The most important central bank meetings this week and expectations:

The interest rates of the Fed, the Bank of Japan and the Bank of England are in the spotlight this week.

The Federal Reserve

The Fed is expected to cut interest rates by 25 basis points on Wednesday, abandoning the cut next January.

The US dollar also received additional support from rising US Treasury bond yields.

With inflation exceeding the central bank's annual target of 2%, Fed policymakers have stated that the recent hikes are part of the bumpy path of reducing price pressures and not reversing the deflationary trend.

But they are also likely to be wary of renewed inflation with Trump taking office next January.

There are concerns that the incoming administration's policies may be inflationary, but as the governor of the Bank of Canada commented earlier this month, decisions cannot be based on possible US policy, and Jerome Powell may follow suit at the next meeting.

Bank of Japan

The yen struggled to recover after last week was its worst week since September, especially after some news came out indicating that the Bank of Japan is inclined to abandon raising interest rates next Thursday.

Bank of England

As for the British pound, it is also under pressure after data on Friday showed a sudden economic contraction, and the Bank of England is scheduled to announce its policy decision just hours after the Bank of Japan's decision.

Bitcoin to a new record high

On the other hand, the bitcoin cryptocurrency rose by 3.7% above the levels of 106,500 dollars for the first time, supported by the plans of President-elect Donald Trump, who suggested last Friday during a press interview that he would go ahead with a possible strategic reserve of bitcoin, similar to the strategic oil reserve.

During his election campaign, Trump promised to make the United States the cryptocurrency capital of the planet.