
Bank of Japan Rate Hike December 19, 2025 As widely anticipated, the Bank of Japan implemented its first interest rate increase in 11 months. At 0.75%, the short-term deposit facility has attained its highest level in in just over three decades. Today’s fourth increase since March 2024 won unanimous approval by the central bank board…