The US dollar rose on Wednesday from its lowest level in a week, while the Japanese yen fell as the demand for safe haven faded after the Russian Foreign Minister said that the country will do everything possible to avoid the outbreak of a nuclear war.
DXY
The dollar index rose today after a three-day decline.
The index rose to its highest level in a year last Thursday, supported by expectations of big fiscal spending, higher tariffs and tighter immigration under the next US administration, measures that economists say could boost inflation and possibly slow down the Fed's easing.
The market is currently pricing in a US interest rate cut of 25 basis points at the December meeting of less than 60%, down from 82.5% a week ago.
USDJPY
The dollar-yen pair has risen on Wednesday to the levels of 155.80 so far, as the yen's fall to a three-month low has increased bets on a possible hawkish turn in the Bank of Japan as it approaches the levels it entered last July.
The pair is still targeting levels of 159 to 160 in the medium term.
GBPUSD
The GBPUSD pair got a brief boost after data showed that British consumer inflation accelerated faster than expected in October, supporting the view that the Bank of England will reduce interest rates only gradually in the coming months.
Bank of England Governor Andrew Bailey said on Tuesday that the central bank needs to take a gradual approach to easing.
Traders currently see an 84% chance that the Bank of England will keep interest rates steady at its policy meeting next month.
BTCUSDT
Bitcoin this week climbed to an all-time high near the levels of 94,000 dollars, driven by expectations of a more regulatory environment for cryptocurrencies under Trump.
A report also said that Trump's social media company is in talks to buy cryptocurrency trading company Bakkt, which boosted hopes for a further rise of cryptocurrencies under his management.
